Introduction to the Series 63 Exam
The Uniform Securities Agent State Law Examination, commonly known as the Series 63, is a cornerstone requirement for professionals seeking to enter the securities industry in the United States. While the Series 7 or Series 6 exams focus on product knowledge and federal regulations, the Series 63 is designed to ensure that candidates understand the principles of state securities regulations. It is based on the Uniform Securities Act (USA) and is administered by FINRA on behalf of the North American Securities Administrators Association (NASAA).
For most aspiring financial advisors, broker-dealer agents, and investment professionals, passing this exam is not just a milestone—it is a legal necessity. Most states require the Series 63 in combination with a co-requisite exam to permit an individual to transact business with the public. Here at Fraser Exam, we recommend starting your preparation at least three to four weeks in advance to ensure you have mastered the nuances of state-level legal definitions and ethical standards.
In this guide, we will break down everything you need to know about the Series 63, from the technicalities of the testing center to the specific legal concepts that often trip up candidates. Whether you are a seasoned finance student or transitioning from another career, understanding the structure and expectations of this exam is the first step toward your professional registration.
Section 1: The Basics & Eligibility
What exactly is the Series 63 and who is it for?
The Series 63 exam is a state-level competency test. Its primary purpose is to qualify candidates as securities agents within a specific state. While federal law (governed by the SEC and FINRA) covers the broad strokes of the industry, each state has its own set of rules to protect local investors from fraud. The Series 63 ensures that agents are familiar with these “Blue Sky Laws.”
It is intended for individuals who want to work for broker-dealers and sell securities. If you intend to earn commissions on the sale of stocks, bonds, or mutual funds, you will likely need this license in addition to your general securities representative license.
What are the prerequisites or eligibility requirements?
Unlike some other FINRA-administered exams, the Series 63 does not have a prerequisite exam requirement to sit for the test. You do not need to have passed the Securities Industry Essentials (SIE) or the Series 7 before taking the Series 63. However, you cannot actually register as an agent with a state until you have passed both the Series 63 and a general knowledge exam (like the Series 6 or 7).
Furthermore, you do not need to be “sponsored” by a financial firm to take the Series 63. An individual can register for the exam independently by filing a Form U10 and paying the fee directly to FINRA.
Is there an age limit or retake limit?
There is no specific upper age limit, but candidates must generally be of legal age to enter into contracts in their jurisdiction (usually 18). Regarding retakes, NASAA follows a strict “waiting period” rule. If you fail the exam, you must wait 30 days before your second attempt. If you fail a second time, another 30-day wait is required. If you fail a third time, you must wait 180 days before you can try again.
How much does the exam cost?
The current cost to take the Series 63 exam is $155. This fee is paid at the time of registration. Note that this fee only covers the cost of the exam itself; it does not include study materials or the subsequent registration fees that your state may charge once you are licensed.
Is the certification valid internationally?
The Series 63 is specifically designed for the United States regulatory environment. It covers the Uniform Securities Act, which is a model law for U.S. states. Therefore, it is not recognized as a valid qualification for selling securities in the UK, EU, Asia, or other international markets. It is strictly a domestic requirement for the U.S. financial services industry.
| Exam Detail | Information |
|---|---|
| Official Name | Uniform Securities Agent State Law Examination |
| Administering Body | NASAA (administered via FINRA) |
| Exam Fee | $155 |
| Prerequisites | None (No sponsorship required) |
| Passing Score | 43 out of 60 (approx. 72%) |
Section 2: Exam Format & Style
What is the format of the exam?
The Series 63 is a multiple-choice examination. It consists of 65 questions in total. However, only 60 questions count toward your final score. The remaining 5 questions are “pretest” questions that are being evaluated for future use. These 5 questions are scattered randomly throughout the exam, and you will not know which ones they are. It is vital to treat every question as if it counts.
How long is the exam duration?
Candidates are given 75 minutes (1 hour and 15 minutes) to complete the exam. This averages out to slightly over one minute per question. While this may seem tight, most candidates find that because the questions are law-based rather than calculation-heavy, they have sufficient time to finish and review their answers.
Is it open-book or closed-book?
The Series 63 is a strictly closed-book exam. You are not permitted to bring any notes, books, or reference materials into the testing room. Testing centers are highly secure and monitored by proctors and cameras to ensure the integrity of the process.
Is it computer-based or paper-based?
The exam is entirely computer-based. It is administered at Prometric testing centers across the country. The interface is user-friendly, allowing you to “flag” questions you are unsure about so you can return to them later before submitting your final answers.
How is the exam scored? Is there negative marking?
The exam is scored based on the number of correct answers. There is no negative marking for incorrect answers. Therefore, you should never leave a question blank. If you are unsure, eliminate the obviously wrong choices and make an educated guess. You need to answer 43 out of 60 scored questions correctly to pass.
Section 3: Difficulty & Passing Rates
How difficult is the exam?
The Series 63 is often perceived as “easier” than the Series 7 because it is shorter and lacks complex mathematical formulas. However, this reputation can be a trap. The difficulty of the Series 63 lies in its language. The exam uses legalistic phrasing and “tricky” wording that requires a precise understanding of definitions. For example, knowing the exact difference between a “Broker-Dealer” and an “Agent,” or an “Investment Adviser” and an “Investment Adviser Representative,” is crucial.
What is the historical passing rate?
While NASAA does not officially publish annual passing rates, industry estimates suggest the pass rate is between 70% and 80%. Many candidates who fail do so because they underestimated the exam and didn’t spend enough time learning the specific nuances of the Uniform Securities Act.
Which sections do candidates struggle with the most?
The section on “Unethical Business Practices” is frequently cited as the most challenging. This is because the questions often present “gray area” scenarios where you must determine if an action is merely discouraged or strictly illegal. Candidates also struggle with the administrative powers of the “State Administrator”—specifically, what they can and cannot do regarding subpoenas and investigations.
| Topic Area | Weight (%) | Number of Questions |
|---|---|---|
| Regulation of Investment Advisers | 5% | 3 |
| Regulation of Investment Adviser Representatives | 5% | 3 |
| Regulation of Broker-Dealers | 15% | 9 |
| Regulation of Agents | 15% | 9 |
| Regulation of Securities and Issuers | 10% | 6 |
| Remedies and Administrative Provisions | 10% | 6 |
| Communication with Customers and Prospects | 20% | 12 |
| Ethical Practices and Obligations | 20% | 12 |
Section 4: Preparation Strategy
How many hours of study are recommended?
Most experts suggest dedicating 20 to 30 hours of focused study for the Series 63. If you have already passed the Series 7, you might find that you can lean on some of your existing knowledge regarding ethics, but you still need to learn the specific state law definitions which differ from federal law. Many candidates who’ve used Fraser Exam resources report feeling more confident on exam day by spreading these hours over a 3-week period.
Can you self-study or do you need a prep course?
Self-study is entirely possible for the Series 63, provided you have high-quality materials. However, because the exam relies so heavily on legal terminology, many find that a structured prep course helps translate the “legalese” into plain English. A good prep course will provide practice exams that mimic the actual testing environment, which is the most effective way to prepare.
What are the best study resources?
- Practice Question Banks: This is the most critical resource. Answering hundreds of practice questions helps you recognize the patterns in how NASAA asks questions.
- The Uniform Securities Act Text: While dry, skimming the actual model law can help clarify the “whys” behind the regulations.
- Flashcards: Excellent for memorizing the specific “days” (e.g., how many days to appeal an order, how many days for a registration to become effective).
How far in advance should you schedule?
You should aim to schedule your exam at a Prometric center at least 2 to 3 weeks in advance. Testing centers can fill up quickly, especially in major metropolitan areas. You can find more information on how to register on the official FINRA website.
| Timeline | Focus Area |
|---|---|
| Week 1 | Read the study guide. Focus on definitions of BDs, Agents, IAs, and IARs. |
| Week 2 | Deep dive into Registration of Securities and Exemptions. Start taking quiz blocks. |
| Week 3 | Ethics, Fraud, and Administrative Powers. Take full-length practice exams. |
| Final 48 Hours | Review the “numbers” (days, fees, penalties) and take one last mock exam. |
Section 5: Career & ROI
What job roles can you apply for after passing?
The Series 63 is a “door-opener.” By itself, it doesn’t allow you to do much, but combined with the Series 7, it allows you to work as a:
- Registered Representative
- Investment Advisor Agent
- Financial Consultant
- Wealth Management Associate
- Stockbroker
What is the average salary increase?
It is difficult to attribute a specific salary increase solely to the Series 63, as it is usually a mandatory requirement for the job. However, holding the necessary licenses (SIE, Series 7, and Series 63) is the difference between being an unlicensed assistant (earning $40,000–$50,000) and a licensed producer (where earning potential can exceed $100,000+ through commissions and bonuses).
Does the certification expire?
The Series 63 license remains valid as long as you are registered with a firm. If you leave the industry or your registration is terminated, your Series 63 will expire after two years of inactivity. To keep it active, you must remain employed by a broker-dealer or investment adviser and complete any required Continuing Education (CE) modules.
Is it recognized by top employers?
Yes, every major financial institution in the U.S., from Goldman Sachs to Charles Schwab, recognizes and requires the Series 63 for their customer-facing agents. It is a standard industry benchmark.
Section 6: Exam Day Logistics
What identification do you need?
You must bring one valid, government-issued ID that includes both a photo and a signature. A driver’s license or passport is the most common choice. Ensure the name on your ID matches the name you used for registration exactly.
Are calculators or scratch paper allowed?
Calculators are generally not necessary for the Series 63 because there is very little math. However, the testing center will provide you with a basic calculator or a whiteboard/scratch paper if requested. You are not allowed to bring your own.
When will you receive results?
One of the best things about the Series 63 is the immediate feedback. As soon as you hit the “Submit” button at the end of the exam, your screen will display your score and whether you passed or failed. You will also receive a printed performance report before you leave the center.
What happens if you fail?
If you do not pass, don’t panic. Many successful professionals fail on their first attempt. You will receive a breakdown of your performance in each section, which allows you to target your weak areas for the next 30 days. You can visit the NASAA exam page to review the official content outline again to ensure you didn’t miss any key topics.
Comprehensive FAQ Section
Is online/remote proctoring available for this exam?
Currently, most Series exams are taken in person at Prometric centers. While remote proctoring was expanded during the pandemic, availability depends on current FINRA and NASAA policies. It is best to check the Prometric website when booking your slot.
What is the cost of the exam, and are there hidden fees?
The exam fee is $155. Hidden fees are rare, but you may encounter “rescheduling fees” if you change your exam date within 10 business days of your appointment.
How do I schedule my exam date?
Once you have paid your fee through FINRA (via Form U4 or U10), you will receive an 120-day enrollment window. You then go to the Prometric website to select a specific date, time, and location.
What is the cancellation or rescheduling policy?
If you reschedule or cancel at least 10 business days in advance, there is usually no fee. Within 3 to 10 days, a fee applies. If you cancel within 2 business days, you will likely forfeit the entire exam fee.
Is there an expiration date on my enrollment?
Yes, once you pay for the exam, you have 120 days to take it. If you do not sit for the exam within this window, your enrollment expires, and you lose your fee.
Am I allowed to bring a calculator?
No, you cannot bring your own calculator. If the exam requires one, the testing center will provide it.
Are bathroom breaks allowed during the exam?
Yes, but the “clock” does not stop. Any time you spend away from the computer will count against your 75-minute limit. You will also have to go through security screening again when you return.
What items are strictly prohibited in the testing room?
Phones, watches (including analog), hats, bags, and any form of notes are strictly prohibited. Most centers provide small lockers for your personal belongings.
How early should I arrive at the testing center?
You should arrive at least 30 minutes before your scheduled time. This allows for the check-in process, which includes ID verification, digital fingerprinting, and a photo.
What is the passing score?
The passing score is 43 correct answers out of the 60 scored questions, which is approximately 72%.
Does the exam change every year?
The exam content is updated periodically to reflect changes in laws or regulations. However, the core principles of the Uniform Securities Act remain relatively stable.
Are the questions multiple choice or essay based?
The exam is 100% multiple-choice.
Do I get my results immediately?
Yes, your “Pass” or “Fail” status will appear on the screen immediately after you finish the exam.
If I fail, how soon can I retake the exam?
There is a 30-day waiting period after the first and second failures. After a third failure, the wait is 180 days.
Are accommodations available for candidates with disabilities?
Yes, FINRA and NASAA provide accommodations under the ADA. You must submit a request and documentation before scheduling your exam.
Conclusion
The Series 63 exam is a vital step in becoming a fully registered securities professional. While it may not have the mathematical complexity of the Series 7, its focus on legal precision and ethical conduct makes it a unique challenge that requires dedicated study. By understanding the Uniform Securities Act and the specific powers of the State Administrator, you can navigate the “tricky” wording of the exam with confidence.
Our team at Fraser Exam has compiled the most effective strategies to help you pass on your first try. Remember to focus heavily on the “Ethics” and “Communication” sections, as these carry the most weight and often contain the most nuanced questions. Stay disciplined in your study routine, take plenty of practice exams, and you will be well on your way to adding this important credential to your professional profile. Good luck!