The Series 6 and 63 License exam is one of the most important tests for starting a career in securities trading.
Taking the Series 6 and 63 Securities License Exam
Thinking about a career in securities trading? You should get a Series 6 and 63 exam.
Anyone who is interested in beginning a Securities Dealer career will have to pass a series 6 and 63 license examination. A series 6 license is a minimum requirement for being able to sell mutual funds or annuities like a broker. If a broker works for the bigger Wall Street banks they will definitely be required to hold a series 6 license at least. They can, however, be required to hold both the series 6 and the series 7 together. This kind of licensing enables brokers to also sell individual stocks as well as their variable annuities and mutual funds.
The series 63 examination will test a person's knowledge of securities regulations, ethical business practices, compliance issues, and the ways that brokerage operations are required to operate in regard to the rules laid down by the SEC (securities & Exchange Commission). Many states require bank employees to also obtain this type of license if they deal with the selling of any kind of security. This license is for demonstrating an employee's grasp on what the best business practices actually are.
It's vital that people understand who is actually required to have a license and who is not. People wishing to buy securities through one of the many brokerage houses on engage in online stock trading do not need to be licensed. They are able to buy equities anyway they desire to. It is only the person executing the transactions that will need to be licensed depending on what kind of transactions are taking place. If a certain customer is searching for a large mutual fund shares block to buy, then whoever the trader is who actually works on behalf of the brokerage house will need the series 6 license. This is also true if a customer wants to by individual stocks. It is only the trader executing this transaction who will need to hold their series 7 license. This can be a bit confusing to individual investors who think they need to be licensed in before they can execute a purchase. However, if you are not an employee of the dealer or broker then you will not need to be licensed to execute any trades.
A final important note for you is if anybody wishes to earn their license they first need to be sponsored or employed by a brokerage house. Individuals cannot just take the exam to have it unless a company is willing to sponsor them. Individuals who just want to have it in case anything comes up will not be allowed to take the exam. You can find plenty of information provided by the 'National Association of Securities Dealers' on the guidelines involved with taking the series 6 and 63 License Exam.