How to Become a Stock Broker in California

California is an excellent state to work in as a stock broker due to the abundance of job opportunities and wealthy residents looking for someone to manage their money. Stock brokers make money by investing money for clients into different stocks and bonds, selling them for a profit and then collecting a commission. Brokers can also invest their own money into stocks. Being a stock broker is one of the highest paying professions in America, but it's also one of the riskiest. In just a few seconds, literally, a stock broker can make or lose hundreds, thousands or even millions of dollars. A stock broker must be able to quickly predict whether or not a particular company or industry is going to succeed or fail, in order to make a profit for her clients.

Instructions

1. Attend a four-year college or university and earn an undergraduate degree in an area of study related to finance, such as accounting, economics or business.

2. Enroll in graduate school and earn an MBA. You do not need to possess an MBA to get hired as a stock broker; however, many of your fellow applicants will have an MBA.

3. Pass the Series 7 Exam. The Series 7 Exam, which was once called the General Securities Representative Exam, is an exam that all stock brokers must pass in order to be licensed to work as a broker in the U.S.

4. Send your resume to Californian stock brokerage firms.

Tips & Warnings

• There is no specific degree required to become a stock broker; however, without a college degree you will have a hard time competing with other applicants. College courses in math and economics will also help you perform better on your Series 7 Exam.

• There are no state requirements to become a stock broker. Once you are working as a licensed stock broker in California, you can work as a stock broker in any other state.

• Most stock brokers working in California work in the larger cities such as Los Angeles, San Francisco and San Diego where there are the most clients available.

• Stock trading is a stressful and high-risk profession. A stock broker can lose extremely large sums of money very quickly if he makes a bad decision.

References

• Degree Directory: What Are the Education Requirements for Becoming a Stock Broker?

Resources

• SEC: Series 7 Examination
• FINRA: General Securities Representative - (Series 7)
• Geek Shares: Stockbroker Job Requirements and Careers: Facts and Fiction