Obtaining a securities license

Financial planners sometimes have a dilemma: should we add a securities license to the portfolio of our current services? The truth is, this service is quite requested by clients nowadays and can be very lucrative. By adopting this qualification, companies can be a one-stop-shop of financial services. However, it is important to prepare for the process of obtaining a securities license. First of all, it is necessary to have a sponsorship from a broker-dealer, then study and pass the exam. But even after achieving the license, you must continue the education to fulfill the license requirements. This why it is so important to evaluate and compare the benefits of obtaining the license against the struggles it brings.

Choosing the right platform

At first, the company should decide whether a securities license will be a part of their first or second business line. Regardless of the choice, they need to find a broker-dealer who would be prepared to sponsor their new incentive. The decision should be based on several factors like the level of payout on gross commission or the goods and services the potential sponsor offers. Generally, there are retail and independent broker-dealers.

Retail companies

In retail firms, brokers who are technically independent contractors work as employees. A manager oversees their activities. Also, they receive corporate support features like health insurance, an office, and others. In return, brokers in return firms face higher amounts of work and receive a lower commission. Retail firms are a good option if you are starting your financial industry path: they are able to provide you with all the necessary tools.

Independent firms

When it comes to independent brokers, they are traditionally able to combine multiple financial planning practices. This is the main reason why professionals with an established practice usually prefer to work with independent broker-dealers. Nevertheless, it is still important to take time and find a firm with a suitable offer of products and services to fit your clientele as well as possible.

The studying begins

Once the decision about the sponsor is made, you need to start studying right away to pass the securities and insurance exams. This stage can be unpleasant but is necessary. Typically, retail brokerage firms provide you with an in-house training program and pay you a salary. It is based on the previous income you received before studying began. As for independent firms, they are known to provide less support. But sometimes they have an agreement with a training provider which gives you a discount for study materials.

Obtaining a securities license can be an overwhelming and effort-consuming task. If you are truly dedicated to this goal let our experts help you. Specialists from COREDO specialize in assisting in obtaining different kinds of financial licenses including a securities license.