Feeling overwhelmed by securities licensing exams? You’re not alone.
With so many Series options, it can be tough to decide which one aligns with your career goals—especially when comparing the Series 66 vs Series 63. These exams may seem similar, but they serve very different purposes. One opens the door to dual roles as an investment adviser and securities agent, while the other focuses solely on state-level compliance for securities transactions.
So, which one should you take?
In this article, I’ll break down the key differences, what each license qualifies you to do, and how to choose the exam that’s perfect for your career aspirations.
Key Takeaways
- Series 66 Exam: Combines Series 63 and 65 content, qualifying individuals as both securities agents and investment adviser representatives (IARs).
- Series 63 Exam: Focuses solely on state securities laws, ensuring compliance for securities agents conducting transactions within a state.
- Scope: Series 66 covers both state and federal regulations, while Series 63 is limited to state-specific compliance.
- Career Fit: Choose Series 66 for dual roles in advising and selling securities or Series 63 career path in state-specific securities sales.
- Difficulty: Series 63 is simpler and narrower, while Series 66 is more comprehensive, requiring broader knowledge.
What is the Series 66 Exam?
The Series 66 exam, formally called the Uniform Combined State Law Examination, is designed for individuals who want to become both a securities agent and an investment adviser representative (IAR). Administered by the Financial Industry Regulatory Authority (FINRA), it ensures financial professionals are knowledgeable about state securities laws, ethical practices, and economic factors affecting investment advice.
Who Needs the Series 66 License?
The Series 66 is tailored for those who:
- Have already passed the Series 7 exam.
- Want to give investment advice and sell securities in multiple states.
- Aim to work as both a broker-dealer agent and an investment adviser representative.
The Series 66 license is especially valuable for financial professionals who want to combine investment advising with securities transactions without taking separate exams, such as the Series 63 and Series 65.
Exam Details
- Format: 100 multiple-choice questions.
- Passing Score: 73% (73 correct answers).
- Cost: Exam fees are typically around $177.
- Time Limit: 150 minutes.
- Topics Covered:
- State securities laws and regulations under the Uniform Securities Act.
- Investment products and strategies.
- Ethical practices for advising and securities transactions.
The Series 66 exam is a co-requisite of the Series 7 exam, meaning you must pass both to transact securities business and work as an IAR.
What is the Series 63 Exam?
The Series 63 exam (Uniform Securities Agent State Law Examination) is a state-level licensing exam required for securities agents. It is given by the North American Securities Administrators Association (NASAA) and focuses on the basic principles of securities regulation and ensures agents comply with state securities laws.
Who Needs the Series 63 License?
The Series 63 is essential for:
- Individuals who want to sell securities as a broker-dealer representative.
- Financial professionals engaging in securities transactions across states.
- Securities industry professionals seeking a foundation in state registration and compliance.
Unlike the Series 66, the Series 63 license is not concerned with investment advice or financial planning. Its primary focus is on state laws governing securities sales.
Exam Details
- Format: 60 multiple-choice questions.
- Passing Score: 72% (43 correct answers).
- Cost: Exam fees are typically $147.
- Time Limit: 75 minutes.
- Topics Covered:
- State securities laws under the Uniform Securities Act.
- Registration and licensing requirements for broker-dealers and agents.
- Anti-fraud provisions.
The Series 63 exam is required in most states for anyone conducting securities business.
Series 66 vs. Series 63: Key Differences
While both exams focus on state securities laws, Series 66 and Series 63 differ in scope, purpose, and career application.
| Feature | Series 66 | Series 63 |
|---|---|---|
| Purpose | Combines Series 63 and 65 for dual roles (agent and IAR). | Focuses solely on securities agents. |
| Prerequisite | Requires Series 7. | None, but often paired with Series 7. |
| Topics Covered | Securities laws, investment advice, ethical practices. | State securities laws and compliance. |
| Career Application | Operate as both a securities agent and an investment adviser. | Sell securities as a broker-dealer agent. |
| Exam Difficulty | Considered more challenging due to broader content. | Easier, with a narrower focus. |
Do You Need Both Exams?
No, you don’t need both exams. The choice between Series 66 and Series 63 depends on your career goals:
- Take the Series 66 if you want to become both a securities agent and an investment adviser representative.
- Take the Series 63 if you only plan to sell securities and do not intend to provide investment advice.
If you aspire to work in financial planning or provide investment advice, the Series 66 license is a better fit. For roles solely involving securities sales, the Series 63 license will suffice.
Why Take the Series 66 Exam?
The Series 66 exam is ideal for financial professionals aiming for comprehensive roles in the securities industry. It allows you to:
- Provide investment advice to clients.
- Facilitate the sale of securities such as stocks, bonds, and mutual funds
- Serve as both a securities agent and an investment adviser representative.
- Navigate securities laws across multiple states.
It’s particularly beneficial for those with professional designations like Certified Financial Planner (CFP), Chartered Financial Analyst (CFA), or Personal Financial Specialist (PFS).
If you’re thinking about taking the Series 66 exam, check out these Series 66 study materials that I highly recommend.
Why Take the Series 63 Exam?
The Series 63 exam is a foundational step for individuals entering the securities industry. It qualifies you to:
- Sell securities as a broker-dealer agent.
- Conduct securities transactions within state boundaries.
- Ensure compliance with state securities laws.
It’s a simpler exam compared to the Series 66 and is often taken alongside the Series 7 to meet state registration requirements.
Read my reviews of the best Series 63 prep courses if you plan on taking the Series 63 exam.
Final Thoughts
The choice between Series 66 vs. Series 63 depends on your career aspirations in the securities industry. If you aim to provide investment advice and work as both a securities agent and IAR, the Series 66 license is essential. For those focused solely on securities transactions, the Series 63 license is sufficient.
By successfully completing the required exams, you’ll gain the knowledge and credentials needed to excel in your chosen career path, whether it’s financial planning, investment advising, or securities sales.
FAQ
The Series 63 exam is considered easier because it focuses on state securities laws and regulations. The Series 66 exam is more comprehensive, covering both state laws and federal regulations.
The Series 63 focuses on state securities laws, while the Series 66 covers both state and federal regulations. The Series 66 is designed for individuals seeking to work as both an investment adviser representative and securities agent.
Yes, the Series 66 exam combines the content from the Series 63 and Series 65 exams. It qualifies you to work as both an investment adviser representative and a securities agent.
The Series 66 license allows professionals to act as both investment adviser representatives and securities agents. It’s required for individuals wishing to provide investment advice and sell securities within the securities industry.
