Paid for Performance

• Typically, a stock broker's income is commission-based. This means that a broker earns money only when he can successfully conclude a transaction on behalf of his client. As a result, stock brokers face the "feast or famine" situation common to anyone working in commission-based sales environments. While this can mean a slim paycheck, there is also no limit to the income a broker can earn, and some brokers earn a substantial salary.
  
  

Education & Licensing

• Depending on the hiring company, a formal education--often a bachelor's degree--may be a requirement even to be considered as a stock broker. Because many stock brokers are paid based on performance, some companies are willing to relax educational requirements if an application has significant sales experience or is highly motivated.
  
  Licensing is a different story, however. Virtually all stock brokers must pass the difficult Series 7 Exam in order to be able to trade for or advise clients regarding stocks and other financial products. In some cases, additional examinations are required. The Series 6--which covers the sales of insurance products such as annuities--is a popular example.
  
  

Obtaining Clients

• "Cold calling," the practice of contacting an unsolicited potential client, is the primary and most efficient method stock brokers use to generate new business. In fact, for the first few years of a stock broker's career much of his time will be spent on the phone cold calling, or working to locate quality lists of potential new clients whom they may call later.
  
  

The Book

• While a few, questionable stock brokers aren't interested in establishing long-term relationships with new clients, the vast majority are sincerely interested in forming a profitable rapport--one that earns his client profits while generating commissions for the broker. In the process, a stock broker builds his "book," which is a detailed journal of clients, their trading habits and preferences, financial capabilities, and more. Established brokers often sport a substantial book and, eventually, have little or no need to cold-call. The existing base of clients is all they need to succeed as a broker.
  
  

Work Hours

• New and poorly-established stock brokers often work long hours of 60+ hours or more each week. This is largely due to the fact that cold calling is a numbers game--more phone calls means more clients, and making phone calls takes time. As a broker builds his book, less time is required on the phone and a typical work week slims to 40 hours, or even less. Some well-established brokers even hire licensed assistants to "work their book" and cold call, allowing the broker to close prospective deals his assistant generates and focus on his most important and valuable clients.