Interestingly, the Series 6 exam does not require any educational qualification to be eligible to take the exam. Your sponsoring firm will file a Form U4 Uniform Application for Securities Industry Registration on your behalf to be able to take the exam. Also, most firms have the Series 6 licensing incorporated into their training program for new hires.
It is a plus if you have a degree in a finance-related field before taking the Series 6 exam; this will help you understand concepts easily. In addition, this will help you both in short and long term as candidates with a finance-related degree find it easier to get sponsorship from firms.
After taking all the necessary actions in becoming a licensed Series 6 holder, let us talk about what work you can do, where you can work, and what services you can render with this license. There are a variety of jobs you can do as a licensed Series 6 holder. We have listed seven 7 below:. This exam is one of the exams conducted by FINRA for financial professionals in the securities industry.
The FINRA Series 7 exam deals on several extensive and in-depth topics in securities products, securities regulations, emphasis on suitability, etc. The scope of the FINRA exam is intentionally designed to be broad so that licensed general securities representatives are equipped to perform crucial functions. The Series 7 license is essential for most financial professionals as it cuts across many financial designations. Series 7 license is known officially as the general securities representative GS license.
Most financial institutions like banks and Broker-dealers readily recruit Series 7 license holders because they are confident that licensees will bring value to their firm. As a Series 7 licensee, you are a resource person for questions relating to investment company securities, sales of corporate securities, variable annuities, municipal securities, and more. You may wonder why many Financial Advisors take the Series 6 exam first before getting the Series 7 license. The reason is not far-fetched; many financial advisors do so because they can sell securities with the Series 6 license, such as mutual funds, variable annuities, unit investment trusts UITs , variable life insurance, and municipal fund securities.
Note that they can also sell securities with the Series 7 license; the difference is more securities such as sales of individual stocks and bonds. Financial advisors FAs leverage the Series 6 license to get hands-on industry experience pending when they get the Series 7.
These experiences also come in handy when they become licensed Series 7 holders and sell more securities. Another reason why FAs for getting the Series 6 license first is the low cost of the exam compared to Series 7.
That is a huge financial gap. Elementary topics are covered in the SIE exam, such as understanding the regulatory authorities, acceptable ethical practices, and knowledge of products. This elementary nature of the SIE exam makes it ideal for taking the exam before taking the Series 7 exam. After passing the SIE exam, a four-year window will be opened for you to take and pass any Top-Off exam such as the Series 7 exam.
This means that both exams can be taken simultaneously, or anyone can be taken before the other. The above implies that you can decide to take either the Series 7 exam first, pass it before taking the SIE, and vice versa.
A Series 6 sales professional can only sell securities products that are packaged together with other products, such as life insurance. A Series 7 sales professional can sell all types of stocks, stock options, bonds and any other related securities products. Any Series 6 licensed sales professional is allowed to take the Series 7 exam , should they want to broaden their ability to sell a variety of securities.
After you have registered, you will have days to sign up for the Series 6 exam. You can register to take your Series 63 exam online in the same way you would register for a Series 6 exam.
The licensing requirements for each state to become an insurance sales professional are different. But, in general, you need more than a Series 6 and Series 63 license to sell insurance in your state. The other licenses required to sell insurance in most states include:. When you pass your SIE, Series 6, and Series 63 exams, along with the proper state insurance licenses, you are eligible for a job at almost any level in the insurance industry.
You can become a sales representative, a broker, or opt for insurance marketing. If you will be managing other agents with Series 6 and 63 licenses, then you will also need to obtain your Series 26 license.
Providing the complete details of an average salary for any securities job is difficult, as the positions held, location, experience, company, and other variables can make huge impacts on the salary of an individual. Your Practice. Popular Courses.
What Is the Series 6? Key Takeaways The Series 6 is a securities license entitling the holder to register as a company's representative and sell certain types of mutual funds, variable annuities, and insurance. Series 6 exams were traditionally taken in person at test centers, but FINRA began offering them online in The greatest disadvantage of a Series 6 license is that holders are not authorized to sell exchange traded funds ETFs.
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Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Related Terms What Is Series 79? What Is the Series 31? The Series 31 is an exam and securities license entitling the holder to sell managed futures funds or supervise those activities. What Is the Series 23 Exam? The Series 7 license is known as the general securities representative GS license.
It authorizes licensees to sell virtually any type of individual security. This includes common and preferred stocks ; call and put options ; bonds and other individual fixed income investments ; as well as all forms of packaged products except for those that also require a life insurance license to sell.
The only major types of securities or investments that Series 7 licensees are not authorized to sell are commodities futures , real estate , and life insurance. The Series 7 exam is by far the longest and most difficult of all the securities exams. It lasts for minutes and covers all aspects of stock and bond quotes and trading; put and call options ; spreads and straddles ; ethics; margin , and other account holder requirements; and other pertinent regulations. Those who carry this license are officially listed as "registered representatives" by FINRA, but they are generally referred to as stockbrokers.
Many insurance agents and other types of financial planners and advisors also carry the Series 7 license to facilitate certain types of transactions inherent in their businesses. Principals of general representatives must also obtain the Series 24 license.
The Series 3 license authorizes representatives to sell commodity futures contracts , which are generally considered the riskiest publicly traded investments available. Representatives that carry the Series 3 license tend to specialize in commodities and often do little or no other business of any type.
The Series 3 exam is approximately minutes long and covers all forms of commodities transactions, options , hedging , margin requirements, and other regulations.
An offshoot of this license is the Series 31 license, which allows representatives to sell managed futures pooled groups of commodities futures similar to mutual funds. The Series 63 license, known as the Uniform Securities Agent license, is required by each state and authorizes licensees to transact business within the state. All Series 6 and Series 7 licensees must carry this license as well.
The provisions of the Uniform Securities Act are tested on the minute exam. While this test is much shorter and covers less material than the FINRA exams, it is known for asking "trick" questions that force the candidate to definitively know the difference between which transactions and situations are permitted and which are required by the rules.
The Series 65 license is required by anyone intending to provide any kind of financial advice or service on a non-commission basis. Financial planners and advisors that provide investment advice for an hourly fee fall into this category, as do stockbrokers or other registered representatives that deal with managed-money accounts.
The exam for this license is a minute exam that covers the rules and regulations pertaining to registered investment advisors, as well as various investment vehicles and disciplines, economics, ethics, and analysis. Much of the material is covered on the Series 7 exam as well, as many of the advisors who sit for this exam are not, and may never become, Series 7 licensed and therefore need exposure to the investment material covered therein.
In essence, it combines the Series 63 and 65 exams into one minute exam. This test contains no investment material, as the Series 66 license is only available to candidates that are already Series 7 licensed. All tests are now given via computer at approved proctor testing sites. Once all relevant securities tests have been taken and a passing grade received, licensees must register their securities licenses with an approved broker-dealer , who will hold their licenses and oversee their business in return for a portion of the commission income.
Registered Investment Advisors do not need to associate themselves with a broker-dealer. Securities licenses are needed by anyone who wants to market and sell investments.
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