How to Become a Licensed Investment Broker

Investment brokers, also referred to as stockbrokers, are the go-between the sellers and buyers of investments. An investment broker has to be licensed, and make money by charging a commission on the trades that they execute. You also have to obtain a college degree to become a licensed investment broker.

1. Earn a finance related degree. Most investment brokers obtain a bachelor’s degree in finance, business, accounting, economics, or marketing. You should find a school that offers financial and investment classes that you can take. In most cases, your classes will cover things such as portfolio planning, using financial software, economic theory, and planning for your Series 7 exam.


2. Earn an advanced degree, such as your Master of Business Administration (MBA) in a financial related field. This will give you the edge on other people when you try to find a job as an investment broker. Someone with his or her MBA would get the job over someone who only had a bachelor’s degree. If you want to start working after obtaining your bachelor’s degree, many companies will help you pay for your tuition if you want to pursue your MBA while working.


3. Take the Series 7 exam and pass it. All investment brokers have to take the General Securities Registered Representative Examination (Series 7) before they can become a licensed investment broker. The exam will take you approximately 6 hours to complete, and is given by the Financial Industry Regulatory Authority (FINRA). The exam has 250 questions that you have to answer. Prepare well for the exam.


4. Complete your certification to become an investment broker. You can also receive your certification as a Certified Financial Planner (CFP) or Certified Financial Analyst (CFA). To become a CFP, you have to have at least 3 years’ experience working as a financial planner, have your bachelor’s degree, and pass an exam.