What you need to become a financial advisor

Becoming a financial advisor requires a combination of education, licensing exams, and work experience — but the exact path depends on what type of advising you want to do. Most financial advisors need a bachelor's degree (in any field), pass a licensing exam like the Series 7 or Series 65, and work for a registered firm for at least a few years. Some advisors start by working at a bank or brokerage while studying; others complete their education first and then seek employment. The timeline typically ranges from two to four years before you can work independently.

The route you take also depends on whether you want to sell investment products (which requires a Series 7) or give investment information directly to clients (which requires a Series 65). Both paths lead to the same career, but the licensing exam and initial job search differ slightly. Your employer will usually cover the cost of exam prep and the exam itself, so you do not need to pay out of pocket to get your free guide.

Key Takeaways

  • A bachelor's degree is required by most employers, though the major does not have to be finance or business.
  • You must pass at least one licensing exam (Series 7, Series 65, or Series 63, depending on your role) administered by FINRA or your state.
  • Most advisors work for a brokerage, bank, or investment firm for several years before starting their own practice.
  • Continuing education requirements vary by license type and state, typically ranging from 15 to 40 hours per year.
  • Some advisors pursue additional credentials like the Certified Financial Planner (CFP) mark, which requires passing an exam and meeting experience requirements.

Education requirements: degree and coursework

Nearly all employers require a bachelor's degree, but it does not have to be in finance, economics, or business. Many financial advisors hold degrees in accounting, mathematics, communications, or even unrelated fields — employers care more about your ability to pass licensing exams and work with clients than your undergraduate major. Some community colleges and universities offer finance or investment certificates that can help you stand out, but these are not required.

While pursuing your degree, you can take electives in accounting, economics, corporate finance, or investments to build knowledge for the licensing exams. Many people also study for exams while working entry-level roles at financial firms — this combination of work experience and education often makes you a stronger candidate for advisor positions. If you did not study finance in college, you may want to take a prep course (usually four to eight weeks) before sitting for your licensing exam.

Licensing exams and which one you need

The Financial Industry Regulatory Authority (FINRA) administers the main licensing exams for financial advisors. The exam you take depends on the type of work you will do. The Series 7 (General Securities Representative Exam) is required if you want to sell stocks, bonds, mutual funds, and other securities — this is the most common path for advisors at brokerages. The Series 65 (Uniform Investment Adviser Law Exam) is required if you want to give investment information directly to clients without selling securities through a brokerage. Some states also require the Series 63 (Uniform Securities Agent State Law Exam) in addition to the Series 7 or 65.

Each exam costs between $150 and $300 and takes three to four hours to complete. You must pass with a score of at least 72 percent on the Series 7 and 73 percent on the Series 65. Most people study for four to twelve weeks using prep materials from FINRA, textbooks, or online courses. You can retake an exam if you fail, though there are waiting periods between attempts. After passing, you must work for a registered firm — you cannot hold a license independently without sponsorship from an employer.

Getting hired and building experience

Most financial advisors start as junior advisors, client service associates, or trainees at banks, brokerages, or investment firms. These entry-level roles typically require only your bachelor's degree and a willingness to study for licensing exams; your employer often pays for exam prep and exam fees. You will spend your first one to three years learning how the firm operates, shadowing senior advisors, and building a client base under supervision. During this time, you are required to pass your licensing exam and maintain your license by meeting continuing education requirements.

The salary during these early years varies widely depending on the firm and region — some firms pay a base salary plus commission, while others pay salary only. Many advisors earn between $30,000 and $50,000 in their first few years, with significant increases as they build their own clients. After three to five years of experience, you may move to an independent advisor role, start your own practice, or transition to a different firm. Some advisors stay with one firm for their entire career, while others move multiple times to find better compensation or a better fit.

Additional credentials and certifications

Beyond the basic licensing exams, many financial advisors pursue the Certified Financial Planner (CFP) mark, which signals to clients that you have met rigorous education and ethics standards. To earn the CFP, you must complete a CFP Board-approved education program (usually 18 to 24 months of coursework), pass a comprehensive exam, and have at least three years of full-time financial planning experience. The CFP exam costs around $900 and takes six hours to complete. Many employers encourage or require advisors to pursue the CFP within their first five years.

Other credentials include the Chartered Financial Analyst (CFA), which focuses on investment analysis and is more common among portfolio managers; the Chartered Special Needs Consultant (ChSNC), which focuses on planning for people with disabilities; and the Accredited Investment Fiduciary (AIF), which certifies that you follow fiduciary standards. These credentials are optional but can increase your earning potential and credibility with clients. Some advisors pursue multiple credentials over their careers as they specialize in different areas of financial planning.

Continuing education and staying licensed

After you pass your initial licensing exam, you must complete continuing education (CE) hours every year or every two years, depending on your license type and state. The Series 7 requires 120 hours of CE every three years; the Series 65 requires 30 hours every two years. These hours cover topics like regulatory changes, ethics, investment products, and client communication. Your employer typically provides these courses at no cost, and many are available online so you can complete them on your own schedule.

You must also maintain your license by working for a registered firm and paying annual fees. If you stop working in the industry or let your license lapse, you will need to retake the exam to become licensed again. Some advisors take breaks from the industry and later return; others maintain their licenses even if they are not actively advising, which requires paying fees and completing CE hours but allows them to return to work more quickly.

Different paths: employee versus independent advisor

Most financial advisors start as employees at established firms — banks, wirehouses like Morgan Stanley or Merrill Lynch, regional brokerages, or independent advisory firms. As an employee, you receive training, support, and a client base to start with, but you share revenue with the firm and have less control over how you run your practice. After building experience and a client base, some advisors leave to start their own independent practice or join a smaller firm where they keep more of the revenue.

Starting your own practice requires more than just passing exams — you need to register your firm with the Securities and Exchange Commission (SEC) or your state, maintain a compliance program, and carry errors and omissions insurance. Most independent advisors do not start their own practice until they have five to ten years of experience and an established client base. The independent route offers higher earning potential but also higher risk and more administrative responsibility. Many advisors find a middle ground by joining a smaller independent firm where they have more autonomy than at a large bank but less overhead than running a solo practice.

Frequently Asked Questions

Can I become a financial advisor without a bachelor's degree?

Most employers require a bachelor's degree as a condition of employment, though some smaller firms or alternative paths may not. However, you will still need to pass the licensing exam, which assumes college-level knowledge of finance and securities law. If you do not have a degree, you could pursue a finance certificate or associate degree first, then move into an entry-level role at a firm.

How long does it take to become a financial advisor?

If you already have a bachelor's degree, you can typically become licensed within six months to two years by studying for and passing your exam while working at a firm. If you need to complete a degree first, add four years. Most advisors spend three to five years working under supervision before they can work independently or start their own practice.

What is the difference between a financial advisor and a financial planner?

A financial advisor typically focuses on selling investment products like stocks and mutual funds and may hold a Series 7 license. A financial planner takes a broader approach, creating comprehensive plans that cover retirement, taxes, insurance, and estate planning, and typically holds a Series 65 license or CFP credential. Some advisors use both titles interchangeably, while others specialize in one or the other.

Do I need a CFP to work as a financial advisor?

No — a CFP is optional and not required to work as a financial advisor. However, many employers encourage advisors to pursue it within their first five years, and some clients specifically seek out CFP-credentialed advisors. The CFP can increase your earning potential and credibility, but you can have a successful career without it.

What happens if I fail my licensing exam?

You can retake the exam after waiting a set period (usually 30 days for the Series 7 and 65). Most people pass on their second or third attempt. Your employer typically allows you to keep studying and retaking while you work, though some firms set a limit on the number of attempts before they move you to a different role.