Series 7 License – How to Get
Series 7 License – How do you get it?
In this article, we will be covering everything you need to know about how to obtain your FINRA Series 7 license. The first thing you need to know is the Series 7 license is a co-requisite license with the Securities Industry Essentials license or SIE license. Meaning you must have your SIE license in order to activate your Series 7 license.
If you don’t yet have your SIE license, we have a great article explaining everything you need to know about the SIE exam here. We also have excellent online SIE Exam Study Materials you can learn about here. If you have already passed your SIE exam, read on to learn more about the Series 7 license.
Who created this exam?
In order to obtain your Series 7 license, you must pass the Series 7 exam, which was created and administered by FINRA. FINRA stands for the Financial Industry Regulatory Authority. FINRA is a self-regulatory organization that oversees the securities industry. The Series 7 exam is also known as the General Securities Representative Qualification Examination. It was created by FINRA to assess the competency of an entry-level representative to perform their job as a General Securities Representative. The Series 7 test measures the degree to which a candidate possesses the knowledge, skills, and abilities to perform the critical functions of a General Securities Registered Representative.
Once I pass the exam and obtain my Series 7 license, what can I sell?
A Series 7 license allows an individual to solicit, purchase and/or sell all securities products, including corporate securities, municipal fund securities, options, direct participation programs, and investment company products and variable contracts. The Series 7 license is commonly referred to as a general stockbrokers license.
Remember though, in order to activate a Series 7 license, an individual must also pass the SIE exam and obtain their SIE license.
What is the difference between the Series 6 and Series 7 licenses?
In general, if someone is going to become a stockbroker, they would take the Series 7 exam and become licensed to sell a broad range of securities products. However, if someone is an insurance agent and looking to become licensed to sell variable insurance products, they would obtain a Series 6 license. Regardless of the route an individual goes, they must also pass the SIE exam in addition to either the Series 6 exam or Series 7 top-off exam.
What are the vitals for this exam?
The Series 7 license exam is made up of 125 multiple-choice questions. Each question consists of four answer choices. The exam has a 3-hour and 45-minute time limit and has a 72% minimum passing score. The questions on the exam come from four sections of information as follows:
- Seeks Business for the Broker-dealer from Customers and Potential Customers – 7% of exam – 9 questions
- Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives – 9% of exam – 11 questions
- Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records – 73% of exam – 91 questions
- Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes and Confirms Transactions – 11% of exam – 14 questions
You can access the full Series 7 license exam outline here.
Learn more about the Series 7 test from Suzy:
Suzy Rhoades is our Director of Securities Exam prep and will guide you through an overview of this exam and share with you a great study solution you can use to pass.
“I passed my Series 7 on my first try!! I only had 10 days to run through the program too (due to time constraints from work) but I knew if I could finish the PassMasters program, Suzy would help make it possible and she sure did!”
Do you need to pass a securities exam?
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Do I need to be sponsored to obtain my license?
Yes, you do. Unlike the SIE exam which does not require any broker/dealer affiliation or sponsorship, in order to take either the Series 6 or Series 7 top-off exams you must be affiliated and sponsored by a broker/dealer.
How do I schedule the Series 7 exam?
If you are serious about obtaining your Series 7 license and are looking to enroll for the exam you can do so with FINRA here. If you are ready to schedule your exam, you can do so here. Looking for some FREE test-taking tips? You can check them out here.
Series 7 test prep video course
How do you know our Series 7 license exam study materials are the best? Check out two full-length sample lecture videos from the course below. You can also take a FREE Series 7 practice exam to see exactly how our practice/final exams are formatted. Of course, you can also check out our Series 7 License Exam student testimonials. Feedback from real people who are passing the Series 7 exam.
Series 7 Test Questions Explained
Each week on Wednesday we post a new Question of the Week video on our YouTube page. Check out this QOTW playlist in which Suzy explains Series 7 License Exam questions. Visit our YouTube page, follow and turn notifications ON to view future QOTW videos when posted.