The Series 63 exam is not a requirement for those who work at a registered investment advisor (RIA) firm. But it might be of interest if you plan to sell securities products through a broker-dealer.
If you want to expand your skillset and service offerings, then the Series 63 exam might be an option for you.
In this article, we’ll talk about what the Series 63 exam involves. We’ll share some tips on how to prepare, what to expect, and how to set yourself up for success.
The Series 63 exam, officially called the Uniform Securities Agent State Law Examination, is a state-level qualification for securities professionals in the US. It is designed to test your knowledge of state securities laws, ethical practices, and fiduciary obligations.
The exam is managed by the North American Securities Administrators Association (NASAA) and administered by FINRA. It focuses on the Uniform Securities Act and how it applies at the state level.
Most states require anyone who wants to register as a securities agent and sell securities through a broker-dealer to pass the Series 63. However, some states do not require it – these are:
Even in those states, many broker-dealers may still require the license if you have clients in other states.
The only requirement to take the Series 63 exam is that you’re at least 18 years old. There are no specific educational requirements.
The exam focuses on state securities laws, ethical business practices, and how to handle client accounts. Here’s a glimpse at the key topics:
1. Oversight of investment advisors (3 questions)
2. Oversight of investment advisor representatives (IARs) (3 questions)
3. Oversight of broker-dealers (7 questions)
4. Oversight of broker-dealer agents (8 questions)
5. Oversight of securities and issuers (5 questions)
6. Enforcement and administrative actions (7 questions)
7. Client and prospect communication rules (12 questions)
8. Professional conduct and ethics (15 questions)
These add up to 60 questions, but the exam will include an additional five pre-test questions. These are not part of your total score, and you won’t know which ones they are. So, here’s a tip: treat each question as if it counts toward your score.
You can register for the Series 63 exam in two ways:
Registration is done online, but the test is taken in person. Online exams are available only for those who need testing accommodations.
The Series 63 exam costs $147. This fee is paid when you register, either through your firm or directly with FINRA.
There may be additional costs for study materials or prep courses, but these are optional and vary by provider.
To pass, you need at least 43 correct answers out of 60 scored questions (that's 72 percent). If you fail:
You can retake the exam as many times as needed, but the waiting periods apply each time.
Many candidates underestimate the Series 63. While it is shorter than other securities exams, it is packed with legal jargon and tricky question wording. Test takers often mention:
To avoid these mistakes, it would help to:
A good study plan includes:
The Series 63 exam is often described as deceptively difficult. While eight in 10 people who take the exam pass it, many candidates underestimate the exam’s legal focus and tricky questions.
What makes it challenging?
To do well at the Series 63 exam, it helps to know the main points and legal concepts and how they apply to real-life situations. Read and understand the questions. And manage your time! You’ll only have 75 minutes to finish the exam, so taking mock tests will help you practice dealing with the time pressure.
Once you pass, your Series 63 license is valid as long as you stay registered with a broker-dealer. If you leave your firm, you have a two-year grace period to find new employment and re-register.
Under NASAA’s Exam Validity Extension Program, you may be able to extend your Series 63 validity for up to five years in certain states. Eligibility rules apply, so contact NASAA for complete information.
If you’re looking to join one of the best firms in the country, here's a list of the top independent broker-dealers.
The Series 63, Series 65, and Series 66 exams are all state-level securities exams, but they serve different purposes and open different career paths.
The Series 63 is required for those who want to sell securities through a broker-dealer. It focuses on state securities laws, registration requirements, and ethical practices.
The Series 65 is for advisors who provide investment advice for a fee, usually as part of an RIA. It covers a range of topics like portfolio management and investment strategies. It is essential for advisors who want to act as fiduciaries.
The Series 66 combines elements of both the Series 63 and Series 65, allowing candidates to qualify as both a securities agent and an investment adviser representative. If you plan to take the Series 66, you will also have to pass the Series 7.
Choosing the right exam depends on your career goals. Here’s a snapshot of the three types of exams to help guide you in your decision:
| Feature | Series 63 | Series 65 | Series 66 |
|---|---|---|---|
| Purpose | Sell securities through a broker-dealer | Provide investment advice for a fee (RIA) | Dual registration (agent + adviser) |
| Who Needs It | Broker-dealer reps | Investment adviser reps (RIAs) | Those with Series 7 seeking both roles |
| # of Questions | 65 (60 scored) | 130 | 100 |
| Time Limit | 75 minutes | 180 minutes | 150 minutes |
| Passing Score | 72% (43/60) | 72% (94/130) | 73% (73/100) |
| Prerequisites | none | none | Series 7 required |
Read this article for more on the differences between a broker-dealer and an RIA.
Advisors who work in RIAs don’t need to take the Series 63 exam, but it can be a good addition to your skillset. Having a Series 63 license allows you to sell securities under a broker-dealer.
The Series 63 exam has been described as tricky – it focuses on regulations and how they apply to real-life scenarios. The questions can be confusing, so a clear understanding of the topics covered is essential. Go for review booklets, mock exams, and other guides and tools to help you prepare. Preparing for the exam may be challenging, but it will be worth the effort.
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