Anyone can be a stock trader with an online trading account. A few brokerage firms have even removed any minimum dollar amount to open an account. But if you are interested in being a serious day trader or even a licensed stock broker, you'll need to do a little more than fill out an online form.

Sign Up

No matter how serious of a stock trader you are interested in becoming, the first thing you should do is open an account to see how things work. "Barron's" magazine rates the 25 leading online brokers according to what is best for long-term trading, frequent trading, options trading and international trading. You don't want to have to open numerous accounts, so try to find what suits you best before you start trading. Consider also the minimum amount to open an account, monthly fees and the cost per trade. To open an account, you'll need to provide personal information, such as Social Security number, home address and employer details. It will take approximately three to five business days to transfer money into the account. Some firms don't require any minimum dollar amount to set up a basic trading account but for an options trading account, you'll typically need $2,000.

Do Research

Before you start buying and selling stock like a Wall Street tycoon, you should do thorough research on the stock market and the companies in which you are buying stock. All of the online trading firms have sections of their websites dedicated to research, headlines and business data. One of the best sources of information is a company's annual financial report, which are available at the Security and Exchange Commission's (SEC) EDGAR database. The primary sources of many stock traders are the expert analysts who work at the major brokerage firms and wealth management companies. There are also a wealth of books on the subject.

Become Licensed Broker

If becoming a stock trader to you means actually working as a stock broker, the road to becoming a trader is a bit longer. Like any profession, the top firms hire the best prospects who have put their time in at an elite school and at a good internship. Once you land that entry-level job, you will be put through a number of training periods depending on the type of trading firm. Besides learning the intricacies of trading stock at a professional level, you will have to take tests, such as the Series 7 exam for general securities and the Series 63 exam to become a securities agent. Check with your state to see their requirements. Expect to put in a few years of long hours at a humble pay level before you start to see the results and promotions. The U.S. Bureau of Labor Statistics reports that the median annual salary of securities, commodities and financial services sales agents was $68,680 in May 2008.

Source:

"Barron's" Magazine: The 25 Leading Online Brokers; Theresa W. Carey

U.S. Bureau of Labor Statistics: Securities, Commodities, and Financial Services Sales Agents

More Information:

Security and Exchange Commission: Filings & Forms

MarketWatch.com: Getting Started