How to Become a Financial Advisor
Helping clients with investments and financial planning, in roles that require specific exams and registration.
Who it suits
People who enjoy markets and planning, follow strict rules and can explain complex ideas simply.
How people get started
Many start at a firm that sponsors their exams, beginning with the SIE and then the Series 7, 63, 65 or 66 the role requires.
Step-by-step plan
- Learn which exams your target role requires.
- Look for a firm that sponsors exams if your role needs one.
- Study for and pass the SIE.
- Take the Series 7, 63, 65 or 66 your role requires.
- Complete registration with your firm and regulators.
- Learn best-interest and suitability rules.
- Check BrokerCheck (brokercheck.finra.org) to understand how records appear publicly.
- Plan continuing education.
Skills to learn first
Securities and markets basics, best-interest and suitability rules, and how registration works.
- Securities and markets basics
- Best-interest and suitability rules
- Client communication and disclosure
- Recordkeeping
- Ethics
Licensing pointers
FINRA administers the SIE and Series 7. The Series 63, 65 and 66 are NASAA exams, which FINRA also administers. State securities regulators and the SEC handle registration. Start at finra.org and nasaa.org.
Investor education from the SEC is at investor.gov.
Rules vary by state, county and city. Confirm with your state board or agency before you start. This isn't legal advice.
Insurance to ask about
- Ask your firm about errors and omissions coverage
- If independent, ask a licensed agent
Equipment and tools to research
- Study materials
- Compliance-approved tools from your firm
Week-by-week getting-started plan
Week 1
- Research roles and exams
- List firms
Week 2
- SIE study plan
- Contact firms
Week 3
- Practice exams
- Schedule SIE
Week 4
- SIE
- Plan next exam
How people find their first customers
- Your firm's training program
- Referrals from satisfied clients
- Educational events, following firm compliance rules
Common beginner mistakes
- Communicating without compliance approval
- Studying without a plan
- Recommending what doesn't fit the client
Quality red flags
- Pressure to act quickly
- Unapproved marketing
- Unclear fees
Questions to ask yourself before you commit
- Which role fits me: broker, advisor or planner?
- Am I ready for strict compliance?
- Which firms sponsor exams?
Questions to ask a licensing board
- Which license or registration do I need for exactly the work I plan to offer?
- What education, hours or exams are required, and in what order?
- What can I legally do while my application is pending?
Questions for an insurer
- Which coverages are required by law for my work in this state, and which are just recommended?
- What isn't covered by the policy you're quoting?
- Do I need different coverage when I hire my first employee or subcontractor?
Questions for a mentor
- What do you wish you'd known in your first year?
- What mistakes cost beginners the most time or customers?
- How did you find your first customers?
My worksheet
Use only your own numbers and research.
- Target role: ________
- Exams required: ________
- Firms to contact: ________
- SIE date: ________
- Next exam: ________
- Compliance contact: ________
- Mentor: ________
- Questions for the firm: ________
My startup checklist
- Path chosen: broker-dealer representative, investment adviser representative, or both
- SIE exam studied for and passed (finra.org)
- Firm joined that can sponsor my qualification exams (for example Series 7)
- State exam passed as needed (Series 63, 65 or 66, nasaa.org)
- Registration filed through my firm, including fingerprints (finra.org)
- Firm's compliance and supervision rules read
- Continuing education requirements noted (finra.org)
- BrokerCheck profile checked once registered (brokercheck.finra.org)
If you later go independent: business setup (structure, registration, EIN, bank account, bookkeeping and your own insurance) comes then. See Part one.
Your next step
Back to the free starter guide
General education only. Not legal, tax, financial or licensing advice. Rules vary by state, county and city, so confirm with the official sources named here and a qualified professional. No income, earnings or business results are promised or implied. Published by Ryan Via, doing business as The Collective.