When it comes to choosing the right type of investment advice and securities-related licensing, it is important to understand the differences between Series 7 and Series 66. Series 7 and Series 66 are two of the exams administered by the Financial Industry Regulatory Authority (FINRA) and they determine the level of qualification and registration of securities representatives. Knowing which exam to take is essential for those looking to develop a career in financial services or to become an investment professional. This blog post will provide an overview of the differences between the Series 7 and Series 66 exams, including the purpose of the tests, the key topics covered and the types of investments that can be made with each credential. With this information in hand, readers will be better able to decide which exam is the best fit for their particular situation.
What is Series 7?
Popular financial securities licenses include Series 7, also known as the General Securities (GS) license. Financial professionals must pass a licensing exam to obtain this license. Financial professionals who obtain the Series 7 license are allowed to sell almost all types of financial securities, and this license typically has the broadest range of applications. They can pursue careers in trading, financial planning, and other related fields. For those who work in finance, the Series 7 license is a valuable career asset.
What are financial licenses?
Financial advisers are required to hold licenses in order to work in this industry. A financial adviser’s decision regarding which license to obtain is typically influenced by the services they offer, the kinds of securities they sell, and the compensation they receive. Securities include various financial assets, such as stocks and bonds.
The Series 7 and Series 66 licenses are two popular financial securities licenses that financial advisers can pursue. These licenses allow financial professionals to buy and sell securities as well as carry out other job duties. Many financial institutions demand that new hires obtain licenses. In order to advance their careers, financial advisors can also look into additional certifications.
What is Series 66?
Series 66 is another popular type of financial securities license. Financial advisors can work as securities agents or investment advisers with this license. You must already possess a Series 7 license in order to obtain this license. You must also pass a Series 66 licensing examination.
The Series 66 license combines two additional types of financial licenses, the Series 63 and Series 65 licenses. While the Series 65 license focuses on investment advice, the Series 63 license is more concerned with financial laws and regulations. This combination enables those who hold a Series 66 license to offer investment guidance, wealth management, and other services.
Series 7 vs. Series 66
A couple of common licenses for financial securities are Series 7 and Series 66. Although every owner of a Series 66 license also holds a Series 7 license, there are significant distinctions between the two license types. The following are some of the main distinctions between Series 7 and Series 66 licenses:
Qualifications
The prerequisites for obtaining Series 7 and Series 66 licenses are a crucial distinction between the two types of licenses. Candidates must first take and pass the Securities Industry Essentials (SIE) exam in order to obtain a Series 7 license. This exam contains questions that gauge a candidates financial knowledge. The Financial Industry Regulatory Authority (FINRA) must then sponsor a Series 7 candidate. A candidate must pass the Series 7 licensing exam after passing the SIE exam and finding a sponsor.
However, candidates must already possess the Series 7 license and pass a Series 66 licensing exam to be eligible for a Series 66 license. If you want to get both of your licenses quickly, you can also take both exams at once, but to do this, you must take an SIE exam.
Licensing exams
Series 7 and Series 66 licenses have different licensing exams. The 225-minute Series 7 exam is notorious for being lengthy and challenging. Questions on taxes, retirement plans, investment risks, and other topics are included in the exam. To pass the Series 7 licensing exam, you must score at least 72%
The 150-minute Series 66 exam combines components from the Series 63 and Series 65 licensing exams. Questions on business, economics, investment techniques, and laws and regulations are part of the exam. To pass the Series 66 licensing exam, you must score at least 73%
Training
The amount of training needed for the two types of licenses is another distinction between them. The Series 7 licensing exam typically requires more training time because there are more questions on it. Since they have already passed the Series 7 exam by the time they take the Series 66 exam, many people find it easier. Utilizing study materials and online resources, you can get ready for both exams.
Types of permissions
Financial professionals can also become qualified for various jobs by obtaining Series 7 and Series 66 licenses. Financial advisers with Series 7 licenses are able to purchase and sell securities such as:
Financial professionals with Series 66 licenses can sell all securities that can be sold with a Series 7 license, but they can also offer investment advisory services.
Career paths
Additionally, the two types of licenses can lead to various career paths. Financial professionals with the Series 7 license can work as a financial adviser, financial planner, or financial sales representative and sell securities. The Series 66 license, however, allows financial professionals to work as wealth or asset managers or investment advisers. Due to the fact that those who hold Series 66 licenses also hold Series 7 licenses, they are qualified for all of the same careers as those who hold Series 7 licenses.
Income potential
Different earning potentials may also be associated with Series 7 and Series 66 licenses. Financial professionals who hold a Series 66 license, which is a more advanced license than Series 7, may be able to make more money than those who only hold a Series 7 license. The exact salary can vary depending on the business, the job, the years of experience, and many other factors.
Please note that Indeed is not affiliated with any of the businesses mentioned in this article.
The truth about FINRA Exams (Series 7, Series 63, Series 65, Series 66, etc)
FAQ
Is Series 66 harder than Series 7?
The Series 66 exam is simpler for students who have just passed the Series 7 than it is for those who have not. Due to its wide scope, this exam is thought to be challenging. It is advised that students learn using a variety of techniques, including reading and ongoing practice exams.
What test is harder Series 7 or 66?
Overall, the Series 66 is quite a challenging exam. The Series 7’s level of difficulty should not be underestimated, though Both can be conquered with the right amount of studying. As a result, we suggest Kaplan as the best source for both exams.
Do I need a Series 66 if I have Series 7?
A candidate must correctly respond to at least 73 out of the 100 questions on the Series 66 exam to pass. There is no prerequisite for the Series 66 exam. The Series 66 exam requires the Series 7 exam as a prerequisite, though.
What does a Series 66 allow you to do?
A state-specific license known as Series 66 enables licensees to manage transactions for securities-based products and provide financial advice. NASAA regulates it and outlines the procedures for obtaining a license.
