Hi, I am going to be entering my first year of college and I am wondering if, over the summer, it is a good idea to prepare for the series 7/63 and get a license. How difficult is the test and how long should it take to prepare? Any other information that you think will be helpful please let me know. I am majoring in finance and want to go into trading whether it is a at a prop firm or hedge fund. Thanks. - Ian
On average it takes about 100-120 hours of study for the series 7. I studied 120 hours and took 15 different practice tests over and over until i was getting 90% or better on all of them. When I finally took the actual test, I scored 78%, but the average is 72% (so alot of people just squeek by). The first time fail rate on the series 7 is around 40% last time I checked, but if you study for 100+ hours total, you should be ok. Anyone who studies less is likely to be the 40%ers.
Okay, I really have this nagging question after watching the "Wall Street Warriors, Season 2" in its entirety over this weekend. One of the casts, Laetitia, who graduated with a degree in finance from NYU applies for a job (it's more like an apprenticeship with no pay for 6 months) at a local prop firm in NYC. Now, as I was watching this, I'm thinking why the hell would she be looking for a job in a prop firm after graduating from such a prestigious school, especially one that pays nothing for 6 months with absolutely no guarantee that she will succeed as a trader afterwards? I mean, geezus, did you went through four expensive years of college just to become a trader? That made no sense. Since when were you required to have a college diploma to become a trader?!! If I were her, I would be looking for a job in investment banking for crying out loud.
1) Another college education wasted before it ever started. 2) Would you be willing to take all of your tuition money and start trading now?
If you don't have to have it, I wouldn't do it. Remember it has an expiration date. BUT, Being that you are young, and probably lack knowledge (no offense), it may be worth while to take a 'good' series 7 prep course. Although much of the 7's info will not make you a better trader; an good understanding of the information will make you a better finance person. BTW: I took a series 7 prep course when I was a young man and I believe that it was worth my time (I took classes at NY institute of finance). If you have to take the test, it is all about how you prepare for it; When I had to take it, I thought it was going to be really difficult, so I prepared like it was the GMAT (I got 97%, it is not that difficult).
Listen, If you want to get a job at a hedge fund, forget finance and major in Math and Computer Science. If you want to trade at a "prop firm", you do not even need a degree, just money to put down.
This is one of the worst things I've read on this site. I'm glad the OP responded "Never"! Smart kid. To the OP: If you feel uncomfortable with saying which school you go to, could you list a band where it fits in, or at least just say whether it's a target school or not: Example for me it was: School along lines of Cornell, Duke, Georgetown, Dartmouth
You don't need to be a math or CS major to get a job at a HF or Prop firm, it is certainly a path, but not the only one. I would recommend studying some Math and CS, but a major is not a requirement unless it is HFT or purely algorithmic. The second assertion is misleading. If you want a job at a legitimate prop firm (Jane Street, Optiver, SIG, Spot, Wolverine, etc), aka not chop shop, you're going to need a college education. It's not always so, but in general you can tell whether the firm is legitimate by the features at the junior level: 1. It does not require you to commit capital 2. It pays a salary Furthermore, a lot of the more legitimate shops have become market makers also. Now, back to the original question about the Series 7. To be honest, taking the test/prepping for it will generally be a waste of time. You're not really going to learn anything, and any perceived advantage by putting it on your resume will be minimal. Every firm you go to will give you time to prep if you require it. Moreover, you don't need a Series 7 for internships etc. This brings me to the second point, of which you may or not be aware, that you need to be sponsored by a firm to even sit for the Series examinations. IE, unless you are working at a firm or know one which will sponsor you, you can't even take it. I say don't worry about it.