A Series 63 license is a state-level securities registration that allows a person to sell investment products and manage client accounts within a single state

The Series 63, formally called the Uniform Securities Agent State Law Examination, is administered by the Financial Industry Regulatory Authority (FINRA) on behalf of state securities regulators. It tests knowledge of state securities laws, ethical conduct, and rules specific to how brokers and investment advisors operate within that state's borders. Unlike federal licenses such as the Series 7 (which covers stocks and bonds nationally), the Series 63 is state-specific — you must pass it in each state where you want to conduct securities business.

Most people who sell securities need both a federal license and a Series 63. The Series 63 does not replace the Series 7 or Series 65; it works alongside them. If you hold a Series 7 (general securities representative) or Series 65 (investment advisor representative), you typically must also hold a Series 63 in any state where you conduct business, unless that state has adopted the Uniform Securities Act and waived the requirement — which is rare.

Key Takeaways

  • The Series 63 is a state-level exam that tests knowledge of state securities laws and ethical rules for brokers and investment advisors.
  • You must pass the Series 63 in each state where you want to sell securities or manage client money, even if you already hold a federal license.
  • The exam covers topics such as fraudulent practices, registration requirements, and the duties brokers owe to clients under state law.
  • Most candidates study for 10 to 20 hours using FINRA-approved study materials, and the exam takes about 90 minutes to complete.
  • Your employer (the brokerage or investment firm) typically pays the exam fee, which is around $175, and handles your registration with the state.

Who Must Hold a Series 63

Anyone who sells securities or manages client accounts in a state must hold a Series 63 in that state, with limited exceptions. This includes registered representatives (brokers who sell stocks, bonds, and mutual funds), investment advisor representatives (people who give personalized investment information for a fee), and certain other financial professionals who handle client money or securities.

The main exception is if you work for a bank and sell only bank-issued products such as CDs or bank-managed mutual funds. Banks are exempt from many securities registration rules under federal law. However, if you sell non-bank securities products — even if you work at a bank — you typically need a Series 63 in your state.

Some states have adopted the Uniform Securities Act, which allows certain federal license holders to operate without a separate Series 63, but this is uncommon. Your employer will tell you whether you need one; they are required to may support you hold the correct licenses before you conduct any business.

What the Series 63 Exam Covers

The Series 63 exam contains 60 multiple-choice questions and lasts 90 minutes. You must score at least 72 percent to pass. The exam is offered year-round at testing centers operated by Prometric, FINRA's testing vendor.

The content focuses on state securities laws and the ethical and legal duties of brokers and advisors. Specific topics include the definition of a security under state law, registration requirements for securities and agents, prohibited practices such as fraud and misrepresentation, the fiduciary duty brokers owe to clients, and rules around advertising and communications. You will also see questions about conflicts of interest, how to handle client complaints, and record-keeping requirements.

The exam does not test specific investment products or trading strategies the way the Series 7 does. Instead, it assumes you already know how to sell securities and focuses on the legal and ethical framework that governs how you do so within a particular state.

How to Prepare and Register for the Exam

Your employer will initiate your registration with FINRA and your state securities regulator. You do not register yourself; the brokerage or investment firm files the paperwork and pays the exam fee (typically around $175). Once your registration is processed, you will receive a notice to schedule your exam.

Most candidates study for 10 to 20 hours using FINRA-approved study materials. Common resources include textbooks published by FINRA-approved providers, online practice exams, and study guides. Your employer may provide study materials or reimburse you for them. Many people combine self-study with a live or online prep course, though this is optional.

You schedule your exam through Prometric's website using the authorization number FINRA sends you. Testing centers are located in most cities and towns. You will need to bring a government-issued photo ID and arrive 15 minutes early. You cannot bring notes, calculators, or reference materials into the testing room.

Passing, Failing, and Retaking the Exam

If you pass, FINRA notifies your state securities regulator and your employer within one business day. Your registration becomes active, and you can begin conducting securities business in that state. Your license remains valid as long as you remain employed by a registered firm and continue to meet any continuing education requirements your state imposes.

If you fail, you can retake the exam. There is no mandatory waiting period between attempts, though your employer may impose one. You pay the exam fee again for each attempt. Most people who fail pass on their second or third try, especially if they study the areas where they scored lowest.

Your Series 63 license is tied to your employment. If you leave the firm that sponsored you, your license becomes inactive. If you move to a different firm, that firm can transfer your registration to their sponsorship, or you can let it lapse and reapply when you are ready to work again.

Series 63 Versus Series 65 and Series 7

The Series 63 is often confused with the Series 65 because both are required for investment advisors in most states. The Series 65 is a federal exam that covers investment advisory practices, fiduciary duty, and portfolio management. The Series 63 covers state law. If you want to be an investment advisor representative, you typically need both the Series 65 (federal) and the Series 63 (state).

The Series 7 is a federal exam for brokers who sell a wide range of securities. It covers stocks, bonds, options, mutual funds, and other products. The Series 7 does not cover state law, so brokers who hold a Series 7 must also hold a Series 63 in any state where they conduct business.

Some states allow someone who holds a Series 65 to skip the Series 63 if they are acting only as an investment advisor and not as a broker. However, most states still require the Series 63 even for advisors. Check with your state's securities regulator or your employer to confirm what you need.

Continuing Education and License Renewal

The Series 63 itself does not expire, but your registration with your state does. Most states require you to renew your registration every one to three years, depending on state rules. Renewal typically involves paying a fee and completing continuing education hours.

Continuing education requirements vary by state. Some states require a set number of hours per year (often 4 to 8 hours), while others require it only every two or three years. Your employer is responsible for tracking your hours and ensuring you complete them on time. If you fail to renew or complete continuing education, your registration lapses and you cannot conduct securities business until you renew.

If you move to a different state or change jobs, you may need to take the Series 63 again in the new state, depending on whether you already hold it there. Your employer will advise you on what is needed.

Frequently Asked Questions

Do I need a Series 63 if I only sell mutual funds?

If you sell mutual funds through a brokerage, you typically need a Series 63 in your state, even if mutual funds seem simpler than stocks or bonds. The Series 63 is about state law and ethical conduct, not the complexity of the product. The exception is if you work for a bank and sell only bank-managed mutual funds, in which case you may not need one.

How long does it take to get a Series 63 after I pass the exam?

FINRA notifies your state regulator within one business day of your passing. Your registration typically becomes active within one to five business days after that, depending on your state's processing speed. Your employer will tell you when you are cleared to start working.

What happens if I fail the Series 63?

You can retake it when ready; there is no waiting period. You pay the exam fee again and schedule a new test date through Prometric. Most people pass on their second attempt if they review the areas where they scored lowest.

Can I work as a broker without a Series 63?

No. You cannot conduct any securities business in a state without holding a Series 63 in that state. Your employer is required by law to may support you hold the correct licenses before you conduct any business, and they face penalties if they allow you to work without one.

Do I need a Series 63 in every state where my firm operates?

Only in states where you personally conduct business or manage client accounts. If your firm operates in 10 states but you only work with clients in 3 of them, you only need a Series 63 in those 3 states. However, if you move to a different state later, you will need to obtain a Series 63 there before you can work with clients in that state.