The licenses and education required to call yourself a financial advisor
To legally call yourself a financial advisor and manage client money, you need a securities license, a background check, and registration with the SEC or a state regulator — the specific requirements depend on what you plan to sell and how much money you'll handle. Most advisors start with the Series 7 (general securities) or Series 65 (investment advisor representative) exam, though some roles require only the Series 6 for mutual funds and annuities. There is no single "financial advisor degree" — you can start with a high school diploma, but you must pass a licensing exam and work for a registered firm.
The path splits based on what you want to do. If you want to sell stocks, bonds, or mutual funds through a brokerage, you'll need Series 7 and Series 63 (state law). If you want to manage investment portfolios as an independent advisor, you'll need Series 65 or Series 66 (which combines Series 7 and 65). If you only want to give information without selling products, you may need only Series 65. All paths require you to work for a firm that is registered with the Financial Industry Regulatory Authority (FINRA) or the SEC.
Key Takeaways
- You must pass a securities licensing exam (usually Series 7 or Series 65) and work for a registered firm; there is no independent path to calling yourself a financial advisor.
- A college degree is not required, but you must pass a background check and disclose any criminal history, bankruptcies, or regulatory violations to your employer and regulators.
- The Series 7 exam covers stocks, bonds, options, and mutual funds; the Series 65 covers investment advisory rules and fiduciary duty; which one you need depends on your job title and what you'll sell.
- Most people study for 3 to 6 months before taking a licensing exam, and exam fees range from $100 to $300 depending on which test you take.
- After you pass your exam and get hired by a firm, you must complete continuing education every year to keep your license active.
The licensing exams: which one you need and what they cover
The Series 7 is the broadest license and the one most people think of when they hear "financial advisor." It covers stocks, bonds, options, mutual funds, and variable annuities. If you work at a brokerage and want to sell any of these products, you need Series 7. The exam has 125 questions, takes 3 hours and 45 minutes, and costs $305. You must also pass the Series 63 (Uniform Securities Agent State Law Exam) at the same time or before; Series 63 covers state-level rules and costs $130.
The Series 65 is for investment advisor representatives — people who manage portfolios and give personalized investment information. It covers fiduciary duty, portfolio management, and securities law, but not the mechanics of selling individual stocks or bonds. The exam has 130 questions, takes 3 hours, and costs $175. Series 65 is often the faster path if you want to work as an independent advisor or for a registered investment advisor (RIA) firm, because you don't need Series 7 first.
The Series 66 combines Series 7 and Series 65 into one exam. It covers both product sales and portfolio management. It has 100 questions, takes 2 hours and 45 minutes, and costs $175. Series 66 is useful if you want to do both — sell products and manage accounts — but it's less common than Series 7 or Series 65 alone.
The Series 6 is a limited license for mutual funds and variable annuities only. It has 50 questions, takes 90 minutes, and costs $40. Series 6 is the easiest entry point, but it's also the most restrictive — you cannot sell stocks or bonds. Some people start with Series 6 and upgrade to Series 7 later.
Education and work experience before you take the exam
There is no required degree or formal education to take a licensing exam. You can take Series 7 or Series 65 with only a high school diploma. However, most people spend 3 to 6 months studying before the exam, using prep courses, textbooks, or online study platforms. Popular study resources include Kaplan, SIE (Securities Industry Essentials) prep courses, and FINRA's own materials.
Many firms require you to pass the Securities Industry Essentials (SIE) exam before you take Series 7 or Series 65. The SIE is a foundational test that covers basic securities concepts and costs $60. It has 75 questions and takes 105 minutes. If your firm requires it, you'll take SIE first, then Series 7 or Series 65 within a set time frame (usually 4 years).
Some employers hire you as a trainee before you pass your exam and pay for your study materials and exam fees. Others require you to pass the exam on your own time before they hire you. Either way, you cannot legally advise clients or handle their money until you are licensed and registered with FINRA or the SEC.
Background checks and disclosure requirements
Before you can register as a financial advisor, you must pass a background check and disclose your entire financial and legal history. The check includes criminal records, civil judgments, bankruptcies, tax liens, and regulatory violations. If you have any of these, you must report them to your employer and the regulators; they may disqualify you, or they may allow you to proceed with an explanation.
You will fill out Form U4 (Uniform process for Securities Industry Registration or Transfer) with FINRA. This form asks about arrests, convictions, civil actions, bankruptcies, tax liens, and any previous regulatory actions. You must answer truthfully; lying on U4 is a federal crime. If you have a criminal record, you are not automatically barred — FINRA and the SEC evaluate each case — but you must disclose it.
After you pass your exam and are hired by a firm, the firm registers you with FINRA (if you're a broker-dealer representative) or the SEC (if you're an investment advisor). This registration is public, and clients can look up your record on BrokerCheck (FINRA's database) or the SEC's Investment Advisor Public Disclosure database.
Working for a registered firm versus going independent
You cannot be a financial advisor on your own. You must work for a firm that is registered with FINRA (if you sell securities) or the SEC (if you manage investments). This is true even after you pass your exam and get your license. Your license is tied to the firm; if you leave, your license is suspended until you join another registered firm.
A brokerage firm (like Fidelity, Charles Schwab, or a local investment bank) is registered with FINRA and allows you to sell securities. A registered investment advisor (RIA) is registered with the SEC or a state regulator and manages client portfolios. Some firms do both. When you explore for a job, you'll see whether the firm is a broker-dealer, an RIA, or both — this determines which license you need and what you can do.
Starting your own RIA firm is possible after you have experience and a client base, but you still must register with the SEC or your state and pass background checks. You cannot hang out a shingle as a solo advisor without registration.
Continuing education and keeping your license active
After you pass your exam and register, you must complete continuing education (CE) every year to keep your license. FINRA requires 4 hours of continuing education per year for most advisors, with at least 2 hours in regulatory, compliance, and ethical topics. Your firm usually provides these courses, and many are free or low-cost online modules.
If you fail to complete CE, your license lapses. You can reactivate it by completing the missing hours, but you cannot advise clients or handle their money while your license is inactive. Some firms track CE for you; others require you to manage it yourself.
Beyond FINRA's minimum, many advisors pursue additional certifications like the Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA). These are not required to call yourself a financial advisor, but they signal informed and may help you attract clients. CFP requires a bachelor's degree, 3 years of work experience, and passing a 6-hour exam; CFA requires passing three exams over several years.
Cost and timeline to get licensed
The total cost to get licensed depends on which exams you take and whether you pay for study materials yourself or your employer covers them. Here's a rough breakdown:
| Exam | Cost | Study Time |
|---|---|---|
| Series 63 | $130 | 2 to 4 weeks |
| Series 7 | $305 | 3 to 6 months |
| Series 65 | $175 | 2 to 4 months |
| Series 66 | $175 | 3 to 6 months |
| SIE (if required) | $60 | 1 to 2 weeks |
Study materials (textbooks, online courses, practice exams) can cost $200 to $500 if you buy them yourself. Many employers pay for exams and materials as part of hiring. The entire process from starting to study to being fully licensed typically takes 4 to 8 months, though some people move faster.
Frequently Asked Questions
Do I need a college degree to become a financial advisor?
No. You can take the Series 7 or Series 65 exam with only a high school diploma. However, many employers prefer candidates with a bachelor's degree, especially in finance, business, or economics. A degree is not a legal requirement, but it may help you get hired.
Can I take the Series 7 exam without working for a firm first?
No. FINRA requires you to be sponsored by a registered firm before you can sit for Series 7. The firm submits your registration (Form U4) and pays the exam fee. Some firms hire trainees and sponsor them; others require you to pass the exam on your own before they hire you, but you still need a firm's sponsorship to take it.
What happens if I fail the licensing exam?
You can retake it. There is no limit on how many times you can attempt the exam, but you must wait 30 days between attempts. Each retake costs the full exam fee again. Most people pass on the first or second try if they study for 3 to 6 months.
Do I need a Series 7 if I only want to give investment information?
No. If you only give information and don't sell products, you need Series 65 (or Series 66). Series 65 is for investment advisor representatives who manage portfolios. Series 7 is for people who sell securities like stocks and mutual funds. Your job title and what your firm allows you to do determine which license you need.
Can I work as a financial advisor part-time while keeping another job?
It depends on your employer and your other job. Some firms hire part-time advisors, especially if you're building a client base. However, if your other job is in a regulated industry (banking, insurance, government), you may have conflicts of interest or restrictions. You must disclose all employment to both employers and your regulators.