Which one of you dopers has one? What does it cost to take the exam? Where can I find study guides/information on taking the exam? Thanks.
It is my understanding that you must be sponsored by a securities firm to take the Series 7 examination. Some firms may require that you pay the cost of the materials and exam, I don’t know how much it would be as I am not required to do that.
The study materials almost always come from Dearborn, which is owned by the same people who do the Kaplan test prep for SAT and GRE exams. The 7 exam book is about 900 pages and should take about 6-8 weeks of study. Options are the most important single subject, and for most people the most difficult, so your study time may hinge on how easily you understand those concepts. Good luck, and let us know how it goes if you decide to take it.
I’m not sure of the cost my (former) employer paid for mine. I do know that you have to be sponsored by a registered broker dealer. Information on the exam is available at the NASD website. Back when I took mine (over 7 years ago) I used study materials by “Pass Perfect”. At least two other brands where out there, but I don’t recall the names.
I may be looking to take it again if I don’t sign on with a firm in the next 6 months. If your license is inactive for more then two years you lose it. If I don’t sign on with a firm in the next 6 months I will lose mine as well as my Series 4, 24, 27, 52, 53, 55, 63, 65.
How many tests do I need to take and pass before I start trading?
You do not need a license to “trade”. A Series 7 and 63 will allow you to sell (most financial products) to the general public. A Series 55 would be needed if you wanted to be a “Market Maker”, a type of trader, but it doesn’t sound like what your asking.
What are you wanting to do?
I got the Series 7 and 16 (Supervisory Analyst) about nine years ago. My company paid for the test and the training. I think I used the Arco study guides. They were quite good – the practice tests were considerably harder than the actual exam, so when I actually sat down and took it, I did about 20 questions and wondered when they’d get tougher (they didn’t, so I passed).
Wow zig that is some lineup. I hope you find a position, that would be a shame to have to reconstruct. As to the OP, it is important that you define what you want to do before you look to take tests. An advisor would have a 6, 63, 65 and 7 in most cases. A Certified Financial Planner designation is becoming more and more important in the field.
The market for financial services professionals is still pretty strong, I know we are hiring vigorously despite the problems in the rest of the economy. I would look at what is out there and tailor your education to the career you want.
Thanks Fruitbat. I am currently working in another industry but hopefully will be able to find a firm to that will let me do some work on the side to keep my licenses active.
Good suggestion on the Certified Financial Planner. If you are willing to put in the time to get it a Chartered Financial Analyst is also a prestigious designation.
Also someone please correct me if I am wrong, but I believe a Series 6 is not necessary if the individual has a Series 7. The series 6 being a limited (to mutual funds and variable contracts) Representative and a 7 being a full Representative. I know some firms will require people get a 6 before getting a 7, but I don’t think it gives them any additional authorization.
Thanks. This is what I wanted to know. My next step is to find a brokerage house willing to sponsor me. Which positions should I apply for? Would you apply to a large firm or small firm?
Look around. Some firms have policies that you have to pass your Series 7 in the first six months. Other firms wont let you take any tests until you have worked for them for over a year. A lot of it depends on the firm and position you get.
Word of caution: Be wary of “boiler rooms” and firms that specialize in low cost or “penny stocks”, they tend to have tarnished reputations in the industry.
Good luck with the job hunt.