Series 7 vs 63: Understanding Their Roles Together
- April 1, 2025
- Posted by: 'FINRA Exam Mastery'
- Category: Finance
🧾 Series 7 vs Series 63: Understanding Their Roles Together
📘 How the Series 7 and Series 63 Exams Work Together in the Securities Industry
The Series 7 and Series 63 exams are two of the most common exams required for professionals in the securities industry. While each exam serves a different purpose, they often go hand in hand for individuals pursuing careers in securities sales. Here’s a breakdown of their individual roles and how they work together to qualify you for specific securities-related jobs.
🎯 1. What is the Series 7 Exam?
The Series 7 exam, officially known as the General Securities Representative Exam, qualifies individuals to sell a wide variety of securities products, including stocks, bonds, options, and mutual funds.
Key Points of the Series 7 Exam:
- Purpose: To qualify you to sell a broad range of securities products to clients.
- Content: The Series 7 covers topics such as:
- Equity securities (stocks)
- Debt securities (bonds)
- Options
- Mutual funds
- Regulatory framework (FINRA, SEC regulations)
- Eligibility: You must be sponsored by a FINRA-member firm to take the Series 7 exam.
- Exam Format: 125 multiple-choice questions, 6-hour exam, with a passing score of 72%.
- License: Upon passing, you are qualified to work as a General Securities Representative, allowing you to sell securities products to customers.
🎯 2. What is the Series 63 Exam?
The Series 63 exam, known as the Uniform Securities Agent State Law Exam, is a state-required exam for securities professionals. It primarily focuses on state securities laws, including registration requirements and ethical practices for selling securities within a particular state.
Key Points of the Series 63 Exam:
- Purpose: To qualify you to sell securities within a particular state.
- Content: The Series 63 exam covers:
- State-specific securities laws
- Registration and licensing requirements
- Ethical standards for securities agents
- Prohibited practices such as fraud and market manipulation
- Eligibility: No sponsorship required to take the Series 63 exam.
- Exam Format: 60 multiple-choice questions, 1-hour exam, with a passing score of 72%.
- License: Required for securities agents to legally sell securities in a state.
🎯 3. How Do the Series 7 and Series 63 Exams Work Together?
The Series 7 and Series 63 exams serve complementary roles in the licensing process for securities professionals.
1. Broad vs. State-Specific Licensing
- Series 7 qualifies you to sell a wide range of securities products at the federal level, including stocks, bonds, options, and mutual funds.
- Series 63 ensures that you meet state-specific regulatory requirements to sell securities within a given state.
2. Sales Roles
- Series 7: If you are pursuing a career in securities sales, the Series 7 will allow you to sell a variety of investment products.
- Series 63: Even with the Series 7, you cannot legally sell securities in most states without having passed the Series 63 exam, as it satisfies state licensing requirements.
3. Which Exam Comes First?
- In practice, most professionals take the Series 7 exam first, as it qualifies them to sell a broader range of securities. After passing the Series 7, they take the Series 63 exam to comply with state regulations.
- Some states may require the Series 63 exam before you can begin selling securities, but this is often completed after obtaining Series 7 qualification.
🎯 4. Key Differences Between Series 7 and Series 63
| Aspect | Series 7 | Series 63 |
|---|---|---|
| Purpose | Qualifies individuals to sell securities (stocks, bonds, options, mutual funds). | Qualifies individuals to sell securities within a specific state. |
| Eligibility | Requires sponsorship from a FINRA-member firm. | No sponsorship required. |
| Content | Focuses on securities products, market regulations, and customer accounts. | Focuses on state securities laws, ethical practices, and registration. |
| Exam Format | 125 multiple-choice questions, 6-hour exam. | 60 multiple-choice questions, 1-hour exam. |
| Passing Score | 72% (minimum of 72 correct answers out of 100 scored questions). | 72% (minimum of 43 correct answers). |
| Required For | Securities sales (stocks, bonds, mutual funds, etc.). | State-level registration for securities agents. |
| Cost | $245 | $135 |
🎯 5. Which Exam Should You Take?
Take Series 7 if:
- You want to sell a broad range of securities to clients, including stocks, bonds, and mutual funds.
- You are working for a FINRA-member firm that requires you to be a registered representative.
- You want to advance in securities sales roles, such as stockbroker, investment sales representative, or financial consultant.
Take Series 63 if:
- You need to fulfill state-specific registration requirements to legally sell securities within your state.
- You are looking to complement your Series 7 qualification with the necessary state license.
- You are working as a securities agent or an investment adviser and need to meet state legal standards.
🚀 Conclusion: How Series 7 and Series 63 Work Together
The Series 7 and Series 63 exams are closely related but serve distinct roles in your career in the securities industry. The Series 7 qualifies you to sell a broad range of securities, while the Series 63 ensures that you meet state-specific regulations. In most cases, professionals take the Series 7 exam first and then follow up with the Series 63 exam to meet state licensing requirements.
🎓 Need help preparing for your Series 7 or Series 63 exams?
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👉 https://finra-exam-mastery.com
Prepare with confidence and pass your Series 7 and Series 63 exams today!