How to Become a Financial Advisor in 6 Steps

If you have a knack for managing money and a passion for helping others achieve their financial goals, a career as a financial advisor could be a great fit. There are multiple pathways to enter this field, with various certifications and areas of specialization. Whether you’re a recent graduate or considering a career change, there are clear steps to get started.

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

Step 1: Get Familiar 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 maybe give you somewhere to start.

Step 2: Get an Internship or a Job With a Financial Advisor or Advisory Firm

If you decide you want to become a financial advisor, consider joining a financial advisory firm, or work with a single financial advisor. This would be the next step in your career.

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.

An internship at an advisor can be a great place to start, especially if you’re still in school. The relationships you form while interning may lead to a full-time job after school as well as great professional references.

If you’re looking for a job, target firms that will pay for you to get licensed. You may not need to have any experience in finance, either. A lot of firms are looking for people with sales backgrounds to sell their services, so if you have that experience, emphasize it. However, they may also give you the on-the-job training you need if you don’t have sales experience.

Step 3: Determine What Type of Financial Advisor You Want to Be

A woman interviews with a financial advisory firm.

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.

Investment advisors: Registered Investment Advisors (RIAs) are professionals that help clients pick and manage their investments. They focus on creating an investment strategy to meet goals and manage risks. RIAs must register with the U.S. Securities and Exchange Commission (SEC) and act in their clients’ best interest by law.
Financial planner: A Certified Financial Planner™ (CFP®) takes a more holistic approach. While a CFP® can offer investment advice, they also offer services like budgeting, retirement planning and inheritance planning. All CFP®s are fiduciaries and must act in their clients’ best interests.

Step 4: Obtain the Necessary Licenses and Certifications

Technically, there’s no formal certification process required to enter the profession of being 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:

Series 3 license: You need this license to sell commodities futures.
Series 7 license: This license allows you to become a stockbroker or security trader, and it’s required that you work at a FINRA member firm to acquire the license.
Series 63 license: If you want to sell securities, you need the Series 63 License.
Series 65 license: This is the license you must have to make recommendations and manage client investments.
Series 66 license: The Series 66 is a combo of Series 63 and Series 65. It allows you to sell securities and manage your client’s portfolio.

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 4 E’s:

Education: You must hold a bachelor’s degree (or higher) in any discipline and complete a CFP® Board Registered Program course.
Exam: You must pass the CFP® exam, which is 170 multiple-choice questions administered in a day with two three-hour sessions.
Experience: You need a minimum of 6,000 hours of related professional financial planning experience or 4,000 hours of apprenticeship experience under a CFP® professional.
Ethics: You’ll be required to sign an Ethics Declaration and the CFP® Board will conduct a background check.

Step 5: 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. 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 6: 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.

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.

The CFP® designation is also highly respected among advisors, especially those who provide financial planning services. CFP® professionals also make 10% more than other financial planners, according to a CFP® Board’s 2024 Compensation Study.

Other Popular Certifications You Could Consider

Here’s a look at other financial certifications that you may consider pursing:

Certified personal accountant (CPA): CPAs have expertise in accounting and tax preparation, making them valuable resources for advisory clients who need help with tax planning. To become a CPA, a candidate must pass a four-part, 16-hour-long exam and fulfill an education requirement.
Chartered financial consultant (ChFC): Designed as an alternative to the CFP® credential, ChFC designation demonstrates a comprehensive grasp of financial planning. To get the credential, you need to pass eight courses – each with their own exams – from the American College of Financial Services.
Chartered retirement planning counselor (CRPC): Advisors who receive the CRPC credential are retirement planning experts. They’ve learned the ins and outs of income planning, estate planning and strategies for saving for retirement.
Certified investment management analyst (CIMA): The CIMA designation is especially valuable for advisors who manage investment portfolios or offer investment advice to high-net-worth individuals and/or institutional clients. CIMAs develop an expertise in asset allocation, risk management, performance monitoring, among other investment-related topics.

Understanding Why You Want to Become a Financial Advisor

One of the primary reasons you might choose to become a financial advisor is the opportunity to make a meaningful impact on people’s lives. Whether it’s helping individuals plan for retirement, invest wisely or manage their debt, financial advisors play a crucial role in improving their clients’ financial well-being. The job requires problem-solving skills and strategic thinking, making it an appealing choice for those who enjoy tackling financial challenges and creating customized solutions.

Additionally, financial advising offers significant career flexibility. Advisors can work independently, within a firm or even start their own practice. This flexibility allows for greater control over work hours and client interactions, making it a viable option for those who prefer a more self-directed career path.

The following are some of the other benefits of becoming a financial advisor:

Job stability and growth: The demand for financial advisors continues to grow as individuals seek guidance in navigating complex financial landscapes. With an aging population and increasing awareness of financial planning, advisors will remain essential in helping clients secure their financial futures.
Earning potential: Financial advisors have strong income potential, often earning commissions, fees or bonuses based on their client base and performance.
Professional fulfillment: Assisting clients in achieving financial security and long-term prosperity is personally rewarding. Advisors build lasting relationships with clients, gaining satisfaction from helping people achieve milestones such as homeownership, retirement or debt freedom.
Continuous learning: The financial industry is dynamic, requiring advisors to stay updated on market trends, tax laws and investment strategies. This constant evolution keeps the profession intellectually stimulating and provides ongoing opportunities for skill development.

Bottom Line

A financial advisor sits down with new clients.

If you want to know how to become a financial advisor, know that there are multiple routes. While we’ve outlined six 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 workstyle.

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.