Introduction

• A series 7 license is the main requirement to become a stockbroker. Stockbrokers are financial professional who provide investment advice to clients. Brokers also buy and sell stocks, bonds, mutual funds and other investments on behalf of clients. In exchange for this service a broker charges a commission fee. Many stockbrokers can easily make 6 figures a year. It is a lucrative career choice for those who like dealing with numbers, money and people. Stockbrokers must pass the series 7 exam and a background check before being able to work in the financial services industry.
  
  

The Series 7 and 63 Examinations

• Stockbrokers are licensed by the Financial Industry Regulatory Authority (FINRA). Previously the National Association of Securities Dealers (NASD) administered the exam. A prospective stockbroker must first register with the FINRA. There are no other pre-requisites for becoming a stockbroker. Part of the registration process includes taking and passing exams. The Series 7 exam is officially known as the General Securities Registered Representative Examination. This exam tests a person's knowledge and competence in several areas. The FINRA website states that candidates are tested on federal securities laws, rules and regulations, investment products, accounting, balance sheet analyses, portfolio theory, economic theory, and fair sales practices.
  
  Potential stockbrokers can study for the exam in a variety of ways. There are books, CDs, videos, online and classroom courses and correspondence courses. When a person is ready to take the exam, he schedules an appointment at an authorized testing center. The computerized exam has 250 multiple choice questions. The test is 2 parts with 125 questions per part. Each part has a maximum time limit of 3 hours. Because the test is done on a computer, you get your results immediately.
  
  Another exam you may need to pass is the Uniform Securities Agents State Law Examination, also known as Series 63. Many states require stockbrokers to also take this exam. The exam lasts 1 hour and 15 minutes and consists of 60 multiple choice questions.
  
  

The Background Check

• To complete the registration process, there is a background check. All potential stockbrokers must have no criminal history. The registration form with the FINRA requires detailed information about an individual's work history, education, citizenship status and places of residency. Being fingerprinted is also part of the process to become a licensed stockbroker. If you pass the exams and the background check, you are allowed to work as a stockbroker.