I agree 100%. If anything it keeps the boneheads out and makes sure before they can risk their or a firm's capital they at least have a basic understanding of the securities markets. My take is this, everyone who has never passed the Series 7 says it is a waste of time, trade retail, you learn nothing that helps you, and who needs it. All this with never having taken it. Most the people I know who have passed the test say it was a lot of studying, they are very glad they did it, they learned a lot about the markets in general that they are glad they know, and they love trading prop and couldn't imagine trading like they do now in a retail account. Which is also how I feel about it. Really a personal choice, but as I have said before if you are a true professional you owe it to yourself to be fully integrated into the business and get a 7. You can still choose not to use it and stay retail (which I doubt you will do after you see how much better true prop is).
a trader can go retail with either genesis.schonfeld,or assent. how would being licensed make a difference?
Very Good post. I look at it in a very similar manner, if you're not serious enough about trading to go through the motions of studying and passing a formal exam that may be the first step to your trading career (whether it has anything to actually do with trading), you're probably not gonna be serious in the critical areas needed to be successful; keeping detailed records, writing your methodology and sticking to it, being disciplined, ect.
The only con i've seen are people bitching about it being a waste of time. Give me a break, it's one month of studying, how many years did you go to school for?
If you have basic market knowledge, it's not that hard at all. You only need to memorize the municipal bond and regulatory stuff. So based on my above paragraph, if you have basic market knowledge it has zero usefulness in further preparing you as a trader. I studied for less than 2 weeks and took it. I had been trading retail for several years before I took the test. I thought it was a tremendous waste of time but it is a hoop you have to jump through to trade at some firms. Your score and preparation required say little about your future as a trader IMO. Regarding retail accounts you can have any and as many retail accounts as you wish. Your firm just needs to approve of it and get copies of your statements. Your retail broker knows how to handle this. It's a fairly common thing.
all 3 will be a pain in the ass for about 6 weeks. Ill take that time and get a job trading for a HF if it comes to that
Are you guys kidding me does anyone not know how this works. DO NOT GET YOR 7 IF YOU ARE GOING TO WORK AT A PROP SHOP!!!! It has absolutley no pro, all it does is allow management to put up less money to get your buying power. 4 to 1 for retail 10 to 1 for prop. AND WHEN U DO GET LICENSED YOU DO NOT GET TOTAL LIQUIDITY. YOU CANNOT SEE NASDAQ STOCK UNLESS YOU GET YOUR 55 so it absolutley does not help the trader at all
passed my 7 (was a broker for 5 years) on the first try ... i have used maybe 5% practical knowledge that i learned from the series 7 .....and that 5% i would have learned even if i didnt take the test, just in my day to day work at the firm. i would even go as far to say that anyone posting on this board would not learn anything in regards to trading strategies, etc., by studying and taking the series 7