Right now, a lot of people are interested in becoming broker dealers, and with good reason. It’s estimated that as many as 70% of all small businesses are in debt. Many of them could benefit from working with certified broker dealers. But before becoming certified and licensed, aspiring broker dealers must first take and pass a variety of FINRA licensing exams.
In order to take an exam, however, these aspiring broker dealers must first gain sponsorship for their chosen exams. Sponsorships will usually come from FINRA-certified firms, and they aren’t always easy to get. Quite often, people who wish to take FINRA exams must work entry level positions at these firms in order to achieve sponsorship. But there are a lot of benefits that come from earning FINRA sponsorship. Let’s explore some of them below.
1. Valuable Skills
There are skills that you can gain from earning FINRA sponsorship as a potential broker dealer, and they cannot be undervalued. These skills are major reasons why FINRA requires sponsorship in order for aspiring broker dealers to take their desired exams in the first place. Much can be learned through working in an entry-level position at a broker dealer firm, and this type of experience can be applied to your exam, making it doubly useful.
In many cases, firms will actually expect you to prove that you are worthy of sponsorship before they choose to sponsor you. Moving forward to prove that you are deserving of sponsorship can help you strengthen your skillset and your resume.
2. Ensures an Easier Licensing Process
The entire reason why you want to take your FINRA exams is that you need to be licensed in order to work as a broker dealer. But to become fully licensed, you need to do more than just take and pass your exams. You also need certain documents.
If you receive sponsorship from a good, reliable firm, they’ll be invested in ensuring that you become fully and properly licensed. This will involve helping you process these documents and receive your license as quickly as possible. They’ll not only pay for your exam but ensure that your license is fully processed as well.
3. Offers You a Great Starting Point
Think about what would happen if you took your FINRA licensing exam without needing FINRA exam sponsorship. You might pass your exam, but you won’t have the support of a great firm and your resume will probably be much emptier than it should be if you want a job at a brokerage firm. A good license is not enough for you to become a successful broker dealer. You’ll also need early career support.
This comes, chiefly, from working with a great sponsor. If you’re trying to convince clients to trust and work with you, having passed your broker dealer exam probably won’t be enough to convince them. Having the support of a stronger firm that they recognize and believe in can help you greatly. Furthermore, some firms actually offer people sponsorship packages that will give them financial compensation for taking and passing their exams. This could help you greatly in your early career.
4. No Commitments Required
Although may be worried about having to make a long term commitment when a firm sponsors you for a broker dealer exam, this is not necessarily the case. Now, every firm does have different policies. Some may require that you commit to working with their firm for a certain amount of time if they sponsor you. But not all of them do this, and there is not a law that requires you to stick with a firm if they sponsor you.
The point for many firms is to shape strong broker dealers that have great skills and high levels of competence. Once you show these qualities, most firms will allow you to move on with your license.
You need to have a sponsor before you take a broker dealer exam. But there is a reason why a broker dealer sponsorship is required in the first place. There are so many benefits to taking an exam with the help of a sponsor; why doubt the process?