Top 10 Stock Broker Certifications

Certifications are important for stock brokers in the job market because they demonstrate to employers that a stock broker has the knowledge and skills necessary to be successful in their role. Certifications can also provide a competitive edge, as employers often prefer candidates who have them. Additionally, certifications may be required by certain firms or regulatory bodies in order for a stock broker to practice legally. Lastly, certifications demonstrate commitment to professional development and provide evidence of dedication to the field.

The purpose of this article is to provide an overview of the most beneficial certifications for stock brokers and explain how they can help advance a stock broker's career.

What are Stock Broker Certifications?

Stock broker certification is a professional designation that signifies an individual has achieved a certain level of knowledge and expertise in the area of stock market investing. The certification process involves passing an exam, usually administered by a professional organization such as the Financial Industry Regulatory Authority (FINRA). This exam tests individuals on their understanding of securities laws, regulations, and industry practices and procedures. Having this certification demonstrates to potential clients that the individual is knowledgeable in the subject matter and is qualified to provide advice on investments.

Having stock broker certification can help investors gain greater confidence in entrusting their money with a particular broker or financial advisor. It also shows that they have taken the time to acquire knowledge in securities laws and regulations, which can help them better understand the markets and make informed decisions when it comes to investing. Additionally, having this certification can open up career opportunities for those looking to enter the field or advance their positions within it. Earning this credential may also qualify an individual for discounts on various products and services related to stock market investing.

Pro Tip: Before choosing a stock broker certification, make sure to research the requirements and understand the associated fees. Additionally, look into the reputability of the certifying institution to ensure it is respected in the industry.

Related: What does a Stock Broker do?

Top 10 Stock Broker Certifications

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

1. Chartered Financial Analyst (CFA)

Chartered Financial Analyst (CFA) is a professional designation awarded by the CFA Institute, a global association of investment professionals. It is a globally recognized credential that demonstrates mastery of advanced investment analysis and real-world portfolio management skills. The CFA Program covers topics such as ethical and professional standards, quantitative methods, economics, financial reporting and analysis, corporate finance, equity investments, fixed income, derivatives, alternative investments and portfolio management.

The CFA Program consists of three levels of exams that must be completed sequentially: Level I, Level II and Level III. Each level takes approximately six months to complete depending on the individual's study habits. To become a CFA charterholder you must pass all three levels within four years.

To get started with the CFA Program you must first register with the CFA Institute and pay an enrollment fee. The cost for all three levels combined is around $2,400 USD which includes registration fees for each exam plus additional materials such as textbooks or online courses.

In addition to passing all three levels of exams you must also meet the following requirements: have at least four years of qualified work experience in investment decision making; sign an agreement to abide by the CFA Institute Code of Ethics and Standards of Professional Conduct; become a member of the CFA Institute; submit references from current or former employers; and pay annual membership dues to maintain your charter status.

2. Chartered Investment Manager (CIM)

Chartered Investment Manager (CIM) is a professional designation awarded by the Chartered Investment Management Institute (CIMI). It is a globally recognized certification that demonstrates expertise in investment management and financial planning. The CIM curriculum covers topics such as portfolio management, asset allocation, risk management, performance measurement and analysis, and compliance.

It typically takes about 18 months to complete the CIM program. To become a Chartered Investment Manager, you must first meet the eligibility requirements set forth by the CIMI. These include having at least three years of experience in the financial industry, passing an exam administered by the CIMI, and completing an approved course of study.

The cost of obtaining the CIM designation varies depending on your location and other factors. Generally speaking, it will cost anywhere from $2,000 to $5,000 USD to complete all of the necessary requirements for certification.

In addition to tuition fees for courses taken through accredited institutions or organizations such as the CIMI, applicants may also need to pay registration fees for examinations or other administrative costs associated with obtaining their certification.

3. Certified Financial Planner (CFP)

Certified Financial Planner (CFP) is a professional designation awarded by the Certified Financial Planner Board of Standards, Inc. (CFP Board). It is a certification that signifies an individual has met the education, examination, experience and ethical requirements set forth by the CFP Board.

To become a CFP, individuals must complete specific educational courses and pass a comprehensive exam. The educational courses cover topics such as investment planning, retirement planning, tax planning, estate planning, insurance planning and financial management.

The CFP exam consists of two parts: Part 1 covers general financial planning principles and Part 2 covers specific topics related to financial planning. To be eligible to take the exam, individuals must have at least three years of full-time work experience in the financial services industry or have completed a bachelor’s degree from an accredited college or university with coursework in finance or economics.

It typically takes about two years to complete all the requirements for the CFP designation. After completing all required coursework and passing both parts of the exam, individuals must then apply for certification with the CFP Board. Once approved, they will receive their official CFP designation certificate and can begin practicing as a certified financial planner.

The cost of becoming a CFP varies depending on where you take your courses and how you choose to study for the exam. Generally speaking, it costs around $2,000-$3,000 in total to become a CFP; however this cost can vary significantly depending on individual circumstances.

4. Series 7 Exam

The Series 7 Exam is a comprehensive test administered by the Financial Industry Regulatory Authority (FINRA) to assess the competency of individuals seeking to become registered representatives of broker-dealers. The exam covers topics such as securities products, regulations, and trading practices. It is a six-hour, 250-question multiple choice exam that must be passed in order for an individual to become licensed as a General Securities Representative.

In order to take the Series 7 Exam, an individual must first apply through FINRA’s Central Registration Depository (CRD). Once approved, applicants will receive instructions on how to schedule the exam through Prometric Testing Centers. The cost for taking the Series 7 Exam is $245.

The Series 7 Exam is considered one of the most difficult exams in finance and can take several months of preparation and studying before attempting it. However, with proper preparation and dedication, many individuals have been able to pass the exam in as little as two weeks or less.

5. Series 6 Exam

The Series 6 Exam is a securities licensing exam administered by the Financial Industry Regulatory Authority (FINRA). It is designed to assess the competency of entry-level representatives who work with investment companies. The exam covers topics such as mutual funds, variable annuities, direct participation programs, and tax considerations.

The Series 6 Exam consists of 80 multiple-choice questions and must be completed in two hours. To pass the exam, you must score at least 70%.

To get the Series 6 license, you must first register with FINRA and pay an application fee. You will then need to take and pass the Series 6 Exam. The cost of taking the exam varies depending on where you take it, but typically ranges from $125 to $200.

6. Series 3 Exam

Series 3 Exam is a National Commodity Futures Examination administered by the Financial Industry Regulatory Authority (FINRA). It is required for individuals who wish to become registered as a Commodity Trading Advisor, Commodity Pool Operator, or Introducing Broker. The exam consists of 100 multiple-choice questions and takes approximately two hours to complete.

In order to take the Series 3 Exam, you must first register with FINRA through their website or by phone. You will need to provide your personal information and pay a fee of $125. Once registered, you can schedule an appointment at a Prometric Testing Center near you.

The Series 3 Exam covers topics such as futures contracts and markets, customer accounts and orders, trading strategies and risk management techniques, margin requirements, regulations governing futures trading activities, and general market knowledge. Upon successful completion of the exam, you will be granted registration as a Commodity Trading Advisor, Commodity Pool Operator or Introducing Broker.

7. Registered Investment Advisor (RIA)

A Registered Investment Advisor (RIA) is an individual or firm that provides financial advice and services to clients. RIAs are registered with the SEC or a state securities regulator, and must adhere to certain fiduciary standards when providing investment advice. RIAs typically provide portfolio management services, financial planning, retirement planning, tax planning, estate planning, and other services related to investments.

It typically takes between 6-9 months to become a Registered Investment Advisor (RIA). The process includes completing the necessary paperwork and registration forms with the SEC or state securities regulator, passing the Series 65 exam (or equivalent), obtaining E&O insurance coverage, creating an investment advisory agreement with clients, establishing a custodial relationship with a broker-dealer or bank, and setting up an office space for conducting business.

To become a Registered Investment Advisor (RIA), you must first complete the necessary paperwork and registration forms with either the SEC or your state’s securities regulator. You will also need to pass the Series 65 exam (or equivalent) in order to demonstrate your knowledge of investment strategies and regulations. Additionally, you will need to obtain Errors & Omissions insurance coverage in order to protect yourself from any potential legal liability related to your work as an RIA. Finally, you will need to create an investment advisory agreement with clients that outlines their expectations for your services as well as any fees associated with them.

The cost of becoming a Registered Investment Advisor (RIA) can vary depending on the complexity of your business model and the number of states in which you plan to operate. Generally speaking, it can cost anywhere from $2,000-$10,000+ in fees associated with registering as an RIA and obtaining E&O insurance coverage.

8. Certified Public Accountant (CPA)

A Certified Public Accountant (CPA) is a professional designation given to individuals who have met the educational, experience, and examination requirements of their respective state board of accountancy. CPAs are licensed by their state boards to provide a variety of accounting services, including auditing financial statements, preparing tax returns, and providing financial advice.

It typically takes four years to become a CPA. Generally speaking, you must complete 150 semester hours of college-level coursework in accounting and related subjects such as business law and economics. You must also pass the Uniform CPA Examination administered by the American Institute of Certified Public Accountants (AICPA). The exam consists of four parts that test your knowledge in auditing and attestation, business environment and concepts, financial accounting and reporting, and regulation.

In order to become a CPA, you must apply for licensure with your state board of accountancy. Each state has its own set of requirements for licensure; however, most states require applicants to have completed 150 semester hours at an accredited college or university with a major in accounting or related field; have passed the Uniform CPA Exam; have one year of supervised public accounting experience; and meet any additional requirements set forth by their state board.

The cost for becoming a CPA varies from state to state but generally includes fees for application processing, background checks, fingerprinting, exams fees (for both the Uniform CPA Exam and any applicable ethics exam), licensing fees, continuing education fees (if applicable), etc. It is important to check with your individual state board for specific costs associated with becoming a CPA in that jurisdiction.

9. Certified Equity Professional (CEP)

Certified Equity Professional (CEP) is a professional certification program that recognizes individuals who have achieved a high level of knowledge and expertise in the field of equity compensation. The CEP program is administered by the National Association of Stock Plan Professionals (NASPP).

The CEP program consists of three core courses, which cover topics such as plan design, taxation, and accounting for equity compensation. It also includes an elective course on international equity plans. In order to be eligible for the CEP designation, candidates must have at least two years of experience in the field of stock plan administration or related areas.

It typically takes 6-12 months to complete the CEP program depending on how quickly you can study and pass the exams. The cost to take each exam varies from $300-$350 USD depending on your country of residence. Additionally, there is a one-time application fee of $100 USD when you submit your application for certification.

In order to become certified, you must pass all three core exams and one elective exam with a score of 70% or higher within two years. Once you have passed all four exams, you will receive your official CEP certificate from NASPP and be recognized as a Certified Equity Professional.

10. Chartered Market Technician (CMT)

Chartered Market Technician (CMT) is a professional designation offered by the Chartered Market Technician Association (CMTA). It is an advanced certification program for individuals who want to demonstrate their knowledge and expertise in technical analysis of financial markets. The CMT program provides a comprehensive curriculum that covers topics such as market mechanics, trading strategies, risk management, portfolio management, and quantitative analysis.

The CMT program consists of three levels: Level I, Level II, and Level III. To become a CMT one must pass all three levels of the exam. The exams are administered twice a year in April and October.

To be eligible to take the CMT exam, applicants must have at least four years of experience in financial markets or related fields such as finance or economics. They must also have completed at least 40 hours of continuing education credits in technical analysis or related topics within the last five years.

The cost for taking the CMT exam varies depending on which level you are taking and when you register for it. Generally speaking, Level I costs $400 USD while Levels II and III cost $600 USD each. Additionally, there is an annual fee of $200 USD to maintain your CMT designation once you have achieved it.

Do You Really Need a Stock Broker Certificate?

No, you do not need a stock broker certificate to be a successful investor. While having a certificate may help you understand the basics of investing, it is not essential to becoming a successful investor. Investing is more about understanding financial markets and being able to make smart decisions based on your research and analysis. A stockbroker certificate will provide some basic knowledge of the markets and how they work, but it is up to you to use that knowledge in order to make informed decisions about what stocks or investments might be best for your portfolio.

In addition, many online brokers offer educational resources and guidance to help investors learn more about investing without needing a formal certification. Brokers like TD Ameritrade and E-Trade offer free tutorials and webinars designed to teach investors how to invest in the stock market. There are also plenty of books, websites, and other resources available online that can help you learn more about investing without having a formal stockbroker certification.

Ultimately, whether or not you have a stock broker certificate is up to you. If you believe that having one will give you an edge when it comes to investing in the stock market then it may be worth pursuing; however, if you feel comfortable with your own knowledge base then it may not be necessary for success as an investor.

Related: Stock Broker Resume Examples

FAQs About Stock Broker Certifications

1. What is a Stock Broker Certification?

Answer: A stock broker certification is a professional credential that demonstrates an individual’s knowledge and expertise in the field of securities trading. To become certified, individuals must pass an examination administered by a regulatory body such as the Financial Industry Regulatory Authority (FINRA).

2. How long does it take to get Stock Broker Certification?

Answer: The amount of time it takes to become certified depends on the type of certification you are seeking and the requirements for that particular exam. Generally, it can take anywhere from one month to several months to complete the necessary coursework and prepare for the exam.

3. What are some common topics covered on Stock Broker Certification exams?

Answer: Common topics covered in stock broker certification exams include investment strategies, financial markets, risk management, portfolio management, securities law and regulations, and ethics in the financial industry.

4. How much does it cost to get Stock Broker Certification?

Answer: The cost of obtaining stock broker certification varies depending on the type of certification you are seeking and the institution administering the exam. Typically, costs range from around $200-$500 USD depending on these factors.

5. Do I need Stock Broker Certification to be a successful trader?

Answer: While having a stock broker certification is beneficial, it is not required to be a successful trader. Many successful traders have achieved success without any formal certifications or qualifications – though having such credentials may give you an edge over other traders who lack them.