Is it hard to get a Series 6, 7, & 63 License? I want to trade stocks!?

Question

I am currently pursuing a A degree in Finance at Queens College with a minor in Economics. I would like to know what is the process of getting these licenses to work at wall street. Any input would be appreciated.

Answer 1

Addressing trading with a US firm, (Canadian firms are the same).

It's not hard to get licenses, but you must be employed by and sponsered by a registered broker/dealer.  If you have a series 7 license, you do not need a series 6.  Studying for a Series 6 knowing that you want full licenses, is an absolute waste of time and effort.

BUT you do not need a license to trade stocks.   Licenses are for those that are doing business with the general public, traders do not deal with the public,  Most traders, if any, are not licensed since most firms don't want customers talking with traders, and more often, don't want traders talking to customes.

All traders, except fixed income traders, have the same basic make up, they have above average intelligence, good a math, out going personalities, and are not wrapped too tight.

Although many traders have a college education, it is not a requirement unless you are trying to get with a bank and/or mutual fund company.  (Once you have trading experience, a bank or fund company will hire you regardless of education)

To be good at trading, you should have a good working knowledge of finance, economics and accounting.

It would help if you have an understanding of the various markets, how they work and the products traded in each market.  

There are no real programs for trader trainee, nor do they hire for training jobs.   If you want to get into trading, you start with working in the trading department, doing what ever they offer you (and it can be pretty bad).

The money may not be that great to start, and the working conditions may be worse, but you take it as a golden opportunity to learn the business and learn it correctly.



Go for it, if you want it bad enough, you can do it.

Answer 2

Testing is not hard, given that you have a background in finance.  The minimum pass score is 70%, the questions are like:

Which of the following is NOT a way for a company to raise money?

A)  Issue common stock

B)  Issue bonds

C)  Issue preferred stock

D)  Rob a bank

The hard part is finding a member firm to sponsor you.  As long as you can come up with $700, the cost won't be an issue.  The issue is if you are registered with a certain firm, your actions can have conseqences to them (you say to a friend he should buy penny stock XYZ, being an idiot he does, it tanks, and then he sues your member firm for bad advice provided by you, EVEN THOUGH YOU WERE NOT AUTHORIZED TO PROVIDE ADVICE BY THE FIRM).  Nobody wants that risk, so nobody sponsors non-employees (and because of the current market, firms don't even sponsor employees whose job does not necessatate that specific license).

Good luck, hope you have connections with member firms or are willing to do phone rep work to get a 6/63.  If all else fails, join up with Primerica as a financial rep ($500 cost I believe), sell some term life insurance & mutual funds to get licensed, and then bounce.  Nobody cares how you got your licenses, as long as you have them.