Series 7 Pass Rate: How Hard is the Series 7 Exam?

The personal financial advisor career has a projected growth of 17% in the next ten years—over four times higher than the national average. Meanwhile, securities, commodities, and financial services sales agents can look forward to 7%, almost double the rate for other careers.

Needless to say, now is the perfect time to earn your securities representative license. Your first step? Passing the Series 7 exam.

But then the test anxiety sets in. “How hard is the Series 7 exam? What should I prepare for? How long should I study?”

In this guide, I’ll answer all these questions (and many more!) to help you plan your professional roadmap—and get laser-focused on your inevitable success. Let’s go!

Key Takeaways

• Challenging But Doable: The Series 7 exam has a pass rate of around 65-70%.
• Heavily Focused on Recommendations: About 73% of the exam tests your ability to make suitable recommendations for customers’ investment objectives.
• Study Time Varies: Beginners should plan to study 80-100 hours, while experienced test-takers might need closer to 40-60 hours.
• Multiple Attempts Allowed: If you fail, you can retake the exam after 30 days, giving you a chance to adjust your study plan.
• Career Benefits: Passing the Series 7 opens doors to roles like financial advisor, stockbroker, and other general securities representative positions.

What Is the Series 7 Exam?

Before we dive into the nitty-gritty, let’s iron out the basics.

The Series 7 exam, officially called the General Securities Representative Exam, is a FINRA exam (that’s the Financial Industry Regulatory Authority). Simply put, the test measures your knowledge of the financial world. Specifically, it evaluates your ability to make suitable recommendations, handle customer accounts, and perform a range of other key job functions for a broker-dealer.

Here are the key details you need to know:

• Number of Questions: 125
• Format: Multiple-choice
• Duration: 3 hours and 45 minutes
• Passing Score: 72% (that’s 90 correct answers)
• Cost: $300
• Corequisite: You must pass the SIE Exam first.

How Hard Is the Series 7 Exam?

Let’s address the question on everyone’s mind: Is it a difficult exam? The short answer is, unfortunately, yes.

The Series 7 isn’t something you can just wing—it covers a wide range of topics and has a reputation for being challenging. But that doesn’t mean it’s impossible! With the right preparation, you can absolutely pass.

Series 7 Pass Rate

The Series 7 pass rate tends to hover around 65-70%, depending on the year. That means roughly two-thirds of test-takers pass on their first try. Note that FINRA doesn’t publish their pass rates publicly, but this is the estimate given by industry experts.

For comparison, the SIE exam (Securities Industry Essentials) has a much higher pass rate, usually around 74-80%. So, while the Series 7 is harder, it’s far from insurmountable.

I cover prep courses for exams like the CFA®, CMA, and CPA; some have had pass rates in the 40% range. Yes, less than half! So, as far as the finance industry is concerned, the Series 7 is a lot more approachable than exams for other careers.

What Topics Does the Series 7 Cover?

The Series 7 exam is broken down into four main job functions. Here’s a quick overview of what you’ll need to know:

1. Seeks Business for the Broker-Dealer (7% of the exam)
   • Evaluating potential customers
   • Understanding their financial profiles and investment objectives
2. Opens Accounts and Maintains Customer Relationships (9% of the exam)
   • Handling account types, such as retirement accounts or margin accounts
   • Ensuring regulatory compliance
3. Provides Suitable Recommendations (73% of the exam—this is the big one!)
   • Making suitable recommendations for securities products
   • Handling investment company products, such as mutual funds and ETFs
   • Transferring and maintaining assets
4. Completes Transactions (11% of the exam)
   • Executing trades, transferring assets, and following purchase and sales instructions
   • Verifies customer’s purchase and keeping appropriate records of transactions

How Much Should You Study?

The amount of time you’ll need to study depends on your background. If you’re new to the financial industry, you’ll likely need more time to master the material. On average:

• Newcomers: Plan to study 80-100 hours. This breaks down to about 4-6 weeks of studying if you dedicate 15-20 hours a week.
• Experienced Test-Takers: If you’ve already passed the SIE exam and have some industry experience, you might only need 40-60 hours.

Tips for Studying

Use Practice Exams

Practice tests are your best friend when studying for the Series 7. They’ll help you get familiar with the answer choices and the types of questions you’ll face on the Series 7. Aim to take several full-length practice exams before test day.

Focus on the Heavily Tested Areas

Since 73% of the exam covers making suitable recommendations, prioritize studying topics like investment strategies, securities products, and regulatory requirements.

Break It Down by Function

Don’t try to cram everything at once. Study one job function at a time, and make sure you understand how it applies in real-world scenarios.

Consider Online Training

Online Series 7 prep courses can be a great way to stay organized and focused. They often include video lessons, quizzes, and progress trackers to keep you on track.

Can You Pass If You Didn’t Do Well in School?

Absolutely! Your success on the Series 7 doesn’t depend on your GPA or how well you did in high school math. What matters most is your ability to focus, stay disciplined, and put in the effort to study. The exam is challenging, but it’s also straightforward—there are no trick questions or essays to trip you up. As long as you understand the material and practice regularly, you have a good chance of passing.

What Happens If You Don’t Pass on the First Attempt?

Let’s face it—sometimes things don’t go as planned. If you don’t pass on your first attempt, don’t panic. You can retake the exam after a 30-day waiting period. Use that time to analyze what went wrong:

• Did you struggle with specific topics?
• Were you running out of time?
• Did test-day nerves get the best of you?

Once you’ve identified the issue, adjust your study plan and try again. Many people pass on their second or third attempt.

Is the Series 7 Worth It?

The Series 7 exam isn’t just another test—it’s a gateway to a career as a general securities representative. Once you pass, you’ll be licensed to sell a wide range of investment products and work with clients to achieve their financial goals. It’s a valuable certification that opens the door to roles like:

• Financial advisor*
• Stockbroker
• Investment representative

And yes, these are some prestigious careers with equally prestigious paychecks (six-figure salary, anyone?). So, while you’re facing a challenging exam, the career opportunities it unlocks make it well worth the effort.

*Note: Financial advisors often need to pass exams like the Series 65 and 66 as well.

Final Thoughts: Should You Take the Series 7?

If you’re serious about a career in finance, the Series 7 exam is a must. It’s challenging, but with a 65-70% pass rate, it’s far from impossible. Plus, the skills you’ll develop while studying—like evaluating customers’ financial profiles, understanding investment strategies, and making suitable recommendations—will set you up for success in the industry.

So, is it hard? Yes. But is it doable? Absolutely. With the right preparation, you can pass the Series 7 and take your first step toward an exciting career as a registered representative. If you’re ready to dive in, start with a solid study plan, invest in some practice exams, and tackle the material one topic at a time.

FAQs