How much does the Series 7 exam cost?
How much does the Series 7 exam cost?
$300 Series 7 exam fee
$380 – $900 average cost for Series 7 license
Series 7 license cost
The Series 7 exam costs $300 for the exam fee, plus $50 to $200 for optional study materials. A Series 7 license costs $380 to $900 total on average. The corequisite SIE exam costs $80. FINRA requires passing scores on both exams for Series 7 licensure to buy, sell, or trade security products.
| Factor | Average cost |
|---|---|
| Series 7 exam fee | $300 |
| Corequisite SIE exam fee | $80 |
| Self-study materials | $50 – $300 |
| Online or in-person prep course | $150 – $550 |
| Private Series 7 tutor | $50 – $100 per hour |
FINRA stands for the Financial Industry Regulatory Authority, which serves to protect investors by regulating the broker-dealer industry and ensuring its fair and honest operation.
What is a Series 7 exam?
The Series 7 exam is also called the General Securities Representative Qualification Examination (GS). A passing score confirms you know how to sell different financial products like stocks, bonds, and annuities.
| Series 7 exam | Exam details |
|---|---|
| Number of questions | 125 scored questions in 4 sections |
| Format | Multiple choice |
| Duration | 3 hours and 45 minutes |
| Passing score | 72% |
| Corequisite | SIE exam |
A tutorial on how to take the exam is provided before the exam starts.
There are no penalties for guessing, so candidates should attempt to answer all items.
Reference materials are not permitted in the testing session and result in severe penalties.
Exam outline
The Series 7 test has 125 multiple-choice questions, plus 10 additional unscored questions that are randomly distributed throughout the exam. The exam is divided into four sections, each focusing on a specific major job function.
| Function | Major job function descriptions | Percentage of exam | Scored questions |
|---|---|---|---|
| F1 | Seeks Business for the Broker-Dealer from Customers and Potential Customers | 7% | 9 |
| F2 | Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 9% | 11 |
| F3 | Provides Customers with Information about Investments, Makes Recommendations, Transfers Assets, and Maintains Appropriate Records | 73% | 91 |
| F4 | Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions | 11% | 14 |
| Total | 100% | 125 |
Section F1 – This section evaluates your ability to reach customers using different methods, get permission to share ads, and explain investment services to attract new clients.
Section F2 – These questions assess your ability to explain account types, provide disclosures, gather customer information, obtain investment details, and open accounts.
Section F3 – This large section evaluates your ability to advise customers on investment strategies, analyze their investment profiles and product options, provide necessary disclosures, communicate with customers, and maintain appropriate records.
Section F4 – These last questions evaluate your ability to give price quotes, process customer transactions, spot discrepancies and errors, resolve complaints, and handle margin issues.
Exam Registration
To register for the Series 7 exam, follow these steps:
Gain employment or sponsorship by a FINRA member firm.
Create an account on the FINRA gateway website.
Have your sponsoring firm file a Form U4 (Uniform Application for Securities Industry Registration or Transfer) on your behalf. This form permits FINRA to perform a background check.
Wait for authorization from your firm before proceeding.
Once you receive authorization, schedule your exam at a Prometric testing center near you and pay the $300 exam fee.
Prepare for the exam using the content outline provided by FINRA to understand the topics covered in the exam. Purchase additional study materials or enroll in an online or in-person prep class to improve your score.
On exam day, be sure to arrive on time and bring the required identification and any other materials allowed by the testing center.
Prometric offers online testing with extra test time or for limited English proficiency candidates with approved accommodations. All other candidates needing disability accommodation must schedule by appointment at a testing center.
Series 7 license requirements
The Series 7 exam is just one part of obtaining a Series 7 license. Anyone who buys, sells, or trades security products, except for commodities and futures, must have a Series 7 license. This includes advisors who give financial advice and junior analysts or traders whose names are on the trading documents.
You must meet these minimum requirements to get a Series 7 license:
Be at least 18 years old.
Have a bachelor’s degree – most firms prefer finance-related degrees.
Intern or work for a registered broker-dealer to gain sponsorship from a FINRA member.
Pass the 2 qualifying exams – the Series 7 Exam and the corequisite SIE exam.
Follow any additional requirements set by your employer or FINRA.
Corequisite exam requirements
The Securities Industry Essentials (SIE) exam is a corequisite with the Series 7 exam, meaning you need to pass both exams to get your Series 7 license. You can take the tests in any order, but most people start with the SIE because it is simpler and doesn’t require sponsorship.
The SIE exam costs $80 and takes 1 hour and 45 minutes. The exam includes 75 multiple-choice questions, and a passing score is 70%. The SIE exam measures basic knowledge of the securities industry while the Series 7 digs deeper into the specifics of securities sales and trading rules.
How to prepare for the Series 7 exam
Series 7 is a difficult exam that requires study and preparation. A private tutor costs $50 to $100 per hour. Self-study materials cost $50 to $300, while online exam prep courses cost from $150 to $550.
These options include various exam prep tools, such as flashcards, study guides, and practice tests. Online programs offer the benefit of video and audio lectures and live online training. A private tutor can customize the lessons to your specific needs and learning style.
| Prep course provider | Formats | Average cost |
|---|---|---|
| Securities Training Corporation (STC) |
|
$250 – $520 |
| Kaplan |
|
$280 – $310 |
| ExamFX |
|
$150 – $250 |
| Securities Institute |
|
$150 – $300 |
| Training Consultants |
|
$310 – $550 |
Series 6 vs. Series 7
The Series 7 is the longest and most comprehensive securities exam and allows agents to sell a greater range of securities, including stocks and bonds.
In contrast, the Series 6 exam is cheaper, shorter, and easier. However, the license limits you to selling specific investment products, mainly retail-oriented products like mutual funds and insurance annuities.
| Details | Series 6 | Series 7 |
|---|---|---|
| Exam fee | $75 | $300 |
| Scored questions | 50 | 125 |
| Unscored additional questions | 5 | 10 |
| Format | Multiple choice | Multiple choice |
| Duration | 1 hour and 30 minutes | 3 hours and 45 minutes |
| Passing score | 70% | 72% |
| Corequisite | SIE exam | SIE exam |
Series 7 exam FAQs
How long is the Series 7 exam?
The Series 7 exam is 3 hours and 45 minutes long.
How hard is the Series 7 exam?
Many testers find the Series 7 exam challenging because of the amount of material covered. Most people consider the Series 7 the most difficult of the securities exams as it requires a solid understanding of various financial concepts.
Is the Series 7 exam harder than the bar exam?
The Series 7 and the bar exam are both known for their difficulty. You can’t really compare the two because of the differences in content and purpose. Both exams require dedicated study and preparation.
How can I take the Series 7 exam?
To take the Series 7 exam, you need a college degree, preferably in finance, with a job or internship to gain sponsorship from a FINRA firm. Your sponsor files a Form U4 with the FINRA, which runs a background check and authorizes your registration. Then, you schedule and pay for the exam.
Where can I take the Series 7 exam?
Prometric offers the Series 7 exam at their testing centers throughout the United States. Online delivery is available with special accommodation only.
How long is a Series 7 license valid?
The Series 7 license is valid as long as you work for a FINRA-member firm or self-regulatory organization (SRO). However, if you leave the firm and don’t find another FINRA-member firm or SRO within two years, your license will expire.
Questions to ask a Series 7 tutor
If you’re planning to take the Series 7 exam, it’s important to find a qualified tutor who can help you prepare. Here are some questions you can ask a potential Series 7 tutor:
What experience do you have tutoring for the Series 7 exam?
What is your teaching method?
What materials do you provide?
How much do you charge?
What is your availability?
What is your pass rate for the Series 7 exam?
What challenges should I be prepared for when studying for the exam?
What additional resources do you recommend for self-study?
Will you include test-taking tips and practice tests?
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