By
ExamFX
Securities Courses Securities SIE Exam FINRA
February 19, 2020
If you are reading this, it is likely you are seeking a career in the financial services industry and wanting to learn more about the Securities Industry Essentials (SIE) exam. The SIE exam is administered by the Financial Industry Regulatory Authority (FINRA). Passing the SIE exam is one of the first steps to becoming a licensed professional in the securities industry. FINRA’s licensing requirements are mandatory for most professional positions in the financial services industry. Passing the SIE exam shows you understand basic concepts related to the markets and their functions, industry terminology, common formulas, financial products, laws and regulations, and other important information.
SIE Exam Information, Facts and How to Pass
What is the SIE exam?
In 2018, FINRA launched the SIE exam, along with updated representative level exams (now commonly referred to as “top off” exams) that relate to professional specialties across the financial services industries. In order to become a registered representative, you must pass both the SIE and the appropriate representative level qualification exam. The introductory level SIE exam demonstrates knowledge of basic securities industry information, while top off exams demonstrate competency in specific sectors of the securities industry.
Who can take the SIE exam?
The SIE exam requirements are simple and straightforward: anyone 18 years of age or older can sit for the exam. You do not need to be sponsored by a member firm to take the SIE. However, to take representative level qualification exams you must be sponsored by a member firm. Having your SIE exam completed before you start applying for jobs can give you a competitive advantage. It shows prospective employers that you are a proactive self-starter who is ready to prepare for and pass representative level exams under their sponsorship.
What are the best ways to prepare for the SIE exam?
One of the best ways to prepare is to register for a SIE exam study package. Another great resource for a complete and comprehensive approach to SIE exam training can be found in our free eBook– it outlines the SIE exam process from preparation to passing your exam. Learn more about the SIE exam and our product offeringshere.
What is the SIE exam pass rate?
The data from FINRA states that 74% of SIE exam test takers pass on their first attempt.
To develop a solid plan for passing the SIE exam, continue reading the information and recommendations below.
How Hard is the SIE Exam?
The degree of difficulty of the SIE exam is largely dependent on your current knowledge and education in the financial services industry. You will find it challenging if you go into the test without proper preparation. However, with the right exam training, you can be one of the individuals who successfully passes the SIE exam on your first attempt. Learn more about the SIE exam difficulty here.
What topics does the SIE exam cover?
The SIE exam tests your knowledge and comprehension of the securities industry. Topics cover markets, terminology, common formulas, regulations, laws, products, and other concepts related to the financial services industry.
The four sections of the SIE exam are:
- Knowledge of Capital Markets: 12 questions
- Understanding Products and Their Risks: 33 questions
- Understanding Trading, Customer Accounts and Prohibited Activities: 23 questions
- Overview of Regulatory Framework: 7 questions
What is the format of the SIE exam?
The format is multiple-choice and includes 85 questions (75 scored questions and ten pretest questions). To pass, you will need to score 70%.
How to enroll for and schedule your SIE exam
FINRA is the regulatory agency for the SIE exam, and Prometric is FINRA’s third party testing partner. Below are step-by-step instructions on how to enroll and schedule your SIE exam:
- Register on FINRA.org: Create a Test Enrollment Services System (TESS) account and pay your exam fee.
- Obtain your Central Registration Depository (CRD) number: Once you have a registered account with FINRA, you will receive a CRD number. You will need this when scheduling your exam.
- Go to Prometric.com: The SIE exam is administered by Prometric and taken at their testing centers across the United States.
- Create an account with Prometric and schedule your exam: You have a 120-day window to schedule your exam on the Prometric website after registering with FINRA.
How long do I have to complete the SIE exam?
You will have one hour and 45 minutes to complete the SIE exam.
We recommend timing yourself when taking the SIE practice exam. By tracking how long it takes you to complete the practice exams, you will be able to maintain a good pace during the official exam.
How much does the SIE exam cost?
The exam fee is $60 and is due when you enroll with FINRA.
I am a college student – should I take the SIE exam before graduation?
Yes! Passing the SIE exam will increase your marketability in the financial services industry. Prospective employers will recognize you are ambitious and eager to begin your career. Once you are confident that you are prepared to pass, we recommend taking the SIE exam. This can be a great way to catch the eye of future employers when they are reviewing resumes to identify standout candidates.
Does your SIE exam score expire?
SIE exam scores are valid for four years.
Does passing the SIE exam help me earn a securities license?
Yes, passing the SIE exam is one of the first steps toward obtaining your securities license. Typically, the next step is to pass a representative level qualification exam.
What are representative level or “top off” qualification exams?
Passing qualification exams permits individuals to engage in securities activities defined by the specific registration. Once you have an employer sponsor, you will be advised which exam to take. In order to take a representative level exam, you must be sponsored by a member firm of FINRA.
The current registration categories for representative level exams are:
- Series 6: Investment Company Representative
- Series 7: General Securities Representative
- Series 22: Direct Participation Limited Representative
- Series 57: Securities Trader
- Series 79: Investment Banking Representative
- Series 82: Private Securities Offerings Representative
- Series 86 & 87: Research Analyst
- Series 99: Operations Professional
Remember, the SIE exam does not have a sponsorship requirement - you can take the SIE exam any time you are ready.
SIE exam study tips
The right study tools will help prepare you to be successful on exam day by providing helpful study tips. Here are a few study tips to get you started:
- Terminology. If you are not already working in the industry, chances are you need to study the terms used on this exam. And a word of caution, some of these terms have multiple meanings.
- Formulas. Even though the SIE exam is multiple-choice, it is not advisable to guess on questions with mathematical solutions. Learn the common formulas used by securities professionals.
- Time Management. It is important that you set time aside to study for your exam so you can pass on your first attempt. You may lose months of potential employment by having to retake the exam.
- Plan of Action. A plan of action will help you organize your study time effectively and efficiently. A SIE exam study guide or online training program will provide you with the study tools and materials to succeed.
Learn more about how to study for the SIE exam here.
Are SIE study aids worth the investment?
Many people find the SIE exam challenging. Using the right online preparation tool provides the best opportunity for passing the SIE exam.
Why should I trust ExamFX to help me pass the SIE exam?
We have a proven track record of offering user-friendly, innovative eLearning tools to help students pass the SIE exam. ExamFX is considered a leader in licensing training by offering its customers the most innovative study tools and learning formats. In fact, we have helped over 6 million people prepare for career-changing exams.
If you are ready to take the next step by preparing to pass the SIE exam on the first try, contact ExamFX today.
FAQs
Is ExamFX good for Sie? ›
Investopedia recently rated ExamFX the “Best Overall” Securities Industry Essentials (SIE) Exam Prep over six of the industry's leading training providers. We earned this rating as a result of our exceptional study tools included in our product offering.
What does the SIE exam consist of? ›The Securities Industry Essentials (SIE) exam assesses a candidate's basic knowledge of the securities industry. The exam focuses on industry terminology, securities products, the structure and function of the markets, regulatory agencies and their functions, and regulated and prohibited practices.
How many questions is the SIE exam? ›...
Content Outline.
| Sections | Percentage of Exam Questions | Number of Exam Questions |
|---|---|---|
| TOTAL | 100% | 75 |
- Tip #1: Read the Full Question. ...
- Tip #2: Watch for Hedge Clauses. ...
- Tip #3: Look for Keywords and Phrases. ...
- Tip #4: Interpret the Unfamiliar Questions. ...
- Tip #5: Use Information from Prior Questions. ...
- Tip #6: Define What is Being Asked. ...
- Tip #7: Use a Calculator.
While the SIE is considered an introduction to the financial industry, the exam is not easy. Many testers pass on their first attempt, but some may need two tries.
How long should I study for SIE? ›Studying for the SIE Exam
Achievable Blog recommends studying for 20 to 50 hours and for approximately two months. However, if you have experience in the field, you can expect your study time to be less than that. Review the FINRA content outline to get a full understanding of the test's structure and content.
Remember, the SIE exam focuses on reading comprehension. Students can expect very few calculations on their exam. Many students report only seeing one or two calculation items.
Is the SIE exam open book? ›Besides, the SIE is not an open-book exam. As a result, FINRA takes some steps to ensure that test-takers are honest. You will need: A movable camera OR an undocked laptop with a large free-standing mirror.
How many people fail the SIE exam? ›If you're taking the FINRA Securities Industry Essentials (SIE) exam, you might be wondering about the passing rate. And you probably want to know how hard the exam is. Although more than three-quarters of those who sit for the SIE exam end up passing it, it's still challenging.
How can I pass Sie exam on first try? ›- No. 1: Study. ...
- No. 2: Study the right material. ...
- No. 3: Use practice tests. ...
- No. 4: Get help if necessary. ...
- No. 5: Understand what you're studying. ...
- Get the help you need from Securities Training Corporation.
How many people pass the SIE the first time? ›
The passing score for the SIE exam is 70%, but will be adjusted to equalize the specific mix of questions each candidate faces. This way everyone tests on a level playing field. The average rate at which candidates pass the SIE on their first try is 74%.
What is sie pass rate? ›With an average pass rate of 74%, the SIE exam difficulty is very challenging. For a passing pass rate score, candidates must answer 53 out of the 75 questions correctly. Individuals who are 18 or older are eligible to take the SIE FINRA exam.
What is the hardest part of the SIE exam? ›Annuities. Another of the SIE Exam hardest sections is that of Annuities. This might also come as an unsurprising revelation. Quite frankly few young people know how annuities work, because they don't need them (or they have yet to think about retirement).
Is there a study guide for the SIE exam? ›Securities Industry Essentials (SIE) Study Guide
The ExamFX SIE Study Guide includes everything candidates need to know to pass their qualification exam. Study Guide can be added to any SIE package during checkout.
On the Essentials Exam there is no way for you to skip questions. It's computer generated exam that requires an answer before you can continue.
How many questions do you need to get right to pass the SIE? ›With 75 questions and a required score of 70%, the SIE exam doesn't offer a large margin for error (in order to pass you must correctly answer at least 53 out of the 75 questions) in the hour and 45 minutes.
Can I bring a calculator to the SIE? ›The SIE Exam pass rate is 70% The SIE Exam cost is $60 and is paid directly to the testing center. You cannot bring in anything with you—pen, pencil, calculator, cell phone, smart watch, paper—everything is prohibited.
Is the SIE multiple choice? ›The SIE exam is a computer-based test with 75 multiple-choice questions and 10 pretest questions. Test-takers must provide a valid government-issued ID, which includes a signature and photograph. Examples include an active passport, driver's license or military ID.
Is an Sie license worth it? ›The SIE will give you points for initiative and will prove to an employer that you're serious about making a career change. It also shows your potential for success in passing exams, which is required for many financial careers.
Does the SIE tell you your score? ›Once you complete the exam, your unofficial results will be displayed on the computer screen explaining whether you passed or failed. It also will provide a score profile indicating your performance on the major areas of the exam. You will also get a printout of your results from the exam center.
What grade do you need to pass the SIE? ›
The SIE exam itself is composed of 75 questions, takes an hour and 45 minutes to complete, and a passing grade is 70 or above.
Can you get a job with an Sie? ›The SIE is a stepping stone, not a job qualification.
The SIE exam is just one of many steps you'll need to take to get hired. Passing the SIE exam before applying to firms shows recruiters that you're motivated and serious about the financial industry, and that you've taken education into your hands.
Once you have passed the SIE exam, you must complete the series 6 top off exam in order to become fully licensed to sell investment company securities and variable annuities. Keep in mind that unlike the SIE exam you must be sponsored and employed by a FINRA member firm.
What happens if I fail the SIE? ›There is a 30/30/180-day rule with respect to the SIE and other FINRA exams. This means that you must wait 30 days after the first time you fail, and another 30 days if you fail again. If you fail a third time or more, you'll have to wait 180 days to retake the exam.
What should I be scoring on SIE practice exams? ›What score should I aim for on my practice exams? A passing score (70% or above) is always a good place to start. However, we recommend aiming higher. If you've averaged a 70% on your last several practice exams, you have a good chance of passing the exam.
How many times can I take the SIE? ›After the first and second failed attempts, there is a 30-day waiting period. After the third failed attempt, there is a 180-day waiting period. For any attempts after the third attempt, there is also a 180-day waiting period between each exam attempt. 3.
How long does it take to get SIE results? ›Within three business days, your test results will be validated, emailed to the address provided at the time of scheduling and posted to FINRA's systems.
How long does it take to study for SIE and Series 7? ›When preparing to take the Series 7 exam, you should plan to study for 125-150 hours. Typically, candidates study over the course of 4-6 weeks. The time you need to spend preparing for the exam varies depending on your familiarity with the material.
Is the SIE exam curved? ›The SIE exam, like other FINRA exams, is presented in a bell curve. Exams presented in this manner should start with easier questions, move to more challenging questions, and end with easier ones. However, we recommend taking the exam with no expectations concerning question difficulty.
Can you go back to questions on the SIE exam? ›If you choose to take the exam in a testing center, you can navigate back and forth between questions. That means you can go back to a question if you want to change your answer. If you take the exam remotely, you are unable to go back.
What if you fail the Series 7 twice? ›
A candidate can take the Series 7 exam as many times as they like; however, for the first three times, the candidate has to wait 30 days before trying again; after the first three attempts, the candidate has to wait six months.
What is the SIE exam pass rate? ›What Is the Pass Rate for the SIE? The passing score for the SIE exam is 70%, but will be adjusted to equalize the specific mix of questions each candidate faces. This way everyone tests on a level playing field. The average rate at which candidates pass the SIE on their first try is 74%.
What does the SIE license allow you to do? ›Essentially, a person who passes the SIE Exam is assuring clients that they have a foundation of knowledge that will continue to grow stronger. After passing the SIE Exam, you'll need to take and pass a qualification (Series) exam, which permits you to sell certain securities or to work in specialized areas of a firm.
How many times can you take the SIE exam? ›After the first and second failed attempts, there is a 30-day waiting period. After the third failed attempt, there is a 180-day waiting period. For any attempts after the third attempt, there is also a 180-day waiting period between each exam attempt. 3.
What score do you need to pass the SIE exam? ›SIE Exam Success Guide
The exam consists of 75 multiple-choice questions and candidates are allotted 105 minutes to complete it. The minimum required passing score is 70%.
The SIE is a stepping stone, not a job qualification.
The SIE exam is just one of many steps you'll need to take to get hired. Passing the SIE exam before applying to firms shows recruiters that you're motivated and serious about the financial industry, and that you've taken education into your hands.
No. FINRA does not require sponsorship with a firm to sit for the SIE exam. However, to become registered with FINRA and seek a representative level role with an employer, candidates must also pass a revised, specialized knowledge qualification exam (or "top-off"), applicable to their job function with the firm.
Is the SIE a license or certification? ›The SIE license ensures that individuals new to the industry have gained basic concepts such as the products offered, overview of the securities markets, prohibited practices and regulatory agencies. The four key components to the exam are: Knowledge of capital markets.
How easy is the SIE exam? ›With an average pass rate of 74%, the SIE exam difficulty is very challenging. For a passing pass rate score, candidates must answer 53 out of the 75 questions correctly. Individuals who are 18 or older are eligible to take the SIE FINRA exam.
How long is sie hard? ›With 75 questions and a required score of 70%, the SIE exam doesn't offer a large margin for error (in order to pass you must correctly answer at least 53 out of the 75 questions) in the hour and 45 minutes.