Securities license
If you are looking to enter the securities industry or work for a stock broker, there are certain securities licenses that you should be aware of.
People who are currently out of business or graduating from college are well served in this job market for some training and license completion.
The NASD
NASD is the National Association of Securities Dealers. Stockbrokers who are members of NASD are required to license their employees based on the job functions of those employees. The NASD is the regulatory authority for the brokerage industry. There are several licenses that NASD recognizes for working in the securities industry. Some can be obtained before entering the business. Other licenses must be “sponsored” by your employing company. That means that while you can start studying for sponsored exams, you can’t sit for the actual exams until you are hired. All NASD exams (once registered) can be taken any day of the week (Monday through Friday) at hundreds of testing centers across the country.
Licenses to consider that do not require sponsorship
- Series 65 – Series 65 licenses you as a Registered Investment Advisor. This is an excellent designation to obtain before entering the job market. The license itself is for financial advice. Provide investment advice on the assets you are monitoring for a fee. It looks great on a resume and is just a 130-question multiple-choice exam. Even if you are unsure of the area of finance in which to work, this license is an advantage. Employers will treat any license as a bonus over other candidates who have not earned this certification. As I said, it does NOT require company sponsorship. Get this first.
- Series 63: Series 63 covers the content of the Uniform State Business Law. The exam is a brief test of state laws, registration procedures, and terminology. The license is for registered brokers and advisers. Most states require 63, before representatives can call state investors. This license can be obtained on your own and does not require company sponsorship. Brokerage firms will look for this on your resume.
- Series 3 – The Series 3 exam is specific to the futures and commodities market. It is administered through the NASD testnet, but is licensed by the NFA (National Futures Association). Most companies that do not work in this market will not consider this license to be very important or necessary, but if you ever get to a futures company, you will need it. As with any license, it doesn’t hurt to get it.
There are some other future tests (Series 30 and 31), but you don’t need to do any unless you are looking to work specifically with futures: commodity-related securities.
Securities licensing designations, such as Series 7 and Series 6, require company sponsorship before taking these exams. Obtain the licenses that you can obtain on your own. Once you are hired, your company will sponsor you for further exams, if required by your company.
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