How to Start a Stock Brokerage

Obtain sponsorship to take your Series 7 exam. You will need sponsorship from a Financial Industry Regulatory Authority (FINRA) member firm or from a self-regulatory organization (SRO). This often comes as a result of employment as a stockbroker with a licensed brokerage.
Pass the Series 7 exam, also known as the General Securities Registered Representative Examination. This test is administered by the NASD (National Association of Securities Dealers). You also need to obtain your Series 63 license if you have not already done so, as well as the Series 24, which permits you to run your own office.
Write a business plan outlining how you will run your stock brokerage. You need to make sure your potential investors believe you have a sound vision for your stock brokerage firm. Include information such as expected expenses, your marketing plan, employee growth goals, and targeted markets.
Present your business plan to potential investors. If you worked in another stock brokerage, you might be able to meet with some of the investors from that company. Tap into your social and business network for other investors. Meet with banks to obtain a loan if you can't get enough investors on board.
Obtain a business license, as well as any required permits for doing business in your area, by filling out all the necessary paperwork through the Secretary of State's office. You also must register your firm with the National Association Of Securities Dealers (NASD).
Hire a securities lawyer and consult with him to make sure you've obtained all necessary paperwork and that everything is up to date. Having the legally required licenses and permits and to start a stock brokerage firm is of utmost importance and can get complicated depending the state you're in.
Hire a fully licensed compliance officer. Ensure that your head compliance officer has passed the Series 14 exam.
Hire employees to work in your stock brokerage. You'll want to interview many candidates and make sure they have experience and education to work for you in the capacity you require. You will mostly need stockbrokers and may later need to branch out and hire secretaries and human resource workers. Stockbrokers must be properly licensed. Ask to see documentation of this licensing before hiring anyone.