Series 7 vs SIE: what is the difference?
The SIE tests general securities industry knowledge and is open to anyone 18 or older. The Series 7 is the representative-level exam you take with a sponsoring firm. You need both to register.
Side by side
- Open to anyone 18 or older
- No firm sponsorship needed
- Basic knowledge: markets, products, trading, regulation
- A passing result stays valid for four years
- The corequisite for the Series 7 and other representative exams
- Requires sponsorship by a FINRA or other SRO member firm
- Job-focused: the four functions of a registered rep
- Deep on options, margin, munis and recommendations
- Longer exam with a higher pass mark
- With the SIE, qualifies you to register as a General Securities Representative
The format, compared
| SIE | Series 7 | |
|---|---|---|
| Scored questions | 75 | 125 |
| Time | 1 hour 45 minutes | 3 hours 45 minutes |
| Passing score | 70 | 72 |
| Sponsorship | Not required | Required |
| Prerequisite | None (age 18+) | SIE is a corequisite |
| Content | Four sections of general industry knowledge | Four job functions of a registered representative |
Check FINRA's website for current fees, unscored pretest items and scheduling rules before you book.
Where the points are
SIE content weights
Series 7 function weights
In what order should you take them?
3 sample Series 7 questions
See how the Series 7 goes beyond the SIE. Taken from the course; every option is explained.
A firm creates a retail communication promoting a family of open-end mutual funds. Unless an exclusion applies, when must it be filed with FINRA?
- The filing requirement does not depend on the fund's sales charge structure.
- Investment company retail communications are specifically subject to a filing requirement.
- Correct. Investment company retail communications are filed within 10 business days of first use.
- No 30-day pre-filing rule applies to mutual fund retail communications.
Who must approve a customer's account for options trading?
- OCC issues and clears listed options; it does not approve individual customer accounts.
- The servicing representative gathers information but cannot approve the account.
- Correct. A Registered Options Principal approves options accounts.
- Approval must come from a qualified principal, not any representative.
A market maker gives a firm quote of 20.10 - 20.25, 5 x 5. Another broker-dealer immediately hits the bid for 300 shares. What must the market maker do?
- The size is a maximum, not an exact amount. The dealer must honor any order up to the displayed size at the quoted price.
- Correct. A firm quote obligates the dealer to trade at the quoted price up to the quoted size (500 shares on each side). Hitting the bid is a sale to the market maker at 20.10.
- A firm quote needs no reconfirmation. Only a subject quote requires the dealer to confirm before trading.
- 20.25 is the offer, the price at which the dealer sells. A broker that hits the bid is selling to the dealer, so the bid of 20.10 applies.
Passed the SIE? Next: the Series 7
Four full-length Series 7 exams, 500 original questions, every option explained.
FAQ
Do I need both the SIE and the Series 7?
Yes, to register as a General Securities Representative. The SIE is a corequisite: FINRA requires you to pass both.
Can I take the SIE without a sponsoring firm?
Yes. The SIE is open to anyone 18 or older, with no firm association required. The Series 7 requires sponsorship by a FINRA member firm or another applicable SRO member firm.
How long is a passing SIE result valid?
FINRA says a passing SIE result is valid for four years.
Which exam is harder?
Most candidates find the Series 7 harder. It is longer, has a higher pass mark, and goes deeper into options, margin, municipal securities and recommendations.
Does passing the SIE let me sell securities?
No. The SIE alone does not qualify you for registration. You also need a representative-level qualification exam such as the Series 7, taken with a sponsoring firm.
More guides: Series 7 study plan · Series 7 options cheat sheet · Free Series 7 questions · all guides