Forget the Series 3 (and the Series 7 Too) | MartinKronicle - Michael Martin
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Forget the Series 3 (and the Series 7 Too)

There is nothing on neither the Series 3 nor the Series 7 that will make you a better trader. These exams are for those of you who want to become marketers for member firms. Do yourself a favor and drop any plans you have for taking these exams.

Any time an employee of a member firm speaks to someone in the investing public about an investment, they need to be registered. “Speaking to someone in the investing public about an investment” is marketing, not trading. You don’t need the Series 3 to trade.

It is not going to make you more employable. It WILL confuse the hell out of the folks looking at your resume. Here’s what they’ll be saying:

“Why the hell does he have the Series 3 if he wants to trade?”
“Why did he set up his CTA if he wants to trade for us? We don’t hire CTAs.”

Set up your CTA if you want to be self-employed and you have a substantial marketing team. Everyone wants to shoot the gun, but no one wants to get the bullets.

Do not get a Series 7 so you can work at an equities prop trading firm. In other words, don’t work or seek employment from a firm that mandates you need to take the Series 7.

The licenses for the General Securities Representative (Series 7) and the NFA Associate Person (Series 3) will not help you manage risk or trade better. Pass on them.

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  • Manuelbravochico

    If you managing capital , even proprietary capital, and you have a Series 3, you’ll probably be subject to onsite audit. It’s jurisdictional in nature, and the Nfa at some point wants to meet everyone at some point regardless of what you state you are managing. So make sure you have a setting where 3 guys can camp out with laptops for roughly 5 hours.

  • Michaeltatman

    Excellent post Miguel!!

  • Anonymous

    thank you.