A stockbroker helps the customers to secure the future of their financials. They secure it by selling and buying financial securities. Being a stockbroker needs an education, license, and also expert knowledge about stock markets and the companies that trade their stocks. A stockbroker should have a sharp analytical skill in order to analyze and monitor the ups and downs of stock markets. Since being a professional stock broker needs a license, here are the steps to get a stock broker license for you who intend to have this job.
How to Get A Stock Broker License
You need to have a license in order to trade stocks on behalf of another person. In order to get a stock broker license, you have to go through a series of examination which is held by the Financial Industry Regulatory Authority (FINRA). The examination you take depends on the kinds of activities you are planning to involve and the requirements of your country licensing bureau. Every examination has a time limit, a number of questions which are multiple choice, and examination fee.
The Financial Industry Regulatory Authority (FINRA) has 3 different types of examination, which are series 57 exam, series 7 exam, and series 63 exam. In order to trade stocks, you have to pass the series 57 exam of FINRA with the score of at least 70% or higher. This examination is also known as the Security Traders Representative Exam. This test covers various topics, including investment products, record saving, professional conducts, and also trading. FINRA series 57 exam consists of 50 questions. You have to finish those 50 questions within 105 minutes or less. This test costs $60.
While FINRA series 7 exam is also known as the General Securities Registered Representative Exam. You have to pass this exam at least 72% or higher. This exam covers investment products, rules, and regulations of Securities and Exchange Commission, and also investments. While FINRA series 57 exam consists of 50 questions, series 7 exam consists of 125 questions. And you have to complete those questions within 225 minutes or less. This exam costs $245.
The last is FINRA series 63 exam. This exam consists of 60 questions and you have to finish them within 75 minutes if you want to get a stock broker license. You have to pay $135 to take this test. Those are the information to get a license of stockbroker.