Have series7 and 55 need help

Discussion in 'Prop Firms' started by brook89, Mar 5, 2003.

  1. brook89


    I need ideas and opinions from fellow traders.

    I have series7 and 55 licenses. About year and a half ago i was sponsored by one of the props in nyc .

    However i never had a chance to work with them as a family emergency forced mo to tend the family business full time.

    Naturally they gave me my u-4 and released me. my licenses are due to expire in a few months.( 2 year nasd limit).

    Unfortunately at this time i cannot trade full time. Are there any different avenues i can explore not to lose my licenses?

    Any response is greatly appreciated.
  2. so you need to park your licenses?, or you want to trade in this environment?

    if you want to trade in this environment, do you have sufficient capital to post and get started with?

    just some consideration / clarification questions, which might help you in sorting our your priorities...
  3. brook89


    Limit thanks for responding. As iam not ready to start trding full time i was wondering if i can "park" my licenses?
  4. rs7


    I believe if you have no contacts (friends, family, whatever) who will accomodate you by letting you "park" your licenses, what may be an easy route would be to take a position with an insurance company.

    The big insurance brokerages (like Met Life, etc.) are virtually always hiring.

    I am not 100% positive, but I am fairly sure that if you sign on with one of these companies, and get your u-4 set with them, you will in essence re-start your 2 year clock. Get the job, resign, get your u-5, and you should be good for another 2 years.

    Just be careful not to take a position in which a contract may come back and bite you if you leave and violate your contract. (if you have one).

    While I would not think that is a likely possibility, it is something to be aware of.

    Just use common sense and be aware of what you are signing up for. Don't lie....other than by omission, if your plan is just to keep your u-4 alive and not actually work as an insurance salesman.

    Worst case scenario is if you just let your license lapse. Taking the series 7 a second time is nothing compared to the first time. You will be surprised at how much knowledge you retain. My license lapsed, and I had to take the 7 more than 10 years after the first time. All I found myself needing to do was go over every practice test. Passed easily.

    Series 55, I would not want to do again if I could avoid it. But still, it isn't a month's worth of studying like the 7 is on the first go 'round. Bottom line, keep your license active if you can. No one wants to be an insurance agent, so I think those jobs are easily obtained. Of course not many people want to be stockbrokers these days either, but I am pretty sure that most firms ask for some kind of commitment. So just be careful. Violating a contract can be a bigger pain than having to re-take the tests.

    Good luck,
  5. Mazda RS7 (no offense to the name, just found the referenece to the cars)

    Uh, those big firms will tag your U5 upon termination, resignation, forfiture or otherwise with some nasty comments that you'll find just about impossible to get off.

    Resetting the clock vs. taking the licenses over again might be another worthy question to consider.

    When I got started many centuries ago, I was told that there really are no new faces in the business but familiar names. In other words, this is the bed that you get up from, make up each day and deal with, so one's name is paramount, and ones' record is primary. Tread carefully on that issue, run the risk of expiry and reacquisition.

    We often counsel against taking a position in a trade for the wrong reasons. Then don't let the tail of the dog wag the decision process by dictating that "fear of expiry of acquired licenses" should dictate what one should do now.

    Simply put, just get them again, when you're ready.
  6. I think its nuts to take a position in a company you dont intend to perform in, just to keep a licese alive. The harm you do to your reputation is far greater than the hassle of retaking the test.

    I am preparing to take the 7 next week, so I dont say this lightly (Roman numeral questions -ugh!)
  7. see, I knew someone else thought the same.....

    he said it better than I did...
  8. trader9


    I have a question concerning my Series 7 and 55. WorldCo dumped after I was there for 5 weeks (WTF!). Anyways what do I have to do in order to keep my licenses valid. Will they still be valid if I join another firm in the next 18 months or do I have to ask WorldCo to do something special with them?

    Any help would be greatly appreciated. Thanks.
  9. Here is a avenue which might work: find a firm that you pay a desk fee (a fee to cover software, misc. fees) per month and simply place small infrequent trades from your house (be a remote trader) when you feel fit. Many firms will even be accomadting to your cause... remote fees will be around $200-350/month. It will be expensive but you decide if it is worth it...

    OF course you would do this right b/4 your fees expire, to avoid unecessary months being paid..
    Many of laid off traders I know of are doing this while they job hunt.. If you cant afford a remote (home) setup, show up there a few times a week.. Again, many firms will be sympathetic to your cause, as long as you are paying the monthly fee and trading once awhiel...
  10. I am assuming that your U5 has been completed upon your departure??? The good news is that Worldco is an NASD firm. So with that, the transition from a paper work logistical perspective to your next trading job is very painless. You have 2 years to jump on with another NASD prop firm or brokerage firm or whoever.....THere are some great great remote NASD prop firms....check out the feedback section on this website for brokers.....they are all listed there......
    #10     Mar 5, 2003