Do you need a Series 7 for investment banking?
Many investment banks require their investment bankers to have their Series 7 (or General Securities Representative), Series 63 (Uniform Securities Agent State Law), Series 66 (Uniform Combined State Law), or Series 79 (Investment Banking Representative) credentials from the Financial Industry Regulatory Authority, the ...
The Series 7 is not just for stockbrokers
FINRA member firms (i.e. investment banks and other financial institutions) want to be in good standing with FINRA. As a result, they mandate the Series 7 even to professionals not directly involved in the selling or trading of securities.
Candidates must pass the Securities Industry Essentials (SIE) exam and the Series 79 exam to obtain the Investment Banking Representative registration. For more information about the SIE and Series 79 exams, refer to FINRA Rule 1210 and FINRA Rule 1220(b)(5).
Financial professionals who want to work in investment banking are required by the Financial Industry Regulatory Authority to pass the Series 79 exam. Candidates must be sponsored by a FINRA member to take the exam.
Get securities licensed
The firm that hires you will require you to get securities licensed. Generally, you'll need a Series 7, a Series 63, and possibly a Series 79, 86, or 87 license, which you can only acquire after you are employed and sponsored by a financial firm.
The Series 7 exam is often considered the most difficult securities licensing exam. But, the answer is up to you. If you prepare properly and utilize an online learning tool like ExamFX's Series 7 course, you can approach the test with confidence and earn your Series 7 registration.
The Series 7 license allows you to sell most financial securities. Without the license, you wouldn't be able to place trades for clients, which is why most big firms require employees to get licensed as soon as they're hired.
Which is more difficult, Series 7 or 79? The difficulty of the series will differ for individuals, as Series 7 covers a broader range of topics, making it more challenging for some, whilst Series 79 is more specialized but may be considered difficult due to the complexity of topics covered.
The CFA covers plenty of material that goes beyond the job of an IB Analyst or Associate… which is exactly why you don't need it. For example, they won't ask about quantitative methods, derivatives, or portfolio management in a standard investment banking interview.
Is the Series 7 Exam Difficult? Clocking in at 125 questions to be answered in three hours and 45 minutes, the Series 7 exam is considered the most difficult of all the securities licensing exams. The minimum passing score is 72, which may not seem that difficult.
Can I take the Series 7 without a sponsor?
Eligibility. Candidates must be associated with and sponsored by a FINRA member firm or other applicable self-regulatory organization (SRO) member firm to be eligible to take FINRA representative-level qualification exams. For more information on registration requirements, refer to FINRA Rule 1210.
The Series 7 license pass rate is around 65%. How hard is it to pass Series 7? Yes. The test is difficult, so you need to make sure you are fully prepared before you take it.
Recent CFA Exam Pass Rates »
Anyone who is a stockbroker must hold the Series 7 license. While also intense, this exam is generally believed to be significantly less difficult than the CFA.
Another difference between the two credentials is that the Series 7 license is mandatory for anyone who wants to sell securities in the U.S., but the CFA Charter is an optional designation that demonstrates mastery of finance topics. So, which designation to pursue really depends on what you want to do in your career.
Comparing the Chartered Financial Analyst (CFA) program with the Series 7 is an apples-to-oranges comparison. The CFA program is a rigorous, three-level advanced program, while the Series 7 exams are meant for entry-level registered representatives.
The Series 7 and the bar exam are both known for their difficulty. You can't really compare the two because of the differences in content and purpose. Both exams require dedicated study and preparation.
According to most students, the Series 7 is quite challenging, and is more difficult than the SIE. This might be because the Series 7 has significantly more depth in options. Also, the product questions are more application/suitability-based, whereas the SIE focuses more on the definitional treatment of products.
It tests 269 rules and regulations, as well as their application to the professional functions that you will need to perform as a Series 7 license holder. The Series 7 exam is considered one of the most challenging that FINRA administers, due to the broad base of information that is tested.
How Long To Study For Series 7 Licensing: Recommended Study Time To Pass Your Series 7 Exam: You should plan to spend between 100-150 hours in preparing for both the SIE and Top-Off exams.
a) Once an individual becomes GS registered, the S7/S7TO will remain valid as long as they hold that registration. b) Once an individual ceases being GS registered, the S7/S7TO will remain valid for two years from the date of termination on the Form U5.
How many times can you fail the Series 7?
If a candidate does not pass the Series 7 exam on their first attempt, FINRA allows them to re-take the exam after 30 days. There is no limit on the number of times a candidate can attempt to pass the exam, but there are time restrictions for candidates who've taken the exam several times.
Why Take the Series 7 Exam Over the Series 6 and 63? A Series 7 license allows agents of financial representatives the ability to sell a greater range of securities. Though the Series 6 or Series 63 exams are easier, they are smaller in scope and do not allow license holders to transact using as many securities.
Step 2: You must be age 18 or older to sit for the Series 7 exam. You must pass both the Securities Industry Essentials (SIE) exam and the Series 99 exam to obtain the Operations Professional registration.
For most candidates, the combination of reading the textbook, watching the Series 7 video class and taking as many practice questions are possible proves to be sufficient to successfully complete the Series 7 exam. It is recommended that the individual spend 60 to 70 hours preparing for the exam.
Math Problems
There are several areas where math has been heaviest on the Series 7 exam lately. To no one's surprise Options is the culprit. Calculations of profit and loss for different scenarios requires basic calculations. But, you'll have to be familiar with how to deal with a Spread, Straddle, Option Hedge, etc.
