Top 10 Broker Certifications

Certifications are important for a broker in the job market because they demonstrate a level of knowledge and expertise that can help them stand out from the competition. Certifications provide evidence that a broker has taken the time to gain an understanding of the industry and has committed to learning and maintaining their skills. Employers look for brokers who have these certifications as a sign of trustworthiness and dedication to their profession. Additionally, certifications can open up opportunities for higher pay, promotions, and access to more complex investments.

This article reviews some of the top certifications for Brokers and explains how they can contribute to a broker's career by providing them with specialized knowledge and enhanced credibility.

What are Broker Certifications?

Broker certification is a process that allows brokers to become certified in a particular type of real estate transaction. This certification requires the broker to demonstrate knowledge and experience in the specific area of real estate, such as commercial or residential transactions. By becoming certified, brokers can demonstrate their expertise and commitment to providing quality services to their clients. This can be especially helpful for clients who are looking for an experienced and knowledgeable broker to handle their transaction.

The process of becoming certified typically involves taking classes related to the specific area of real estate, passing an exam, and completing necessary paperwork. Once the broker has completed all requirements, they can then receive their certification from a governing body, such as the National Association of Realtors (NAR). Having this certification shows potential clients that the broker has extensive knowledge in the field and is committed to providing quality services.

By having a broker certification, it also provides reassurance that the broker follows certain standards when it comes to legal issues and ethics within real estate transactions. This helps protect both parties involved in any given transaction. Additionally, having a certification also shows other professionals in the industry that the broker is serious about their work and is dedicated to providing excellent service for their clients.

Pro tip: When choosing a broker, look for one that is certified by a reputable organization. Certification from organizations such as the Financial Industry Regulatory Authority (FINRA) or the National Futures Association (NFA) can provide assurance that your broker is knowledgeable and compliant with industry regulations.

Related: What does a Broker do?

Top 10 Broker Certifications

Here’s our list of the best certifications available to Brokers today.

1. Chartered Financial Analyst (CFA)

Chartered Financial Analyst (CFA) is a professional designation awarded by the CFA Institute, formerly known as the Association for Investment Management and Research (AIMR). It is a globally recognized credential that demonstrates a mastery of advanced investment analysis and portfolio management skills.

The CFA program consists of three levels of exams that test candidates on a wide range of topics related to finance, economics, accounting, ethics, and quantitative analysis. The exams are administered twice per year in June and December. To be eligible to take the exam, candidates must have at least four years of qualified work experience in an investment-related field or hold a bachelor’s degree from an accredited college or university.

The CFA program takes approximately two to four years to complete depending on how quickly you can study and pass each level of the exam. The cost of the program varies depending on where you live but typically ranges from $2,000 - $4,000 USD for all three levels combined. This includes registration fees for each exam, study materials such as textbooks and practice exams, and other related costs such as travel expenses for attending review courses or conferences.

2. Certified Financial Planner (CFP)

Certified Financial Planner (CFP) is a professional designation given by the Certified Financial Planner Board of Standards, Inc. (CFP Board). CFPs are trained to provide comprehensive financial planning services, including advice on investments, insurance, taxes, estate planning and retirement planning.

In order to become a CFP, individuals must meet certain education and experience requirements and pass the CFP Certification Examination. To qualify for the exam, applicants must have at least a bachelor’s degree from an accredited college or university and three years of full-time financial planning-related experience.

The CFP Certification Examination consists of two parts: an online multiple-choice section and an in-person case study section. The online portion covers topics such as investment management, retirement planning, risk management and estate planning. The in-person case study section requires applicants to demonstrate their ability to apply knowledge in real-world scenarios.

The cost of taking the CFP Certification Examination varies depending on where you take it and when you register for it. Generally speaking, it costs around $700-$900 USD for both parts of the exam. Additionally, there may be additional fees associated with obtaining your certification once you have passed the exam.

Once you have obtained your CFP certification, you will need to complete continuing education credits every two years in order to maintain your certification status.

3. Chartered Alternative Investment Analyst (CAIA)

Chartered Alternative Investment Analyst (CAIA) is a professional designation for financial professionals working in the alternative investments industry. It is the first and only globally recognized credential designed specifically for individuals specializing in alternative investments. The CAIA program provides an in-depth understanding of the alternative investment industry and its various asset classes, including hedge funds, private equity, real estate, commodities, and structured products.

The CAIA program consists of two levels: Level I and Level II. Level I focuses on core concepts related to alternative investments while Level II delves deeper into more advanced topics such as portfolio management and risk management. The program requires a minimum of 250 hours of study time to complete both levels.

To become a Chartered Alternative Investment Analyst (CAIA), you must pass both Levels I and II of the CAIA exam. To be eligible to take the exam, you must have either a bachelor’s degree or at least three years of relevant work experience in the field. You can register for the exams online through the CAIA Association website.

The cost of taking both Levels I and II of the CAIA exam is $1,400 USD for members of the CAIA Association and $2,000 USD for non-members.

4. Series 7 Exam

The Series 7 Exam is a comprehensive exam administered by the Financial Industry Regulatory Authority (FINRA). It is required for individuals who wish to become registered representatives of broker-dealers. The exam covers topics such as securities regulations, investment strategies, and customer accounts.

The Series 7 Exam consists of 250 multiple-choice questions that must be completed in six hours. To pass the exam, an individual must score at least 72%.

To get the Series 7 Exam, individuals must first submit a Form U4 with FINRA and pay the registration fee. The fee is currently $245 for non-members and $125 for members of FINRA or other self-regulatory organizations.

After passing the exam, individuals must also complete a background check and fingerprinting process before they can become registered representatives of broker-dealers.

5. Series 6 Exam

Series 6 Exam is a financial exam administered by the Financial Industry Regulatory Authority (FINRA). It tests the knowledge and skills of individuals who want to become registered representatives of broker-dealers. The exam covers topics such as securities regulations, investment products, and trading practices.

The Series 6 Exam takes approximately two hours to complete. It consists of 80 multiple choice questions and 10 pretest questions that are not scored. The passing score for the exam is 70%.

To take the Series 6 Exam, you must submit an application to FINRA through your sponsoring firm or association. The cost of taking the exam varies depending on where you take it, but typically ranges from $50-$125.

6. Series 3 Exam

Series 3 Exam is an exam administered by the Financial Industry Regulatory Authority (FINRA). It is a test of knowledge about commodities futures trading. The exam consists of 125 multiple-choice questions and must be completed in two hours and fifteen minutes.

To get the Series 3 Exam, you must first register with FINRA as a representative of a broker-dealer firm. Once registered, you can then apply to take the exam. To do so, you must submit an application, pay the registration fee, and provide proof of completion of required training. The registration fee for the Series 3 Exam is $245.

Once your application has been approved by FINRA, you will be able to schedule your test date at one of their authorized testing centers. You will also be provided with study materials and practice tests to help prepare for the exam. Upon successful completion of the Series 3 Exam, you will receive your license from FINRA and be eligible to trade commodities futures contracts on behalf of your broker-dealer firm.

7. Registered Options Principal (ROP)

Registered Options Principal (ROP) is a designation granted by the Financial Industry Regulatory Authority (FINRA) to individuals who have met certain educational and experience requirements. The ROP designation allows individuals to supervise the options activities of their firms, including the trading of options contracts on behalf of customers.

In order to become an ROP, an individual must first pass the Series 4 Exam, which covers topics such as options regulations and customer protection. This exam can be taken online or in-person at a testing center. After passing the exam, applicants must submit a Form U4 application to FINRA and pay a fee of $50.

Once FINRA has received the application and fee, it will review the applicant’s background and qualifications and determine whether they meet all of the requirements for becoming an ROP. If approved, FINRA will issue an ROP license that is valid for two years.

The entire process from taking the Series 4 Exam to receiving an ROP license typically takes about two months.

8. Certified Mortgage Banker (CMB)

Certified Mortgage Banker (CMB) is a professional designation earned by mortgage professionals who have demonstrated their expertise in the mortgage banking industry. The CMB designation is awarded to individuals who have completed a rigorous program of study and passed an exam that tests their knowledge of mortgage banking principles, practices, and regulations.

The CMB program is administered by the Mortgage Bankers Association (MBA). To become a CMB, applicants must meet certain eligibility requirements and complete the following steps:

1. Submit an application and pay the application fee.

2. Successfully complete three courses offered by the MBA: Principles of Mortgage Banking, Professionalism & Ethics in Mortgage Banking, and Regulatory Compliance & Risk Management in Mortgage Banking.

3. Pass the CMB Examination with a score of at least 80%.

4. Agree to abide by the MBA’s Code of Professional Conduct for Certified Mortgage Bankers.

5. Complete continuing education requirements every two years to maintain certification status.

The cost of becoming a CMB varies depending on whether you are already an MBA member or not, but typically ranges from $1,000 - $2,000 USD including course fees and exam fees. The entire process can take anywhere from six months to one year depending on how quickly you complete the courses and pass the exam.

9. Chartered Market Technician (CMT)

Chartered Market Technician (CMT) is a professional certification for individuals who specialize in the analysis of financial markets. It is awarded by the Chartered Market Technician Association (CMTA). The CMT certification program is designed to recognize and reward those who have achieved a high level of competency in technical analysis.

The CMT program consists of three levels: Level I, Level II, and Level III. Each level requires passing an exam that tests one's knowledge and understanding of technical analysis concepts. In order to become a certified Chartered Market Technician, one must pass all three levels of the exam.

It typically takes about two years to complete all three levels of the CMT program. The amount of time it takes to complete each level depends on how much time an individual can devote to studying and preparing for the exams.

To get started with the CMT program, individuals must first register with CMTA and pay the registration fee which is currently $495 USD. After registering, individuals will receive access to study materials and practice exams which they can use to prepare for their exams.

Once registered, individuals must take and pass each level's exam before they can move onto the next level. Each exam costs $295 USD per attempt and there are no discounts available for multiple attempts at any given level. Upon successful completion of all three levels, individuals will receive their CMT certification from CMTA as well as a digital badge that can be used on resumes or other professional documents.

In total, it costs about $1480 USD to become a certified Chartered Market Technician (CMT).

10. FINRA Securities Industry Essentials Exam (SIE)

The FINRA Securities Industry Essentials Exam (SIE) is a new exam introduced by the Financial Industry Regulatory Authority (FINRA) in 2018. It is designed to provide individuals with a basic understanding of the securities industry and its regulatory framework. The SIE covers topics such as types of products, trading strategies, market structure, financial regulations, and other related topics.

The SIE exam takes approximately two hours to complete and consists of 75 multiple-choice questions. The exam is administered through Prometric testing centers throughout the United States and can be taken at any time during normal business hours. To take the SIE exam, you must be at least 18 years old and have a valid government-issued photo ID.

The cost to take the SIE exam is $60 for non-FINRA members and $30 for FINRA members. Additionally, there may be additional fees associated with taking the exam at certain testing centers.

Do You Really Need a Broker Certificate?

When it comes to investing in the stock market, many people wonder if they really need a broker certificate. The short answer is that it depends on your individual situation and needs. If you are an experienced investor who is comfortable researching and making decisions on their own, then a broker certificate may not be necessary. However, if you are new to investing or want additional help understanding the complexities of the markets, then a broker certificate may be beneficial.

A broker certificate can provide investors with access to professional advice and guidance from a qualified financial services provider. They can help with research and analysis, portfolio selection, trading strategies and risk management. A broker certificate holder should have the knowledge and experience to help you make informed decisions regarding your investments.

A broker certificate can also give investors access to more advanced investment products such as derivatives, options and futures. These types of products involve greater risk but can potentially offer higher returns than traditional stocks and bonds. As such, they may be suitable for more experienced investors who understand the risks involved and know how to manage them appropriately.

In conclusion, whether or not you need a broker certificate will depend on your individual circumstances and goals as an investor. For those who are inexperienced or need additional assistance in understanding the stock market, having access to professional advice may be beneficial in achieving their financial objectives.

Related: Broker Resume Examples

FAQs About Broker Certifications

1. What is a broker certification?

A broker certification is a professional designation that certifies an individual has met certain educational and experience requirements in order to provide services as a securities broker.

2. How do I become certified as a broker?

In order to become certified as a broker you must meet the qualifications for the specific type of certification you are seeking, which may include passing an exam, completing coursework and/or having relevant work experience.

3. Are there different types of broker certifications?

Yes, there are several different types of certifications including the Series 3, 7, 6, 63 and 65 as well as specialized designations such as Chartered Financial Analyst (CFA) and Certified Financial Planner (CFP).

4. What is the difference between Series 3 and Series 7 licenses?

The Series 3 license is required for commodities futures trading while the Series 7 license covers stocks, bonds, options and other securities transactions.

5. How often do I need to renew my broker certification?

It depends on which type of certification you have but generally most certifications need to be renewed every two years with continuing education courses or exams.