When pursuing a career in the financial industry, especially as a securities agent or investment advisor representative, it’s crucial to understand the certifications required. The FINRA Series 66 vs. Series 63 exams are two of the most important certifications you may need, depending on your career goals. Earning a securities certification can help you build a stable new career. The Financial Industry Regulatory Authority (FINRA) offers a range of certifications that cover various aspects of this career path. With so many options, it can be challenging to decide which certification to pursue.
Series 66 and Series 63 are two popular choices. Both prepare you for work with securities but differ in exam difficulty, content, and cost. I’ve gathered all the essential information about these two exams to help you make an informed decision and begin your certification journey confidently.
Key Takeaways
- Series 66 vs. Series 63 cater to different career paths in the financial industry.
- Exam difficulty, content, and costs vary between Series 66 and Series 63.
- Choosing the right certification depends on your career goals and interests.
Understanding the Key Differences Between Series 66 vs. Series 63
1. Career Path Focus
The Series 66 vs. Series 63 exams are designed for different professional roles in the financial industry:
- Series 66: This exam qualifies individuals as both securities agents and investment advisor representatives. It is ideal for those who want to offer both brokerage services and investment advisory services, making it a comprehensive certification for a dual role.
- Series 63: This exam is tailored for individuals who wish to become securities agents. It focuses on state securities regulations and ethical practices. It is a more specialized certification that is primarily concerned with the legal aspects of securities transactions within individual states.
2. Differences in Exam Difficulty and Content
- Series 66: Known for its complexity, the Series 66 exam integrates the responsibilities of a securities agent and an investment advisor representative. It covers a broad range of topics and has a higher number of questions, making it generally more challenging.
- Series 63: The Series 63 exam is considered less challenging compared to Series 66 due to its narrower focus on state regulations. It has fewer questions and a shorter duration, which may make it easier for some candidates.
3. Choosing the Right Certification
Your decision should be based on your career aspirations:
- Series 63: Opt for this if your goal is to work primarily as a securities agent, dealing with state-level regulations and transactions.
- Series 66: Choose this certification if you want to offer both brokerage and investment advisory services. Passing the Series 66 also covers the qualifications of the Series 63, so you won’t need to take the Series 63 exam separately.
| Feature | Series 66 | Series 63 |
|---|---|---|
| Purpose | Qualifies as both a securities agent and an investment advisor representative | Qualifies solely as a securities agent |
| Number of Questions | 100 | 65 |
| Exam Duration | 150 minutes | 75 minutes |
| Content Areas | – Economic Factors and Business Information (5) – Investment Vehicle Characteristics (20) – Client/Customer Investment Recommendations and Strategies (30) – Laws, Regulations, and Guidelines (45) | – Regulation of Investment Advisers (State-Registered and Federal Covered) (6) – Regulation of Broker-Dealers (3) – Regulation of Agents of Broker-Dealers (9) – Regulation of Securities and Issuers (3) – Remedies and Administrative Provisions (6) – Communication with Customers (12) – Ethical Practices and Obligations (15) |
| Exam Fee | $177 | $147 |
| Pass Rate | 65-70% | 70-75% |
| Study Materials Cost | $200 | $200 |
| Main Focus | Combination of securities and investment advisory roles | Securities regulations and ethical practices |
| Target Role | Securities agents and investment advisors | Securities agents |
Exam Costs: Financial Considerations for Series 66 vs. Series 63
1. Registration Fees
Understanding the financial investment required for these exams is essential:
- Series 66 Exam: This exam costs $177. This fee covers the registration and administrative expenses. It’s crucial to budget for this expense as part of your preparation plan.
- Series 63 Exam: Costs $147. The Series 63 exam is slightly cheaper, reflecting its more focused content. However, it still represents a significant investment in your career.
2. Additional Expenses
Beyond the registration fees, several other costs need to be considered:
- Study Materials:
- Textbooks: High-quality textbooks are vital for thorough exam preparation. Expect to spend between $50 and $100 on these resources.
- Online Courses: Online courses often include interactive elements, practice tests, and detailed explanations. They typically cost between $100 and $150.
- Full Study Programs: Comprehensive study programs, which may include video lessons, practice exams, and other resources, can cost up to $200. These programs are designed to provide a structured approach to studying and may offer additional support.
- Transportation Costs: Depending on your location, traveling to the test center can increase your overall expenses. These may include fuel, public transportation fares, or parking fees.
- Opportunity Costs: Consider the potential loss of income if you take time off work to study or sit for the exam. While this cost may be minimal, it’s important to factor it into your overall budget.
3. Overall Budgeting Tips
To ensure you are financially prepared, consider the following tips:
- Set Aside Funds: Allocate funds not only for the registration fees but also for study materials and additional expenses. A budget of $200-$250 should cover most of your needs.
- Explore Financial Aid Options: Some study programs offer discounts or payment plans. Investigate these options to manage costs effectively.
Detailed Exam Content Breakdown: What to Expect
Series 66 Exam Content
- Purpose: The Series 66 exam is designed to qualify individuals as both securities agents and investment advisor representatives. It covers a wide range of topics essential for these dual roles.
- Format: The exam consists of 100 multiple-choice questions.
- Content Areas:
| Content Area | Number of Questions | Key Topics |
|---|---|---|
| Economic Factors and Business Information | 5 | Economic indicators, market factors, business conditions |
| Investment Vehicle Characteristics | 20 | Stocks, bonds, mutual funds, investment characteristics |
| Client/Customer Investment Recommendations and Strategies | 30 | Asset allocation, risk tolerance, portfolio management |
| Laws, Regulations, and Guidelines | 45 | Federal and state securities regulations, compliance, ethical standards |
Series 63 Exam Content
- Purpose: The Series 63 exam focuses on qualifying individuals as securities agents with a concentration on state regulations and ethical practices.
- Format: The exam includes 65 multiple-choice questions.
- Content Areas:
| Content Area | Number of Questions | Key Topics |
|---|---|---|
| Regulation of Investment Advisers (State-Registered and Federal Covered) | 6 | Registration requirements, regulatory oversight |
| Regulation of Broker-Dealers | 3 | Rules and regulations governing broker-dealers |
| Regulation of Agents of Broker-Dealers | 9 | Responsibilities and regulatory requirements for agents |
| Regulation of Securities and Issuers | 3 | Securities issuance, registration requirements |
| Remedies and Administrative Provisions | 6 | Legal remedies, administrative procedures |
| Communication with Customers and Prospects | 12 | Ethical communication, disclosures, advertising practices |
| Ethical Practices and Obligations | 15 | Ethical standards, obligations in securities transactions |
Exam Pass Rates: What to Expect
Series 66 Pass Rates
- Estimated Pass Rate: The pass rate for the Series 66 exam is between 65% and 70%. This reflects the exam’s challenging nature due to its comprehensive coverage of both securities and investment advisory roles.
- Challenges: The Series 66 exam includes nearly double the number of questions compared to the Series 63 and has a tight 150-minute time limit. This requires not only a strong grasp of the content but also effective time management skills.
Series 63 Pass Rates
- Estimated Pass Rate: The pass rate for the Series 63 exam is typically between 70% and 75%. This higher pass rate suggests that the exam is somewhat easier compared to Series 66.
- Relative Ease: The Series 63 exam’s focus on state regulations and fewer questions generally make it less demanding. The 75-minute duration also contributes to its relative ease.
Choosing the Right Certification: Aligning with Career Goals
1. Series 63 Certification
Advantages: It is a cost-effective choice if you do not plan to offer investment advisory services. The narrower focus and higher pass rate make it a more accessible certification for many candidates.
Best For Individuals aiming to work as securities agents with a focus on state regulations. This certification is ideal if your role is confined to securities transactions and compliance at the state level.
2. Series 66 Certification
- Best For Individuals seeking to qualify for dual roles as both securities agents and investment advisor representatives. This certification is ideal if you want to provide comprehensive financial services, including investment advice.
- Advantages: The Series 66 exam covers a broader range of topics and roles. It is especially advantageous for those who wish to avoid taking the Series 63 separately, as passing the Series 66 satisfies the qualifications for both roles.
Recommended Study Programs: Preparing for Success
Effective preparation is key to passing either the Series 66 vs. Series 63 exams. Here’s an overview of some recommended study programs:
1. Securities Institute of America (SIA)
Overview:
The Securities Institute of America (SIA) provides a comprehensive study package specifically designed for candidates preparing for the Series 63 and Series 66 exams. Their approach is tailored to ensure a thorough understanding of the material, with resources developed by industry experts to maximize exam success.
Cost:
- Series 63 Course: $125
- Series 66 Course: $125
- Bundle (Both Series 63 & Series 66): $250
Features:
- Video Lessons:
- Content: SIA’s video lessons are crafted to offer detailed explanations of key concepts. They cover all exam areas with clear, step-by-step instructions.
- Format: Interactive videos allow for pausing, replaying, and taking notes, facilitating a more personalized learning experience.
- Textbooks:
- Content: Their textbooks provide in-depth coverage of the exam content, including practice questions and detailed answers. The books are organized by topic and are designed to align closely with the exam syllabi.
- Format: Available in both digital and print formats, catering to different learning preferences.
- Practice Questions:
- Content: A wide range of practice questions is included, reflecting the style and difficulty of the actual exams. These questions help reinforce understanding and improve exam readiness.
- Format: Practice exams are timed and designed to simulate actual test conditions, helping candidates gauge their preparation level.
Benefits:
SIA’s study materials are tailored to cover all exam areas comprehensively. The structured approach of their resources helps candidates build a solid foundation in the subject matter and gain confidence. Their emphasis on both theoretical knowledge and practical application prepares candidates effectively for the exams.
2. Securities Training Corporation (STCUSA)
Overview:
Securities Training Corporation (STCUSA) specializes in practice tests and targeted preparation for the Series 63 and Series 66 exams. Their programs are designed to help candidates excel by focusing on practice exams and offering robust support from industry professionals.
Cost:
- Series 63 Course: $118
- Series 66 Course: $183
- Bundle (Both Series 63 & Series 66): $295
Features:
- Practice Tests:
- Content: STCUSA provides extensive practice tests that closely mimic the format and content of the actual exams. These tests are designed to simulate exam conditions and help candidates assess their readiness.
- Format: Practice exams are available online with immediate feedback on performance, allowing candidates to identify and focus on weak areas.
- Instructor Support:
- Content: STCUSA offers access to experienced instructors who provide support with challenging topics. This includes live webinars and one-on-one sessions for personalized assistance.
- Format: Support is available via email, phone, and online chat, ensuring candidates have access to help when needed.
- Study Materials:
- Content: Their study materials include detailed explanations, study guides, and interactive content. These materials are designed to break down complex topics and provide clear, concise information.
- Format: Materials are available in digital formats, including downloadable PDFs and online access, making them easily accessible for on-the-go studying.
Benefits:
STCUSA’s emphasis on practice tests and instructor support helps candidates identify and address weak areas, thereby improving their exam performance. The structured and targeted approach of their study materials ensures comprehensive preparation and enhances overall exam readiness.
Study Tips for Both Exams
1. Understand the Exam Format
Familiarize yourself with the structure of the exam you’re taking. Knowing the number of questions, time limits, and content areas helps you tailor your study plan and manage your time effectively during the exam.
2. Use High-Quality Study Materials
Invest in well-reviewed textbooks, online courses, and practice exams. Reliable materials provide a comprehensive understanding of the exam content and help you identify key areas for review.
3. Create a Study Plan
Develop a study schedule that allows you to cover all content areas thoroughly. Allocate more time to topics you find challenging and ensure you have time for practice exams.
4. Practice Regularly
Take practice exams to familiarize yourself with the question format and improve your time management skills. Regular practice helps reinforce your knowledge and build confidence.
5. Join Study Groups
Collaborate with others who are preparing for the same exam. Study groups can provide additional insights, motivation, and support.
Bottom Line
Choosing between the Series 66 vs. Series 63 exams depends on your career goals. The Series 66 qualifies you for both securities and investment advisory roles, while the Series 63 focuses on securities regulations and ethics for securities agents. Understanding the differences, costs, and content of each exam, along with using effective study strategies, will help you prepare successfully. For additional resources and study materials, you can find our recommended guides featuring top exam prep resources for both certifications.
FAQs
What is the difference between Series 66 and Series 63?
The Series 63 certification allows you to work as a securities agent. The Series 66 exam goes further by qualifying you to be both a securities agent and an investment advisor representative.
What is the Series 63 exam for?
The Series 63 exam tests your knowledge of regulations and ethics that govern securities agents. Passing this exam shows that you have the required understanding to work in this role.
Should I take the Series 63 or 65 first?
I recommend taking the Series 63 exam first. It is shorter and easier compared to the Series 65 test. This way, you can complete it quickly and then allocate your study time to the more challenging exam.
Is Series 66 harder than Series 7?
Whether Series 66 is harder than Series 7 depends on your strengths. The Series 7 exam focuses more on math but has fewer content areas. On the other hand, the Series 66 exam is all about memorization and understanding securities law.
What are the options for testing accommodations?
If you need special accommodations for any of these exams, FINRA provides options. You can apply for accommodations if you have a disability that affects your ability to take the test under standard conditions.
Are there online options for taking these exams?
Currently, these exams are mostly taken at testing centers. However, FINRA is exploring online testing options to make the exams more accessible.
Do I need to take the FINRA SIE before these exams?
FINRA offers a separate, entry-level Securities Industry Essentials (SIE) exam. Although it’s not a prerequisite for Series 63, 65, or 66, passing the SIE can provide a strong foundation for these more advanced exams.
Frequently Asked Questions
What are the key differences between the Series 63 and Series 66 exams?
The Series 63 and Series 66 exams are both securities exams administered by FINRA, but they serve different purposes. The Series 63 test focuses mainly on state securities regulations and is required for individuals who wish to act as securities agents within a particular state.
On the other hand, Series 66 is a broader exam that combines elements of the Series 63 and Series 65 exams. It tests both state regulations and federal securities laws, making it more comprehensive than the Series 63.
How does the Series 66 exam content compare to that of Series 63?
The content of the Series 66 exam includes material from both the Series 63 and Series 65 exams. While the Series 63 focuses solely on state regulations, the Series 66 also covers investment adviser laws and rules.
The Series 66 does not include product, analysis, and strategy questions from the Series 65. Therefore, it is more comprehensive than the Series 63, but not as detailed in some areas as the Series 65.
What is the pass rate for the Series 66 exam compared to the Series 63?
The pass rates for the Series 63 and Series 66 exams are different. The Series 63 exam typically has a pass rate between 70-75%, whereas the Series 66 exam has a pass rate between 65-70%. Although the difference isn’t huge, it is worth noting for anyone choosing between them.
Can someone with a Series 66 license perform the same functions as someone with a Series 63 license?
Yes, someone with a Series 66 license can perform the same functions as someone with a Series 63 license. The Series 66 covers the material included in the Series 63, along with additional content, making it suitable for those who want to act as both a securities agent and an investment adviser representative.
What are the prerequisites for taking the Series 66 or Series 63 exams?
Candidates must also hold a Series 7 license to take the Series 66 exam. The Series 63 exam does not have this requirement, making it more accessible to individuals who may not have completed the Series 7 exam yet.
Are there different continuing education requirements for the Series 66 versus the Series 63?
Continuing education requirements can vary depending on the licenses held. For those with a Series 66 license, maintaining both the Series 7 and Series 66 licenses typically involves different and potentially more extensive continuing education than holding just a Series 63 license. The specific education requirements may depend on regulatory updates and the issuing organization’s policies.
Hope this helps! Let me know if you have any other questions.