Ace the Series 7: Your ultimate study guide

Picture this: you’ve completed the SIE (Securities Industry Essentials) exam and are now gearing up to become a General Securities Representative. To obtain your license, the first step is passing the challenging Series 7 exam. While this test is known for its complexity, you can master it by leveraging your existing knowledge and using effective Series 7 exam prep strategies.

Our Series 7 Study Guide below features the best Series 7 study materials designed to help you succeed on exam day. You’ll also discover tips and tricks that will boost your confidence and maximize your chances of passing. Let’s get started with a breakdown of what’s on the Series 7, followed by expert guidance on how to approach your preparation.

How hard is the Series 7?

As one of FINRA’s most comprehensive and challenging qualification exams, the Series 7 is designed to assess the competency of financial professionals taking the next step to become a stockbroker or account executive. The Series 7 pass rate is around 71%, with first-time test takers achieving a lower pass rate of just 64%. For comparison, the first-time pass rate of the SIE is over 70%. These statistics highlight the complexity of the Series 7 exam, which assesses candidates’ knowledge of various financial instruments, advising responsibilities, and regulatory requirements. The Series 7 grants licensees the right to transact a comprehensive list of securities, from investment company products to variable contracts.

What’s on the Series 7?

The Financial Industry Regulatory Authority (FINRA) administers the Series 7 Top-Off, which is a 135-question exam. 10 of the questions are considered “experimental” and do not count towards your grade. In total, 125 questions will count toward your final score. The test is broken down into these categories:

This chart may vary slightly based on how the content of your specific book lines up with the FINRA syllabus, but this rubric is a great starting point.

Now, digging into the content by sub-topic, you can get much more specific about what to expect. Let’s analyze the sections, starting with the largest:

Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records

91 questions: 73% of the exam

The vast majority of this exam will come from this section. It’s safe to say that you will not pass the Series 7 Top-Off unless you have a firm grasp of the concepts in this category.

The main focal point of this section is suitability, which involves making proper investment recommendations to customers. An understanding of the benefits, risks, and typical investors of financial products is required. The most commonly tested securities (financial products) are:

• Equity securities (common and preferred stock)
• Exchange-traded funds
• Exchange-traded notes
• Debt securities (bonds)
• Options
• Investment companies (for example: mutual funds)
• Direct participation programs
• Hedge funds

While the SIE tested the basics and fundamentals of these products, the Series 7 Top-Off will go further down the rabbit hole. The questions will be more complex and difficult to answer. It will be common for questions to provide various aspects of a customer’s financial situation and ask for the best possible recommendation.

Additionally, many rules and regulations govern financial professionals and their interactions with customers. There’s a long history of unethical and illegal activity in the financial markets. To avoid the mistakes of the past, you will be required to understand what the rules and regulations are and how they’re implemented.

Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions

14 questions: 11% of the exam

This section is all about the actual actions that must occur when a security is bought or sold. Transparency is key, and customers must fully understand the situations they’re in and how to navigate them. The test will inquire about a number of items, including:

• Types of transactions
• Types of accounts
• Order types
• Market dynamics and functions
• Market rules and regulations
• Customer disputes and complaints

Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives

11 questions: 9% of the exam

Once you get someone to agree to have you manage their investments, you will need to know the protocols for establishing relationships with customers. This section covers that topic and what rules and regulations need to be followed. This will include:

• Paperwork requirements to open accounts
• Types of customer accounts
• How to understand a customer’s financial situation
• Approvals required to open accounts
• Required disclosures to customers

Seeks Business for the Broker-Dealer from Customers and Potential Customers

9 questions: 7% of the exam

Do you ever wonder what rules you must abide by while soliciting business from a customer? This category covers the rules and regulations of prospecting. This is the smallest category of the four, but there are dozens of topics that FINRA may test you on. These may include:

• Communications with the public
• Research reports
• Investment advertising
• Prohibited discussions with customers
• Supervisory requirements for discussions with customers

Bonus: Experimental questions

The Series 7 exam you take to earn your Series 7 license consists of 135 questions, including 10 “experimental” questions that do not count toward your final score. When taking the exam, remember that these trial questions are mixed with randomly scored questions. Answer each question carefully and maintain your confidence throughout the test. This highlights why it’s important to move on from questions where you feel stuck, a winning test-taking strategy. By practicing these techniques, you’ll be better equipped to succeed on the Series 7 exam and earn your Series 7 license.

How to study for the Series 7 Top-Off exam

Review exam requirements.

Before beginning your preparation, there are certain eligibility requirements you must meet to be able to sit for the Series 7 exam:

1. Age: You must be at least 18 years old.
2. SIE Exam: If you haven’t already, you must pass the Securities Industry Essentials (SIE) exam. This exam can be taken without sponsorship and is your gateway into the financial industry.
3. Sponsorship: You cannot register for Series 7 on your own; you must be sponsored by a FINRA-member firm or a self-regulatory organization (SRO). Therefore, employment in the financial industry is a necessary condition for the Series 7.
4. Form U4: The Uniform Application for Security Industry Registration or Transfer (Form U4) is filed by the sponsor on your behalf. This form registers you with FINRA and triggers the background check and fingerprinting processes.
5. Exam fee: Once you’ve completed the prerequisites, you must schedule your exam at a Prometric test center near you and pay the requisite fee of $300.

Analyze the content and rate your knowledge

When preparing for the Series 7 exam, make sure to review each section using reliable Series 7 study materials before finalizing your plan. Work through a few practice questions from every section to identify your strengths and areas needing improvement. You’ll likely notice which topics on the Series 7 exam require additional focus. Track your confidence level for each section as you go. Taking a comprehensive Series 7 practice exam is an excellent way to assess your current readiness and fine-tune your Series 7 exam prep strategy.

Prepare a study schedule

Give yourself a time budget for how many hours you plan to dedicate to your Series 7 exam prep between today and test day. Be realistic: Setting an achievable schedule is key to effective utilization of Series 7 study materials. As a guideline, most Series 7 study materials and prep courses recommend allocating around 100 hours to thoroughly master the content. If you’ve already reviewed much of the material and are now focusing on your final review, about 20 hours of targeted Series 7 exam prep is often sufficient.

Once you have determined your total study hours, divide your time based on two important factors: your confidence level with each exam section, and the weight of each section on the actual Series 7 exam. Prioritize your Series 7 exam prep by spending more time on high-value topics where you have the greatest opportunity to improve. This strategy ensures you maximize your score impact within your available time budget, making the most of your Series 7 study materials and preparation efforts. Achievable makes it easy to plan a Series 7 study schedule based on your needs, experience, and time constraints with our dynamic study planner.

Study schedule? I have no time!

But wait, what if I’m far behind and the test is in a few days? You will be happy to hear that you can, in fact, get through more content than you think. In controlled studies, most students see a drop-off after studying for more than three hours in a row, but with just an hour break, they can study another three hours with similar success. This doesn’t make for the best results, but it can do in a pinch.

Use quality study materials

Make sure you’re using a Series 7 textbook and course plan complete with review questions and guided instruction. A tutor with expertise in the Series 7 exam can help guide you through challenging concepts and hold you accountable to your study plan. Use flash cards, Series 7 “cheat sheets,” and videos to review and reinforce key exam topics. Select a study program that offers a wide range of resources and includes a pass guarantee, ensuring your chosen platform fully prepares you for success. Get a head start on your prep by exploring Achievable’s library of Series 7 resources, including dozens of free videos, podcast episodes, and reference sheets.

Practice under real conditions

One of the best test preparation strategies is using realistic practice exams and questions under timed conditions. This crucial studying practice will help you become familiar with the format of the test and find out if you’re able to answer all the required questions in the allotted time.

The Series 7 exam is taken over 3 hours and 45 minutes, giving you about a minute and two-thirds to answer each question. You’ll need a complete grasp of the material on the test, familiarity with question wording, and the ability to apply your knowledge quickly to succeed. As you study, keeping an error log of your mistakes and revisiting key topics at the end of each week will help you find and address any weak spots.

Prepare for exam day

On the day of the exam, don’t forget to bring a valid government ID such as a driver’s license or passport. Arrive at the test center 30 minutes before your scheduled exam time to ensure a smooth check-in process. Avoid cramming for the exam the night or morning before: quickly scan over your review materials, get a good night’s sleep, and stay calm and focused during your assessment.

Series 7 retake policy

If you don’t pass the Series 7 your first time, you’ll have unlimited attempts to take it again. For the first three attempts, you’ll have to wait 30 days before retakes. Afterward, you will be unable to retake the test for six months. If your test doesn’t go as planned, use that opportunity to refine your study technique and practice before you try again.

Registering your license

After passing the exam, the next step to obtaining your Series 7 license is registering it with your sponsoring broker-dealer, which makes your registration official with FINRA. Keep in mind that if you don’t register within two years of passing, you’ll need to retake the exam to become licensed. Once your sponsoring firm has your results and the registration is complete, your Series 7 license will remain valid as long as you are employed by or affiliated with that firm. Maintaining this association is necessary to keep your eligibility as a general securities representative valid.

Final thoughts

FINRA licensing and taking Top-Off exams are key components of the finance career trajectory. Preparing for the Series 7 exam may feel overwhelming, but with the right approach, you can develop a study plan that covers the material thoroughly. Consistent study over several weeks, paired with regular review of what you’ve learned, leads to the best results. With a solid strategy, you’ll be well-positioned to pass the Series 7 on your first attempt and earn your General Securities Representative license.

Achievable has excellent prep courses for the FINRA Series 7 Top-Off exam or FINRA SIE exam. Try them for free and see if they’re right for you.