How can a person get a stock brokers license without working at a brokerage firm?

Answer 1

Not quite as easy as the previous guy makes it. To my knowledge, every state except for the state of California requires that you be sponsered by someone holding a Series 24 supervisory lisence before you are allowed to take the Series 6 or Series 7 exam. Since the person holding that Series 24 license is liable for your actions, you aren't going to find someone to sponser you unless you work for that firm.

NOTE: The guy OPM below doesn't know what the heck he is talking about. In order to be a stock broker you are required to "hold" a Series 7 license. A series 6 license will suffice if you will only be selling mutual funds. If you were to leave one company your license would go into an inactive status. It can remain inactive for up to 2 years. After 2 years you would be required to retake the exam to get a new license. I've been a broker for 15 years and have worked for 3 different companies. Each time the license was first made inactive and then transferred over to the new company. A broker is "registered" with the NASD when he/she is hired by a broker/dealer and passes the exam.

One thing that you could do is go to work for a brokerage firm long enough to get licensed and then quit after you are fully licensed. Commission only firms who do not cover the costs of your licensing hire a lot more people than they need because of the high attrition rate. Companies that pay for all licensing costs are bit more selective and thus might be harder to break in to. I got my license from American Express Financial Advisors. They are a commission only firm and have a very high attrition rate. I knew many people who went to work there simply to get the license. I hope this was helpful. Good luck.

Answer 2

There is a misunderstanding in both of the above.

First, you do not have a broker's license you are registered as a broker. This is an important difference. A life insurance agent has a license to sell life insurance. This license exists for a time, even if they quit their company. It is like having a license to drive, it exists even when you are not in a car.

A broker is registered only as long as they are working. You can only take the required tests if you are employed by a registered broker-dealer. The exception would be if you formed your own financial institution. Of course, you would need several million dollars in capital to do that.

No one, not working in a brokerage firm, is registered as a broker or dealer. Generally, you must be registered with the NASD, the exchanges you trade on, the state(s) in which you work and the Securities and Exchange Commission. Your registration lasts only so long as you are employed. That said, like an insurance license, the tests are waived to change registrations for to a new company provided you were registered recently. So things like maternity leave or a brief change of careers won't force you to start over from scratch. Still, it isn't like a driver's license in that you simply cannot hop into any car you want to and drive. Other people must register you as their employee and take responsibility for supervising you.

Answer 3

You can take the various tests to sell securities without working for a brokerage firm. Depending upon what you want to sell, you'll need Series 6, 7, 65 & 66. The licenses you need will depend upon what it is you want to do. Check with your state requirements for Registered Investment Advisor and with the NASD.

Answer 4

You'll need a Series 7 and most likely an insurance license (for variable annuities, fixed annuities, etc.). Go to your state's website to find the testing locations, and those are the people who can guide you through the process of going it alone.