What you need to do to become a financial advisor

Becoming a financial advisor requires passing a licensing exam, holding a relevant degree or work history, and registering with a regulatory body. The most common path is to earn a bachelor's degree, pass the Series 7 and Series 63 exams (or Series 65 as an alternative), and register with the Financial Industry Regulatory Authority (FINRA). Some advisors take the Certified Financial Planner (CFP) route instead, which requires additional education and a separate exam. The exact requirements depend on what type of advisory work you want to do and which state you'll work in.

You do not need a finance degree to start—many advisors come from other backgrounds—but you will need to pass federal exams before you can legally give investment advice or manage client money. Most people complete this process in one to three years while working, though some do it full-time in under a year.

Key Takeaways

  • You must pass at least one FINRA licensing exam (Series 7, Series 65, or Series 63) before you can advise clients on investments or manage their money.
  • A bachelor's degree is not legally required, but most firms will not hire you without one, and the CFP credential requires a degree plus work experience.
  • You must register with FINRA and your state's securities regulator after passing your exam; registration is not automatic.
  • The CFP credential takes longer but is widely recognized and can lead to higher client trust and earning potential.
  • Exam costs, study materials, and registration fees typically total $2,000 to $5,000 before you earn your first dollar.

The licensing exam route: Series 7, Series 65, or Series 63

The Series 7 exam is the most common entry point. It covers stocks, bonds, mutual funds, options, and other securities. You take it through FINRA, and it costs about $300. The exam has 250 questions and takes six hours. Most people study for four to eight weeks using prep courses or textbooks before sitting for it.

The Series 65 is an alternative that covers investment advisory law and ethics instead of specific securities products. It is shorter (130 questions, three hours) and costs about $175. Many advisors who work for smaller firms or who plan to manage money directly for clients choose Series 65 instead of Series 7.

If you take the Series 7, you will also need to pass the Series 63 (state law exam, about 60 questions, 75 minutes, $85) or the Series 53 (municipal securities principal exam) depending on your firm and state. Series 63 is the standard pairing with Series 7.

You do not need to pass all three before working—most firms sponsor you for Series 7 first, you pass it, register with FINRA, and then take Series 63 within 90 days. Your employer typically covers exam fees and study materials.

The Certified Financial Planner (CFP) credential

The CFP is a separate credential that signals deeper expertise and is often preferred by clients and employers. To sit for the CFP exam, you must have a bachelor's degree from an accredited university, complete a CFP-approved education program (usually 18 to 24 months of coursework), and have three years of full-time financial planning work experience. The exam itself costs about $900 and covers retirement planning, tax planning, estate planning, and risk management.

You can pursue CFP while working as an advisor with a Series 7 or Series 65 license. Many advisors earn their Series license first, work for two years, then start the CFP program while continuing to work. The total time from starting a bachelor's degree to holding a CFP is typically five to seven years.

The CFP credential is not required to be a financial advisor, but it is widely recognized and often leads to higher pay and client trust. Some firms require it for senior advisor roles.

Education and work history requirements

FINRA does not require a specific degree to take the Series 7 or Series 65 exam. However, most brokerage firms and advisory firms will not hire you without a bachelor's degree, even if the law does not require it. A degree in finance, economics, business, or accounting is common but not mandatory—firms hire advisors with degrees in other fields and train them on financial products.

If you already work in finance or banking, some of that experience may count toward CFP requirements or may make it easier to move into advisory work. For example, two years as a bank teller or loan officer can sometimes substitute for part of the CFP work experience requirement, though rules vary by program.

Many people complete a bachelor's degree, work in a related field for a year or two, then move into an advisor role at a brokerage or advisory firm. The firm then sponsors them for licensing exams.

Registration with FINRA and your state

After you pass your licensing exam, you must register with FINRA through Form U4 (Uniform Application for Securities Industry Registration or Transfer). Your employer files this form on your behalf, and it includes your exam scores, background information, and the firm's sponsorship. FINRA processes U4 applications in about two weeks.

You must also register with your state's securities regulator. Some states require a separate state exam (like the Series 63); others accept FINRA registration alone. Your employer will tell you which forms and fees apply in your state.

You cannot legally advise clients or manage their money until FINRA and your state have approved your registration. Most firms will not let you work with clients before that approval comes through.

Costs and timeline

Exam fees, study materials, and registration typically cost $2,000 to $5,000 total. This includes exam fees ($300 to $900), prep courses or textbooks ($500 to $2,000), and state registration fees ($100 to $500). Most employers cover these costs or reimburse them after you pass.

The timeline depends on your path. If you already have a bachelor's degree and a job offer from a firm, you can take the Series 7 and Series 63 within three to four months and start working. If you need a degree first, add four years. If you pursue the CFP credential, add another two to three years after you start working as an advisor.

Where to find jobs and get hired

Most people enter the field by applying directly to brokerage firms, investment advisory firms, or banks that hire advisors. Large firms like Fidelity, Vanguard, Charles Schwab, and Merrill Lynch hire entry-level advisors regularly. Smaller independent advisory firms also hire advisors and may offer more personalized training.

Job boards like Indeed, LinkedIn, and the CFA Institute job board list advisor positions. Many positions are titled "Financial Advisor," "Investment Advisor," "Wealth Advisor," or "Financial Consultant." When you apply, be clear about whether you already hold a license or are willing to pursue one after hire.

Networking matters in this field. Informational interviews with advisors at firms you are interested in, and connections through your college alumni network or professional associations, often lead to opportunities before positions are posted publicly.

Frequently Asked Questions

Do I need a bachelor's degree to become a financial advisor?

FINRA does not legally require one to take the Series 7 or Series 65 exam. However, most brokerage and advisory firms will not hire you without a degree, even if the law permits it. Some smaller firms or independent advisors may hire without a degree if you have relevant work experience, but this is uncommon.

How long does it take to pass the Series 7 exam?

Most people study for four to eight weeks before taking the Series 7. The exam itself takes six hours. After you pass, FINRA registration takes about two weeks, and state registration may take another one to four weeks. You can usually start working with clients within one to two months of passing.

Can I become a financial advisor while working another job?

Yes. Many people study for licensing exams while employed elsewhere, then move into an advisor role after passing. Some firms hire you first and give you time to study and pass the exam before you start advising clients. This is the most common path.

What is the difference between Series 7 and Series 65?

Series 7 covers specific securities products (stocks, bonds, options) and is required by most brokerage firms. Series 65 covers investment advisory law and is often used by smaller advisory firms or advisors who manage money directly for clients. Series 65 is shorter and easier to pass, but Series 7 opens more job opportunities at larger firms.

Is the CFP credential worth pursuing?

The CFP is widely recognized and often leads to higher pay and client trust, especially if you plan to build your own practice or work at a high-end advisory firm. It requires more time and education than a Series license alone, but many advisors find it worth the investment for career growth.