Nick Robinson is a writer, instructor and graduate student. Thus, those who hold this title must live up to strict standards when it comes to client relations. If you’re looking to work with a financial advisor, you may be confused by the different types of licenses and certifications they hold. Get your Series 7 License with STC: Over 1,000,000 people have used STC to pass their securities licensing exam. Applicants are subject to background and credit checks, and although there are no formal criteria, Investopedia reports that serious credit issues or a criminal record can be disqualifying. Applicants must be sponsored by an existing licensed securities firm, according to Wall Street Oasis. One of the most popular ones is the. The Series 7 Exam is six hours long and features 260 multiple choice questions, although only 250 questions count towards the final score. Compare the Top 3 Financial Advisors For You, Understanding Financial Products and Their Risks, Understanding Trading, Customer Accounts and Prohibited Activities, Reviewing clients’ investment needs and goals, Work as the middleman between broker-dealers and clients, If you’re interested in working with a local financial advisor, SmartAsset’s, When it comes to seeking a financial advisor, licenses aren’t everything. The relevant exam for prospective advisors is the Series 65 exam. FINRA: Series 7 - General Securities Representative Examination, Investopedia: Should You Add a Securities License to Your Qualifications, Financial Planner World: Series 7 Exam Quick Reference, Financial Planner World: Series 66 Exam Quick Reference, Forbes: Differences Between Stockbrokers, Investment Advisors and Financial Planners, E Financial Careers: 7 Tips for Acing the Series 7 and Other Financial Exams, Financial Planner World: A General Guide to FINRA Exams, Investopedia: Breaking Down Securities Licenses. Bank of America® Travel Rewards Visa® Credit Card Review, Capital One® Quicksilver® Cash Rewards Credit Card Review, Financial Industry Regulatory Authority (FINRA), 7 Mistakes Everyone Makes When Hiring a Financial Advisor, 20 Questions to Tell If You're Ready to Retire, The Worst Way to Withdraw From Your Retirement Accounts. When you’re shopping around for a financial advisor, you should always seek what kind of licensing he or she holds. A common pitfall is to try to memorize answers, but a better strategy is to focus on concepts. How Much Do I Need to Save for Retirement? Most of Robinson's writing centers on education and travel. FINRA Requirements to Maintain a Series 7 License. If you want a find a financial advisor who has a Series 7 certification, check out our free financial advisor matching tool. The series 7 license allows the bearer to operate as a general securities representative. These individuals can sell virtually any security. It covers various topics such as financial industry regulations and client communications, as well as different types of securities and their associated risks. If you just memorize a rule, you may have trouble applying it to novel hypotheticals. Series 7 Education Requirements Before someone can take the Series 7 Exam , they must pass the Security Industry Essentials (SIE) Exam. These sections are titled: Once they pass the SIE Exam, they will gain eligibility for the Series 7 Exam. FINRA administers the exam. Understanding why the rule exists will help you. This license not only allows them to sell most securities, but it also means they have extensive knowledge around financial topics. According to Financial Planner World, questions are drawn from four distinct areas: the job functions of a securities representative, the tasks required to perform those functions, the underlying knowledge required to perform the functions, and the rules and regulations governing securities trading. Although they are prohibited from defrauding clients, they are not required to act in their client's best interest. Once this exam is passed, the test taker will become a Series 7-certified professional. To pass the exam, applicants must answer at least 175 of the 250 scored questions correctly for a score of 72 percent or better. The Series 65 is the most … For 50 years STC has helped many students prepare for their series 7 licensing exam. Applicants must answer at least 75 questions correctly to pass. Eligibility requirements for the Series 66 are the same as the Series 7, with the additional requirement of completing the Series 7 as a prerequisite. This tests a plethora of financial topics, including investment products and risks, the structure of the securities market, regulatory agencies and more. Even before taking the Series 7 Exam, practitioners must pass the SIE Exam. If you are ready to get your Series 7 license, our Series 7 program will help you pass with confidence. You can't just cram for the test at the last minute and expect to pass. The Series 66 exam allows individuals who have already passed the Series 7 exam to register as investment advisers. Individuals operating as securities representatives typically earn commissions on sales of securities to their clients. However, the Series 7 license does not allow these registered professionals to sell commodities, futures, real estate and life insurance products. Some also have special certifications that help them stand above the pack. Even if you pass the exam, you aren't guaranteed a license. Below is an overview of what’s covered on the Series 7 Exam: Beyond extensive industry knowledge, financial professionals with Series 7 certifications must live up to stricter standards than unlicensed ones. FINRA enforces strict regulations Series 7-licensed professionals must abide by in order to keep their jobs and serve their clients as best they can. STC’s series 7 … Before deciding to pursue an advanced degree, he worked as a teacher and administrator at three different colleges and universities, and as an education coach for Inside Track. All 125 questions are multiple-choice. Passing FINRA exams, like the Series 7 and Series … Before someone can take the Series 7 Exam, they must pass the Security Industry Essentials (SIE) Exam. If you’re working with someone holding a Series 7 license, you can expect them to have expert knowledge of the following topics: Series 7 financial advisors and other practitioners also specialize in building diversified, risk-assessed investment portfolios for their clients. Finally, practice on up-to-date materials since FINRA rules change almost every year. The other 10 are research questions for use on later exams. Eligibility requirements for the Series 66 are the same as the Series 7, with the additional requirement of completing the Series 7 as a prerequisite. According to FINRA, this exam “assesses a candidate’s knowledge of basic securities industry information, including concepts fundamental to working in the industry, such as types of products and their risks; the structure of the securities industry markets, regulatory agencies and their functions and prohibited practices.”. In order to sell any type of security besides commodities and futures, financial services practitioners must pass the Series 7 Exam. Officially, it’s called the General Securities Registered Representative Exam (GSRE). Over 1,000,000 people have used STC to pass their securities licensing exam. Passing FINRA exams, like the Series 7 and Series 66, is a bit like running a marathon, according to E Financial Careers. For 50 years STC has helped many students prepare for their series 7 licensing exam. Forbes: Series 63, Series 65 or Series 66. The Financial Industry Regulatory Authority, or FINRA, requirements for maintaining a Series 7 license ensure that individuals stay abreast of changes in the corporate securities industries. This exam is not recognized in all states and must always be taken with another securities agent licensing exam (such as Series 6 or Series 7). As you can see, those with Series 7 licenses have strict standards to follow. Series 63 Exam – Uniform Securities Agent. Beating the Exams. But the Series 7 license … Series 7 for RIAs. The Series 7 and Series 66 licenses are two such examples, with the Series 7 license serving as a prerequisite for the Series 66. Series 7 licensees are entitled to buy, sell and trade all forms of securities, ranging from stocks and bonds, to options and futures contracts, according to FINRA. The Series 7 alone lasts six hours, so you should take a few full-length practice exams to improve your stamina. Securities Training Corporation has trained over a million experts in the financial industry since 1969. Questions cover general economic theory, relevant state and federal law, investment strategies and general investment characteristics. This tests a plethora of financial topics, including … STC’s series 7 exam pass rates are over 20% higher than the national average, Gain access to practice exams, flashcards, instructor hotline and more, To take the Series 7 exam, you must be associated with and sponsored by a member firm, Upon receipt of candidate eligibility information from your sponsoring organization, FINRA will email you enrollment instructions, After you enroll, you will have a 120-day window to schedule your exam at a Prometric test center, You can find more enrollment info on the FINRA website, After you enroll to take the exam, you have 120 days to schedule and take the exam at a Prometric test center, You can schedule your exam at www.prometric.com/finra or by calling their Contact Center at (800) 578-6273, Be sure to review your exam confirmation email for your exam-day details, Arrive 30 minutes before your scheduled exam, You will also receive a printed copy of your score report, You must pass both the Securities Industry Essentials (SIE) exam and the Series 7 exam to obtain the General Securities Representative registration. Securities industry professionals holding a Series 7 license are qualified to sell a broad range of securities, such as corporate securities, municipal securities, options, direct participation programs, investment company products, and variable insurance products (permitted all licensing requirements … Because the Series 7 Exam weighs heavily on portfolio building and asset-allocation concepts, it’s best to seek these professionals when considering serious investing or retirement planning decisions. All Series 6 and Series 7 … Copyright 2020 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. The Series 63 Exam (Uniform Securities Agent) is administered in conjunction with the North American Securities Administrators Association (NASAA). Below, we list some common ones as well as what these credentials allow advisors to do. Licensees often work as stock brokers or traders for investment banks or hedge funds. Most work in the financial industry requires obtaining at least one license from the Financial Industry Regulatory Authority, or FINRA. There are no educational requirements to sit for the Series 7 exam, but you can't just walk in off the street and take the test. While the Series 7 allows individuals to sell securities to their clients, the Series 66 license allows them to act as wealth or asset managers with fiduciary responsibility over their client's funds. The Financial Industry Regulatory Authority (FINRA) administers this test, and most employers in the financial services industry require their employees obtain the Series 7 license. The Series 7 license stands out in the industry, because practitioners must pass one of the longest and most rigorous exams in the industry to obtain it.