Investment broker licensing education and training allows individuals to sell investments such as commodities, securities or trading options. Licensing is required in most states in order to sell investment services. This educational process ensures an individual has the training to aid individuals in making wise investment decisions.

Investment broker licensing can take time to complete, depending on the amount of education and training needed. Individuals first need to be hired by — and work with — an investment brokerage prior to qualifying to take course training. For those considering an education and licensing in investment brokering, keep the following in mind:

1. Find broker licensing courses with a high pass rate on licensing exams by students who've completed the program.

2. Choose the most appropriate broker licensing training based on the most likely types of investments to sell.

3. Note the difference between stock broker licensing, which entails a heavier concentration on stock trading, and other investment licensing.

Action Steps
The best contacts and resources to help you get it done

Get hired by a brokerage prior to taking broker licensing classes

Most brokerage firms require their brokers to work within the company through an apprenticeship for four months prior to their enrollment into the training and educational programs. From there, the individual may then work with the company's designated broker licensing education provider.

I recommend: Obtain an education to get an investment brokers license through the brokerage firm's educational provider. Training Worldwide provides a range of educational programs, including preparatory courses for the NASD Exam, or broker's licensing exam. American Investment Training offers training programs for each of the NASD exams, including Series 3, Series 4 and Series 7 licensing exams.

Use self-study training programs to educate for the investment broker license exams

Intense study and training is necessary to pass the licensing exam to obtain a financial brokerage license. Self-study programs are available to prepare for this exam.

I recommend: Work toward a broker licensing certificate through self study programs. Securities Exam Preparation provides a range of self-study programs including those to study for the Series 7 licensing exam. Research and Markets provides book and software study programs to aid individuals in preparing for the NASD exam.

Train for investment banking licensing

This type of financial broker licensing is slightly different. Individuals may choose in-person seminars, books or local courses for training. Here, students will sit for the Series 24 exam, which licenses them to manage or supervise investment-banking professionals or to run an investment company.

I recommend: Select education and training specific for the investment banking license exam. The Agent Broker Training Center offers live, in-person seminars and self-study options for individuals who plan to sit for the Series 24 exam. SecuritiesCampus provides online courses and software programs to prepare students for the Series 24 exam.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Students generally work about four months with a brokerage firm prior to taking their General Securities Registered Representative Examination (Series 7 exam) and then follow this with the Uniform Securities Agents State Law Examination. Choose resources, classes and broker licensing seminars able to prepare you for the specific exam you're taking.

You're interested in getting your investment broker license because you’ve been a successful professional investor. Now, you want to open up your own business and make money for clients. You’ll need to obtain a license.

There are many series exams for a license. You don't need to take all of them; you just want to focus on ones that pertain to you. Investigate schools where you can take stock broker licensing courses; the good news is that you can find such schools online. Here are three series stock broker licensing exams you can pursue:

1. Series 3 investment broker license if commodities are your specialty

2. Series 4 investment broker license in order to be a registered options principal

3. Series 7 investment brokers license if you’re interested in being a general securities representative

Action Steps
The best contacts and resources to help you get it done

Get a Series 3 investment broker license if you want to specialize in commodities

If you want to specialize in futures or commodities, you'll want to invest in Series 3 licensing training. Series 3 licensing training is about preparing for the exams in hedging, options, contracts and futures. You also will learn about the rules that make up CFTC (Commodity Futures Trading Commission) and NFA (National Futures Association). Other topics that are covered for the Series 3 investment banking licensing exam are margins, clients' accounts and orders.

I recommend: Knopman Financial Training provides Series 3 broker licensing courses. This investment broker licensing firm has been in business since 1991 by Harvey Knopman. It offers other various broker licensing classes. Kaplan Financial Training also offers materials to get you ready for the Series 3 broker licensing training exam. You can prepare in various ways, including learning in the classroom, buying the CD or taking the online courses.

Acquire a Series 4 investment broker license if you want to be a registered options principal

Taking Series 4 brokerage licensing courses and passing the exam are required to be a registered options principal. It also focuses on how well you know trading options, including equity, debt, index and foreign currencies. You'll also need to know the rules and regulations about the Exchange and Options Clearing Corp.

I recommend: BankTrainingCenter.com offers broker licensing courses on getting Series 4. You can either take these broker licensing education courses through self-study, webcasts or in seminars. You can also go through ABTrainingCenter.com to take these investment broker licensing classes.

Get a Series 7 investment brokers license if you want to be a general securities representative

Series 7 involves diverse courses. You'll be studying equity and debt securities just as you will for other series courses. In addition, you will also study about retirement plans, securities markets and regulations. Another area that Series 7 covers is taxation.

I recommend: Empire Stockbroker Training Institute offers Series 7 exam courses, in addition to other investment broker licensing courses. It’s the largest investment broker licensing school on Long Island. You can go through American Investment Training to take broker licensing training courses.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Before you spend money on broker licensing courses, inquire about the ratio of students who have passed the exam after taking the course.

Investment broker licensing is required of all who plan to sell investments in the United States. There are several licensing options, depending on the type of investments an individual wishes to sell. Many brokers will work through several exams including the Series 7 license, the Series 24 license and the Series 6 license. The FINRA and NCFE are regulatory bodies that approve preparatory courses, exams and licenses in this industry. There are several terms that can become confusing in the investment broker industry.

Action Steps
The best contacts and resources to help you get it done

Series 7 license

The Series 7 license is required for those who wish to become general securities representatives. Individuals must complete a course to learn about retirement plans, taxation, equity security investment, options and derivatives and securities markets. The licensing exam is six hours in length and is administered by the Financial Industry Regulatory Authority.

I recommend: Visit American Investment Training to learn more about the Series 7 license.

FINRA

The FINRA, or Financial Industry Regulatory Authority, is the non-governmental body that regulates U.S.-based security firms. The group oversees more than 5,000 brokerage firms and 656,000 registered securities representatives. Those wishing to obtain a license to become an investment broker must take FINRA approved courses and sit for the exam designed by FINRA.

I recommend: Find out more about FINRA by visiting their website.

Series 24 license

The Series 24 license is administered by the FINRA. It is a required license for those who wish to oversee branch activities as investment brokers. These individuals must complete a course to learn trading market supervision methods, supervision of investment banking and sales supervision methods. Individuals with this level of training may be able to work for themselves. The Series 24 license is obtained through passing a 210-minute exam.

I recommend: Visit the the ABTraining Center to learn more about the Series 24 license and courses.

Annuities

To obtain an investment broker license, individuals will need to learn about annuities. Annuities are contracts between an individual and an insurance company. The individual makes a lump sum payment or makes several payments. The insurance provider then makes periodic payments to the individual. This is a tax deferred method of investment.

I recommend: The U.S. Securities and Exchange Commission provides a detailed explanation of annuities.

Series 6 license

The Series 6 license provides investment brokers with the ability to sell mutual funds, variable life insurance and variable annuities. Individuals will need to take a Series 6 course and pass the exam to obtain the Series 6 license.

I recommend: Visit the Empire Stockbroker Training Institute to find out what you need to do to prepare for the Series 6 license.

National Commodity Futures Examination, NCFE

The National Commodity Futures Examination is another type of investment broker licensing exam. The National Futures Association is a regulatory organization for investment brokers and agents in the United States futures industry. Individuals need to pass the NCFE within two years of applying for membership.

I recommend: Visit the National Futures Association to learn more about the group and the exam, as well as alternatives to taking the exam.