With dozens of Series exams available through FINRA and its partners, and all but one named numerically, it can be next to impossible to figure out the right match for your needs.
The Series 63 and Series 7 licenses are two popular options, but how do you know if you need neither, both, or just one?
Whether your goal is to sell securities, offer investment advice, or become a licensed financial advisor, figuring out the right path starts with understanding the difference between these two exams. I’ll also touch on how they compare to other popular securities licenses so you can make a smart decision.
Key Takeaways
- Series 7 Opens More Doors: It qualifies you to sell a wide range of securities, including stocks, bonds, mutual funds, and options.
- Series 63 Makes It Legal: Even with a Series 7, you’ll usually need the Series 63 to sell in most states—it covers state law.
- You Usually Need Both: If you’re working at a broker-dealer with clients across state lines, you’ll likely need both licenses.
- They Serve Different Purposes: Series 7 is about product knowledge; Series 63 is about compliance and ethics under state regulations.
- Start With the SIE: Before either exam, you must pass the Securities Industry Essentials (SIE) if you’re brand new.
What Is the Series 7?
The Series 7 exam, officially known as the General Securities Representative Exam, is the big one.
Passing this exam qualifies you to sell corporate securities, municipal securities, mutual funds, options, municipal fund securities, direct participation programs, and more. It’s basically your all-access pass for working as a full-service broker.
This exam is administered by the Financial Industry Regulatory Authority (FINRA), and it’s a doozy. It covers a wide range of topics, including:
- Investment risks
- Client communication
- Product types
- Ethical practices
- Tax considerations
- Investment strategies
The test includes 125 scored questions, and you’ll have 3 hours and 45 minutes to complete it. You’ll also need a passing score of 72%, or 90 questions answered correctly.
One important note: you’ll need a sponsoring firm to sit for the Series 7. So it’s typically something you take once you’ve landed a job offer at a broker-dealer or similar firm. To help you make sure you pass on your first try, I’d suggest one of these Series 7 prep courses.
What Is the Series 63?
The Series 63 exam, also known as the Uniform Securities Agent State Law Exam, is much more focused in scope.
Most U.S. states require it for individuals who want to act as securities agents, meaning you want to sell securities within a particular state. It’s not a standalone sales license, though. You pair it with another exam (like the Series 6 or 7) to be fully licensed to operate.
Here’s what the Series 63 covers:
- State securities laws under the Uniform Securities Act
- Registration of persons and securities
- Business practices
- Fraudulent and unethical practices
The exam has 60 questions, and you need a score of 72% to pass. It’s shorter, simpler, and doesn’t require sponsorship. Still, it’s essential for securities industry pros who want to work with clients across different states.
Series 63 vs. Series 7: Key Differences
Let’s get right to it. Here’s how the Series 63 and Series 7 stack up:
| Feature | Series 63 | Series 7 |
|---|---|---|
| Focus | State securities law & ethics | Broad securities product knowledge |
| Who Needs It | Agents who sell securities at the state level | Registered reps selling across multiple product types |
| Sponsorship Required? | No | Yes |
| Length | 60 questions | 125 questions |
| Administered By | NASAA via FINRA | FINRA |
| Best For | Adding to Series 6/7 for state-level compliance | Full-service brokers, aspiring financial advisors |
In plain terms: Series 7 lets you sell the stuff; Series 63 ensures you’re legally allowed to sell it in your state. You’ll almost always need both if you work at a broker-dealer and deal directly with clients.
What If You Want to Offer Investment Advice?
If you aim to provide investment advice instead of—or in addition to—selling securities, the Series 7 and 63 might not be enough.
That’s where the Series 65 and Series 66 come in. Here’s a super-quick breakdown:
- Series 65: Needed if you want to work as an investment adviser representative and give fee-based advice.
- Series 66: Combines the content of the 63 and 65 but only works if you’ve passed the Series 7.
If you plan on helping clients plan their future with advice, not just selling them products, you’ll want to look into these licenses.
Other Popular Series Exams (and How They Compare)
Still unsure where you fit? Here’s a quick look at how the Series 63 and 7 compare to other common securities licenses:
- Series 6: Limited to packaged products like mutual funds and variable annuities. Shorter than the 7 and often paired with Series 63.
- Series 65: To give paid investment advice; there is no need for sponsorship.
- Series 66: For dual roles (advising + selling) when you already have Series 7.
- Securities Industry Essentials (SIE): This is your first step into the securities industry. You’ll need to pass it before taking Series 6 or 7.
If you’re brand new, you’ll start with the SIE, then decide whether you need Series 6, Series 7, or another path based on your role.
Which Exam Should You Take?
Here’s a quick guide based on career goals:
- Just want to sell mutual funds and variable annuities?
→ Take Series 6 + Series 63 - Want to sell a full range of securities?
→ Take Series 7 + Series 63 - Want to give paid investment advice?
→ Take Series 65 (or Series 7 + Series 66) - Not sure yet, but want to keep your options open?
→ Start with the SIE, then go for Series 7 + 66 to cover sales and advisory roles.
Wrapping It Up
Choosing between the Series 63 and Series 7 isn’t a matter of which one is “better”—it’s about what you plan to do in the securities industry.
If you want to sell securities like stocks, bonds, and options? Series 7 is your go-to. Want to make sure you’re legally allowed to sell in your state? Add the Series 63. And if you’re dreaming about helping clients build portfolios and give advice, you’ll probably need to add Series 65 or 66 to your journey.
The good news? You don’t have to figure it all out in one day. Take a step back, look at your career goals, and then choose the license path that sets you up for long-term success.
And when you’re ready to prep? Invest in a Series 63 prep course, check out Series 7 practice questions, and get after it. You’ve got this.
FAQs
The Series 7 lets you sell a wide variety of securities products. The Series 63 license qualifies you to do that state-level work legally by covering laws and ethical practices.
Yes, in most states, you need both. The Series 7 gives you product authority, but the Series 63 allows you to transact under state securities laws.
The Series 7 is definitely harder—it’s longer, broader, and more complex. The Series 63 is shorter and focuses more on rules than products.
Yes, if you want to sell securities. The CFP® is excellent for planning but doesn’t authorize you to recommend or execute securities trades.
It depends on your firm’s timeline, but most people take the Series 7 first because it requires a sponsor. The Series 63 is often added right after.
You’re more likely to make a higher salary with a Series 7 license, since it qualifies you to sell a wider range of securities and take on more advanced roles.
