Trading for Dummies® 2nd Edition

Chapter 20. Trading for Others: Obtaining Trading Licenses and Certifications

In This Chapter

• Exploring FINRA tests

• Deciphering financial advisor designations

• Knowing what licenses are required

• Getting your own licenses

As you become more involved in trading, you hear about trading designations, such as Series 7 or Series 23. Nope, they're not talking about the World Series. These designations refer to examinations, administered by the Financial Industry Regulatory Authority (FINRA), that you must pass to be able to work in various capacities within the securities field. After passing these examinations, you can become licensed in the securities markets. What tests you need to take depend on where you plan to work and what you plan to do.

You also may hear an alphabet soup of designations like CFA, CFP, or CFS. They are certifications given by different professional organizations to people who have completed coursework, testing, and in most cases, years of work experience.

Typically, investment and trading advisors must be licensed. In this chapter, we discuss the various types of licenses and certifications and the level of training that is required for each. We also describe the types of tests FINRA offers for each of its designations and help you find out about how advisors are licensed and regulated and what requirements you need to fulfill if you plan to make trades for others.

Getting to Know the FINRA Series

Brokers can't just hang out a shingle and advertise that they're selling ...