Series 7 vs 79

For many financial professionals, choosing the right career path in securities trading and investment banking is often a complex decision — particularly when it comes to distinguishing between the Series 7 vs 79 licenses.

In this article, we break down the key differences between these two popular licenses in a straightforward way in order to guide you toward the choice that best aligns with your career aspirations.

What’s the Difference?

Let’s take a look at what each license entails.

What is the Series 7

The Series 7 license is ideal for those who wish to specialize in trading securities, such as stocks, bonds, options, and other financial instruments. It’s crucial for individuals keen on forging a career in this industry as it enables them to engage in a wide range of securities transactions.

In particular, this license is generally pursued by aspiring stockbrokers and financial advisors — who want a broad range of capabilities in buying and selling securities, rather than a focus on long-term financial planning or investment banking.

Unlike more specialized qualifications, the Series 7 license provides a comprehensive overview of the securities industry, covering topics like margin requirements, retirement plans, and allocation and stabilization activities.

Since the roles this license often leads to typically revolve around buying and selling securities, the Series 7 license is encouraged for professionals aspiring to execute trades and generate commissions rather than offer comprehensive financial planning.

What is the Series 79

The Series 79 license is a specialized pathway for individuals looking to pursue a career as an investment banker — particularly in activities like mergers and acquisitions, asset sales, and equity offerings.

As such, this license is best suited for individuals aspiring to roles like investment banking representatives, financial advisors in mergers and acquisitions, and other positions focusing on complex financial transactions.

The Series 79 license offers a narrower focus on a range of financial transactions, ranging from capital restructuring to the buying and selling of companies. This specialization allows license holders to delve deep into complex transactions and financial restructuring.

This license normally opens doors to roles requiring a more analytical and transactional approach, often involving intricate, high-stakes transactions. If this sounds interesting to you, the Series 79 license may be the right choice for you.

Certification Requirements

Below we’ve broken down the certification requirements of each license; this way, you’ll know what you’re getting into regardless of which designation you go with.

Series 7

In order to obtain the Series 7 license, you will need to satisfy the following prerequisites:

• Pass the Securities Industry Essentials (SIE) exam
• Become sponsored by a Financial Industry Regulatory Authority (FINRA) member firm or self-regulatory organization (SRO)
• Take and pass the Series 7 exam, which consists of 125 multiple-choice questions. You will need to pay a $300 fee when registering

Note: The Series 7 license is an ideal qualification if you’re looking to offer a wide range of services as it provides a broad foundation for multiple roles in the financial services industry.

Series 79

In order to obtain the Series 79 license, you will need to satisfy the following requirements:

• Take and pass the SIE exam
• Become sponsored by a Financial Industry Regulatory Authority (FINRA) member firm or self-regulatory organization (SRO)
• Take and pass the Series 79 exam, which consists of 75 multiple choice questions. A $300 fee will need to be paid

As you can see, the certification requirements for each license are quite similar, with the only notable difference being each exam’s structure and content.

Which Qualification is Better For You?

Figuring out which license is the right fit for you ultimately comes down to the specific career path you wish to follow. Below, you can find a summary of the standout qualities and main differences of each license to help with this decision:

• Series 7: If you aim to provide a broad range of financial services, including selling securities like stocks, bonds, and mutual funds, the Series 7 is a solid choice. This license is particularly relevant if you’re seeking a broad-based role in the securities industry where you’ll be dealing with various types of securities
• Series 79: On the other hand, if your interest lies specifically in the niche of investment banking, particularly in handling M&As and other similar transactions, the Series 79 would be the apt qualification

Like many financial professionals, you may start with one license and later acquire additional certifications to broaden your expertise. Weigh your options carefully and choose the license that aligns with both your immediate and long-term career objectives.