A Guide to the Biggest Securities Licenses

To sell securities or provide financial advice, professionals must hold the appropriate licenses. These vary based on factors like the types of securities they sell and the nature of the financial transactions they advise on. The Financial Industry Regulatory Authority (FINRA) manages the licensing process for many of these credentials. It’s also responsible for upholding qualification standards and administering the necessary exams. These are the primary securities licenses available today.

Consider working with a financial advisor to get expert help with your investments or retirement planning.

Securities Industry Essentials

The Securities Industry Essentials (SIE) Exam is an entry-level test designed for individuals with a career in the securities industry. ¹

It evaluates a candidate’s understanding of industry fundamentals and key financial products. Students also learn about regulatory agencies and their roles, including permitted and restricted practices within the industry.

Exams for FINRA Membership

To become a registered representative with a FINRA member firm, candidates must also pass a qualification exam relevant to their specific job responsibilities. ²

Series 6

The Series 6 license means you can sell investment products, including. ³

• Mutual funds
• Variable annuities
• Variable life insurance
• Unit investment trusts (UITs)
• Municipal fund securities, like 529 savings plans

While financial professionals can get this license, so can insurance agents who sell variable life insurance and annuities.

If you’re looking to get the Investment Company and Variable Contracts Products registration, you’ll need to pass the Series 6 exam as well as the Securities Industry Essentials (SIE) exam. ⁴

The Series 6 exam is 90 minutes long and costs $100. ⁵

Series 7

For those looking to get the General Securities Representative registration, you’ll need to pass the SIE exam, as well as the Series 7 exam.

This license gives you permission to sell much more than a Series 6 license, including:

• Public and private stocks and bonds
• Money market funds
• ETFs
• UITs
• Real estate investment trusts (REITs)
• Hedge funds
• Government securities
• Direct participation programs (DPPs)
• Options on mortgage-backed securities
• Venture capital
• Securities traders
• Rights
• Warrants
• Repos and certificates of accrual on government securities
• Sale of municipal securities

This series is best for stockbrokers and some financial planners, advisors and insurance agents.

The Series 7 exam is almost four hours long and costs $395. ⁶

Series 3

The Series 3 license is for those who want to sell commodity futures contracts.⁷ This license is more specific than Series 6 or 7 and is generally reserved for those who specialize in selling commodity futures.

The National Commodities Futures exam is administered by FINRA but is from the National Futures Association (NFA). It’s 2.5 hours and costs $140.

The Series 31 license is like a subset of the Series 3 license. ⁸ It allows you to sell futures managed funds.

Series 63

If you want to be a stockbroker, you’ll need a Series 63 license. ⁹

This allows you to sell several types of assets:

• Stocks
• Bonds
• Mutual funds
• Annuities

Formerly known as the Uniform Securities State Law Exam, it focuses on the ethical and fiduciary obligations that investment professionals must uphold. It is a requirement for every state, and you must hold either a Series 6 or Series 7 license. 

North American Securities Administrators Association (NASAA), an international organization centered on investor protection, handles the licensing requirements for this. The exam fee is $147, and the test lasts 75 minutes.

Series 65

The Series 65 license, also known as the Uniform Investment Adviser Law Examination, is best for financial planners, advisors or others who provide financial advice. Stockbrokers and those handling managed-money accounts also need this license.

This exam was created by the North American Securities Administrators Association (NASAA). ⁹ The fee is $187, and the exam lasts 180 minutes.

Series 66

The Series 66 license, officially called the Uniform Combined State Law Examination, essentially combines Series 63 and 65. ¹⁰

If you’ve already earned both of these licenses, you don’t need to take the Series 66 exam. However, if you haven’t, you can skip taking two exams and instead take one. The Series 7 exam is a co-requisite.

The fee is $177 with a 2.5-hour exam. To prepare, experts suggest setting aside 75 to 100 hours of study time. Most people with full-time jobs can break this down into four to eight weeks of study sessions.

Series 79

The Series 79 exam, also known as the Investment Banking Representative Exam, is for financial professionals who manage:

• Mergers and acquisitions
• Asset sales
• Financial restructuring
• Debt and equity offerings
• Tender offers
• Corporate reorganizations
• Business combination transactions

To be an Investment Banking Representative, you must pass the SIE exam. You must also pass the Series 79 exam, which is 2.5 hours long and costs $395. Those who pass the exam can work as entry-level investment bankers.

How to Match a License With Your Career

There are many licensing options when entering the financial services industry, and each one opens a different door. A practical approach is to start with where you want to work and what you want to do, then work backward to the exams that get you there.

Those looking to provide investment advice through a registered investment advisory firm will generally need to pass the Series 65. This exam covers topics related to fee-based advisory services and portfolio management. State licensing and registration requirements may vary.

If the role also involves selling securities such as stocks, bonds and mutual funds, the Series 7 is typically required as well. Many professionals in this situation take the Series 66 instead of the Series 65, since it combines the content of the Series 63 and Series 65 into one exam. The Series 7 and the Securities Industry Essentials (SIE) exam are both co-requisites for the Series 66.

For those pursuing a career as a stockbroker or registered representative at a broker-dealer, the Series 7 is the core exam. It covers the broadest range of securities products, including individual stocks and bonds, ETFs, options and government securities. The Series 63 is also needed in most states, and together the two exams are the standard combination for broker-dealer representatives.

For a narrower focus limited to mutual funds, variable annuities, variable life insurance and 529 plans, the Series 6 covers those products without the broader preparation required for the Series 7. This is a common path for insurance professionals looking to add investment products to their practice. The Series 63 is still required for state registration.

Investment banking is a separate track. The Series 79 is designed for investment banking representatives working on mergers, acquisitions, debt and equity offerings and corporate restructurings. It does not overlap with the advisory or brokerage exams. Commodity futures are also their own category, requiring the Series 3, which is developed by the National Futures Association and administered by FINRA.

Regardless of direction, professionals in the broker-dealer and investment banking tracks typically start with the SIE exam. This is a co-requisite for the Series 6, Series 7 and Series 79. It is not required for the Series 65, which has no prerequisites. Unlike the other exams, the SIE can be taken before being sponsored by a firm, and passing it early can demonstrate commitment to potential employers. From there, a firm will typically guide new hires toward the specific top-off exam that matches their role.

Bottom Line

For financial professionals aiming to join financial firms and agencies, obtaining the right licenses is essential. For investors, understanding your financial advisor’s area of expertise is crucial. Knowing they have passed specific exams to certify their expertise can provide added peace of mind.

Tips for Investing

• Series licensing is one of many factors to consider when you’re choosing a financial advisor to manage your money. Finding a financial advisor who offers you the help you can benefit from. Finding a financial advisor 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’re more of a hands-off investor or don’t have the extra cash to use on a human advisor, you may want to think about using a robo-advisor instead. Your investments are made based on your age, your risk tolerance and time horizon. Some robo-advisor programs include the option to talk to human advisors for an extra fee, but are otherwise much less expensive to use compared to firms that use licensed human advisors.

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