What kind of financial investment does it take to start a career
in securities?
Investment in your new securities career is surprisingly low. For under $500, you can be trained, tested, licensed, and ready to sell securities in just a couple of weeks.

What’s the difference between the different types of FINRA exams for securities licenses?
The most basic license type will require you to take and pass Series 6 and Series 63 exams. The Series 6 exam covers securities law at the national level; Series 63 covers state-specific securities laws. A Series 6 license limits your sales to mutual funds and variable annuity and variable life insurance products. 

The Series 7 license broadens your scope to allow you to sell all types of securities, corporate, municipal, US government securities, options, direct participation programs, investment company products, and variable contracts. If you obtain a Series 7 license, you do not need to get a Series 6 license.

Series 65 and Series 66 allow you to serve in the capacity of an investment advisor.

What are “blue sky” laws?
Dating back to the 1930’s, “blue sky” laws refer to state-specific laws regulating securities activities in their respective states. Generally, both you and your firm must be registered in each state in which you do business with customers.

What’s covered on the FINRA exams?
The areas in which candidates are tested include federal securities laws; Securities and Exchange Commission and FINRA rules and regulations; securities products; the operation and interrelation of financial markets; economic theory and kinds of risk; corporate financing, accounting, and balance sheet analysis; portfolio theory and analysis; fair sales practices, including solicitation and presentation; types of customer accounts; and tax treatment of various investments.

How difficult are the exams?
Exams cover the material in your study materials. They are not designed to be tricky. When you spend the time studying until you are confident you know the material, you will pass.

Do I need a college degree to get my securities license?
No. However, a solid background in business, economics, or finance does help with shortening your learning curve. 

What is a U-4 form?
The U-4 is FINRA’s uniform application for securities industry registration or transfer. A U-4 is used by your employer to register you with FINRA and is available from your firm’s managing broker. It’s usually submitted electronically.

Who must register as a securities representative?
Anyone actively involved in an FINRA-member investment banking or securities business must be registered as a representative with FINRA.

Who is the National Association of Securities Dealers (FINRA)?
Authorized by an act of Congress in 1938, FINRA is a membership self-regulatory organization of securities firms. FINRA sets the overall strategic direction and policy agendas of the whole organization, oversees the effectiveness of its subsidiaries, and ensures that the organization's statutory and self-regulatory obligations are fulfilled.

FINRA regulates the securities markets for the benefit and protection of the investor. FINRA helps ensure that member firms and their employees comply with FINRA and Municipal Securities Rulemaking Board (MSRB) rules, as well as federal and state securities laws and regulations.

If I pass an FINRA exam, do I still have to take the Series 63 exam?
Most states require the Series 63 (Uniform Securities Broker State Law Examination) of individuals who will transact a securities business. This qualification requirement adds on to FINRA's mandates.

If I fail my exam, is there a waiting period before I can take the
exam again?
Yes. You may take the exam again 30 days after the date of the prior examination. If you fail an exam three or more times in succession, you must wait until 180 calendar days have elapsed from the date of your last attempt to pass the exam.

How long is the valid enrollment period for an exam?
The enrollment period is 120 days (4 months).
 
May I be licensed in just securities, or do I need to be licensed as an insurance broker too?
You do not need to hold an insurance license prior to selling securities. Individuals may be licensed as just an insurance broker, just a securities representative, or may hold both licenses simultaneously.

When can I start selling securities?
After your registration is effective, you may conduct a securities business as a broker only while under the direct supervision of your firm.