Follow these steps to become a stockbroker in Nevada by satisfying broker-dealer sales representative licensing requirements through the Nevada Secretary of State, Securities Division, in accordance with the Nevada Securities Act.
Step 1. Get Your Education
Consider the value of a bachelor’s degree in a relevant field as a precursor to finding sponsorship with a broker-dealer firm. Early in your career, before you’ve had the chance to establish field experience, a degree will prove to be a vital asset.
Some recommended degrees include:
- BS-Business Administration or Finance
- BA-Consumer and Family Financial Services
- BS or BA-Business
Take relevant courses. Courses in sales, ethics, finance and business law, among others, are extremely helpful as you look to master the protocols of suitability standards in securities sales. If the following courses are not already part of your curriculum, consider adding them:
- Quantitative applications of business
- Behavior of groups, organizations and persons
- Business law
- Accounting, courses in managerial and financial accounting in particular
- Business communications
Step 2: Take the Required Exams
- The Series 63, Uniform Securities Agent State Law Examination required by the Nevada Secretary of State, Securities Division can be applied for without being sponsored by a broker-dealer firm. You can take the Series 63 prior to becoming sponsored for one of the securities product exams such as the Series 6 or Series 7; however, this isn’t common. Most broker-dealer sales representatives pursue sponsorship and take both the state law exam and the product exam as a precursor to employment. As you look for a firm you’d like to work for, be sure to consider all your options including the smaller independent firms in Nevada.
- Complete Form U-4 Uniform Application for Securities Registration or Transfer. Form U-4 is an exam application, as well as an application for registration with the Nevada Securities Division and FINRA.An FBI background check is required for FINRA registrations so you must submit fingerprints with your application. Fingerprinting can be done through your local law enforcement office for a fee. Some firms may be able to take your fingerprints free of charge
After successful completion, your sponsoring firm is responsible for turning in the form through the Central Registration Depository (CRD) though which associated fees are paid:
- FINRA’s $85 registration fee
- Nevada’s $125 registration fee
- Exam fees
- FINRA charges $30.25 to process the fingerprint card for your federal background check
- Proof of passing the Series 63 OR Series 66 exam and any other applicable exams required by the FINRA and Nevada. Find your nearest test location here.
- Thoroughly review the study materials provided by your sponsor prior to attempting any exam.
- You will be notified of your score immediately after you complete the exam.
Step 3: Get Your On-The-Job Training
On-the-job training is essential to honing sales skills and learning to develop a relationship with clients based on trust and proven results. Expect your new hire training to cover your firm’s investment philosophy, sales protocols and investment strategies.
Your new hire training will also provide you a better understanding of how to assess client needs and provide them with suitable investments that will include some combination of the following:
- Corporate, municipal and treasury bonds
- Options on stocks
- Open-end and closed-end investment company shares
- Variable contracts
- Government securities
- Corporate equity and debt securities
- Mutual funds
- Direct participation programs like non-publicly traded real estate investment trusts or oil and gas leases
Step 4: Ongoing Requirements for License Renewal and Continuing Education
Annual state license renewals in Nevada are automatic and will take place each year prior to December 31. FINRA’s administrative fees will accompany this renewal, as will Nevada’s $125 renewal fee. Your employer will cover all fees associated with renewing your registration.
Continuing Education Requirements
There are additional education requirements for broker-dealer sales representatives, which are outlined in detail by the Securities Industry Continuing Education Program. Elements of this training are broken down in two sections:
- The Regulatory Element
A stipulation of the Regulatory Element training is that it must be completed within 120 days of your second registration date. Regulatory Element training sessions must be attended at least once every three years thereafter. Employees should check with their firm to confirm any scheduled training events.The Series 7 Exam training requirements are outlined in the S101 General Program. This training is broken down into the following components:
- New and Secondary Offering & Corporate Finance
- Client/Product Suitability
- Controlling Customer Accounts/Settlement and Trade practices
- Public communication
- The Firm Element
Internal evaluations are a sure way to understand the needs of each employee. Immediately following these evaluations a team of professionals within your firm will compile the data and determine the types of continuing education best suited for the firm as a whole and deliver it in accordance with FINRA’s recommendations to cover the following:
- Sales practices
- Regulatory requirements related to products, services, and strategies
- Suitability standards
- Associated risk factors
- Investment features
Updating your Form U-4
Updates that must be made to a Form U-4 within 30 days of the following:
- Address updates
- Financial judgments filed against you
- Criminal background disclosure
- Customer complaints
- Civil judgments filed against you
- Pending or completed disciplinary actions
FINRA’s BrokerCheck site will be used by clients to research a potential stockbroker, so be sure your information is current and accurate.