What You Need to Do to Become a Financial Advisor

Becoming a financial advisor requires passing a licensing exam, getting sponsored by a firm, and meeting education requirements that vary by the type of information you want to give. There is no single path — the route depends on whether you want to manage investments, sell insurance products, or provide comprehensive financial planning. Most advisors start by working for an established firm rather than starting independently, because firms handle the regulatory paperwork and client acquisition.

The fastest entry point for many people is obtaining a Series 7 license (for general securities) or Series 65 license (for investment advisory), which requires passing an exam administered by FINRA (Financial Industry Regulatory Authority). Before you can sit for either exam, you must be sponsored by a registered firm — you cannot take the test on your own. This means your first step is usually landing a job at a bank, brokerage, or investment firm that will pay for your exam and training.

Key Takeaways

  • You must work for a registered firm before taking any licensing exam; firms sponsor you and handle your regulatory registration.
  • The Series 7 and Series 65 are the most common licenses, each requiring a passing exam score and a sponsoring firm.
  • A bachelor's degree is not legally required for most advisor roles, but many firms prefer or require one, and some positions demand specific majors.
  • After licensing, you will need to complete continuing education hours each year to keep your license active.
  • Becoming a Certified Financial Planner (CFP) takes additional study and experience but opens doors to higher-paying roles and client trust.

Getting Hired by a Firm and Choosing Your License Type

Your first job in financial services is usually the hardest to land because you have no license yet. Many firms hire entry-level employees as "financial advisor trainees" or "client service associates" and then sponsor them through licensing once they are on staff. Look for positions at banks, credit unions, brokerage firms like Fidelity or Charles Schwab, insurance companies, and independent advisory firms. Some firms require a bachelor's degree; others do not, though having one makes you more competitive.

Once hired, you and your firm will decide which license to pursue. The Series 7 (General Securities Representative) lets you sell stocks, bonds, mutual funds, and other securities. The Series 65 (Uniform Investment Adviser Law Exam) lets you give investment information and manage client portfolios. Some advisors hold both. Insurance-focused advisors may pursue Series 6 (Investment Company and Variable Contracts Representative) instead. Your firm will tell you which license fits the role they are hiring you for.

Passing Your Licensing Exam

The Series 7 and Series 65 are both administered by FINRA and taken on computer at testing centers. The Series 7 has 250 questions and takes six hours; the Series 65 has 130 questions and takes two hours and 45 minutes. You must score at least 72% on the Series 7 and 73% on the Series 65 to pass. Your firm will provide study materials, and most people spend four to twelve weeks preparing, depending on their background and how much time they can dedicate.

You can retake the exam if you fail, though most firms have limits on how many attempts they will fund. Study guides, practice exams, and prep courses are available from FINRA-approved vendors. Many advisors use online courses from companies like Kaplan or STC to prepare. The exam covers securities regulations, market structure, investment products, and ethics — not advanced math, but it requires careful reading and understanding of rules.

Meeting Education and Experience Requirements

Most firms do not require a specific degree to become an advisor, but many prefer a bachelor's degree in any field. Some larger firms or advisory roles do require a degree in finance, business, economics, or accounting. If you do not have a degree, look for smaller independent firms or insurance-focused roles, which sometimes have fewer educational barriers. Community colleges and online universities offer affordable bachelor's degrees if you need one.

Beyond formal education, you need work experience in financial services. Many advisors spend one to three years in entry-level roles — answering client calls, processing paperwork, learning products — before they are licensed. This experience counts toward requirements for advanced credentials like the CFP (Certified Financial Planner), which requires three years of full-time financial planning experience after you are licensed.

Earning the Certified Financial Planner Credential

The CFP (Certified Financial Planner) is a voluntary credential that signals deeper informed and is often required for senior advisor roles or independent practice. To earn it, you must pass the CFP exam, have three years of full-time financial planning experience, and complete a bachelor's degree from an accredited college or university. The exam is administered by the CFP Board and covers financial planning, taxes, retirement, insurance, and estate planning.

The CFP exam is harder than the Series 7 or 65 and typically requires three to six months of study. Many advisors take CFP review courses costing $2,000 to $4,000. Once you pass, you must follow a code of ethics and complete 30 hours of continuing education every two years. The CFP credential is not required to work as an advisor, but it is widely recognized and often leads to higher pay and client confidence.

Understanding Continuing Education and Compliance

After you are licensed, you must complete continuing education (CE) hours every year to keep your license active. The number of hours varies by license type — typically 15 to 30 hours per year. Your firm usually tracks this and may require you to take specific courses on compliance, ethics, and product updates. Missing CE requirements can result in your license being suspended or revoked.

You will also be subject to FINRA rules and SEC (Securities and Exchange Commission) regulations, which govern how you communicate with clients, manage conflicts of interest, and handle money. Your firm's compliance department will train you on these rules and monitor your work. Violations can result in fines, suspension, or permanent bans from the industry.

Building Your Career Path and Income

Entry-level advisors often earn a salary plus commission or bonus based on assets they manage or products they sell. Salary ranges vary widely by firm, location, and role — from $30,000 to $60,000 for trainees, rising to $60,000 to $150,000+ for experienced advisors. Independent advisors who manage their own client base typically earn more but also bear their own business costs and regulatory expenses.

Your career path depends on your goals. Some advisors stay in client-facing roles, building a book of business and earning commissions. Others move into management, compliance, or product development. Many advisors work for a firm for five to ten years, then leave to start their own practice or join an independent advisory firm. The skills you build — client relationships, product knowledge, regulatory compliance — are portable across firms.

Frequently Asked Questions

Do I need a college degree to become a financial advisor?

No, a degree is not legally required for most advisor roles, but many firms prefer or require one. Smaller firms and insurance-focused positions may hire without a degree if you have relevant experience. If you do not have a degree, focus on finding firms that hire entry-level staff and are willing to sponsor your licensing.

How long does it take to become a licensed financial advisor?

From job offer to passing your first licensing exam typically takes three to six months, depending on how quickly you study and when your firm schedules your exam. Getting hired in the first place may take weeks or months. Earning a CFP credential adds another one to two years of study and experience on top of that.

What is the difference between Series 7 and Series 65?

The Series 7 lets you sell securities like stocks and mutual funds to clients. The Series 65 lets you give investment information and manage client money. Some advisors hold both. Your firm will tell you which one you need based on your job role.

Can I work as a financial advisor while studying for my license?

Yes. Most advisors work in entry-level roles at their firm while preparing for their licensing exam. Your firm will give you time to study, and you will be paid during this period. You cannot give investment information or sell securities until you pass your exam and are officially licensed.

What happens if I fail my licensing exam?

You can retake it, usually after waiting a set period (often 30 days). Most firms will fund one or two retakes. If you fail multiple times, your firm may decide not to continue sponsoring you, and you would need to find another firm willing to sponsor your next attempt.