SIE vs Series 7
Which should you take first?
Take the SIE first. Anyone 18 or older can sit for it without a sponsoring firm, while the Series 7 requires sponsorship by a FINRA member firm and the SIE as a co-requisite. Passing the SIE alone does not qualify someone for registration.
Side by side
| Fact | SIE | Series 7 |
|---|---|---|
| Questions | 80 items presented (75 scored, 5 unscored pretest); only the 75 scored items count toward the candidate's result | 125 scored questions (135 delivered, including 10 unscored pretest items) |
| Duration | 1 hour 45 minutes | 3 hours 45 minutes |
| Passing score | 70 | 72% |
| Prerequisites and sponsorship | None. Open to anyone age 18 or older; no association or sponsorship with a FINRA member firm is required to sit for the exam | Must pass the Securities Industry Essentials (SIE) exam as a co-requisite, and be sponsored by a FINRA member firm (or other applicable SRO member firm) to sit for the Series 7. |
| Who it's for | Anyone 18 or older, including students and career-changers, who wants to demonstrate baseline securities-industry knowledge to prospective employers. It is also a co-requisite for industry professionals: passing the SIE alone does not qualify someone for registration, but it must be paired with a specialized representative-level exam (e.g., Series 6 and 7) once sponsored by a member firm to become fully registered. | Entry-level candidates seeking registration as general securities representatives who will sell corporate securities, municipal securities, investment company products, variable annuities, options, direct participation programs, and government securities to customers. |
Source: SIE, FINRA exam details
Source: Series 7, FINRA exam details
How they differ
The SIE is open to anyone 18 or older with no firm sponsorship. The Series 7 requires passing the SIE as a co-requisite and sponsorship by a FINRA member firm.
- Eligibility
The SIE is open to anyone 18 or older; the Series 7 requires association with and sponsorship by a FINRA member firm.
- Purpose
The SIE is introductory; the Series 7 is the entry-level registered representative exam for a broad range of securities products.
- Length
The SIE has 75 scored questions in 1 hour 45 minutes; the Series 7 has 125 scored questions in 3 hours 45 minutes.
Sources
Sources checked
SIE
Securities Industry Essentials (SIE) Exam
Series 7
General Securities Representative Qualification Examination (Series 7)
What each exam covers
SIE
- Knowledge of Capital Markets16%
- Understanding Products and Their Risks44%
- Understanding Trading, Customer Accounts and Prohibited Activities31%
- Overview of the Regulatory Framework9%
Series 7
- Function 1: Seeks Business for the Broker-Dealer from Customers and Potential Customers7%
- Function 2: Opens Accounts After Obtaining and Evaluating Customers' Financial Profile and Investment Objectives9%
- Function 3: Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records73%
- Function 4: Obtains and Verifies Customers' Purchase and Sales Instructions and Agreements; Processes, Completes and Confirms Transactions11%
Keep going
- SIE exam details
- How to study for the SIE
- Series 7 exam details
- How to study for the Series 7
- SIE vs Series 6
- Series 7 vs Series 24
- Series 7 vs Series 6
- Securities representative licenses
- Do you need a sponsor to take the Series 7?
- Why bond prices and interest rates move opposite
- Current yield vs. yield to maturity, worked example
- Protective put breakeven, max loss and max gain
Wondering what comes after the SIE?
Anyone 18 or older can take the SIE without a sponsor. If you join Parsonex, the firm helps you prepare for the SIE, then sponsors the licence exams your role needs.