Series 63 Exam Guide: State Securities Law and How to Pass
The Series 63 exam (Uniform Securities Agent State Law Examination) tests your knowledge of state securities regulations. It’s required in most US states before you can sell securities — making it a necessary companion to the Series 7 for registered representatives.
What Is the Series 63 Exam?
The Series 63 is developed by NASAA (North American Securities Administrators Association) and administered by FINRA. Unlike the Series 7, which tests product knowledge, the Series 63 focuses exclusively on state-level securities laws — often called “blue sky laws.”
Nearly every state requires securities professionals to pass the Series 63 (or the combined Series 66) before conducting business within that state. It covers registration requirements, prohibited practices, fiduciary duties, and administrative procedures.
Exam Format and Structure
| Detail | Specification |
|---|---|
| Administrator | NASAA (via FINRA) |
| Questions | 60 multiple-choice (+ 10 unscored pretest) |
| Time Limit | 1 hour 15 minutes |
| Passing Score | 72% |
| Prerequisite | None (no sponsorship required) |
| Cost | $147 |
| Retake Policy | 30-day wait after 1st/2nd fail; 180 days after 3rd |
Topics Covered
| Section | Weight | Key Areas |
|---|---|---|
| Regulation of Investment Advisers | ~10% | IA registration, exclusions, notice filing |
| Regulation of Broker-Dealers and Agents | ~25% | Registration, exemptions, business practices |
| Regulation of Securities and Issuers | ~30% | Registration types (qualification, coordination, notice filing), exempt securities |
| Remedies and Administrative Provisions | ~35% | Prohibited practices, fraud, enforcement actions, fiduciary duties |
How to Prepare for the Series 63
The Series 63 is shorter and narrower than the Series 7, but don’t underestimate it. The questions test nuanced legal distinctions, and the language can be tricky.
Study time: Most candidates need 20–40 hours over 1–3 weeks. If you’re studying for the Series 7 simultaneously, allocate dedicated Series 63 time — the material barely overlaps.
Focus areas: Registration requirements for securities, agents, and broker-dealers make up the core. Know the difference between registration by qualification, coordination, and notice filing. Understand which securities and transactions are exempt.
Practice exams: The exam is concept-heavy with many “except” and “which of the following” questions. Practice under timed conditions and aim for 80%+ before test day.
Series 63 vs. Series 66
| Feature | Series 63 | Series 66 |
|---|---|---|
| Scope | State securities law only | State law + investment advisory rules |
| Replaces | Nothing — standalone | Series 63 + Series 65 combined |
| Questions | 60 scored | 100 scored |
| Time | 75 minutes | 150 minutes |
| Best For | Reps who only sell (no advisory) | Reps who sell AND advise |
Who Needs the Series 63?
You need the Series 63 if you’re a registered representative selling securities in any state that requires it — which is nearly all of them. Typical roles include stockbrokers, financial advisors at broker-dealers, and investment banking analysts at firms that require state registration.
If you plan to also provide investment advice (not just sell products), consider the Series 66 instead, which combines the 63 and 65 into one exam.
The Series 63 is often taken the same day as or within days of the Series 7. Many firms schedule both exams back-to-back. If you go this route, study for them in parallel but keep the material separate — mixing up FINRA rules and state rules is a common mistake.
Key Takeaways
- The Series 63 tests state securities law (blue sky laws) — required in most states alongside the Series 7.
- 60 scored questions in 75 minutes with a 72% passing score — shorter but tricky.
- No firm sponsorship needed — you can take it before landing a job.
- Focus on registration categories, exempt securities, and prohibited practices.
- If you also need advisory authority, the Series 66 covers both the 63 and 65.
Frequently Asked Questions
Is the Series 63 hard?
It’s considered easier than the Series 7, but the pass rate (~80%) can be misleading. The legal language is precise, and questions often test edge cases. With 20–40 hours of focused study, most candidates pass on their first try.
Can I take the Series 63 without the Series 7?
Yes. The Series 63 has no prerequisites and doesn’t require firm sponsorship. Many candidates pass it before getting hired to demonstrate initiative.
Do I need both the Series 63 and Series 66?
No — the Series 66 replaces both the Series 63 and Series 65. If you pass the Series 66, you don’t need the 63 separately.
How long is the Series 63 valid?
The Series 63 doesn’t expire by itself, but your state registration lapses if you leave a firm for more than two years. You’d need to re-register (and possibly re-test) to resume activity.
What happens if I fail the Series 63?
You can retake it after a 30-day waiting period for the first two failures. After the third failure, the wait extends to 180 days. Use the waiting period to focus on weak areas identified in your score report.