Do you aspire to be a stock broker? Then, you should know that there are various requirements that you need to complete before you can attain your dream.
Aside from completing certain trainings, you may want to know what licenses are necessary to becoming a stock broker.
Series 7 License
If you want to sell securities, give legal advice to clients, request and perform transactions, you need to get a Series 7 license. After passing the Series 7 license exam, you are now qualified to become a registered agent in the United States.
The Series 7 exam or also known as the General Securities Representative Examination is administered by the Financial Industry Regulatory Authority (FINRA).
The test is comprised of seven significant functions of registered agents: looking for business for the dealer, assessing customer intents and needs, counseling clients, supervising records and accounts of customers, clarifying the markets and related factors, performing client orders, and supervising portfolios of clients.
The test lasts for six hours and consists of 250 multiple choice questions. In order to pass the exam, the candidate must have at least 70% correct answers.
Series 6 License
Brokers and agents of mutual fund and investment firms must have a Series 6 license. This FINRA license test is composed of 100 multiple choice questions. The areas that the test assesses are: common and ideal stock, commercial and administration securities, taxation, accounts of customers, mutual funds, pensions, and changeable insurance products.
The test can be held at any selected testing centers in the country. Just like the Series 7 license exam, the applicant must have 70% correct answers to pass the exam. In order to take the test, an applicant must be sponsored by a company.
Series 63 License
A broker who wants to pursue a profession in stock brokerage or security trading must pass the Series 63 exam.
The test is administered by the FINRA as well, and is composed of 65 multiple choice questions that need to be finished in 75 minutes or less. In order to pass the exam, the applicant must have 72% correct answers.
Series 66 License
Those who have interest in pursuing a career in the finance industry must take a Series 66 exam. It is considered as a joint license. If an individual passes the Series 66 exam, it also means that they have also passed the Series 63 and 65 exams.
It is composed of 100 multiple choice questions. The applicant must have 71% correct answers in order to pass the exam. The areas tackled in the test are: Securities Registration, Securities Evaluation, Registration and Licensing for Agents, Rules and Regulations and Business Practices. This website’s homepage offers more information concerning a stock broker career and salary.