Becoming A Commodities Broker? Series 3 License

Hi Tommy:

"Hi Belnor,,
I am study about series 3 exam now and I would like to get some of the experience from you. Can you tell me how you prepare for the test, I have read and study this book, but there are almost 400 pages"

Tom, I passed my Series 3 a few days ago and man is it ever a load off my back..I got hired by a firm on Wall street prior to passing the exam. I can help you with the best information to study for the exam. I passed my first time and got a 92% on first part and 88% on second. I used the regular study manual provided by my firm and ordered these as well: http://www.flashcardsecrets.com/series3/ (cost is 56.00)the cards are a great tool to be successful on the exam. The exam is difficult and can be very tricky, especially w/ the Market Regulations. I don't care what anyone says out there...you need to study your butt off and be prepared for this test. If you need more specific details..email me back and I will try to help you out the best I can!! Take care and Good Luck!!

Wow alot of great info here! What are the requirments to take the series 3 test? What are the education requirments? Do they really matter?

I currently trade with my own money but I am interested in managing accounts in the future. Currently in my first year of college so would it be a problem to attain the certification?

Greetings, Tommy:

Sorry I couldn't answer you right away; I am in the process of fielding offers from Wall Street.

I got my study materials from a potential employer on Wall Street. He gave me the STC book, which comes with five 120 question final exams, and two supplementary knowledge exams consisting of approximately 50 questions for market knowledge, adn about 25 regulations knowledge.

What I did is read carefully the book, but on the hedging, speculating, and commodity options chapters I took careful notes. This is important. I then proceeded with the first round of final examinations.

On a piece of paper, on the top, write out Exam 1, Round 1, _____%, and Time: xx:xx.

Then write out 1-120 in columns of 10. Make copies [I just kept writing them out each time unfortunately], and just replace with the cooresponding numbers, percent scored, round number, etc.

This way you have a record of your performance.

After each round of 120 question finals, mark the ones you got incorrect, and place asterisks on the question numbers you are unsure of, even if you did get them correct so you can go back and really read, and understand the explanations.

The next step is key, and extremely time consuming the first round of five exams, but I feel it is necessary if you REALLY want to KNOW the material, guranatee a passing score, and just truly understand the concepts, which will help you so much at work. That step is to write down every single explanation of each question you got wrong, including the ones you got right, but were marked with asterisks, cause you were unsure.

Do this for all five exams, and the two supplemental exams as well.

The first round of exams I got: Round 1: Exam 1:74.2%, Exam 2: 73.4%, Exam 3: 84.1%, Exam 4: 88.3%, Exam 5: 80%. Supp 1: 88, Supp 2: 85%.

The second round of exams I got: Round 2: Exam 1: 98.33%, Exam 2: 98.33%, Exam 3: 99.16%, Exam 4: 97.5%, Exam 5: 97.5%, Supp 1: 92.0%, Supp 2: 100%.

Do as many rounds as it takes to score in the HIGH 90s. Then you should be ready to take your exam. I also read every other day my notes, which were copied explanations, along with my notes from hedging chapters, commodity options, etc.

When you have a date, do some math calculations here and there from the exams in any order, and I re read the first two regulation chapters as well.

I took the exam and got in the 90s. If you do all this you will do well, and MOST IMPORTANTLY, KNOW what is going on for real concerning theory, margins, etc., etc. A lot of people don't put this much effort into it, but I am telling you that if you do you will have no doubt you will come out of there with a license in hand.

I hope that helps. Trust me, this system works. And yes, the other poster is right, you have to STUDY your ASS off, and YOU SHOULD. We in finance should be obligated to KNOW what is going on. It took me about three weeks of studying every single day, no breaks in days, anywhere from six to twelve hours each day.

Good luck and Happy New Year. I took my exam at PearsonVue Testing Centers. You should set up an account there or at Prometric. You must file a U-10 form with FINRA, and you do not need a sponsor to sit for the exam. But it is good that I had one to give me the study materials. STC is the only way to go. That is all you need. Securities Training Corporation does it right and they are up to date.

Belnor.

Hey there erli23.

Yes, it feels so good to not have to bust my butt anymore studying for that exam. Congratulations to us and to all who want to pursue the great career of futures trading/brokerage. I have a passion for futures markets, and actually enjoyed the material, but after a little while the plain old, getting up every single day to do the same exact thing got kind of old.

God, it felt like I was back at Columbia University studying for finals, yuck, lol.

See you on the street.

Belnor.

Hi,

I have the Series 3 exam study notes and the CD from my employer. But it dates till 2007. I want to know if I can depend on it for my exam.

Thanks

Hi, ask your employer to get you the STC Study Manual 2008: Version 1.0. That is what I used to take my exam and reflects any changes in laws.

Your manual is probably 90+% still usable, but we want to make sure the regulations section, which is important, is up to date. You can also check on STC's site for any updates and check if the Series 3 is on there. I did that, but I saw nothing updated for the 3.

You will probably be fine, but still ask for 2088 Version 1.0 or newer, if a newer version exists. I don't think there is a newer version than the one I had. I took my exam on New Year's Eve last year 2009, and I got one wrong on the regulations section of the exam, so it is current.

Belnor.

Hi Belnor,

Congrats on the exams. I am in Jamaica and would like to know how and where I can proceed to access the study material/cds and where I would take my exams. Looking forward to hearing from you soon.

Thanks!

Was wondering if anyone knew if a misdameanor (two to be honest) would keep me from be approved by the NFA. They are bother alchohol related. I'm interviewing this week and am a bit nervous.
Thank you.

I believe they are looking for futures/securities fraud, embezzlement, misconduct.... that sort of thing.

This section cut from NFA handbook (Googled: misdemeanor nfa approval)-

[appears to be only misdemeanors related to things like above]
I think you'll be fine....Felonies on the other hand, might be a problem.
___________________________________________________________
A person may be disqualified from membership:


(iv) If such person has been convicted of any felony or if such person has been convicted within 10 years preceding the filing of the application for membership or at any time thereafter of any misdemeanor that:

1. (1) involves any transactions or advice concerning any contract of sale of a commodity for future delivery, or any activity subject to Commission regulation under Section 4c or 19 of the Act, or concerning a security;
   (2) arises out of the conduct of the business of a futures commission merchant, introducing broker, floor broker, commodity trading advisor, commodity pool operator, leverage transaction merchant, associated person of any registrant under the Act, securities broker, securities dealer, municipal securities broker, municipal securities dealer, transfer agent, clearing agency, securities information processor, investment adviser, investment company, or an affiliated person or employee of any of the foregoing;
   (3) involves embezzlement, theft, extortion, fraud, fraudulent conversion, misappropriation of funds, securities of property, forgery, counterfeiting, false pretenses, bribery, or gambling; or
   (4) involves the violation of Section 152, 1341, 1342, or 1343, or Chapter 25, 47, 95, or 96 of Title 18, United States Code;
   

Hi All,

I want to start my FX Management Account and start trading for others - my clients will be from the US and Australia at this point. I am based in the US. I know there are alot of proposals at the moment..and I spoke with someone at the NFA today who confirmed this.

Does anyone know what minimum licensing brokers out there are requiring to open managed accounts now?

I am considering getting my Series 3 and Series 34 now.

Any advice will help.
Thanks,
Jo.

I only have experience with MB Trading and Oanda.
Disclaimer: MB Trading should be the final authority as I am only making inferences from what I read.

This is cut from a package of documents freely available on MB Trading's site. It involves Managed Account trading authorization forms and such. This is part of the third page in that package. It is about disclosure documents to the customer a third-party is trading for.


Please sign below acknowledging that you have received this statement:
I (third party controller) am not required to provide a disclosure document to my customer because I am exempt from registering as a Commodity Trading Advisor (CTA) as indicated below: (Check the exemption which applies)
____ A) I have provided advice to 15 or fewer persons during the past 12 months and do not hold myself generally to the public as a CTA.
____ B) I am a (1) dealer, processor, broker or seller in cash market transactions or (2) non-profit, voluntary membership, general farm organization, who provides advice on the sale or purchase commodities, and any trading advice is solely incidental to the conduct of my business.
____ C) I am registered in another capacity and my advice is solely incidental to my principal business or profession.
____ D) I am not exempt, the customer has received a disclosure document.
_ __ E) I am exempted because I manage only Forex Trading Accounts.

So, taking the first line and choosing E) you could infer this statement is true...

I am not required to provide a disclosure document to my customer because I am exempt from registering as a CTA because I only manage Forex Trading Accounts.


Though, the true safe bet, is to take the tests, and spend the $750 to become an NFA member...because the regulations are coming, in less than 1 month.

Magnum Freak,

Question:

I used to work as a Series 3 AP but my license expired. I am interested in trading for a handful of clients. If I took my Series 3 exam without a sponsor, would the NFA still give my Series 3 registration? And it would be okay to trade those handful of clients without having to have an actual sponsor?

Regards,

Wolfdance

Hi Wolf:

I am studying for my Series 7 and 55 now. But will still hold my Series 3 because I registered as both a CTA, and AP with the NFA. It costs about $800 a year, but I let my future employer B/D know about this beforehand.

I think you would like to set up your own shop if I am correct? My suggestion to you is to call the NFA, and somebody there will show you the various options for you and your needs.

I think you will register with the NFA as a Commodities Trading Advisor at the minimum. Not sure if you will need or want to register as a CPO, but that again, depends on exactly what you want to do.

Give the NFA a call. Both the NFA and FINRA have gladly helped me make decisions and were on the phone with me close to an hour each time. They are very helpful and take care of their own in the industry.

Hope that helps.

Belnor.

Hi Simoneg:

Sorry but I do not check these forums or the e-mail account attached to them very often.

Order your Series 3 Study materials and CD Finals Exams (don't get the printed version; it took me a long time with those) from Securities Training Corporation (STC). They are the best and I use them for all my Wall Street licensing exams.

Good luck.

Belnor.

Belnor please advise what sponsoring broker allowed you to do this and how that is going. I am looking to do EXACTLY the same thing. I do NOT want anyone but me and my future clients to profit from my Forex business, but I am happy to allow to work as a Equities trader for others. Lets just say that I am a firm believer in gold old MPT properly hedged with a healthy does of some well placed carry-trades as portfolio strategy.

Hi All,

I have been a silent observer in this forum for a few years now and have benefited enormously by the wealth of information available. I had decided to register in this forum so that i can contribute my knowledge and thereby benefit from discussions with fellow traders.

That said, I have a couple of questions regarding Series 34 exam.I am based out of India, and there is no necessity of me to take this up. I am interested in taking this exam in case i manage money on behalf of U.S clients and also to have some certification to prove my credibilty in an unregulated (at least in my country) market.

1. Is series 3 exam a pre-requisite to take up the series 34 exam?
As in should i have completed Series 3 before registering for the Series 34 exam?

2.Is there a validity period for the Series 34 exams?

I am looking forward to having this clarified.

Regards,
Scalper.

Hi, in the United States you need a Series 3 before you can sit for the Series 34. The series 34 is a recent addition. These exams are for APs or CTA, CPOs, or RRs who reside in the United States. In other countries they have different licenses that do pretty much the same thing. They take certain module exams to satisfy it.

You need to contact FINRA and ask them about this, not the CFTC.

belnor

For the sanctity of the license, people like this worry me. What in the hell is someone like this going to provide to clients? If you cant figure out where to take the test on your own, or read through a measly 400 pages, the likelihood of any competent advice flowing from your mouth is right around nil.

Can you no longer trade your own retail acct if you hold one of these licences? There is always a question like that when opening a retail broker acct. Thanks

Hi to everyone.
Kindly ask you to help me to chose books for exam preparation.
I found following websites:
1. http://www.theifm.org/index.cfm?inc=...prepsplash.inc
2. http://www.securitiesexam.com/products/series3.html
3. http://www.stcusa.com/Content/Decisi...tcdtstart.aspx

Which one to buy? Please recommend.

Thank you very much.