Uniform Securities Agent State Law (Series 63) Practice Exam 2025 - Free Series 63 Practice Questions and Study Guide.

To operate, a broker/dealer must register with both the SEC (Securities and Exchange Commission) and FINRA (Financial Industry Regulatory Authority). Registering with the SEC is necessary because it oversees the securities industry at the federal level and enforces federal securities laws. This ensures that broker/dealers comply with regulatory requirements regarding transactions, reporting, and fraud prevention.

FINRA, on the other hand, is a self-regulatory organization responsible for overseeing broker/dealers and their registered representatives. It establishes rules and standards to ensure fair trading practices and protects investors by enforcing compliance with those rules.

While other options may mention relevant organizations, they do not fully encompass the necessary registration requirements for broker/dealers. Operating solely under state securities divisions or being involved with the CFTC (Commodity Futures Trading Commission) pertains to other areas of finance and commodities, rather than the overarching requirements for broker/dealers in the securities industry.