How Can I Become a Professional Investor?


Quick Answer

To become a professional investor, a person must obtain the necessary accreditation from either the SEC or FINRA, notes Forbes. This accreditation ranges from brokerage licenses to professional certification.

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How Can I Become a Professional Investor?
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Full Answer

Professional investors establish credibility either through their own practice or as an employee of a larger financial institution. As a self-employed individual, a person needs to register with the Financial Industry Regulatory Authority, notes Chron. As a professional investor employed by a financial institution, it is critical that the institution be registered with the Securities and Exchange Commission.

Regardless of the career path chosen, a person can also obtain various licenses, notes Chron. Each license relates to a different aspect of investing, whether it is managing packaged funds, buying and selling securities, or providing financial guidance.

After obtaining these licenses and practicing financial expertise, a person becomes designated as a registered principal, notes FINRA. In addition to obtaining a license, a person can also receive credibility as a professional investor by becoming either a certified financial planner or chartered financial analyst. A certified financial planner considers general concepts, including retirement planning, tax implications, insurance and estates, notes the Wall Street Journal. In contrast, a chartered financial analyst focuses specifically on investment topics such as stocks, bonds, hedging strategies and company financial statements.

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