In this YouTube video, Capital Advantage Tutoring runs through the Series 63 exam and tips on increasing the chances of passing successfully. The Series 63 exam is just one of many broker dealer exams a broker-dealer firm must pass to operate legally.
This test is a timed test, so spending extra time preparing for it is recommended. The practice exams, however, should take you less than 90 minutes.
A broker-dealer is always a firm and never an individual.
A broker-dealer firm executes securities transactions for their accounts or for others. Thus, a broker-dealer firm is not a bank, an investment advisor, an issuer, an advisor representative, or an agent.
A broker-dealer firm registers at the FCC, FINRA, and state levels. All three must have proper registrations on file. A broker-dealer registration application can be denied for not paying fees, lying on an application, or an applicant having a criminal record. Valid registrations expire on December 31 of each year.
The broker-dealer must register in a state if the firm will be doing business there. Doing business means having a physical office presence or having a single retail client in that state.
Broker-dealer firms cannot get paid unless they perform a transaction for the retail client. Firms get paid through trades and through some transactions, which are classified as soft dollars. Example transactions include research, software, or passes to an investment educational class.
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