How to Be a Broker Dealer

A broker dealer is an individual who engage in securities transactions. The profession is under the securities industry that is monitored and regulated by the Securities and Exchange Commission.

Before a person can qualify to practice the profession he or she should know first how to be a broker dealer.

Being a broker dealer, an individual can practice the profession by working in a company or as an independent broker dealer. If you want to practice on your own then you can choose to become an independent broker dealer. This will allow you to sell securities and other investment products on your own. However, whatever option you may choose you need to secure the necessary requirements to practice the profession legally. Nevertheless, the requirements of a broker dealer are different as compared to agents and salespeople. This profession allows you to maximize the profits from all the transactions through the broker fees as well as commission. Thus, an independent broker dealer should have knowledge about financial advisory businesses in order to realize financial independence.

Steps in Securing the Requirements

The first step that an individual should do is to apply for certifications and licenses required by the state or the federal level. Without the necessary certification and licenses the broker dealer can legally sell securities and other investment products. The licenses differ according the security and investment product to offer. If you will be a broker dealer for vehicle and insurance products you should obtain other certifications. Likewise, you should be a member of the Financial Industry Regulatory Authority. In this sense, you need to follow the ethics, rules and procedures set by the Federal Government. As a member of the organization you should follow the guidelines of the government and use legal authority enforcing the codes of conduct of the industry.

In like manner, you should also be a member of the Securities Investor Protection Corporation. Being a member of the organization you will be protected from possible financial distress and bankruptcy.

This is because the organization can reimburse the possible loses of investors. It is just like being covered by an insurance policy for the benefit of the clients. Independent broker- dealers are required to be a member of the SIPC.

After securing the necessary certifications and licenses you can then file the application form to the Security and Exchange Commission. Aside form the contact information and employer ID number, the applicant is also required to provide the specific business purpose including the product to sell. The applicant should also identify the form of organization. Series of questions should be undertaken to know the personal and professional history of the applicant. After fulfilling all the requirements you can then start to practice your profession to be a broker-dealer. The success of your profession relies on how you will execute the selling of securities.


  • Sophear Ly said on March 13, 2013
    Hi! Sir or Madam. I want to be a broker and I want to export the rice from Cambodia to Canada. Can you please tell me, what should I do?
  • Dass said on February 10, 2015
    Dear Sir, I would like to do small business dealing with tissue paper in Bangalore. one of my native having business at Vizag and would like to sell in Bangalore. Kindly advise how to do business buying from vizag and selling in Bangalore


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