The path to stock brokerage usually involves formal training, certifications, and licenses. Most stockbrokers begin as career
financial advisors or broker representatives and then go on to get their brokerage license after completing training on
financial markets, products, regulations, and often sales, and passing exams (
Series 7 and
Series 63).
Australia Up until January 1, 2019, investment professionals that offer financial advice in
Australia had to pass training pursuant to
RG146. They must hold an
Australian Financial Services Licence that is overseen by the
Australian Securities and Investments Commission. They are subject to
fiduciary obligations. As of 2019, Australia's biggest online stockbroker was
Commonwealth Securities, other large brokers were
ANZ Share Investing,
nabtrade and
Westpac Online Investing.
Canada In
Canada, to be licensed as a "registered representative" or an "investment advisor" and thus be qualified to offer investment advice and trade all instruments with the exception of derivatives, an individual employed by an investment firm must have completed the
Canadian Securities Course, the Conduct & Practices Handbook, and the 90-day Investment Advisor Training Program. Within 30 months of obtaining designation as a "registered representative", the registrant is further required to meet the post-licensing proficiency requirement to complete the Wealth Management Essentials course. A registered representative is also required to complete 30 hours of professional development (product knowledge) and 12 hours of compliance training every three year continuing education cycle as set out by the Investment Industry Regulatory Organization of Canada. To trade options and/or futures, a registered representative must pass the Derivatives Fundamentals Course in addition to the Options Licensing Course and/or the Futures Licensing Course, or alternatively, the Derivatives Fundamentals Options Licensing Course for options.
Hong Kong In
Hong Kong, to become a representative one has to work for a licensed firm and pass 3 exams to prove competency. Passing a fourth exam results in obtaining a "specialist" license. All tests can be taken with the Hong Kong Securities Institute. After passing all tests, approval must be received by the
Securities and Futures Commission.
India Share brokers in
India are governed by the
Securities and Exchange Board of India Act, 1992 and brokers must register with the
Securities and Exchange Board of India (SEBI). The
National Stock Exchange of India and the
Bombay Stock Exchange via brokers, provide an ecosystem to investors to trade in capital markets through various channels - broker offices, investment advisor or screen-based electronic trading system. An individual employed by an investment firm must complete the National Institute of Securities Markets (NISM) exam and apply to SEBI for registration as an Investment Advisor. Stock market advisory and research services are highly regulated in India. Only SEBI registered stock advisory and investment research analysts are allowed to do so. The complete details of these authorized persons are available on website of SEBI for protection of investors.
Ireland The recognized benchmark designation for investment professionals in
Ireland is the QFA ("qualified financial adviser") designation, which is awarded to those who pass the Professional Diploma in Financial Advice and agree to comply with the ongoing "continuous professional development" (CPD) requirements. The qualification, and attaching CPD program, meets the "minimum competency requirements" specified by the Financial Regulator, for advising on and selling five categories of retail financial products: • Stock shares, bonds, and other investment instruments • Savings, investments, and pensions • Mortgage loans • Consumer credit • Life insurance As of 2019,
Davy and
Goodbody were Irish largest stockbrokers.
New Zealand In
New Zealand, the
New Zealand Qualifications Authority oversees qualifications. The New Zealand Certificate in Financial Services (Level 5) is the minimum level of qualification necessary to offer investment advice.
Singapore In
Singapore, becoming a trading representative requires passing 4 exams, modules 1A, 5, 6 and 6A, from the Institute of Banking and Finance and applying for the license through
MAS and
SGX.
South Africa The
Johannesburg Securities Exchange rules require that member firms must be under the control of a "qualified stockbroker", who is also an
executive director of the firm; and branches, likewise managed. The South African Institute of Stockbrokers (SAIS) offers the six exams required to become such, a Certified Stockbroker, or CSb(SA), following 3 years' work experience, and with other educational requirements met. SAIS also offers the
Financial Markets Practitioner vocational certification as well as various "Regulatory Recognition" examinations. See also re. "Regulated Positions" and "Registered Persons" at
South African Institute of Financial Markets.
South Korea In
South Korea, the
Korea Financial Investment Association oversees the licensing of investment professionals.
United Kingdom Stockbroking is a regulated profession in the
United Kingdom and brokers must achieve a recognised qualification from the Appropriate Qualifications list of the
Financial Conduct Authority (FCA). The
Chartered Institute for Securities & Investment (CISI), established in 1992, is the largest UK professional body for investment professionals. It evolved from the London Stock Exchange, has around 45,000 members in over 100 countries and delivers more than 40,000 exams each year. CFA UK also offers various FCA Appropriate Qualifications. It represents the interests of around 12,000 investment professionals and is part of the worldwide network of members of the
CFA Institute.
United States The
Financial Industry Regulatory Authority, a
self-regulatory organization, regulates investment professionals in the
United States. Exams that individuals may take for accreditation include the
Series 7 exam, the
Uniform Securities Agent State Law Exam (Series 63), the
Uniform Combined State Law Exam (Series 66), and the
Uniform Investment Adviser Law Exam (Series 65). Individuals holding some of those licenses, such as the
Series 6 exam, cannot be called stockbrokers since they are prohibited from selling stocks. Selling variable products, such as a
variable annuity contract or
variable universal life insurance policy, typically requires the broker to also have one or another state insurance department licenses. Individuals and firms are regulated by the
U.S. Securities and Exchange Commission and laws related to the
Investment Advisers Act of 1940, including laws related to
fiduciary. == Notable stock brokers ==