A FINRA license is a credential that lets someone sell investments or give investment information for money
FINRA stands for the Financial Industry Regulatory Authority. It is a private organization that oversees brokers and investment advisors in the United States. A FINRA license is not a government document like a driver's license — it is a registration that proves you have passed an exam and met background requirements to work in the securities industry.
If you want to sell stocks, bonds, mutual funds, or other investments to customers, or if you want to manage money or give investment information as your job, you will need a FINRA license. Your employer — usually a brokerage firm or investment company — sponsors you for the license. You cannot get one on your own.
The license shows that you understand securities laws, know how to treat customers fairly, and have been vetted for criminal history and financial problems. Without it, selling investments or calling yourself an investment advisor is illegal.
Key Takeaways
- A FINRA license is a registration credential required to sell investments or provide investment information as a paid job in the United States.
- Your employer must sponsor you for a FINRA license — you cannot obtain one independently or without a job offer in the securities industry.
- The most common FINRA licenses are the Series 7 (for general securities sales) and the Series 65 (for investment advisors), each requiring a passing exam score.
- You must pass a background check that reviews criminal history, financial problems, and regulatory violations before FINRA approves your license.
- Licenses must be renewed every two years through continuing education requirements set by FINRA and your employer.
The most common FINRA licenses and what they allow you to do
The Series 7 is the most widely held FINRA license. It lets you sell most types of securities — stocks, bonds, mutual funds, options, and more — to retail customers. If you work at a brokerage firm and help customers buy and sell investments, you almost certainly need a Series 7.
The Series 65 is for investment advisors. It lets you manage money for clients or give personalized investment information for a fee. If you work at a wealth management firm or run your own advisory practice, you typically need a Series 65 instead of a Series 7.
Other licenses exist for specific roles. The Series 3 covers commodities and futures. The Series 4 lets you supervise options trading. The Series 24 is for branch managers and compliance officers. Your employer tells you which license you need based on your job title and the work you will do.
How to get a FINRA license: the exam and background check
Getting a FINRA license starts with a job offer. Your employer registers you with FINRA and assigns you a sponsoring firm. You cannot take the exam without this sponsorship.
Next, you study for and pass the exam. The Series 7 exam has 250 questions and you have five hours and 45 minutes to complete it. The Series 65 has 130 questions and takes three hours. You must score at least 72 percent on the Series 7 and 73 percent on the Series 65 to pass. Most people study for four to eight weeks using study guides, practice exams, and sometimes paid courses.
While you are studying, FINRA runs a background check. They review your criminal history, civil judgments, bankruptcy filings, and any past regulatory violations. They also check your credit report. If you have felonies, recent fraud convictions, or serious financial problems, FINRA may deny your license or require you to explain the issue.
Once you pass the exam and clear the background check, FINRA issues your license. The whole process usually takes two to four months from the time your employer sponsors you.
What happens after you get your license
Your FINRA license is valid for two years. During that time, you must complete continuing education hours set by FINRA and your employer. The requirements vary by license type, but most people complete between 10 and 40 hours per year through online courses, webinars, or in-person training.
You must also follow FINRA rules about how you treat customers, handle money, and disclose conflicts of interest. FINRA inspects brokerage firms regularly and can fine or suspend you if you break the rules. If you leave the securities industry, your license becomes inactive, though you can reactivate it later if you return to the field.
If you want to renew your license when it expires, you submit a renewal form to FINRA, pay a fee, and confirm that you have completed your continuing education. You do not have to retake the exam to renew, but you do have to stay current on the rules and regulations in your field.
How a FINRA license differs from other professional credentials
A FINRA license is not the same as a college degree, a CPA certification, or a state professional license. It is a securities industry credential that proves you passed a specific exam and met FINRA's standards. You can hold a FINRA license and a CPA license at the same time, or a FINRA license and a law degree — they cover different areas of work.
Unlike a driver's license, which a government agency issues, FINRA is a private organization. But FINRA is authorized by the Securities and Exchange Commission (SEC), a federal agency, to set and enforce rules for the securities industry. So while FINRA issues the license, the SEC oversees FINRA.
You also cannot transfer a FINRA license between states or employers the way you might transfer a professional license. If you change jobs, your new employer must sponsor you again, though the process is usually faster the second time.
Why employers require FINRA licenses
Employers require FINRA licenses because federal law says they must. The Securities Exchange Act of 1934 and rules written by the SEC require anyone who sells securities or gives investment information for money to be registered with FINRA or another self-regulatory organization.
The license protects customers by ensuring that people handling their money have been tested and vetted. It also protects the employer — if you break FINRA rules, the firm can face fines or lose its own license. So employers have a strong incentive to hire only licensed people and to make sure they stay in compliance.
If you work in the securities industry without a license, both you and your employer can face criminal charges, civil penalties, and lawsuits from customers.
Frequently Asked Questions
Do I need a FINRA license to work in a bank or credit union?
It depends on your job. If you sell stocks, mutual funds, or other securities, yes. If you only handle deposits, loans, or basic banking products, no. Banks have their own regulatory structure. Ask your employer whether your specific role requires a FINRA license.
Can I get a FINRA license without a job offer?
No. You must be sponsored by a brokerage firm or investment company. You cannot register with FINRA on your own. If you want to work in the securities industry, you need to find a job first, then your employer will sponsor you for the license.
What happens if I fail the FINRA exam?
You can retake it. Most people are allowed to sit for the exam again after a waiting period — usually 30 days for the first retake. Your employer may require you to study longer before your next attempt. There is no limit to how many times you can retake the exam, but your employer may set their own limits.
Do I lose my FINRA license if I change jobs?
Your license becomes inactive when you leave the firm that sponsored you. If you move to another brokerage or investment firm, your new employer can reactivate it or sponsor you for a new one. The process is faster than the first time because you have already passed the exam.
How much does it cost to get a FINRA license?
Your employer usually pays the exam fee and registration costs, which range from $100 to $300 depending on the license type. Some employers also pay for study materials and courses. You may pay out of pocket if you use premium study programs, but the basic exam and registration are typically covered by your employer.