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[Reap]

I have been trading forex for several years now. I have graduated with a degree in business and economics. I am now signed up to take my series 3 exam next week. I was wondering what is going to be worth more to me in my forex career, a series 3 or a series 7 or both? People who have there licences please explain any advantages or doors that it has opened up for you. Thanks Reap

[tntrader]

I currently have a Series 7 and Series 63 license.

IMHO, they will not help you at all when it comes to trading Forex.

[Nonpiker]

The 7 has no value in fx. There might be one question on fx listed options (there are some on the series 4). That being said, I do not think it is the worst thing to have on your resume. It shows that you are somewhat familiar with a wide spectrum of financial products (although the test is really easy). In regards to the 3, it really depends what you want to do. Unlike the 7, anyone can go and take the 3 without sponsorship, so it is a lot easier to obtain. Again, probably not the worst thing to have on your resume; however, if you want to work for a large bank in an fx trading type environment then it also has no use. If you get into this type of position you will see that no one is licensed.

[joebarry]

As nonpiker said 7 is irrelevant in FX however if you want to market or trade FX accounts you'll need a 3.

[NJTrader]

Series 7 is good if you want to become a stockbroker. Very hard test with lots of hours of studying. You also need to have a sponsor to take it. Don't take it unless you really feel you need to.

NJTrader

[Truville]

Hard? I studied for my 7 about 12 hours. And that was back when certain exchanges still counted in eights. I doubt it’s much tougher nowadays. And I agree with everyone else here, it’s not much use in forex.

[bobnat]

What are these tests used for? Who needs them?

Nat

[Reap]

Only useful if you want to start your own company.
series 3 is general commodities futures. series 7 is a more general stock broker license exam.

[bobnat]

Originally Posted by Reap

Only useful if you want to start your own company.
series 3 is general commodities futures. series 7 is a more general stock broker license exam.

Are these qualifications that CTAs need? Are these required by US law in order to manage other's money?

Nat

[natebuse]

You can be a futures/forex broker with a series 3. If you do a search on monster.com or careerbuilder type in series 3 in the search box and see what jobs you can find. Some back office non sales jobs also want you to get the series 3. It is a pretty easy test compares to the series 7.

[usa25]

u need the three to work for a nfa/cftc registered company to speak with clients or trade accounts


u need it to operate a pool

if you work in the wholesale market its meaningless


the test itself is a complete joke and a total waste of time

[tntrader]

I didn't think the Series 7 was hard at all.

I am now studying for CFA level 1... Now that is HARD@!

[Ray G]

As for forex in general, the 7 isn't needed, and while having the gumption to get the 3 yourself will look good to potential employers, having the 7 tells them that you have already been through a certain amount of training by someone. I don't know if getting just a 3 on one's own even generates a U4 on them, but with a 7, an employer knows that the 10 year background is all done and all of that kind of stuff.

Having the 7 on one's resume, as far as licenses go, is the absolute best thing.

The 3 was absurdly easy though I do know one guy who failed just because he had heard of how easy it was and went in without studying a lick.

The Morgan Stanleys and Merrill Lynches won't be hiring you with that series 3 and the smaller, fx, comm, futures brokers have very small turnover rate.

I saw recently where one of the larger discount brokers had a wire specialist position open. One of the job requirements was to be willing to learn a lot about forex. And they didn't mention the 3 or the 31 as a requirement but they did require the 7.

It seems the 7 is a qualifier as they know that just about anyone can go get their 3.

[Reap]

In my study guide I have 1 question that is confusing me(Speculating in Futures Chapter). Anyone who says that this is easy, please try to explain this question or maybe it is a mistake in the guide?

On. January 1, your customer takes a long position in the U.S. T-Notes at 108-7/32($100,000 per contract). On January 15, she offsets the position at 108-235/32. Ignoring commission costs, what is the result of your customer's trade?

A. She made $484.38 per contract
B. She made $4,843.75 per contract
C. She lost $4,843.75 per contract
D. None of the above

I will post what the answer key says after a feww results come in. Thanks Reap

[paulchaney]

A.

answer is $515.63. not including commision.
16.5 ticks x $31.25 a tick.