Those who have failed the Series 7 exam can retake it in 30 days. The Series 7 license prepares you for dealing with client portfolios, focusing on day-to-day tasks such as evaluating customer security holdings, opening accounts and making suitable recommendations. The Series 7 exam — the General Securities Representative Qualification Examination (GS) — assesses the competency of an entry-level registered representative to perform their job as a general securities representative. The Series 7 exam, formally called the General Securities Representative Qualification Examination, is a licensing exam for entry-level stockbrokers and other financial professionals who are involved in the buying, selling, and trading of securities, such as stocks and bonds. You won't pass the exam because you are listening to people who took the exam 5,6 or even 20 years ago. Before someone can take the Series 7 Exam, they must pass the Security Industry Essentials (SIE) Exam. The SIE exam was designed by FINRA to ensure that FINRA licensees demonstrate a thorough understanding of basic securities industry knowledge. That rate applies only to those who passed both the SIE exam and the Series 7 exam. As of October 2018, passing the Series 7 exam is not the only requirement for new FINRA licensees. It covers various topics such as financial industry regulations and client communications, as well as different types of securities and their associated risks. With the CFA charter and membership with the CFA Institute, charterholders have the opportunity to further their education annually through continuing education courses. The Series 7 is an exam and license that entitles the holder to sell all types of securities with the exception of commodities and futures. While passing the Series 7 may seem like the biggest challenge, sometimes the hardest questions are: Am I ready? If you want a find a financial advisor who has a Series 7 certification, check out our free financial advisor matching tool. It offers the Levels II and III exams only once each year in June. To take the Series 7 test, you must be sponsored by a FINRA member firm. It has 125 questions covering four main job functions of a Series 7 licensed representative. Now, what about the format of the exam? What is a passing score on the SIE Exam? The Series 7 license allows professionals to sell securities in the U.S. To obtain it, they must pass a rigorous exam covering various financial topics. Still, many people don’t pass the Series 7 exam on their first attempt. A CFA can significantly help an individual’s career advancement, primarily in the areas of: The primary difference between the Series 7 and the CFA is that one is a license while the other is a certification. If you cancel at least 10 business days in advance, no fee applies. What ACT target score should you be aiming for? Be up front with yourself about how well prepared you are for the exam. When you pass your Seven 7 successfully, it’s time to think about what to study after the Series 7 exam. Some people who are already familiar with financial terminology choose to study independently for the Series 7 license. You pay a fee of $305 for each Series 7 exam attempt. The exam is administered by the Financial Industry Regulatory Authority (FINRA). You have a one-hour break between the two exam sessions. Alternatively, you can take an extended 12-week course, if you are preparing for the exam alongside your studies or full-time job. You may also take restroom breaks at any point, however, you may not stop the exam clock in this case. Known as one of the toughest FINRA licensing exams, Series 7 has a pass rate of less than 70%. A registered principal is a licensed securities dealer who is also empowered to oversee operational, compliance, trading, and sales personnel. Considering joining the military? Candidates have one hour and 45 minutes to take the test. If you thrive as an independent learner, this self-study package has the essentials you need. Knowledge tests at the end of each milestone, and (unlike many competitors) you can take them an unlimited number of times. Our best value: A guaranteed pass, plus an instructor-led. Series 7—it might sound like a strange set of books you never got around to reading, but in reality it’s a financial qualification exam for aspiring stockbrokers. Officially, it’s called the General Securities Registered Representative Exam (GSRE). For more details on how to get ahead, take a look at our 6-week syllabus or 12-week syllabus devised by professional trainers. Comparatively, about 86% of candidates pass the Series 63 on their first attempt. FINRA administers the exam. However, the Series 7 license does not allow these registered professionals to sell commodities, futures, real estate and life insurance products. CFA holders feel that the program's most challenging facet is fulfilling the educational requirement. The purpose of Series 7 is for brokers and financial professionals to get their General Securities Representative registration, which makes them official registered representatives by FINRA and improves their employability in the financial sector. However, this improvement was just a few percentage points and factors in a 74 percent rate for the SIE alone. All rights reserved. Is the Series 7 Necessary if I Want to Trade for Myself? The series 7 license does not cover the selling of real estate or life insurance products. Make sure that your Series 7 study materials are always up to date. However, don’t assume that you don’t need to study if you have a background in the general securities sector. How much time should I spend studying for it and when should I study for it (I have to take the exam in August end) Whats the best approach to study - books/lot of practice tests? The Series 28 is a financial exam for those seeking to become licensed recordkeepers or operations principals for broker-dealers firms. Just check our reviews). From self-proclaimed bad test-takers to people with little to no experience, we equip all of our Series 7 studiers with everything they need to pass the first time. There are four main categories, or "functions," to know. To fully obtain the Series 7 license, candidates must: Be associated with and sponsored by a … There are no penalties for incorrect answers, so it’s in your best interest to put down an answer for everything and guess when you’re not sure. This tests a plethora of financial topics, including investment products and risks, the structure of the securities market, regulatory agencies and more. Level I candidates could potentially test in June and December. Note that your sponsor will have to request another appointment for you following the steps above and pay a new exam fee. Want to supplement your studies? This test is quite a bit longer at 125 questions, and test takers have three hours and 45 minutes to complete it. An easy way to get your questions answered or get explanations beyond your reading and online training. Practice questions after each section to show whether you grasp the material or not, and recommend next steps. Prior to Oct. 1, 2018, the Series 7 exam contained 250 questions covering five major job functions. The Series 7 license and Chartered Financial Analyst certification are two designations in the financial industry that will typically lead to different career paths. Here are the three main types of questions you should be ready to tackle in the exam: Although FINRA doesn’t provide a breakdown of the number of questions by type or topic, this table from the FINRA website gives you an understanding of how much time you should allocate to developing each set of skills: As you can see, their categories are broad and sometimes ambiguous, so we cannot correlate them directly with our modules. Instructor-led video review, recapping the program's topics and concepts — all available whenever you are. Comparatively, about 86% of candidates pass the Series 63 on their first attempt. Your sponsor will also typically pay the $245 exam fee. At the 2019 FINRA Annual Conference, it was announced that the Series 7 pass rate for people who took the exam between October 2018 and March 2019 was 71%. The purpose of the exam is to set a level of competency for any registered representative or stockbroker entering the securities industry, which means that any entry-level broker should take this exam. The test takes six hours to complete and your time is divided into two sessions of three hours each. ch tests your knowledge of basic securities industry information. How Much Should I Study for the Series 7 License? If you’re looking to work with a financial advisor, you may be confused by the different types of licenses and certifications they hold. The Series 7 test, also known as the General Securities Representative Exam (GSRE), prepares candidates to solicit, purchase and sell securities products. Some live classes and online courses we found online would cost $400 to $650. Can I Cancel or Reschedule a Series 7 Exam? A 72% score is necessary to pass the exam, and its passing rate is greater than 70%. Remember that the exam is intended only for people who are affiliated with broker/dealers. Hannah received her MA in Japanese Studies from the University of Michigan and holds a bachelor's degree from the University of Southern California. SAT® is a registered trademark of the College Entrance Examination BoardTM. She is passionate about education, writing, and travel. (F2) Evaluates customers’ other security holdings, financial situation and needs, financial status, tax status, and investment objectives. Series 7 licensed representatives tend to work in financial market sales, often as a stockbroker or transaction-based financial advisor. Below is an overview of what’s covered on the Series 7 Exam: Beyond extensive industry knowledge, financial professionals with Series 7 certifications must live up to stricter standards than unlicensed ones. The Series 7 fee is $245, but most sponsors should cover this cost. Simply put, if you put in the work, we can promise you'll pass. The minimum passing score is 72%, and the pass rate is around 65%. Break down the materials into bite-sized chunks and assimilate them gradually. And how/when will I know? Get a few helpful extras, like on-demand instructional videos. © 2020 Pass Perfect, LLC. Have any questions about this article or other topics? If you arrive more than 30 minutes after your scheduled time, you will not be allowed to test and your sponsor will be charged a late cancellation fee. To maximize your chance of success, allow enough time to study for the exam and make sure you don’t simply memorize, but really understand the key concepts. Here’s an overview of the Series 7 exam format: You’ll have 3 hours and 45 minutes to complete the Series 7 test, giving you around a minute and 48 seconds per question. If you passed, it’ll simply say that on the report. Obtaining a Series 7 license is one of the essential steps that a member firm associate must take in order to register with FINRA. Read on to find out all the important details about the FINRA Series 7 exam and how to pass it with confidence!