Selling "penny stocks" is not working your way up the brokerage chain it just tells prospective customers you don't know what your doing and should not be trusted. Also no respectable brokerage firm wants their sales representatives selling penny stock.
You want to open an "investment center" you can not by law sell penny stocks since they are not considered investment vehicles.
If you are going to do retails trades with the general public, you must be licensed through a registered broker/dealer And as a sales rep for a broker/dealer you can only sell those products approved by the firm and not respectable firm would permit their sales staff to sell penny stocks.
If you want to start your own brokerage you must first be prepared to put up at least $25000 and try to obtain a registration with the SEC, but if you want to do penny stock (or start with penny stocks), there's no way the SEC will appove your registration.
You are failing to realize that penny stocks are considered "crap" and the SEC has been, for years, trying to rid the industry of those that want to trade and/or buy and sell them. Broker/dealrs that want to deal in them are having problems with their SEC registration, their inusrance carriers, clearing firms and other regulatory agencies.
What you want to do is not aceptable in the investment community nor tolerated by both the SEC and FINRA.
Sounds like you're trying to recreate Wolf of Wall Street. Good luck not getting sued for massive losses caused to investors. The current generation isn't the same as that movie's generation. You can't get away with just investing in terrible stocks. You're actually liable for investor losses. Hence why investment brokers must apply for insurance, which they have to fork out of their own pocket.
Regardless, there's no particularly special requirements. You just need to become an investment broker, that specializes in penny stocks. That's all. You're free to open up a company once you have the capital to open one. You can't just "sell" penny stocks that you don't actually own. You actually have to get investors to buy them, with their own capital.
Update: I'm in Canada, so the process is slightly different, however, generally, you apply for a license and successfully complete an exam to be qualified to be a broker. You can take courses to learn the material for that exam. After that, your license is on hold until you've purchased insurance, and then it's approved.
Here's the problem: You would have to get a brokerage license, then be able to market them. Telemarketing like in the Wolf of Wall St is no longer viable. Maybe you could sell them online. However, to sell the pieces of crap that penny stocks are, you would have to lie and misrepresent, leaving yourself open to fraud and various other criminal charges. So try to SELL (not sale for Christ's sake) something else.
Obviously yes there is alot of paperwork required in this type of field. If you are asking those questions on a messageboard then you aren't even close to being ready to do something like that. Get a college degree so you have some kind of understanding on what you are actually talking about.
Mia may be correct (as usual) for Canadians but not in the United States. "A Nobody" gave you a correct response for the U.S.
If you did start you own business, how are you going to route (enter) your orders you'd have to have an executing broker/dealer be willing to accept crappy orders in crap stocks.
Also, how are you going to clear your transactions, most clearing firms do want to touch penny stocks,
Also how are you going to store the stocks, since they are not DTC nor bank acceptable
Personally yuou should re-think your game plan, it's not going to fly at least not in the U.S.
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get licensed. and then prepare to lie to your prospects.
I'm 18, no college education. I've always been able to sale anything, so i figured why not work my way up the brokerage chain.
I want to know, how can I, legally, begin to sale penny stocks for people? And how can I, legally, open up a small "Investments center"?
I'm sure there's some kind of paper work or tests I have to complete in order for the SEC to allow me to sale penny stocks.
Please give me advice.
