I agree that the sponsorship requirement to sit for the test is backwards, but if you are talking about barriers to entry for creating a new broker/dealer, the

I agree that the sponsorship requirement to sit for the test is backwards, but if you are talking about barriers to entry for creating a new broker/dealer, the series 7 is a small inconvenience compared to everything else†. You have all the FinCEN stuff plus capital requirements as well as various recordkeeping, auditing and reporting requirements. It's a huge pain in the ass. †http://www.sec.gov/divisions/marketreg/bdguide.htm http://www.sec.gov/divisions/marketreg/bdguide.htm