Series 7 vs Series 63: Which FINRA License Do You Need?
Series 7 vs Series 63 at a Glance
| Feature | Series 7 | Series 63 |
|---|---|---|
| Full Name | General Securities Representative | Uniform Securities Agent State Law |
| Administered By | FINRA | NASAA (via FINRA) |
| Scope | Federal — sell all securities | State — comply with state laws |
| Questions | 125 questions | 60 questions |
| Time Limit | 225 minutes | 75 minutes |
| Passing Score | 72% | 72% |
| Prerequisite | SIE exam + firm sponsorship | No prerequisite (but usually paired with Series 7) |
| Study Time | ~80–100 hours | ~20–30 hours |
| Key Topics | Securities products, trading, client accounts, regulations | State registration, fiduciary duties, unethical practices |
What Does the Series 7 Allow You to Do?
The Series 7 is the broadest securities license available. Once you pass, you can recommend and sell stocks, corporate and municipal bonds, ETFs, options, and packaged products like mutual funds and variable annuities. It’s the license that most full-service brokers, financial advisors, and institutional salespeople hold.
Note: you need to pass the SIE (Securities Industry Essentials) exam first, and you must be sponsored by a FINRA-member firm to sit for the Series 7.
What Does the Series 63 Cover?
The Series 63 is a state-level exam. It doesn’t authorize you to sell anything on its own — it ensures you understand state “blue sky” laws that govern securities transactions. Topics include registration requirements for agents and securities, fiduciary responsibilities, and prohibited practices like insider trading at the state level.
Most states require the Series 63 (or its alternatives, the Series 65 or Series 66) before you can operate as a registered representative.
Do You Need Both?
In practice, yes. The Series 7 gives you federal authorization to sell securities. The Series 63 gives you state authorization to transact in specific states. Without both, you’re only half-licensed. Most firms require new hires to pass both within their first few months.
Key Takeaways
- The Series 7 authorizes you to sell nearly all securities products at the federal level.
- The Series 63 covers state securities laws and is required in most states alongside the Series 7.
- The Series 7 is significantly harder and longer (~125 questions, ~100 study hours) vs the Series 63 (~60 questions, ~25 study hours).
- Most broker-dealer firms require new reps to pass both exams within 90–120 days of hire.
- For advisory roles, consider the Series 65 or 66 as an alternative or supplement to the 63.
Frequently Asked Questions
Can I take the Series 63 without the Series 7?
Yes. The Series 63 has no prerequisite. However, it only covers state law — you’ll still need the Series 7 (or another qualifying exam) to actually sell securities.
Is the Series 7 hard?
It’s challenging. The exam covers a broad range of securities products, trading rules, and regulations. Most candidates study 80–100 hours and the pass rate is around 65–75%. Solid prep is essential.
How long are these licenses valid?
Both the Series 7 and Series 63 remain valid as long as you’re affiliated with a FINRA-member firm. If you leave the industry for more than 2 years, you’ll need to re-qualify.
What’s the difference between Series 63 and Series 66?
The Series 66 combines the Series 63 (state law) and Series 65 (investment adviser law) into one exam. If you plan to offer both brokerage and advisory services, the Series 66 is more efficient.
Do I need firm sponsorship for both exams?
You need firm sponsorship for the Series 7. The Series 63 can technically be taken without sponsorship, though most people take it through their firm’s onboarding program.