If you are trying to earn your Series 7 license you might be very nervous about testing. The Series 7 exam is one of the more lengthy and difficult exams that is administered by the FINRA and if you are coming up on your test date you should definitely study. Do not let the fact that the passing ratio for the test is 65 percent worry you when you are preparing for the test. You have to look past the passing ratio and learn how to prepare for your test before the test date so you can be one of the many who have passed their test on the first try. With so many prep classes available, learn how to pass the series 7 exam with online training and focus on studying the right information.
Find the Right Prep Classes That Are Proven to Improve Your Chances of Passing
There are so many different online training courses that you can choose from. If you are studying and have a full-time job, the most effective way to prepare for your test is to choose an online training center. Not all training programs are created equally. You should review the pass ratios of the students who have used each training program to choose a program that has the highest passing ratio.
Take Advantage of the Practice Tests
All of the training centers offering online prep classes for the Series 7 exam will also offer practice tests online. You can get familiar with the layout of the test and the terms that will be used. Trying to decipher the meaning of a test question because you do not understand the meaning of the terms will take up a lot of your time. If you take the practice tests, you will learn the meanings before you are in a real test situation.
Know The Weight of the Topics Covered
The exam focuses on several different topics. You should know the weight of all of the topics covered on the exam so you can assess where you are struggling and where you should spend more time studying. Make sure you are scoring in the 80′s consistently on your practice tests before you sit down to take the official exam.
There is nothing more frustrating than studying more than 90 hours for your exam and being told you did not pass. Online training can help you boost your scores and your test taking skills. The exams are designed to confuse you. Make sure you understand how the questions will be phrased and what topics will be covered by completing online prep classes.
The insurance and financial securities industry requires licensing for several reasons. Most importantly, it is for the protection of the customer and the prevention of scams run on vulnerable people. Licensing includes financial guidelines and ethical standards that are regulated by FINRA. There are quite a few licenses available covering all the specific areas in insurance and financial securities. Training is available for all these licenses. Securities license training is available and very accessible to help you move toward your financial services goals.
However, it is important to determine what license you need based on your area of expertise. Some securities licenses require you to be sponsored by your employer or potential employer in order to obtain your license. How do you get this training?
Training is offered in one of three ways. Online courses, self-study or a classroom setting are the three options available to you. The choice is based on your individual situation. If you are a person with a good amount of self-discipline and have few distractions, self-study is a great option. If you need some type of structure, the online class is an option. Or, if you need the structure from the classroom setting, this is the third option.
For companies that have several employees that require licensing, custom training is available. This would fall under the classroom setting. Training centers are also available for the classroom training.
The licenses being offered have pre-requisites for each license number. Those pre-requisites need to be reviewed to make that all your bases are covered before you obtain the training. The series of licenses are as follows:
- Series 3–4, 6-7, 9-11
- Series 24, 26–28
- Series 31-32, 37–38
- Series 51, 53, 55, 56
- Series 62-63, 65-66
- Series 79, 82, 99
Each series has a specific knowledge base in the financial securities arena. You can review the information online to find out more information in the area that interests you. You can also search the official FINRA site for even more detailed information.
The license requirement establishes all financial securities agents as authorized to do business in this arena. The regulations offer the public security and reassurance that there are standards to be followed when others are responsible for investing their money. The regulations and standards for licensing offer agents and brokers the guidelines that must be kept for them to work in the arena. This lets the public know that the law protects their investments.
For employer sponsorship, it is important to keep in mind that if the company is paying for the training, there may be terms of commitment once you receive your license. Should you break that commitment, you may be responsible for repayment to the company for the training.
The options available to obtain your securities license training are plentiful. They provide flexibility for those who need it as well as a study guide for the final exam. With these choices, you can move forward with your goal to obtain the license and further your career.
The financial industry is a vital pillar supporting the US as well as world economy. Trades worth trillions of dollars are transacted every day. There is need for supervisory regulation to ensure corporate clients and individuals do not lose investments in dubious schemes. This is why the Financial Industry Regulatory Authority (FINRA) was set up to address these challenges. A securities license is the key that will open the investments door. It is not a straightforward affair as there are factors which determine the type of license required. The following guide will take you through the importance of securing a securities license and how to get one.
Importance of Licensure
To begin with, you will be able to handle financial instruments as a broker or dealer. Without licensure it would be impossible to get an opening in the financial industry. The securities license shows that you have extensive knowledge of security markets operations, securities laws, as well as financial products. An individual with such knowledge is capable of handling investments properly. This means being able to analyze financial market fundamentals and investment risk factors. Some of the investment tools you will be handling include stocks, open-end funds, options, and bonds. There are many brokerages and security firms ready to employ individuals with the right skills in addition to licensing. Salaries for new entrants hover around $50,000 every year. The annual pay package if you stick around for several years can be as high as $175,000.
How to Get a Securities License
You can only get a securities license by way of sponsorship from a broker-dealer. In addition to the sponsorship, you will have to undergo rigorous preparation before sitting for the licensing exam. Even after acquiring the license, it is advisable to keep up to date with continuous education. The majority of employers fall into two broad categories, retail and independent. Licensing requirements differ with independent broker-dealers taking a more liberal approach. FINRA oversees the administration of exams and licensing procedures. There are three main licenses that every person working with financial instruments must obtain. These are the limited-investment securities license (series 6), the general securities representative license (series 7), and series 3 license. You should also take note that FINRA does not administer all licenses. The North American Securities Administrators Association (NASAA) also offers some key licenses. These are the uniform securities agent license (series 63), series 65, and series 66 licenses. You must achieve a score of 70 percent in both FINRA and NASAA examinations to be licensed. However, the pass rate for series 63, 65 and 66 is a little bit higher. You will have to score 72 percent, 72 percent and 75 percent respectively to have any chance of receiving licensure. After passing the requisite exams, you have to register the securities license with an approved a broker-dealer.
Nervousness is a normal emotion for students that are about to take an exam. Everyone gets nervous in the moments before entering the exam and before taking the test – but it’s important to learn the methods that can be used to overcome this nervousness and get the best results from taking the exam. Nervousness can negatively affect the outcome of the exam, causing the student to increase their chances of failing.
Learning the tips and tricks that can be used to overcome the sense of nervousness before entering the exam can be a great way to increase the chances of passing. In the process of getting the license, the series 7 license exam can be a nerve wracking time for students, but using the following tips can be an effective way to increase the chances of passing.
Preparation is one of the most important parts of gaining the ability to pass the exam. Hoping that you will pass the exam will only get you so far, it’s important to take an active role in the information that must be learned before attempting to pass the exam. Preparatory classes for the exam are some of the most effective ways to ensure that the exam is passed, and the majority of people that have taken the exam and passed have undergone these training prep courses.
There are two types of exams that are available for students to take to prepare for the series 7 license exam; internet courses and in-class courses. Through the physical classes, students are offered benefits like unlimited practise tests that can increase the chances of the student passing the final exam for the series 7 license. Students that undergo multiple rounds of the practise tests can increase the chances of passing, learning the familiar terms and theories associated with the exam.
There are often multiple choices available when it comes to the exam and learning the theory behind the courses can help the student to find the answers to the questions of the exam. Taking the time to study for the exam is going to ensure that the student is able to get the positive performance needed in order to pass the exam.
Next, it’s important to consider the various topics that are found through the exam. Learning about the specific topics and types of questions that are being asked on the exam, including the different variations and types of questions can increase the chances of passing the exam.
The one aspect of the program that is going to enable the student to pass the exam is learning to study the material that is being presented. Taking the information and creating a daily study schedule for the information that has been presented can be an effective way to pass the exam – but it takes discipline to include the study sessions with the daily activities. Implementing a study schedule can reduce the cramming or last minute studying, increasing the chances that the information is going to be retained – and easily recalled at the time of the exam.
Using the above tips, you can increase the levels of confidence and effectively prepare for taking the series 7 license exam – increasing the chances of passing the exam and successfully completing the process of licensing. Using a study schedule, the practise tests that are available through the series 7 prep courses and learning the theory to improve the confidence of the potential driver can help to increase the chances of passing the exam. Taking all of this information into account, the student is able to overcome any of the obstacles that are going to cause the student to fail the exam.
It is essential that you pass the Series 7 License Exam before working in the financial sector as a buyer or seller of stocks, bonds and other investments. The exam is set by the Financial Industry Regulatory Authority (FINRA) and deals with a number of publicly traded products. A member of FINRA must sponsor you if you want to take this exam, although the state will sponsor a Registered Investment Advisor in some instances.
If you want to work with retail investors, this is just one license you must hold. Licensing requirements vary from one state to the next, but the Series 7 is one license held by registered brokers and dealers. This is a means of giving the public confidence in your services.
There are 260 questions on the exam. Your mark to pass is 72%, which is achieved by an average of 66% of applicants. Anything below 72% is considered a fail, while the average passing score is 73%. This leaves 10 experimental questions for practice. The current exam cost is $265, which is non-refundable. Confirm this sum when you apply.
Usually, applicants need to complete a U-4 in which they disclose previous work history, any criminal convictions, and other important details which could influence their ability to work as a financial advisor. Exams are held daily, so pay your fee and make an appointment. Sit yours over 6 hours in two time slots set back to back, featuring 125 questions each.
The multiple choice format is easy to use. Select one from a possibility of four answers. This means you can guess and still get the answer right. A reference book will be supplied in some testing centers and this contains things like clippings from financial publications. You can also use a non-programmable calculator which is frequently provided for you.
Questions refer to things like ethical trading, evaluating the profile of a client to assess his risks prior to investing, and the technical aspects of opening accounts, buying, selling and transferring assets. Answer questions pertinent to record keeping, communicating with the client, and advising him. Prove that you understand what it means to stand up to scrutiny by customers, regulatory bodies and the law.
You must know how to follow clients’ directions to buy or sell according to their specifications. With this licensing regulation in place, customers are protected against fraudulent or ignorant behavior in the financial industry.
The series 7 exam, formally referred to as the General Securities Representative Examination, is a test offered by the Financial Industry Regulatory Authority (FINRA) to professionals in the industry. It gives traders the fundamental credentials to engage in corporate financial instruments trading as brokers or dealers. The six hour test extensively covers security investment tools such as stocks, options, bonds, open-end and closed-end funds, limited partnerships and similar financial instruments; apart from commodities and futures. Once a candidate successfully finished the exam, they are awarded a Series 7 General Securities License. It is highly recommended for prospective candidates to take series 7 training courses, in order to guarantee successful completion of the test.
The series 7 exam measures the degree of competence professionals possess in securities trading. Questions are framed to conform to the expertise of a broad range of financial industry professionals. The test is not a competition among the candidates, but an assessment of each individual’s level of competence in their area. Hence, series 7 training courses are necessary to recall exact information regarding financial instrument trading, as per the knowledge gained erstwhile in school.
FINRA requires prospective candidates of the exam to be sponsored by a financial company, duly registered with the authority or a self-regulatory organization. Candidates must pass with an average of 72 percent in order to be considered for licensing. Series 7 sets the benchmark for security traders to communicate authoritatively with retail investors regarding different commodities. Thus, most investment account managers, financial analysts and securities executives are registered dealers possessing series 7 licensing. Some states also require professionals to have series 66 or series 63 licenses in order to work as financial dealers or brokers. Therefore, the importance of series 7 training courses cannot be disregarded due to the value of credentials at stake.
The main hurdle for prospective candidates seeking series 7 licensing is getting a sponsor. In order to get a good job in financial investments, one requires licensing. Conversely, one requires licensing in order to the job in the first place. This presents a catch-22 situation for prospective candidates who might not have these jobs yet. However, there are ways of getting round this problem, so as to land a plum job in financial security trading. For instance, one may begin as an insurance agent or broker. Insurance companies are always willing to sponsor their agents in taking the series 6 tests, for trading in mutual funds and annuities. This opportunity can allow one to take series 7 training courses on the side, as he/she waits for better opportunities to show up in the financial field.