Series 63: Definition and Exam Information

If you’ve ever worked with a financial advisor or broker, there’s a good chance their ability to operate in your state depends on a license you’ve never heard of: the Series 63. While it may not be as well-known as other financial credentials, this license plays a crucial role in ensuring advisors follow state-level regulations and ethical standards. Understanding what the Series 63 is, and how it affects the services you receive, can help you make more informed decisions when choosing a financial professional.

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What Is the Series 63?

The Series 63 exam, formerly known as the Uniform Securities State Law Exam, is the required test for those who wish to become an investment professional. In other words, it’s the exam for those who want to be able to buy and sell financial products like stocks, bonds, mutual funds or annuities. It focuses on the ethical and fiduciary obligations that one must uphold as an investment professional. This ensures that the client’s best interests are always top of mind.

Administered by the Financial Industry Regulatory Authority (FINRA), Series 63 is an exam created by the North American Securities Administrators Association (NASAA). FINRA is a government non-profit organization that deals with the oversight of broker-dealers in the U.S., while NASAA is an international organization that deals with investor protection.

People with Series 63 licenses are generally financial brokers. They can buy and sell securities and other financial products on an investor’s behalf. As far as financial licenses go, Series 63 is fairly common.

Services Offered By Advisors With a Series 63

Advisors who hold a Series 63 license are authorized to conduct securities business within specific states, ensuring they meet local regulatory requirements. While the license itself does not expand the range of products an advisor can offer, it enables them to legally provide investment advice and facilitate transactions for clients in the states where they are registered. This makes it a foundational credential for many financial professionals working directly with retail investors.

One of the primary services offered by advisors with a Series 63 is executing buy and sell orders for securities such as stocks, bonds and mutual funds. The license ensures that the advisor understands state-level regulations governing these transactions, helping protect investors from fraud or unethical practices. Clients benefit from working with someone who is properly authorized and compliant with local laws.

Advisors with a Series 63 often work alongside other licenses, allowing them to offer personalized investment recommendations. They can help clients build portfolios based on financial goals, risk tolerance and time horizon. The Series 63 complements these services by ensuring the advisor is qualified to deliver advice within the regulatory framework of each state.

Many Series 63-licensed advisors assist clients with retirement planning strategies, including selecting appropriate investment accounts and asset allocations. They may recommend products like IRAs or employer-sponsored plans, helping clients align their investments with long-term income needs. Their ability to operate across state lines ensures broader access to guidance.

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How to Obtain the Series 63

Most states in the U.S. require financial professionals to hold a Series 63 license. However, some do not. Check with your state’s requirements before signing up for Series 63 to make sure it’s the right move for you.

The Series 63 exam has 65 questions of which 60 count toward your final score. Candidates have 75 minutes to complete the exam. To pass and gain a Series 63 license, 43 of the 60 questions must be answered correctly for a passing grade of 72%. Exams are given at Prometric test centers. As of September 2019, it costs $135 to take the exam.

You don’t need a sponsor to take Series 63, but you’ll need to fill out the required application. You’ll then receive notice from FINRA with your 120 windows in which you must take the exam. If you work for a firm, it can sponsor you to take Series 63. You’ll need to file a Uniform Application for Securities Industry Registration or Transfer (U4) with the Central Registration Depository (CRD) so you can take the exam.

Passing Series 63 does not mean you can immediately begin working as a securities professional. You’ll also need to fill out an application, pass a background check and pay any fees that are required by your state. You’ll likely also need to pass the Series 7 exam in addition to the Series 63 in order to begin buying and selling securities professionally. Just check with your state’s requirements first.

If you fail Series 63, you must wait 30 days before taking it again. If you fail the exam three or more times though you must wait 180 days before taking it again.

Series 63 Study Plan

All NASAA tests, including Series 63, cover the Uniform Securities Act and the Statements of Policy and Model Rules from NASAA.

It may be smart to also purchase and read a Series 63 textbook. Some even come with a practice exam section. Since Series 63 has its own unique wording and question structure, it may be best to familiarize yourself with it beforehand. And be on the lookout for trick questions because Series 63 is notorious for it.

It’s also recommended to familiarize yourself with definitions used frequently in the test’s language: agents, broker-dealers, securities, administrators, and the like. You may want to study for 30 to 40 hours if you’re hoping to pass the exam on the first try.

Series 63 vs. Other Licensing Exams

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Series 63 is just one licensing exam that financial professionals can take. Here is how it compares to some other options:

Series 6 allows a financial professional to sell mutual funds, variable annuities and insurance.
Series 7 allows one to sell most types of securities, except commodities and futures.
Series 65 licenses a candidate as an Investment Advisor Representative (IAR).
Series 66 licenses a candidate as an investment advisor or securities agent, allowing them to legally give investment advice.

Keep in mind that the passing grade differs for each of the financial securities licensing exams. For example, while the passing grade for Series 63 and Series 65 is 72%, Series 66 requires 73%.

How to Find an Advisor With a Series 63

One of the most effective ways to find an advisor with a Series 63 license is by using regulatory databases like FINRA’s BrokerCheck. These tools allow you to verify an advisor’s licensing status, employment history and any disciplinary records. Starting here can help you confirm that the professional is properly registered to operate in your state.

Many brokerage firms and financial advisory companies employ professionals who hold the Series 63 license alongside other credentials. Choosing an advisor through a well-known firm can provide an added layer of oversight and accountability. It also increases the likelihood that the advisor meets both federal and state regulatory requirements.

Because the Series 63 is often paired with other licenses, it’s important to review an advisor’s full set of credentials. Look for qualifications that align with your needs, whether that’s investment management, retirement planning or broader financial advice. Understanding their scope of services can help you determine if they’re a good fit.

Before committing, consider speaking with a few advisors to compare their approach and communication style. A qualified advisor should be able to explain their recommendations clearly and discuss how they meet regulatory standards. This step can also help you assess whether you feel comfortable working with them long term.

Bottom Line

The Series 63 license is a key credential that allows financial advisors to operate legally within individual states while adhering to important regulatory and ethical standards. Although it doesn’t expand the types of investments an advisor can offer on its own, it plays a critical role in ensuring compliance and protecting investors. For clients, working with a Series 63-licensed advisor can provide added confidence that their investment guidance and transactions meet state requirements and are handled with professionalism.

Tips for Becoming a Financial Professional

A financial professional with a Series 63 license is expected to meet ethical and fiduciary obligations. If you’re looking for a financial advisor, consider all of the licenses they may hold. Finding a financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
If you have a financial advisor of your own, consider asking their advice for obtaining Series 63. They may have tips for studying or resources that can help you prepare. You can also learn more on your own about all of the biggest securities exams.