Before you can get registered to work in securities, you will need to pass the appropriate FINRA qualification exam. The Financial Industry Regulatory Authority not only regulates the securities industry, but also qualifies professionals who work in the industry by offering different exams that let test takers demonstrate their competencies. Since there are so many different activities and functions within the field of securities, there is a long list of exams that you can take. Some qualification exams are much more common than others within the finance sector. Here are some of the most common options to consider if you want to become an advisor or representative.
The Series 6 for Limited-Investment Securities
The Series 6, which is referred to as the Investment Company and Variable Contracts Products Representative Examination, is specifically for entry-level professionals who plan on selling packaged investment products and variable contracts like mutual funds and annuities. While many representatives who work for an investment firm will apply for the Series 6, it is important for insurance agents who sell variable annuities or life insurance products to possess this license, as well. This is why this is perhaps the most popular qualification exam administered today.
The Series 3 for Sales of Commodity Futures Contracts
Another popular qualification exam is the Series 3, which is called the National Commodities Futures Examination. This National Futures Association exam is strictly for professionals in the industry who deal with risky, publicly traded commodity futures contracts. Since this is such a risky specialization that requires a lot of knowledge to mitigate the risk, representatives who deal in selling managed futures will only operate in this area of the industry. This is why it is common for someone with a Series 3 to only possess a Series 3 license.
The Series 7 for General Securities Sales
The Series 7, which is the General Securities Representative Qualification Examination, is specifically for general securities reps who sell individual securities. By passing this exam, the representative will be registered to sell common stocks, bonds, and other types of investments. Out of all of the exams, the Series 7 has the most questions and takes the longest to complete. It is, however, very popular for banking professionals in all settings.
How to Choose the Right Qualification Exam For You
With all of the series numbers and license titles, choosing the right qualifications exam can be a daunting task. If you want to sell products, you need to decide what you are going to sell. Choosing a platform is a great first step. After you have decided on a platform, you can then focus on licenses that you will be required to hold. Someone working at a retail firm as a broker may require a different license than an independent firm working in financial planning.
Since finance is a sector that is always growing, it is a wise investment to earn a securities license. Start by choosing a platform, find the right exam, and then start to study by getting training materials and setting aside time for rigorous reviews. Once you have found the right FINRA qualification exam, schedule your exam date and you will officially be a securities licensee.
