How to become a financial advisor in Texas

Do you want a career that allows you to help people find personal success? Becoming a financial advisor in Texas can help you achieve that goal for residents across the state.

Learn about the duties of a financial advisor and what steps you need to take to become one in Texas.

What does a financial advisor in Texas do?

Financial advisors in Texas help individuals and families set and reach their short- and long-term financial goals. As a financial advisor, you may:

• Provide tax advice
• Recommend insurance and investment products
• Create estate plans
• Advise clients on retirement savings and accounts
• Create and keep track of personal budgets
• Design and implement debt elimination strategies
• Advise clients on appropriate risk management tactics

According to the Bureau of Labor Statistics (BLS), personal financial advisors in the United States earn a median salary of $99,580 as of May 2023.

Steps to become a financial advisor in Texas

Learning how to become a financial advisor in Texas can be challenging, especially when you consider all the requirements for licensure and registration. Here is a brief outline of the steps you'll need to take to begin your journey:

Step 1: Get a degree (optional)

While a college degree isn't necessarily required to become a financial advisor in Texas, it is certainly helpful for gaining the knowledge needed to analyze clients' financial situations and recommend viable solutions.

You may earn a bachelor's or master's degree in any field, including cybersecurity, psychology, or mathematics. Still, you may want to consider a program in line with your professional goals, such as business administration, finance, economics, or accounting.

Step 2: Obtain sponsorship

To take many of the qualification exams to become a Texas financial advisor, you will need to have sponsorship from a firm that is a member of the Financial Industry Regulatory Authority (FINRA), the organization that governs brokers and broker-dealers in the United States.

The firm that's sponsoring you can file the required Form U4 on your behalf and may offer classes and training to help you prepare for licensing exams.

Step 3: Pass licensing exams

The Texas State Securities Board requires financial advisors to either pass FINRA's Series 65 Uniform Investment Adviser Law Examination or pass both the Series 7 General Securities Representative Examination and the Series 66 Uniform Combined State Law Examination.

There are exemptions to this rule, including for individuals with the following certifications and designations:

• Chartered Financial Analyst
• Certified Financial Planner
• Personal Financial Specialist
• Chartered Investment Counsel
• Chartered Financial Consultants

The Securities Board also allows exemptions for other reasons, so it is best to contact them if you have questions about your unique situation.

Also, keep in mind that you may need to take continuing education courses on a regular basis to keep the license you obtain after passing these exams.

Step 4: Register with the state

All financial advisors need to register with the Texas State Securities Board. You'll need to pay a fee for this registration as well as submit accurate paperwork pertaining to your activities and fees as an advisor.

This registration may need to be renewed each year for an additional cost.

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