What you need to do to become a financial advisor

Becoming a financial advisor requires passing a licensing exam, which is the legal requirement that separates advisors from people who talk about money. The most common path is to pass the Series 7 exam (for general securities) or the Series 65 exam (if you plan to manage client money directly), then register with the Financial Industry Regulatory Authority (FINRA) or your state's securities regulator. Most people take one of these exams while employed by a brokerage firm or investment company, because those firms sponsor your registration and provide the exam fees and study materials.

Before you can sit for either exam, you need a high school diploma or equivalent. After that, the timeline depends on your route: if you work for a firm that trains you, you might be exam-ready in two to four months. If you study independently, add time for self-directed preparation. The entire process from hiring to first client interaction typically takes six months to a year.

Key Takeaways

  • You must pass either the Series 7 exam (general securities) or Series 65 exam (investment advisor) and register with FINRA or your state regulator — there is no way around this legal requirement.
  • Most people take the exam while employed by a brokerage, bank, or investment firm, because those employers sponsor your registration and pay for exam preparation.
  • You need a high school diploma or equivalent, but no specific college degree is required, though many firms prefer or require a bachelor's degree in any field.
  • Study time ranges from two to four months if your employer provides structured training, or longer if you prepare independently.
  • After passing the exam and registering, you must complete continuing education requirements every year to keep your license active.

The Series 7 exam: for advisors at brokerages

The Series 7 is the General Securities Representative Exam, administered by FINRA. It covers stocks, bonds, mutual funds, options, and the rules that govern selling them. This is the exam you take if you work at a brokerage firm, bank investment department, or insurance company that sells securities. It qualifies you to recommend and sell investments to clients.

The exam has 125 multiple-choice questions, takes three hours and 45 minutes, and you need a score of at least 72 percent to pass. Most people study for four to six weeks using materials provided by their employer. The exam costs around $300 to $400, but your employer typically pays this fee. You can take it again if you fail, though most firms require you to wait 30 days between attempts.

After you pass, you register with FINRA as a registered representative. This registration is tied to your employer — if you leave that firm, your registration ends and you must re-register with a new employer if you want to continue advising.

The Series 65 exam: for independent investment advisors

The Series 65 is the Uniform Investment Advisor Law Exam, administered by the North American Securities Administrators Association (NASAA). It covers investment information, portfolio management, and the laws that govern advisors who manage client money. This is the exam you take if you want to start your own advisory firm or work for an independent investment advisor that is not a brokerage.

The exam has 130 multiple-choice questions, takes three hours, and you need a score of at least 73 percent to pass. Study time is typically four to eight weeks. The exam costs around $200 to $300. Unlike the Series 7, you do not need an employer to sponsor you — you can register directly with your state's securities regulator or with the Securities and Exchange Commission (SEC) if you manage more than $100 million in client assets.

After passing the Series 65, you register as an investment advisor representative with your state. This registration is portable — you can move between firms or start your own without re-taking the exam, as long as you maintain your registration status.

Education and work experience requirements

There is no mandatory college degree to become a financial advisor. You need a high school diploma or GED, and that is the legal minimum. However, most brokerage firms and investment companies prefer or require a bachelor's degree in any field — business, finance, economics, or something unrelated. A degree in finance or economics can shorten your study time for the licensing exam because you will already know some of the material.

Work experience is not required before you take the exam, but most people work in the industry first. A common path is to start as a customer service representative or operations assistant at a brokerage, learn the business for six months to a year, then take the Series 7 while employed there. This gives you context for the exam material and lets your employer cover the costs. Some people move directly into an advisor role if they have relevant education or prior sales experience.

After you pass your licensing exam, you must complete continuing education every year. The number of hours varies by state and by which exam you passed, but typically ranges from 15 to 30 hours per year. Your employer or professional organization usually provides these courses at no cost.

How to find a firm that will sponsor your exam

Most people become financial advisors by getting hired at a brokerage, bank, or investment firm first, then taking the exam while employed there. To find these jobs, search job boards like Indeed, LinkedIn, or Glassdoor for titles like "financial advisor trainee," "investment representative," "registered representative," or "advisor in training." Brokerage firms like Charles Schwab, Fidelity, Edward Jones, and Merrill Lynch regularly hire people without prior experience and provide exam training.

When you explore, emphasize sales ability, customer service experience, and willingness to learn. Many firms care more about your ability to build client relationships than your technical knowledge — they will teach you the technical material. Once hired, your firm will assign you a study plan, provide exam prep materials (often through online courses or textbooks), and pay your exam fee. You typically have two to four months to prepare before taking the test.

If you already work in finance or a related field, you can ask your current employer whether they will sponsor you to take the Series 7 or Series 65. Many firms will pay for employees to get licensed if they show interest in moving into an advisory role.

Starting your own advisory firm versus working for an existing one

After you pass the Series 65, you can start your own investment advisory firm or work for an independent advisor. Starting your own firm requires registering with your state securities regulator (or the SEC if you will manage more than $100 million in assets), setting up a business structure, obtaining errors and omissions insurance, and building a client base. This path gives you independence but requires business skills, capital to cover startup costs, and the ability to market yourself.

Working for an existing advisory firm is simpler: you join as an advisor, build your client book while the firm handles compliance and operations, and take a percentage of the fees you generate. This is lower-risk because the firm provides infrastructure, compliance oversight, and established clients. Many advisors start this way and move to independent practice later once they have built a client base and business experience.

If you take the Series 7 instead of the Series 65, you are tied to a brokerage firm — you cannot start your own firm without switching to the Series 65 first. Some people do both exams to have maximum flexibility.

Common mistakes to avoid

The biggest mistake is trying to take the licensing exam without employer sponsorship or a clear plan for where you will work. The exam is not a credential you earn and then shop around with — you need a firm to sponsor your registration before you can legally advise clients. Do not pay for exam prep out of pocket and hope to find a job afterward. Instead, get hired first, then take the exam with your employer's support.

Another mistake is underestimating the exam difficulty. The Series 7 and Series 65 are not trivial tests. They cover detailed rules, calculations, and scenarios that require genuine study. People who cram for two weeks often fail. Use the full study time your employer provides, take practice exams seriously, and ask for help if you are struggling with specific topics.

A third mistake is not understanding the difference between the two exams. The Series 7 qualifies you to sell securities at a brokerage; the Series 65 qualifies you to manage money as an advisor. They are not interchangeable. Choose based on the type of firm you want to work for, not based on which exam sounds easier.

Frequently Asked Questions

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

No. The legal requirement is a high school diploma or GED. However, most brokerage firms and investment companies prefer or require a bachelor's degree in any field. A degree in finance or economics can help you study for the licensing exam faster, but it is not mandatory.

How long does it take to become a financial advisor?

If you are hired by a firm that provides training, you can be licensed in two to four months. If you study independently, add more time for self-directed preparation. From hiring to your first client interaction typically takes six months to a year, depending on how quickly you pass the exam and build your client base.

What is the difference between the Series 7 and Series 65?

The Series 7 qualifies you to sell securities (stocks, bonds, mutual funds) at a brokerage firm. The Series 65 qualifies you to manage client money as an investment advisor. Choose the Series 7 if you want to work at a brokerage; choose the Series 65 if you want to manage portfolios or start your own advisory firm.

Can I take the licensing exam without a job?

You can take the exam, but you cannot register as an advisor without an employer (for Series 7) or without registering with your state or the SEC (for Series 65). Most people take the exam while employed because their employer pays the fee and provides study materials. If you take it independently, you pay the cost yourself and must find a firm willing to sponsor your registration afterward.

Do I have to renew my license every year?

You do not renew the license itself, but you must complete continuing education every year to keep your registration active. The number of hours varies by state and exam type, typically 15 to 30 hours per year. Your employer or professional organization usually provides these courses at no cost.