What is the Series 7 Pass Rate

All one needs to pass the Series 7 Exam is 72%. You can re-take the exam if you fail, but will negatively affect your career if re-taken too many times.

The Financial Industry Regulatory Authority (FINRA) requires the Series 7 license exam to all fledgling brokers.

The Series 7 Pass Rate is 65 percent. And most firms often allow four months to prepare for the exam.

It’s a computer based test where “[n]o two candidates’ exams are identical, because the items comprising the exams are randomly selected from the bank of test items” (FINRA “Series 7 Content Outline“).

Currently (2016), the test consists of 260 multiple choice questions – ten of those being pre-test questions – that cover a number of relevant topics to the industry.

1) Job Functions Covered

Series 7 Pass Rate
Here’s what the test covers:

Other subjects this exam will cover include: 

  • Analyzing mutual funds
  • handling customer accounts
  • business cycle
  • political contributions
  • stock classification risks
  • retirement accounts
  • derivatives and several other topics.

Additionally, when taking your Series 7 exam, make sure you’re comfortable with the common terms used in the exam. You can look up and read the unfamiliar terms before sitting for the exam.

2) Series 7 Pass Rate

The Series 7 license test is often daunting to most students owing to the huge number of topics included. Again, even though the Series 7 Pass Rate is 65 percent, which is not very encouraging, continuous studying and understanding the various terms and principles covered in pre-test study materials will increase your chances of success.

Fortunately, those who fail have the ability to re-take the exam. However, you typically have to wait 30 days before re-taking it. After which a 90 day window is open for you to study and sit for the exam.

If you fail three times, you’ll then be required to wait 6 months in order to re-study and prepare for the test.

Also, since you’re required to have a sponsor (a FINRA – member firm or SRO), they’ll pay the $305 fee (was $290). However, you might be required to pay back the excess registration fees if re-taking the test often.

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3) What License Holders Can Do

The license allows the holder to sell these financial products:

  • Real Estate Investment Trusts (REITs)
  • Options-Equity, Index, and Foreign Currency
  • Investment Company Products/Variable Contracts
  • Corporate Stocks and Bonds
  • Municipal Securities
  • Direct Participation Programs
  • Exchange Traded Funds (ETFs)
  • Rights
  • Warrants
  • Collateralized Mortgage Obligations (CMOs)

After being licensed for 2 years, you’ll have 120 days to complete Continual Education (CE) requirements via the Regulatory Element to remain a license holder. After which, these steps must be repeated every 3 years for the remainder of your career.

Financial Industry Regulatory Authority FINRA Series 7 Pass Rate
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