Difference Between CFA and Series 7

This comparative article will discuss the CFA exam, an important financial credential with a Series 7 license, a prerequisite laid by FINRA engaged in trading securities. That should help those combating these two qualifications to make an informed choice regarding their eligibility and preferences.

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What is CFA?

CFA (Chartered Financial Analyst) certification is considered the gold standardGold StandardThe gold standard was a monetary term used when gold exchange was used instead of paper currency.read more of investment management and financial analysis, designed to validate professionals’ expert knowledge and capabilities in these and related fields. This certification course offered by CFA Institute, USA, is undoubtedly one of the most reputed certification programs in finance that help professionals acquire advanced capabilities in highly specialized knowledge areas, including portfolio management, financial analysis, and financial advisory, among other subjects.

It has one of the lowest passing rates among financial credentials, making it difficult to acquire and one of the most sought-after in the financial industry.

What is a Series 7 License?

One must certainly understand at the very outset that Series 7Series 7The Series 7 license exam is the General Securities Representative Examination (GS). It tests a candidate’s knowledge to sell securities, municipal bonds, investment company securities, variable annuities, direct participation programs, options, and government securities. read more is a license, unlike CFA, which stands for a certification. The scope and contents of the Series 7 exam are much more limited than CFA. They are specifically aimed at helping those engaged in the sale and purchase of financial products and possess the eligible knowledge and skills for the job.

For attempting a Series 7 exam, an individual must be sponsored by a FINRA member firm and a prerequisite to appear for several other FINRA exams. Acquiring a Series 7 license is not as complicated as earning a CFA Charter, with the latter representing much-advanced knowledge and capabilities in the financial domain.

CFA Certification vs. Series 7 License Infographics

Let us see the top differences between CFA certification vs. Series 7 license, along with infographics.

Exam Requirements

CFA Exam Requirements

To qualify for CFA, a candidate should have a bachelor’s degree (or need to be in the final year of a bachelor’s degree) or must possess four years of professional work experience or four years of higher education and professional work experience taken together.

Series 7 Exam Requirements

It is a must for every individual to hold sponsorship of a firm with FINRA membership. That is the only prerequisite for this exam.

CFA vs. Series 7 Comparative Table

Why Pursue CFA?  

Earning CFA Charter validates that a professional can undertake complex roles in various sub-domains of finance, ranging from financial analysis and investment management to investment banking, research, and academics, among other areas.

  • Ethics & Professional Standards Economics Corporate Finance Portfolio Management Quantitative Methods Fixed Income Alternative Investments Equity Investments Derivatives Financial Reporting and Analysis

  • Seeking business existing & potential customers Account opening after obtaining & evaluating customers’ financial profile & investment objectives Providing investment-related information to customers, making recommendations, transferring assets & maintaining appropriate records Obtaining & verifying customers’ purchase & sales instructions & agreements Processing, completing, and confirming transactions

  • Strategic Analyst Wealth Manager Portfolio Manager Investment Analyst Financial Consultant

  • Financial Advisor Registered Client Service Associate Financial Planner Registered Client Associate

  • Level I: 41% Level II: 44% Level III: 56% [Source: CFA Institute]

 

  • Level I: Feb 15-21, May 17-23, Aug 23-29 & Nov Level II: Feb 22-26, Aug 30-Sep 03, Nov Level III: May 24-26 & Aug 30-Sep 06

Career enhancement is substantial as CFAs can explore several global opportunities in finance. In addition, this hard-earned credential can lend them greater credibility in the eyes of prospective employers. Non-finance professionals can also have several potential advantages as a professional if they continue to earn CFA Charter.

Why Acquire Series 7 License?

Series 7 license does not provide any unique advantage except serving as a General Securities Representative as a prerequisite kept as a requirement by FINRA (Financial Industry Regulatory Authority).

That qualifies them to engage in the sale, purchase, and or solicitation of securities products, including stocks, bonds, mutual fundsMutual FundsA mutual fund is a professionally managed investment product in which a pool of money from a group of investors is invested across assets such as equities, bonds, etcread more, and other forms of instruments. Accordingly, there is no additional career scope for those who acquire a Series 7 license except to work within these pre-specified roles.

Conclusion

There can be no comparison between the CFA and the Series 7 exam since they do not represent a certification program. CFA is an advanced multi-tier certification program considered one of the most stringent financial credentials to earn. Series 7 license qualifies an individual to trade general securities on behalf of any self-regulatory organization.

CFA is intended for professionals planning to advance their careers and showcase their knowledge and capabilities by acquiring a specialized credential in finance. In contrast, the Series 7 exam is only meant for individuals seeking licensure from FINRA to operate as general securities representatives, trading for securities in the market.

This article has been a guide to CFA vs. Series 7. Here, we have discussed the difference between CFA and Series 7, along with the infographics and comparative table. You may also have a look at the following articles: –

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