• More than 617,000 registered licensed reps are currently employed in the U.S.

• FINRA is the largest financial entity that oversees new licensing applicants. 

• New applicants will need to complete the Securities Industry Essentials Exam before applying for their final exam. 

The world of modern financing is rapidly changing, and in 2020 the United States had more than 617,549 registered license representatives according to the Financial Industry Regulatory Authority (FINRA) who regulates brokers and brokerage firms in the country. Although the figure is somewhat less compared to the 624,662 and 629,517 of 2019, 2018 respectively. There has been an increase of interested young individuals looking to join the industry as modern and technological innovations are changing the way organizations are doing business, trading, and investing in the market. 

Closely monitored by FINRA and the North American Securities Administrators Association (NASAA) the securities industry is an ever-changing industry shaping the common understanding of how markets fluctuate, stocks trend, and what investors are doing to keep the bull-market flourishing. 

The finance industry is constantly evolving, and younger generations are changing how we do business. Although this is easily possible once obtaining a securities license, you will need to ensure that you comply with FINRA and NASAA requirements. 

Here’s a brief breakdown of how to obtain a securities license.

First of all, you need to be aware of the various types of securities licenses available. You will need to obtain at least a few different licenses to market and sell securities. Some of the most popular include Series 6, 7, 63 & 65, and a series 66 license. Each of these have different requirements, examinations, and application procedures. 

Pass the Securities Industry Essentials Exam 

Since October 2018, FINRA has introduced the SIE exam allowing applicants to understand the underlying complexities of the securities industry. This is the first step in your application process, and you will need to complete and pass the SIE exam. 

Become a member of a FINRA Firm or Company 

If you’re looking to take the Series 6 or 7 exams, a FINRA-member company will need to sponsor your examination. You will need to become part of the company and negotiate with your employer about a potential sponsorship to take the exam. Additionally, you will need to consider that your new sponsor will potentially become your future employer. 

Find the FINRA licensing exam you want to register for 

You can register for a FINRA exam via their Web Central Registration Depository or CRD portal. Complete and submit a Form-U4, and ensure that once you’ve registered for the exam you receive a CRD number. Keep in mind, by this time you should be part of a FINRA-member, and a designated registered agent will need to sign your application. 

Prepare for the FINRA exam

You will need to study and complete additional tests to be fully prepared for the final examination. There are a selection of practice tests available online and the FINRA firm you’re part of can assist in the preparation process.

Pass your FINRA exam

When you are ready, you can now take your exam and pass! 

To conclude 

Although Series 6 & 7 of the FINRA tests house plenty of theoretical materials, be sure to make yourself comfortable with the necessary tools and resources for each series. The FINRA exams are a tough part of obtaining your securities license. Be sure to ask your registered agent and FINRA-member employees for any guidelines and study tips. The securities industry is a booming market full of potential and financial prospects.