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
Get a Series 3 investment broker license if you want to specialize in commoditiesIf 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.
Acquire a Series 4 investment broker license if you want to be a registered options principalTaking 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.
Get a Series 7 investment brokers license if you want to be a general securities representativeSeries 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.
- Before you spend money on broker licensing courses, inquire about the ratio of students who have passed the exam after taking the course.