We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

How do I Become a Floor Trader?

Margo Upson
By
Updated Mar 02, 2024
Our promise to you
Practical Adult Insights is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At Practical Adult Insights, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

A floor trader is someone who is a member of a stock exchange, and trades for their own account, instead of for others. They are also sometimes called registered competitive traders, liquidity providers, and locals. Becoming a floor trader is risky, and not for the weak of heart. Because you are using your own money on the stock market, it is easy to see great gains or great losses throughout the course of a single day.

To become a floor trader, you should first attend college and earn a business degree. A bachelor’s degree would be fine, but you are better off with a master’s degree. Spend time studying fundamental analysis, and other courses that will be of assistance to you in your career. A higher degree may give you a slight edge over other floor traders. The more you know about how the stock exchange works, the better you will be able to do as a floor trader.

After completing a degree, the next step is to get experience in the stock exchange. It is a very fast-paced, competitive career field. Getting a feel for how it works, before you set out on your own, is essential to being able to do well. Working for a brokerage is one way to get an idea of how the system operates. After some time there, look for work as a clerk. A clerk is someone who does the exact same work of a floor trader, but for another person. This is a great way to really get the hang of what you will be doing every day as a floor trader.

While working for others, it is time to begin saving for an exchange membership. These memberships are necessary for being able to trade on the exchange floor, and they are very expensive. On the New York Stock Exchange (NYSE) seats sell for around two million US Dollars (USD). An annual membership for the Chicago Stock Exchange costs around $7,000 USD, not counting other fees that may apply. For a cheaper option, it is possible to lease a membership temporarily, but you will still eventually need your own.

Once you have bought a seat for a stock exchange, you are able to go out onto the floor to begin your career as a floor trader. Using the information and experience you have gained along the way, it is possible to earn a lot of money in your new profession. With success, it is possible to enjoy an early retirement, spent sailing around the world in your new yacht or visiting far-off countries in your private jet. Good luck!

Practical Adult Insights is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Margo Upson
By Margo Upson
With a vast academic background that has ranged from psychology and culinary arts to criminal justice and education, Margo Upson brings a wealth of knowledge and expertise to her role as a Practical Adult Insights writer. Her wide-ranging interests and skill at diving into new topics make her articles informative, engaging, and valuable to readers seeking to expand their knowledge.
Discussion Comments
Margo Upson
Margo Upson
With a vast academic background that has ranged from psychology and culinary arts to criminal justice and education,...
Learn more
Practical Adult Insights, in your inbox

Our latest articles, guides, and more, delivered daily.

Practical Adult Insights, in your inbox

Our latest articles, guides, and more, delivered daily.