How to Become a Financial Advisor in 7 Steps

There are approximately 300,000 financial advisors in the U.S., according to the Bureau of Labor Statistics (BLS). ¹ If you’re interested in joining their ranks, it’s helpful to understand what pursuing this type of career entails. Becoming a financial advisor isn’t just about passing exams or earning licenses; it’s about choosing a career that fits your skills, motivations and long-term goals. The profession offers the chance to make a meaningful impact on people’s lives, but it also comes with responsibility, ongoing education and persistence. Many aspiring advisors aren’t sure where to start or what the path actually looks like.

Add new clients and AUM at your desired pace with SmartAsset’s Advisor Marketing Platform. Sign up for a free demo today.

Step 1: Understand What a Financial Advisor Does

A financial advisor provides advice on managing finances in exchange for payment. Advisors can have various certifications that qualify them to recommend financial products and give advice on building wealth. Advisors also aim to help their clients save more money, plan for retirement and invest while managing risk.

The first step in becoming a financial advisor is simply understanding the scope of the profession. Do your research on what the role entails and how it can differ depending on your background and area of focus. If you know any advisors, ask them about the position and what a day in the life of a financial advisor looks like to get a good idea of whether or not it’s the right profession for you.

If you don’t know anyone in the profession, you could start networking with advisors in your area. Our lists of top advisors in different areas can offer inspiration on where to start.

Client Acquisition Simplified: For RIAs

• Ideal for RIAs looking to scale.
• Validated referrals to help build your pipeline efficiently.
• Save time + optimize your close rate with high-touch, pre-built campaigns.

CFP®, CEO

Joe Anderson

Pure Financial Advisors

We have seen a remarkable return on investment and comparatively low client acquisition costs even as we’ve multiplied our spend over the years.

Pure Financial Advisors reports $1B in new AUM from SmartAsset investor referrals.

Target New Clients This Year

I am a registered fiduciary*

Book Your Free DemoNot sure? Learn more about AMP.

Step 2: Earn a Degree

A college degree isn’t a hard requirement to become an advisor if you plan to start your own firm. However, you’ll generally need at least a bachelor’s degree to earn certain professional certifications.

For instance, if you’d like to become a Certified Financial Planner™ (CFP®), the CFP Board requires you to have a bachelor’s degree at a minimum. You’ll also need a bachelor’s degree to complete Level III of the CFA exam, the final hurdle to earning a Chartered Financial Analyst designation. Many employers, meanwhile, require candidates to have an associate’s degree or bachelor’s degree to be considered for an advisor position.

Senior advisory roles may require you to have a master’s degree in business, finance, or a related field. And if you’re interested in eventually transitioning to a research role, you might consider a Ph.D. in financial planning or a similar area of study.

Become a Top Financial Advisor

Referrals and market gains aren't enough. Grow with the all-in-one advisor marketing platform.

Get Started

Step 3: Gain Experience in Financial Services

Gaining experience as an advisor is something of a catch-22, as you may need experience to land certain jobs. Researching entry-level positions or exploring internship opportunities can help you gain a foothold. You might also consider a support role, such as a client services associate position, or working as a paraplanner.

Joining a firm in a support role or working with an advisor will help you gain experience and knowledge in the field. This experience may prove valuable as you progress in your career and potentially work towards becoming a full-time advisor. The professional relationships you build may serve you well, particularly if you’re hoping to gain a mentor.

If you’re looking for a job, consider targeting firms that will pay for you to obtain a securities license or professional certifications. You get the benefit of professional development and on-the-job experience without straining your budget.

Step 4: Choose a Career Path

Thinking there’s one type of financial advisor is like thinking there’s one type of doctor. The truth is that different advisors specialize in different areas of finance. Still, you’ll likely see two common titles between financial advisors: investment advisors and financial planners.

One isn’t necessarily better than the other, and the one you choose can depend on the types of services you’d like to offer and the client niche you hope to serve. Keep in mind that these advisor categories are not mutually exclusive; you could work for an RIA as an IAR and also hold the CFP® marks.

Step 5: Obtain Necessary Licenses and Certifications

Technically, there’s no formal certification process required to become a financial advisor. However, many of the typical activities of an advisor, such as buying and selling securities, require specific licenses. FINRA issues these licenses upon passing exams. Here are some of the major licenses that a financial advisor may pursue:

On top of these licenses, if you want to advance your career, you might want to consider becoming a CFP®. The CFP® certification requires four parts, also known as the four E’s:

Step 6: Build a Client Base

Building relationships with clients is key to your success as a financial advisor. It helps to make connections and foster them with excellent service. Up until this part in the process, you’ve been building your knowledge. Now is when you get to use that knowledge and experience to help others.

This is where marketing comes in. Marketing is a key component of building your client base, and with it, your book of business. But where do you start, and how do you get clients? The following are some of the strategies you could consider:

• Advertising, brand development and hosting free workshops and educational events are all ways to get your name out there and potentially generate new leads for your business.
• You can also consider identifying niche markets or demographics that you’d like to target, including people in certain professions or age groups.
• Cold-calling, getting referrals from current clients and paying for leads are also ways to connect with prospective clients.

If you’re looking to expand your marketing and lead generation efforts, you may consider trying SmartAsset AMP, a holistic client prospecting and marketing automation platform. The service matches advisors with high-intent investors and can make live over-the-phone connections with them.

A 2024 Broadridge survey of financial advisors found that converting marketing leads into clients takes an average of 3.6 months. ² To help advisors stay in contact with leads, SmartAsset AMP offers compliant automated text and email outreach, as well as automated email nurture campaigns.

On top of focusing on your clientele, make connections with other people in adjacent businesses. Connect with a tax accountant or a real estate agent and refer clients to that professional. Down the road, they may be inclined to return the favor and refer clients to you, too.

Step 7: Continue Your Education

If you haven’t noticed by now, being a financial advisor means you need to constantly stay educated. Regulatory requirements will make it obligatory for you to maintain certain licenses with additional education and exams. For example, the CFP Board requires 30 hours of continuing education (CE) every two years, including two hours in ethics.

The CFP® designation is also highly respected among advisors, especially those who provide financial planning services. CFP® professionals also make 11% more than other financial planners, according to the CFP® Board’s 2026 Compensation Study. ³

Along with regulation, education is a great way to grow your career. For example, you could go on to become a chartered financial analyst (CFA), which would improve your ability to analyze investments. This new title can then be marketed to attract clients in need of such expertise.

Other Professional Certifications to Consider

Beyond foundational licenses, many financial advisors pursue additional certifications to deepen expertise and stand out in the marketplace. These credentials can signal specialization, build credibility with clients and open doors to serving more complex planning needs. Here’s a look at other financial certifications that you may consider pursuing:

How to Know if Being a Financial Advisor Is a Good Fit For You

Becoming a financial advisor starts with understanding the realities of the role beyond surface-level appeal. Advisors work closely with clients on deeply personal topics like money, family goals and long-term security, which requires strong communication skills and emotional awareness. If you enjoy problem-solving and helping people make sense of complex decisions, the work can be highly rewarding.

Comfort with responsibility is also essential. Financial advisors regularly guide clients through decisions that can have lasting financial consequences, from retirement planning to investment strategy. This requires integrity, attention to detail and a willingness to put clients’ interests first, even when conversations are difficult.

It’s also important to consider your tolerance for uncertainty and long-term effort. Building a successful advisory practice takes time, especially in the early stages, and income may not be predictable right away. Advisors who are patient, self-motivated and resilient tend to be better suited for the gradual growth curve of the profession.

Finally, think about whether the career aligns with your preferred lifestyle and strengths. Financial advising can offer flexibility, autonomy and strong earning potential, but it also demands ongoing education and accountability. Reflecting honestly on your skills, motivations and work style can help you decide whether becoming a financial advisor is the right path for you.

Frequently Asked Questions (FAQs)

Bottom Line

If you want to know how to become a financial advisor, know that there are multiple routes. While we’ve outlined seven steps for you here, the truth is that your path may not follow this exact plan. What’s important is that you start down the path and find the way that works for you. Speak to as many financial advisors as you can and get their advice about how they got started. This could spark the path that fits your work style.

Tips for Becoming a Financial Advisor

• Need help marketing your business or finding new leads? SmartAsset AMP (Advisor Marketing Platform) is a holistic marketing service financial advisors can use for client lead generation and automated marketing. Sign up for a free demo to explore how SmartAsset AMP can help you expand your practice’s marketing operation. Get started today.
• The most important qualification to look for in a financial advisor is adherence to fiduciary duty. A fiduciary advisor is legally bound to act in their client’s best financial interests. Learn how you can exhibit this fiduciary duty as a financial advisor.

Photo credit: ©iStock.com/Extreme Media, ©iStock.com/SDI Productions, ©iStock.com/kate_sept2004