There are three main stockbroker exams, which are series 6, series 63, and series 7. An explanation of each is below.
Series 6
Series 6 allows individuals to sell mutual fund, variable life, variable annuities, and unit investment trusts after passing the exam. This stockbroker exam contains 100 multiple-choice questions. The exam is separated into four sections. Section 1 covers Securities & Markets, Investment Risk, and Policies and is 23% of the exam. Section 2 covers Investment Companies, Taxation, and Customer Accounts and is 36% of the exam. Section 3 covers Variable contracts and retirement plans and is 16% of the exam. Section 4 covers industry regulations and is 25% of the exam.
The cost of the Series 6 exam is normally $60 along with a new applicant fee of $85 and a fingerprint analysis fee of $27.50. Once you have been issued an enrollment certificate you will receive a scheduled exam within 120 days. An individual will be given 135 minutes to complete the exam.
Series 63
Series 63 allows individuals to be securities agents also commonly referred to as the blue-sky exam. This stockbroker exam contains 65 multiple-choice questions covering the principles of state securities regulations, which are found in the Uniform Securities Act. The exam is broken into 3 sections. Section 1 covers Registration of Persons and is 30% of the exam. Section 2 covers Securities and is 25% of the exam. Section 3 covers Business Practices and is 35% of the exam.
The cost of the Series 63 exam is normally $65 along with a new applicant fee of $85 and a fingerprint analysis fee of $27.50. Once you have been issued an enrollment certificate you will receive a scheduled exam within 190 days. An individual will be given 75 minutes to complete the exam.
Series 7
Series 7 allows individuals to be able to sell any type of securities, which include municipal bonds, government bonds, common stock, corporate stock, preferred stock, variable contracts, pull & call options, direct participation programs, and investment companies. This stockbroker exam contains 250 multiple choice questions in two parts. The first part of the exam will cover economics, securities, trading, margin, investment companies, and municipal securities. Those taking the test will then be given a lunch break before taking the second part of the exam. The second portion of the exam covers NASD, financial statement, law, direct participant programs, taxes, and options.
The cost of the Series 7 exam is normally $150 along with a new applicant fee of $85 and a fingerprint analysis fee of $27.50. Once you have been issued an enrollment certificate you will receive a scheduled exam within 90 days. An individual will be given 3 hours to complete the exam.
A score of 70% or higher will give the individual a passing grade for the above exams.
Other series
There are a few other stockbroker exams besides the major ones listed above. These are Series 3, 5, and 9/10.
Series 3 is required for individuals to solicit or sell commodities futures and options of futures. The exam contains 120 multiple-choice questions with an allotted time of 2 hours to complete the exam.
Series 4 exam is required for individuals to supervise options transactions. Prior to taking this exam, you must have passed the Series 7 exam. The exam is a 125 multiple choice question test with an allotted time of 3 hours, which covers options trading, OCC rules, exchange regulations, exchange rules, strategies, and option basics.
Series 6 exam is required for individuals to solicit and sell variable annuities, variable life insurance contracts, and mutual funds. The exam contains 100 multiple-choice questions covering such things as investment banking, retirement plans, debt securities, and taxes.
Series 9/10 is required for individuals to supervise the sale activities in municipal bonds, corporate securities, investment company products, and U.S. Government securities. The exam contains 100 multiple choice questions with an allotted time of 5 ½ hours.
To enroll for any of the stockbroker’s exam you can contact prometric testing. In order for you to enroll, your firm must have filed an application and pay the proper testing fee with the National Association of Securities Dealers also known as the NASD. You will then receive a confirmation about your enrollment, which will be in effect for a certain amount of time.
You will then have to send in the Form U-4 along with a fingerprint card and any other fees required. Prior to taking the exam you will have to provide your full name, your social security number, the name of the firm, and a telephone number where you can be reached and your employer, and which test you will be taking.
