Interest in financial services careers continues to rise, driven by a diverse set of factors.
There’s a growing movement to boost financial literacy among teens and young adults, while many seasoned professionals are seeking more purposeful second careers. The surge in affluent individuals across the U.S. has also heightened demand for trusted financial guidance. On top of that, we’re on the cusp of a historic generational wealth transfer from baby boomers to younger generations. Notably, women are expected to inherit a significant share of this wealth — and they’re showing a stronger preference than ever for personalized, human-centered financial advice.
While the industry offers a broad spectrum of career paths, the stockbroker remains one of the most iconic roles. These days, they’re more often called financial advisors or registered representatives, but the essence of what they do has largely stayed the same.
Yet, despite the growing interest in financial services, the number of practicing professionals is actually on the decline. A recent report by McKinsey & Company highlights a looming talent gap, projecting a shortfall of nearly 100,000 financial advisors within the next decade. This downward trend is driven by an aging workforce, a lack of robust recruiting and a new generation of professionals seeking careers that offer greater innovation and flexibility.
The good news? Many firms are stepping up, reimagining the role to meet modern expectations. For those considering the field, there’s no better — or more timely — moment to explore a future as a stockbroker.
— What is a stockbroker?
— How to become a stockbroker.
— Should you become a stockbroker?
What Is a Stockbroker?
A stockbroker executes orders or places trades on behalf of an individual or institution.
Before the advent of online trading platforms, trading required membership to a major exchange like the New York Stock Exchange or the Nasdaq. For those who weren’t members, access was only possible through member firms that operate under the oversight of the Financial Industry Regulatory Authority, or FINRA, as licensed broker-dealers.
[Sign up for stock news with our Invested newsletter.]
Most stockbrokers work for a brokerage firm. In addition to executing trades, a stockbroker can also conduct sales activities. They are typically paid a commission, although firms may offer other compensation options. Both full-service and discount brokers are focused on movements in an investment portfolio, rather than creating the actual investment strategy. A small number of stockbrokers work for investment banks or specialty brokerage houses that focus on institutional clients and ultra-high-net-worth individuals.
While the titles of stockbroker and financial advisor are often used interchangeably, advisors tend to distinguish themselves by focusing on the broader picture — holistic financial planning that includes everything from tax strategy to retirement goals. Advisors also trend toward an assets-under-management fee compensation rather than transaction-based commissions.
There’s also the voice broker — a professional often employed by discount brokerages to provide a personal touch through call center support or concierge-style services. These brokers are invaluable when a situation requires nuance, empathy or exception thinking — qualities that only humans are able to currently provide.
A robo advisor is a service offered by a brokerage firm that does not involve a human stockbroker. It typically uses an algorithm and is designed to be a low-cost alternative to a traditional service. While some feared these tools might make human brokers obsolete, they have instead underscored the importance of personalized service, especially for clients with complex needs.
[Read: 7 Best Europe ETFs to Buy for 2025]
How to Become a Stockbroker
Educational Requirements
While many positions in financial services do not require a college degree, a bachelor’s degree is necessary to become a stockbroker.
No specific major is required in this role. Because the field involves a deep understanding of financial principles, laws and regulations, many aspiring traders will seek a major in business administration, finance, economics or even accounting to prepare for a career in this field. That said, coursework in psychology or sociology can also be valuable, especially for those who want to evolve into comprehensive planning roles where understanding human behavior is key.
Licensing and Regulatory Requirements
To legally perform the duties of a stockbroker, you’ll need to be licensed.
Most firms will help new hires navigate the licensing process, which usually includes a time limit for passing required exams.
The FINRA General Securities Representative Exam, also known as the Series 7 exam, is one of the most commonly required tests. As FINRA states, “The (Series 7) exam measures the degree to which each candidate possesses the knowledge needed to perform the critical functions of a general securities representative, including sales of corporate securities, municipal securities, investment company securities, variable annuities, direct participation programs, options and government securities.”
Depending on the state and the scope of your work, you may also need to pass:
— Series 63 (Uniform Securities Agent State Law Exam)
— Series 65 (Uniform Investment Advisor Exam)
— Series 66 (Uniform Combined State Law Exam): This exam is a combination of Series 63 and Series 65.
These exams require significant study to pass, but there are excellent programs designed to help students successfully learn the content. Many firms will pay the costs associated with both a reputable study program and sitting for the exam. However, some firms may require the student to front the expenses and provide reimbursement upon achieving a passing score.
On-the-Job Training
If you’re unsure whether to invest in the education and licensing required for the position, it is prudent to learn more about the field before committing.
An excellent way to do so is to start as a client service associate. This entry-level position offers firsthand exposure to the day-to-day of a financial services office. You will gain an appreciation for the paperwork and process to properly onboard new clients, how to professionally communicate with clients and other key practical skills.
If you enjoy the atmosphere and team approach to the investment field, you will be even more prepared to pass your exams.
Professional Development
Large firms provide structured career paths for advancement, alongside significant training in selling skills, client behavior and other key functions of the various positions in the firm.
Over time, given the sheer volume of career options, you will find yourself naturally inclined toward:
— Large firms that are often generalists, meaning that they are established to provide investment services to any client who meets their income and net worth profiles.
— Boutique firms that have crafted a niche market, meaning clients with overlapping profiles, such as medical professionals or small business owners.
— Specialty teams that focus on ultra-specialized interests, such as bass tournament fishermen, as their ideal target clients.
Smaller, boutique firms often provide quicker access to partnership opportunities and allow you to carve out a more defined brand in your local market. These firms can be particularly welcoming to women and minority advisors, offering inclusive cultures and unique growth opportunities. Training can be found by attending industry conferences and accessing educational meetings provided by industry vendors and online programs.
All practitioners should consider expanding their career opportunities by seeking global credentials. These may include the certified financial planner (CFP) and chartered financial analyst (CFA) professional designations. Each are recognized by their respective industries and clients served as evidence of professional competency and acumen. Additionally, newer designations, such as the American College’s Tax Planning Certified Professional (TPCP), enable practitioners to simultaneously upgrade their skills and increase their value to their clients.
Should You Become a Stockbroker?
Becoming a stockbroker can be both financially lucrative and personally rewarding.
According to PayScale.com, the average base salary for a stockbroker in 2025 is $68,130 with the potential for total compensation coming in just under $150,000.
But the value of this career goes beyond income. As a broker, you’re helping clients navigate one of the most important aspects of their lives: their financial future. Whether it’s saving for retirement or funding a child’s education, your guidance can help shape life-changing decisions. Ultimately, you can become an expert in advanced planning topics such as estate transfer and business exit strategies.
There is no specific path to success in this field. Your journey will be guided by your drive, your interests and the people you choose to serve.
With dedication and heart, a career as a stockbroker can become a deeply fulfilling calling.
More from U.S. News
10 Best Industrial Stocks to Buy
5 Best Russell 2000 ETFs to Buy Now
7 Best Stagflation Stocks to Buy in 2025
How to Become a Stockbroker originally appeared on usnews.com
Update 04/15/25: This story was previously published at an earlier date and has been updated with new information.
