Series 7.... useful?

J

JMowery1987

I'm 19....... I was thinking EchoTrade.... To make a long story short:

I get an e-mail basically telling me after all is said and done, it's going to be near $1,000 to take, study for, and pay exchange dues and stuff for the Series 7. That isn't such a big deal for me, my trading could pay that off, but... is it worth it?

To anyone that has any knowledge on the subject, beyond myself possibly going to work with EchoTrade, is there any big benefit to having it?

I'm speaking in more of long term. I know it might let me get into other prop firms easier that require a series 7 *I think at least*, but .... what's the deal?

Just want more information.

So, what are the real benefits of a Series 7 if you have one? Is it worth the effort to get one? Would it help my trading career when looking at the long term impact of having a series 7?

Appreciate all info.
 
Quote from JMowery1987:

I'm 19....... I was thinking EchoTrade.... To make a long story short:

I get an e-mail basically telling me after all is said and done, it's going to be near $1,000 to take, study for, and pay exchange dues and stuff for the Series 7. That isn't such a big deal for me, my trading could pay that off, but... is it worth it?

To anyone that has any knowledge on the subject, beyond myself possibly going to work with EchoTrade, is there any big benefit to having it?

I'm speaking in more of long term. I know it might let me get into other prop firms easier that require a series 7 *I think at least*, but .... what's the deal?

Just want more information.

So, what are the real benefits of a Series 7 if you have one? Is it worth the effort to get one? Would it help my trading career when looking at the long term impact of having a series 7?

Appreciate all info.
More...

A Series 7 is required to trade at most prop equity firms. That's all there is to it.

Does it have any relevance to trading? Only in the most general sense.

It's a hoop you're required to jump through to trade prop. Nothing more.
 
Quote from JMowery1987:

But, compared to those firms that do not require you to have a license.... what is the difference?

Now, at Echo, I believe I'd get health insurance *which would be very nice* and I believe I'd actually be employed there....

So i guess that would lead me to the next question, what is the big difference between firms that you don't require a license, and firms that you do?

Also, what happens if I one day leave EchoTrade, will my license not be valid anymore? I know it says a firm must sponsor you to have your Series 7, when does the license expire?

ALSO, say I decided to work at Echo and get my license, would it be a big help if I decided to move to NY and wanted to trade at a bigger prop firm. I know a lot of firms these days require you to have college education... would having a license help me get into the doors of those firms or anything?

I'm not worried about right now, because I can go to these firms that don't require licenses and trade their and all is fine.

But, what are the advantages of having a series 7 and working at a firm that requires a series 7, vs. those that don't require a series 7?

Now, one factor I could consider, is that the firms that require a series 7 are probably a safer choice considering their traders are probably more experienced, vs. firms that will give someone brand new 30 to 1 leverage with a 1k deposit *like my experience*

In other words, for someone that is doing okay right now with trading.... in your opinion, for a 19 year old, do you see it as a big advantage for me to have a Series 7?

That is basically what I'm asking, do more experienced traders believe that having a series 7 is an advantage... or looks good to bigger prop firms and is it worth it?

I wish there was more information about this available, wonder if Don Bright would chime in. I'm just noticing so many more firms these days that don't require you to have a license.

Me working at EchoTrade vs Benchmarq.... What's the difference, one requires a license, one doesn't.


I just would like some "real world" application & insight.

I'm just trying to understand the benefits, what will it allow me to do compared to what I do already at a prop firm where I put 5k down and got enough buying power already?

I'm 19, not going to graduate at a college that will get me into big firms anyways. I might move to NY in the future, should I get my Series 7 or not?

Looking for personal opinions to help me in the future/longer term for trading.

I'm just looking for a way to justify it, I can go to a firm now and get buying power and trade, but series 7, what does that open the doors to in real life, what other firms would it help? Is it worth it?
More...

You're way overthinking this. If the firm you want to trade at requires a Series 7 take it. Otherwise don't bother (in fact, you can't take it unless a firm sponsors you). It has no relavance to trading or a career in trading beyond being a regulatory hoop to jump through.

Firms are trying to structure to avoid a requiring a Series 7 for obvious reasons. Whether those "Series 7 avoiding" entities will hold up to scrutiny, I cannot say. Whether one firm is better than another is beyond me too. You need to decide that on a case by case basis.

If you get everything you need from your current firm and you don't need a Series 7 I'm not sure what more you're looking for.

Echo's health insurance is not the same as a real corporate health insurance plan. It is not a reason to switch. If you're 19, you can easily get affordable high deductible health insurance on your own that's cheaper than what Echo offers.

And you will be a partner in the LLC at Echo, same as any other prop firm. Why would you "want" to be an employee anyway? For the extra taxes?

I hope you don't think prop trading or a Series 7 will enhance your marketability to a big firm. It will not. This has been discussed ad nauseum on these boards.
 
Quote from Shreddog:

You're way overthinking this. If the firm you want to trade at requires a Series 7 take it. Otherwise don't bother (in fact, you can't take it unless a firm sponsors you). It has no relavance to trading or a career in trading beyond being a regulatory hoop to jump through.

Firms are trying to structure to avoid a requiring a Series 7 for obvious reasons. Whether those "Series 7 avoiding" entities will hold up to scrutiny, I cannot say. Whether one firm is better than another is beyond me too. You need to decide that on a case by case basis.

If you get everything you need from your current firm and you don't need a Series 7 I'm not sure what more you're looking for.

Echo's health insurance is not the same as a real corporate health insurance plan. It is not a reason to switch. If you're 19, you can easily get affordable high deductible health insurance on your own that's cheaper than what Echo offers.

And you will be a partner in the LLC at Echo, same as any other prop firm. Why would you "want" to be an employee anyway? For the extra taxes?

I hope you don't think prop trading or a Series 7 will enhance your marketability to a big firm. It will not. This has been discussed ad nauseum on these boards.
More...

Figured that out and deleted the post.

Got it now

Thanks for the reply.

I didn't want to do the series 7 thing for Echo anyways, just wanted to put up money and trade, but they said it is required to have series 7. I just wanted to use the platform, which so very few firms have apparently.

I understand now though.
 
The firm should pay the expenses to sponsor you for the series 7, as well as provide study materials. Good ones do this automatically, otherwise you have to make it known that you expect this as a condition of your joining the firm. Don't let them b.s. you.
 
Quote from Hamlet:

The firm should pay the expenses to sponsor you for the series 7, as well as provide study materials. Good ones do this automatically, otherwise you have to make it known that you expect this as a condition of your joining the firm.
More...

I guess best thing is for me to trade my own account, I'm doing fine with it anyways, just was trying to see advantages vs. disadvatages. If I move to NY, I can still trade at firms offices that don't require licenses, guess it is all the same.

Thanks for the replies.



I'm one post away from 1,000 woohoo :-P
 
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