Did you know there are over 30 FINRA Series exams?
All of them, except for the SIE, are named by number. And no, those numbers are not consecutive. 3, 6, 7, 63, 65, and 66 are some of the most common. Understanding which exam is which can get pretty confusing!
But no worries! I’m here to help. I’ll compare the SIE vs. Series 7 exams, covering everything from exam content to career paths, so you can decide which is best for your future.
Key Takeaways
- SIE Exam: This foundational test covers the basics of financial concepts and industry knowledge. It’s your first step into the securities world, but it doesn’t qualify you to handle customer accounts yet.
- Series 7 Exam: This is the next level, designed for registered representatives. It dives into advanced topics like investment securities, capital markets, and business conduct rules.
- Who Needs Them? The SIE is perfect if you’re just starting out in the securities industry. Once you’re hired by a FINRA member firm, you’ll need the Series 7 to work with clients directly and offer investment advice.
What is the SIE Exam?
The Securities Industry Essentials (SIE) exam is an introductory financial essentials exam designed by FINRA (Financial Industry Regulatory Authority) to assess a candidate’s basic knowledge of the securities industry. It’s open to anyone aged 18 or older, and you don’t need to be sponsored by a broker-dealer to take it.
The most important thing to know is that the SIE exam is a prerequisite for some other Series exams, but not all of them. Otherwise, passing the SIE exam is mostly to look nice on a resume, explore career paths, and build confidence in the securities industry.
The SIE covers:
- Capital markets
- Regulatory agencies
- Industry rules
- Basic knowledge of products like mutual funds, corporate securities, and government securities
- Business conduct rules and undue risk considerations
Again, the SIE doesn’t qualify you to sell anything or have any specific legal capabilities outside of qualifying for other exams. However, you do need to pass the SIE if you want to be eligible to tackle Series 7.
What is the Series 7 Exam?
The Series 7 exam, officially called the General Securities Representative Qualification Exam, is a top-off exam that builds on the knowledge from the SIE. It’s required for registered representatives who want to buy and sell securities. This includes stocks, bonds, mutual funds, and options on behalf of customers.
The Series 7 exam focuses on:
- Evaluating customers’ financial profiles and investment objectives
- Business conduct rules and appropriate records
- Complex securities such as direct participation programs and real estate limited partnerships
- Advanced investment topics, including hedging strategies, short sale rules, and exempt transactions
To take the Series 7, you must pass the SIE exam and become sponsored by a FINRA member firm.
SIE vs. Series 7 Exam Details
The SIE and Series 7 exams both serve as entry points into the securities industry but differ in focus, structure, and career implications. Here’s how they compare:
Topics: The SIE Exam focuses on broad concepts like regulatory framework, basic securities products, and market fundamentals. Series 7 dives deeper into investment products, trading strategies, and client-specific financial planning within the securities industry.
Format: The Securities Industry Essentials Exam consists of 75 multiple-choice questions and does not require sponsorship. The Series 7 exam, administered at Prometric testing centers, includes 125 questions and requires a sponsor from a FINRA-member firm.
Difficulty and Pass Rates: The SIE exam is considered less challenging, with an estimated pass rate of over 70% for test takers. The Series 7 is more rigorous, covering advanced topics and taking nearly four hours to complete, with pass rates around 72%.
Fees: SIE exam fees are $80, making it accessible for newcomers. Series 7 has one of the most expensive Series exam fees at $300.
Restructuring: Both exams reflect recent exam restructuring efforts and build a foundational knowledge base for advancing careers in securities.
Comparing the SIE vs. Series 7
| Feature | SIE Exam | Series 7 Exam |
|---|---|---|
| Purpose | Introductory Financial Essentials exam | Qualification exam for registered representatives |
| Sponsorship Required? | No | Yes, by a FINRA member firm |
| Topics Covered | Basic knowledge (e.g., mutual funds, capital markets) | Advanced topics (e.g., short sale rules, hedging strategies) |
| Career Application | Entry-level roles in the financial industry | Direct customer interaction and investment sales |
| Exam Structure | 75 questions, multiple-choice | 125 questions, multiple-choice |
| Passing Score | 70% | 72% |
| Time Limit | 1 hour and 45 minutes | 3 hours and 45 minutes |
| Fees | $80 | $300 |
Do You Need Both Exams?
It depends. If you want to take the SIE, you don’t necessarily need to take the Series 7 exam. However, if you want to take the Series 7 exam, as I mentioned before, passing the SIE is a non-negotiable requirement.
Long story short, maybe. It depends on your goals and the exams you plan to take. The SIE exam is a prerequisite for the following FINRA representative-level qualification exams:
- Series 6 – Investment Company and Variable Contracts Products Representative
- Series 7 – General Securities Representative
- Series 22 – Direct Participation Programs Representative
- Series 57 – Securities Trader Representative
- Series 79 – Investment Banking Representative
- Series 82 – Private Securities Offerings Representative
- Series 86/87 – Research Analyst
- Series 99 – Operations Professional
What Happens After Passing?
- SIE Exam: Passing the SIE shows you’re serious about building a solid career in the financial services world. It’s a pivotal first step and gets you ready for bigger qualification exams down the line. However, it doesn’t let you work directly with customer accounts just yet.
- Series 7 Exam: After you pass Series 7 and join a FINRA member firm, you’re officially ready to launch your career as a registered representative. This means you’ll get to help clients with their investment goals and start impacting their financial lives.
Career Paths for SIE vs. Series 7
Where Can the SIE Take You?
Passing the SIE exam alone doesn’t give you many opportunities right away, but you still have access to some jobs. Some common career paths include:
- Research Analyst Assistant: While the SIE shows you grasp financial basics, most roles in research analysis also require a bachelor’s degree and possibly additional certifications.
- Compliance Associate: The SIE is a great foundation, but compliance roles often demand specialized knowledge of regulations, which may require additional training or qualifications.
- Operations Specialist: You might land an entry-level role with just the SIE, as it shows a basic understanding of the financial industry’s inner workings, but relevant experience or coursework can help.
Where Can the Series 7 Take You?
The Series 7 Exam offers access to advanced, client-facing roles that let you showcase your expertise. Here are some popular career paths you can pursue:
- Financial Advisor: Work one-on-one with financial clients to help them grow their wealth and reach milestones with personalized investment plans.
- Broker-Dealer Representative: Assist clients by completing trades and offering customized investment advice for their goals.
- Investment Company Representative: Focus on selling mutual funds, annuities, and other packaged investment products.
With a Series 7 license, you can help clients manage their hard-earned savings and build portfolios that include investments like corporate bonds, blue-chip stocks, and mutual funds.
If you dream of managing wealth, guiding clients through big financial decisions, or working directly with customers, the Series 7 is your ticket to making it happen!
Final Thoughts
I know that the Series exams can be confusing, so I hope this article helped you understand the difference between the SIE and Series 7 exams.
To reiterate, if you want to earn your Series 7 license, you’ll have to start with the SIE exam, but this doesn’t work the other way around. If your career goal includes a title like “financial advisor” or “stockbroker,” the duo is your path to success.
Ready to take the next step? Start with the SIE, then tackle the Series 7. Your dream career will be on your LinkedIn profile before you know it.
FAQ
Yes, Series 7 is more difficult because it covers advanced securities and trading strategies. It requires deeper knowledge and application than the SIE’s basic concepts.
The SIE focuses on basic industry knowledge, such as rules and capital markets. The Series 7 is more advanced, testing investment strategies, customer accounts, and complex securities.
Yes, the SIE is a prerequisite for the Series 7. It provides the basic knowledge you’ll need for more advanced qualification exams.
Due to its length and complex content, the Series 7 is considered one of the hardest FINRA exams.
You’ll likely need 4–6 weeks or 80–150 hours to study for Series 7 after the SIE. The timeline depends on your schedule and familiarity with the material.
