How to Become a Financial Advisor: Qualifications, Skills & Steps

The role of a financial advisor involves guiding clients through decisions related to investments, retirement planning, insurance, tax strategies, and other aspects of financial management. This profession requires a strong foundation in finance and economics, along with the ability to interpret complex regulations and offer tailored solutions. Becoming a financial advisor typically involves a combination of formal education, licensing, and experience with financial planning tools and interacting with clients.

The Bureau of Labor Statistics predicts that jobs for personal financial advisors are expected to grow 13% from 2023 to 2033, which is faster than the average for most other occupations.

If you want to know how to become financial advisor, here is the complete guide. Keep reading!

How to Become a Financial Advisor: Step-by-Step Path in 2025

The path to becoming a financial advisor is more accessible than ever, with a variety of certifications, flexible training programs, and mentorship opportunities available. Whether through traditional finance degrees or online certification tracks, there are multiple routes to get started. Still wondering how to become financial advisor? 

Here’s a step-by-step guide:

Step 1: Earn a Finance, Economics, or Related Bachelor's Degree

To work as a financial advisor, you usually have to complete a formal educational program. Start by enrolling in an official degree program, such as a bachelor's degree in business, economics, finance, or a related field. These programs provide a strong basis in financial concepts, investment methods, risk management, and client relations, all of which are critical for success in the complex field of financial advising.

Some even pursue a master's degree in finance or a related field to deepen their understanding of financial concepts.

Bachelor’s Degrees:

• Bachelor of Business Administration (BBA) in Finance
• B.Com (Bachelor of Commerce)
• B.Com in Accounting & Finance
• BA Hons in Finance & Entrepreneurship

Master’s Degrees:

• Master of Business Administration (MBA)
• Post Graduate Program in Management (PGPM)

Additionally, for those in career transition or looking for flexible schedules, online degree programs are also a viable option. There are now fully online or hybrid finance-related degrees available at many accredited universities, designed for working professionals.

Step 2: Supplement with Pre-Certification Courses

After acquiring a relevant degree, you should further solidify your skills by registering in industry-recognized pre-certification programs. Some of the most prestigious certificates in the field of financial advising are the Certified Financial Planner (CFP), the Chartered Financial Consultant (ChFC), the Chartered Financial Analyst (CFA), and the Certified Private Wealth Advisor (CPWA). These credentials deepen your financial planning knowledge and also increase your credibility and earning potential.

• The CFP certification, issued by the Certified Financial Planner Board of Standards, Inc., is a well-recognized credential for those focusing on comprehensive financial planning. It covers topics such as insurance, tax planning, retirement, and ethical practices.
• The American College of Financial Services offers the ChFC designation, which covers advanced topics in financial planning, including wealth management and employee benefits. It's often viewed as either a supplement to or an alternative to the CFP.
• The CFA designation, awarded by the CFA Institute, is known globally for its emphasis on investment analysis, portfolio management, and economics. With a more technical and rigorous curriculum, it is well-suited for those pursuing careers in asset management, hedge funds, or advising high-net-worth individuals.
• The CPWA is designed for working with high-net-worth clients, focusing on advanced wealth management, tax strategies, and legacy planning. It suits experienced professionals aiming to expand their advisory expertise and serve affluent individuals.

Also Read: 18 Must-Have Finance Skills for Job Seekers in 2025

Step 3: Secure Internships at Hybrid (Human + Robo) Advisory Firms

The introduction of robotics and artificial intelligence has fundamentally altered the way we operate. Gaining hands-on experience through internships is a crucial step in understanding how these models work. In the ever-changing financial services industry, look for roles at hybrid advisory firms that blend human talent with robo-advisory platforms.

Hybrid firms leverage technology to automate portfolio management and data analysis, while human advisors provide personalized insights, emotional intelligence, and complex planning strategies. Interning in such an environment allows you to understand both sides: how digital tools enhance efficiency and how human interaction builds trust with clients.

By immersing yourself in both the digital and personal aspects of financial advising, you’ll be better prepared for the dynamic demands of today’s clients.

Step 4: Pass Licensing Exams

Administered by the Financial Industry Regulatory Authority (FINRA), passing the necessary financial advisor licensing examinations is an essential requirement for employment as a financial advisor. 

Series 7: General Securities Representative Exam

This is a standard licensing exam for registered representatives, administered by the Financial Industry Regulatory Authority (FINRA). Passing the Series 7 allows individuals to sell a wide range of securities, including stocks, bonds, exchange-traded funds (ETFs), and options. The 2025 version includes updated content on digital asset regulation and crypto-related compliance, reflecting the SEC’s enhanced focus on these topics.

Preparation Strategies:

• Practice extensively with question banks to build familiarity with the exam format.
• Use resources offering live classes, on-demand videos, and practice exams.
• Take simulated exams under timed conditions to build test-taking stamina.
• Review the incorrect responses in detail to ensure you understand the key concepts.

Exam structure:

Here’s the detailed allocation of the Series 7 exam structure with a total number of questions and weightage: 

Series 66: Uniform Combined State Law Exam

The Series 66 exam, administered by the North American Securities Administrators Association (NASAA) and conducted by FINRA, combines the content of the Series 63 and Series 65 exams. It allows individuals, when passed alongside the Series 7, to act as investment adviser representatives and securities agents in most states.  In 2025, study materials will increasingly include modules on state-level cryptocurrency regulations, including reporting requirements and anti-fraud rules related to digital assets. 

Preparation Strategies:

• Implement a study calendar to allocate time effectively across all topics.
• Use comprehensive programs that include video training, textbooks, and practice exams.
• Regularly take simulated exams to assess readiness and identify areas needing improvement.

Exam structure:

Here’s a breakdown of the Series 66: Uniform Combined State Law Exam 

State Insurance Licensing

Advisors need to pass a state-specific insurance licensing exam to sell insurance products in that state. These exams cover insurance regulations, policy provisions, and ethical practices.

IC-38 Insurance Agent Exam

The IC-38 Insurance Agent Exam is a mandatory certification for individuals aspiring to become IRDAI-certified insurance agents or advisors in India. Conducted by the Insurance Institute of India on behalf of the Insurance Regulatory and Development Authority of India (IRDAI), this exam ensures candidates have a foundational understanding of insurance principles, products, regulations, and ethical practices. 

Passing the IC-38 exam is the first step to selling life, general, or health insurance policies in India.

Preparation Strategies:

• Understand your state’s unique licensing requirements and exam criteria.
• Use comprehensive study materials that include practice questions and detailed explanations to reinforce learning.
• Stay informed about emerging insurance products and industry trends, including those related to digital assets.

Step 5: Join Professional Networks

By participating in networking organisations, you can get to know other financial advisors and experts in different financial roles. More than just a membership card, organizations like the Financial Planning Association (FPA) and the National Association of Personal Financial Advisors (NAPFA) give you access to a vibrant network of experts, mentors, and potential job opportunities. You can meet seasoned advisors, learn about the profession, and perhaps find hidden job openings at the regular networking events, seminars, and webinars hosted by FPA and NAPFA.

Many seasoned advisers offer their services as mentors to newcomers, guiding them through the early phases of their careers, refining their personal brands, and helping them make well-informed choices about certifications and specialties. These connections may eventually result in partnerships, internships, and job referrals.

Also Read: Corporate Tax: What is it & How It Works? 

Step 6: Start as Junior Advisor or Paraplanner

Launching your career as a junior advisor or paraplanner is a practical step toward becoming a financial advisor. These roles allow you to gain critical real-world experience while working under the guidance of seasoned professionals.

The backstage work that supports the financial planning process is usually the focus of a paraplanner’s responsibilities. This includes 

• Compiling and organizing client information
• Creating financial reports, conducting research
• Drafting plans that senior advisers will present to clients. 

It’s a meticulous role, ideal for strengthening technical skills and understanding the process of creating detailed financial plans.

As a junior advisor, you may begin interacting more directly with clients. Typical duties include: 

• Helping with portfolio adjustments
• Assisting with compliance tasks to ensure documentation meets legal and ethical standards
• Onboarding clients.

These roles build confidence, technical proficiency, and client trust, setting you up for a thriving advisory career.

Step 7: Earn Advanced Certifications

Earning advanced certifications can help you specialize, build authority, and stand out in competitive markets. Certifications like CFP, CFA, and CESGA not only deepen your technical knowledge but also open doors to emerging and in-demand niches.

• Certified Financial Planner: The Certified Financial Planner Board of Standards is the organisation that offers the CFP certificate. You must hold a bachelor's degree, have at least three years of work experience in the financial industry, pass an exam, and adhere to a professional code of ethics.
• Chartered Financial Analyst: The Chartered Financial Analyst (CFA) designation, offered by the CFA Institute, requires passing three specialized examinations, accumulating at least 4,000 hours of relevant work experience, and obtaining letters of recommendation from peers in the field.
• Retirement Income Certified Professional (RICP):  Financial advisors who have at least a high school diploma and three years of professional experience can obtain the RICP accreditation through the American College of Financial Services. To gain the distinction, you need to complete three self-study online courses and pass a closed-book exam.
• Certified ESG Analyst (CESGA): The Certified ESG Analyst designation, issued by the European Federation of Financial Analysts Societies (EFFAS), is a globally recognized credential for professionals seeking to integrate Environmental, Social, and Governance (ESG) factors into investment analysis. No degree or prior qualification is required to sit for the CESGA examination.

Step 8: Specialize in High-Growth Niches

As the financial services industry becomes more competitive and specialized, focusing on a specific niche allows you to gain a deep understanding of the unique challenges, opportunities, and financial behaviors of your target clientele. Two of the fastest-growing areas in 2025 are ESG (Environmental, Social, Governance) investing and crypto-based retirement planning.

• Certified ESG Analyst (CESGA): 

As more investors prioritize sustainable values, there is a significant demand for ESG advisory services. Advisors with credentials such as the Certified ESG Analyst (CESGA) or those with a strong understanding of sustainable finance are more appealing to values-based clients and are more likely to serve in advisory roles.

• Certified Crypto Asset Advisor (CCAA): 

Cryptocurrency assets are transforming the financial management landscape and gaining popularity in retirement planning. Options like self-directed IRAs, crypto ETFs, and blockchain-based pensions are evolving into practical solutions. The Certified Crypto Asset Advisor (CCAA) credential prepares advisors for 2025 and focuses on tokenomics, crypto regulation, custody solutions, and portfolio integration.

By diving deep into these high-growth areas, you not only future-proof your career but also tap into client segments actively seeking innovative, forward-thinking financial guidance.

Want to build a rewarding career in finance? Enroll in the MBA in Finance Courses from top universities and pave an easier career path in the finance world.

Key Financial Advisor Qualifications & Certifications for 2025

If you're wondering how to become financial advisor in today’s market, understanding the right qualifications and certifications is essential. In 2025, the work environment has changed to accommodate changes in client demands, regulations, and technology. Whether you're looking to increase your financial advisor salary 2025, boost your credibility, or specialize in a niche like ESG investing or crypto retirement, the right credentials can set the foundation for long-term success.

From foundational certifications like the CFP to emerging courses in AI, this section explores what’s essential for building a trusted, high-earning career in wealth management.

CFP vs CFA: Which Fits Your Niche?

Choosing between the Certified Financial Planner (CFP) and the Chartered Financial Analyst (CFA) designations depends on your career goals, aspirations, and the type of clients you serve. 

Here’s a detailed comparison to help you decide which to choose.

If you're drawn to client acquisition strategies, emotional intelligence, and comprehensive planning, the CFP is your path. If you love analytics, investment modeling, and global markets, the CFA may be a better fit.

Emerging Certifications: ESG & AI-Driven Advising

As ESG investing expertise, robo-advisors impact, and AI-driven wealth management reshape the financial advisor job market 2025, emerging certifications like CESGA and AI-focused courses help advisors stand out. Some of the emerging certifications include:

• CESGA (Certified ESG Analyst)

Offered by the European Federation of Financial Analysts Societies (EFFAS), this certification is ideal for financial advisors who focus on sustainable investing and ESG integration. It covers topics such as ESG data, reporting standards, and risk analysis. This is one of the most respected and forward-looking certifications in the finance industry, especially for professionals aiming to specialize in sustainable and responsible investing.

• Certified Crypto Asset Advisor (CCAA)

Professionals who want to focus on cryptocurrency and digital assets are the target audience for this credential. The certification covers topics such as blockchain fundamentals, crypto asset valuation, and portfolio integration strategies. Updated for 2025, it now includes modules on decentralized finance (DeFi), regulation, and custody solutions.

• MIT Sloan’s AI in Finance Program

This program teaches AI applications such as predictive modeling and robo-advisor integration, key tools for fintech-driven advisory services. It is a short, advanced credential designed for those integrating AI tools into financial decision-making.

Adding these niche certifications can significantly boost your authority in specialized markets while aligning your skills with future-forward trends.

State Licensing and Compliance Updates

Licensing remains a core part of any financial advisor's qualifications checklist, and 2025 brings updates such as cryptocurrency reporting rules, reflecting the evolving financial advisor job market.

• FINRA Licensing (e.g., Series 7 & Series 66)

Still mandatory for advisors selling securities or offering investment advice. In 2025, updates include enhanced testing on crypto-asset reporting and custody risks. New crypto disclosure requirements emphasize NASAA’s anti-fraud guidelines for digital assets.

• State Insurance Licenses

Required for selling life insurance and annuities. Some states now require ethics modules and protocols for disclosing AI, particularly for policy illustrations generated by AI.

• Cryptocurrency Reporting Rules

The Internal Revenue Service (IRS) requires Form 1099-DA for reporting cryptocurrency transactions, which affects client tax planning. FINRA also requires advisors to disclose the risks of crypto custody. Professionals are enrolling in cryptocurrency courses to gain a deeper understanding of the in-depth rules and risks associated with buying and selling digital currencies.

Must-Have Skills For Financial Advisors in 2025

In 2025, becoming a successful financial advisor means mastering financial planning principles along with the technology and data skills that shape modern advising. Whether you're exploring how to become financial advisor, aiming to boost your financial advisor salary 2025, or advancing your career, building the right financial advisor skills is critical.

Here’s a look at the skills that are becoming must-haves, along with top certifications and soft skills courses, including those offered by upGrad that help future-proof your career.

Mastering Financial Planning Softwares 

Proficiency in financial planning software is a cornerstone of how to become financial advisor in 2025, enabling advisors to deliver tailored plans efficiently. Key platforms that financial advisors should be familiar with:

• eMoney Advisor: eMoney Advisor offers comprehensive planning capabilities, integrating cash flow, retirement, and estate strategies. Advisors use their client portal to share interactive reports, enhancing client acquisition strategies.
• RightCapital: Younger clients benefit greatly from RightCapital due to its affordability and tax-efficient planning, as well as its proficiency in student debt analysis and retirement forecasts. Its intuitive interface supports client relationship management by simplifying complex scenarios.
• Robo-advisor platforms: Many firms now offer hybrid solutions in which advisors personalize robo-generated portfolios for each client.

Customer Relationship Management (CRM) Expertise

Customer relationship management (CRM) expertise is vital for client acquisition strategies and long-term success in a certified financial planner career path. Top CRMs to create a personalized client journey include:

• Salesforce: Salesforce tracks client interactions, goals, and portfolios in one platform. Its Financial Services Cloud tailors workflows for wealth management career tasks, like onboarding or compliance reporting. 
• HubSpot: Ideal for smaller firms, HubSpot offers free CRM tools with paid upgrades for marketing automation. Advisors use it to nurture leads through email campaigns and schedule reviews, enhancing client relationship management. 

These platforms help automate follow-ups, track communication history, segment client lists, and create hyper-personalized onboarding journeys.

Data Literacy For Predictive Analytics

In 2025, advisors need to go beyond spreadsheets. Knowing how to use tools for data visualization and predictive modeling can enhance market foresight and risk management. Must-have skills include:

• Python: Essential for building models to forecast market trends and portfolio performance. A Python tutorial can help you understand why this language is so valuable and widely used.
• Tableau: An effective tool for tracking the growth of net worth and visualizing client data and KPIs.
• Power BI: Useful for creating dashboards that monitor asset allocation, ESG exposure, and advisor performance metrics.

Advisors who use data-backed insights are better positioned to anticipate market shifts, proactively adjust their strategies, and demonstrate value to clients. upGrad partners with top universities and industry experts to deliver globally recognized career options in finance, investment management, and financial planning. Whether you’re just getting started or looking to transition from another field, upGrad helps bridge the gap and become industry-ready. 

Financial Advisor Salary 2025 Trends

A robust financial advisor employment market in 2025, shaped by technological improvements, niche specialization, and evolving client expectations, is reflected in the current financial advisor compensation landscape. Whether you're researching how to become financial advisor or advancing along the certified financial planner career path, understanding salary trends is key to setting realistic expectations and strategic goals.

Let’s break down what to expect from the 2025 compensation environment:

Entry-Level vs Senior Advisor Earnings

The financial advisor salary gap in 2025 between entry-level and senior advisors highlights the value of experience and credentials in a wealth management career. Entry-level roles, often secured after a financial advisor internship, provide foundational experience, while senior advisors with certifications like the CFP see substantial salary increases.

Source: AmbitionBox

High-Paying Niches: ESG and Retirement Planning

Some specialties are driving premium compensation due to demand from high-net-worth individuals and institutions:

• ESG Financial Advisors: Earn more due to the growing demand from corporate clients and family offices. Those with the CESGA certification or a strong ESG portfolio strategy can command up to ₹7,55,000 in India. 
• Retirement Income Planners: Specialists in tax-efficient drawdown strategies, annuities, and crypto-retirement models often receive above-average compensation. Advisors with expertise in 401(k) rollover planning and Social Security optimization are especially valuable.

Freelance vs Firm-Based Pay Structures

As the financial advisory industry shifts toward flexibility and entrepreneurship, compensation structures vary between freelance and in-house, or firm-based, models. Both models utilize fintech tools but differ in autonomy and earning potential.

Source: upwork, AmbitionBox

Also Read: What is Risk Management Strategies? Top Strategies to Follow

Future Proofing Your Career

In the rapidly evolving financial advisor job market of 2025, future-proofing your career is essential. Mastering how to become financial advisor today means embracing fintech tools and adapting to client expectations driven by technology and personalization.

The rise of robo-advisors, AI-powered analytics, and Gen Z’s preference for digital-first interactions means today’s advisors must combine human insight with technology and personal branding. As the financial advisor job market grows more competitive, adopting hybrid models, leveraging new media, and committing to continuous learning are key elements of a successful long-term client acquisition strategy.

Let’s explore how to future-proof your advisor career for 2025 and beyond:

Adapting to AI & Hybrid Advancing Models

In 2025, successful financial advisors are those who effectively utilize AI-driven tools while maintaining a human touch. Clients still value personal relationships, but they also expect speed, personalization, and digital convenience. The modern advisor must blend both worlds through a hybrid advising model.

How AI Tools Are Transforming Advisory Work

• ChatGPT & AI Chatbots: Created by OpenAI, ChatGPT has already made waves across industries. This cutting-edge technology simulates human-like conversations and generates text in response to user prompts. It can automate routine queries, such as “What is the 2025 IRA limit?” or “How do I rebalance my portfolio?”
• Natural Language Processing (NLP): NLP can analyze client communication to detect life events, such as marriage or job changes, and trigger personalized financial check-ins.
• Portfolio Optimization Tools: These tools use AI to rebalance investments, assess tax-loss harvesting opportunities, and test retirement outcomes using real-time data.
• Robo-Advisor APIs: Offer low-cost, algorithm-based investing with personalized oversight.

Why Human Advisors Still Matter

• Trust & Empathy: AI can’t replace emotional nuance during major life events such as divorce, loss, or legacy planning.
• Behavioral Coaching: Human advisors help clients stay disciplined during market swings.
• Complex Scenarios: High-net-worth tax strategies, business exits, and ESG mandates require personal consultation and strategic planning.
• Bottom line: Bring together human empathy for loyalty and AI for scalability. This hybrid approach not only enhances productivity but also future-proofs your role in an AI-enhanced market.

Also Read: Top 12 Career Options in Finance for 2025

Building a Personal Brand via LinkedIn & Niche Podcasts

In the financial adviser job market of 2025, strong personal branding positions you as a reliable authority and strengthens client acquisition efforts. Gen Z and millennial clients are drawn to platforms like LinkedIn, niche podcasts, TikTok, and YouTube, making them crucial for building influence.

Highly recommended platforms include:

Recommended platforms:

• Linkedin: Share posts on market trends, ESG investing, or crypto insights, citing data-backed analysis. Join FPA/NAPFA groups, engage with industry leaders, and connect with 50+ advisors monthly. Highlight your certifications and both technical and soft skills. 
• Podcasts: Launch a niche podcast focused on “Wealth Planning for Women,” “Crypto Retirement,” or “Ethical Investing with ESG.”
• YouTube Shorts: Educate younger clients on debt management strategies, cryptocurrency tax updates, and investing fundamentals.

Clients will Google you to make sure they find something valuable, relatable, and professional before scheduling a meeting.

Read More: 

How upGrad Helps You Become A Financial Advisor

In the competitive financial advisor job market of 2025, navigating how to become financial advisor requires specific qualifications and skills. upGrad, a leading online education platform, empowers aspiring advisors with industry-aligned programs, mentorship, and career support specifically tailored to a career in wealth management.

Whether you’re starting your journey or transitioning into the Certified Financial Planner (CFP) career path, upGrad is designed to help you future-proof your career, increase your financial advisor salary in 2025, and stay ahead of trends like fintech, ESG investing, and AI-driven advising.

Industry-Aligned Certification Programs

upGrad offers a range of programs specifically tailored to the evolving financial advisory field. These certifications close key financial advisor skill gaps, align with global standards, and directly improve employability.

Mentorship and Networking Opportunities

One of upGrad’s strongest advantages is its mentorship ecosystem. Students receive one-on-one career mentorship from seasoned professionals across wealth management, fintech, and investment firms.

What You’ll Gain:

• Insider knowledge on building a business or switching career paths
• Support during salary negotiations and contract reviews
• Access to a worldwide alumni network for career leads and recommendations
• Invitations to exclusive webinars, AMAs, and virtual hiring events

Career Transition Support

upGrad’s career transition support equips you for the 2025 financial advisor job market through resume-building workshops, interview prep, and placement partnerships, streamlining your entry into a wealth management career.

Career Support Services Include:

• Resume-building workshops tailored for financial services
• Mock interviews with hiring managers from RIAs, banks, and fintech firms
• LinkedIn branding and personal pitch crafting
• Placement partnerships with firms like ICICI, Morningstar, and Paytm Wealth

Conclusion

As the industry embraces AI, ESG, crypto assets, and digital-first client experiences, those who stay informed and certified will thrive. Whether you’re new to finance or making a mid-career pivot, success lies in combining core knowledge with future-ready skills.

From earning a degree and financial advisor certifications like the CFP to mastering fintech tools and ESG investing strategies, every step builds a robust wealth management career.

If you’re ready to take the next step, invest in yourself with expert guidance, real-world mentorship, and globally recognized certifications. upGrad offers everything you need to confidently launch and grow your financial advisory career, from industry-aligned courses to career support that works in the real world. Book a free 1:1 session with our experienced mentors to explore your learning options.

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