Series 6 vs. 7: Which test fits your career?

Series 6 or Series 7? This is a common crossroads for newcomers to the securities industry who are wondering which securities license to pursue. Obtaining either the Series 6 license or the Series 7 license will qualify you as a registered representative with the Financial Industry Regulatory Authority (FINRA). However, the options these licenses provide, the types of securities you can handle, and the overall challenge and content of each exam differ significantly.

In this post, we’ll thoroughly compare the Series 6 license and the Series 7 license, highlight key similarities and distinctions, and help you determine which exam is the right choice based on your professional goals and desired career path in financial services.

What do the Series 6 and Series 7 exams allow you to do?

The Series 6 license is designed for financial professionals who want to discuss and trade a limited range of securities products. Passing the Series 6 exam qualifies you to offer and transact in the following securities:

• Mutual funds
• Variable contracts. such as annuities and variable life insurance policies
• Unit investment trusts (UITs)
• Municipal fund securities, including popular options like 529 college savings plans

With a broader focus, the Series 7 is known as the “jack of all trades” among securities sales licensing exams. Obtaining a Series 7 license authorizes representatives to discuss and trade almost any type of security on the market. This includes all of the Series 6 license products above, and adds a much wider variety of securities, such as:

• Corporate securities (including both equity and debt instruments)
• Government securities (U.S. Treasuries, agency bonds)
• Derivative products (rights, warrants, and options)
• Exchange-traded funds (ETFs)
• Real estate investment trusts (REITs)
• Direct participation programs (DPPs)
• Venture capital funds
• Hedge funds

Choosing between the Series 6 license and the Series 7 depends on which financial products you plan to offer clients and the scope of services you wish to provide as a registered representative.

What do the Series 6 and Series 7 exams have in common?

Common requirements

The Series 6 and Series 7 exams are both Top-Off Exams administered by FINRA that are required to be fully licensed to sell securities. Candidates cannot take either exam unless they are associated with and sponsored by a FINRA member firm or other applicable self-regulatory organization (SRO) member firm. For more information on registration requirements, refer to FINRA Rule 1210.

The FINRA SIE Exam is a prerequisite to both exams, typically taken before the Series 6 or Series 7 Top-Off Exam. Candidates must pass both their Series 6/7 exam and the SIE exam to obtain their license. You do not need to be sponsored to sit for the FINRA SIE exam, so you can take it before applying for finance industry jobs. If you haven’t taken the FINRA SIE exam yet, Achievable offers a great FINRA SIE Exam prep course with industry-leading pass rates.

Both exams are administered by Prometric Test Centers nationwide. You cannot sit for these exams online or take them in another testing location. Candidates are not permitted to bring reference materials to their testing session for either exam.

Common content

The Series 6 and Series 7 exams both cover the types of securities that you’re allowed to sell with your Series 6 license, which are: mutual funds; variable contracts (annuities and life insurance); unit investment trusts (UITs); and municipal fund securities (e.g., 529 plans).

Both of these exams have a lot of dry, legalese information to keep track of, which is why re-reviewing the material you’ve already learned is essential as you study. The math itself in each exam isn’t too difficult (no advanced math like Calculus), but applying it is tricky. They both require you to know the rules for making calculations related to the security types listed above.

What are the key differences between the Series 6 and Series 7 exams?

Series 6 vs. Series 7 key stats

The most important difference between the two exams is their scope. The Series 7 exam is much longer and larger than the Series 6 exam:

As you can see, the Series 7 exam has 2.5 times more questions (125 vs. 50) and is over twice as long (3 hours 45 minutes vs. 1 hour 30 minutes). It is also four times more expensive to take than the Series 6 exam ($300 vs. $75).

The Series 6 exam also contains 5 unscored, unidentified experimental questions that do not count towards your score, but are included in the exam randomly. The Series 7 contains 10 of these unscored questions.

Series 6 and Series 7 exam difficulty and pass rates

The Series 6 exam is moderately difficult, with a recommended study time of 30-60 hours. The Series 7 exam is more challenging and typically takes much longer to both prepare for, with a recommended study time of 75-125 hours.

The Series 7 exam is considered more difficult than the Series 6 exam due to its length, the high prevalence of suitability (recommending the most suitable securities products to the customer) questions, and complex math, such as options hedging strategies. Many of the calculations require dedicated practice to be done correctly and consistently, even after understanding the relationships and rules.

While FINRA does not publish the national Series 6 pass rates, the most recent data they shared showed a pass rate of 58% for first-time test takers. Large corporations with dedicated programs typically have a higher pass rate.

Similarly, FINRA does not publish the national Series 7 pass rates, but they are widely accepted in the industry to be approximately 65%. Large corporations with dedicated programs typically have a higher pass rate of 75% - 85%, depending on the program.

Try some Series 7 exam questions to get an accurate representation of how difficult they are and how your current knowledge stacks up.

While at face value, this may make it seem like the Series 7 is the easier exam to pass, that is not the case. Instead, the likely difference between these two tests is who is taking them. The Series 6 is demonstrably the easier exam, so there may be less rigorous corporate training programs, less qualified candidates taking the test, or the people taking the exam may simply be more likely to come from non-finance sales roles. Whatever the root cause, the Series 7 is still significantly more difficult than the Series 6.

What does the Series 6 exam cover?

The FINRA Series 6 Investment Company and Variable Contracts Products Representative Exam, commonly known as the Series 6 exam, is a highly sought-after entry-level licensing exam within the finance industry, especially for those pursuing careers in insurance and mutual funds. Earning a Series 6 license allows professionals to sell mutual funds, variable annuities, unit investment trusts, and certain insurance products, making it a fundamental credential for individuals entering these financial services sectors.

According to the official FINRA Series 6 exam outline, the Series 6 test content is structured into four distinct sections:

The Series 6 exam comprehensively addresses a range of topics pivotal to the financial industry. Exam candidates should expect to be tested on mutual funds, variable annuities, investment company products, retirement plans, tax considerations, federal securities regulations, and basic securities fundamentals. Special emphasis is placed on suitability, helping ensure that Series 6 representatives make appropriate recommendations based on clients’ needs, though this focus is not as pronounced as it is on the more advanced Series 7 exam.

Overall, successfully passing the Series 6 exam is a crucial step for aspiring representatives who wish to specialize in mutual funds and variable contracts within the regulated finance sector.

What does the Series 7 exam cover?

The FINRA Series 7 General Securities Representative Exam (commonly known as the Series 7 exam) is a widely recognized licensing exam administered by FINRA. Earning a Series 7 license empowers financial professionals to solicit, purchase, and sell a comprehensive range of securities, including stocks, bonds, mutual funds, exchange-traded funds (ETFs), real estate investment trusts (REITs), unit investment trusts (UITs), municipal securities, government securities, and more. With the Series 7 license, representatives are authorized to engage in all major securities activities as outlined by FINRA (see Permitted Activities).

The scope and subjects tested in the Series 7 exam are organized into four principal sections, as defined by the official Series 7 outline published by FINRA:

The Series 7 exam evaluates your knowledge of essential securities products, industry regulations, ethical considerations, and financial terminology. A significant focus is placed on suitability, a key concept for identifying appropriate investment recommendations for each client’s financial goals and risk tolerance. Passing the Series 7 exam demonstrates deep competency with all key securities products and regulations that govern transactions involving stocks, bonds, and related investment vehicles.

Notably, although the core topic categories for both the FINRA Series 6 and Series 7 exams appear similar in section titles, the Series 7 license requires a higher level of competency. Compared to the Series 6 exam, the Series 7 exam places greater weight on advanced securities knowledge and suitability analysis through a larger number of questions and a fundamentally different ratio across topics. This distinction underscores the broader permissions held by individuals who obtain a Series 7 license versus those holding only a Series 6 registration.

Should I take the Series 6 or Series 7 exam?

Your employer will often determine whether you pursue the Series 6 or Series 7 license, based on the types of investment products you plan to offer clients. When considering Series 6 vs. a Series 7, the choice frequently comes down to your role and the securities you’ll be selling. The Series 6 license is commonly held by professionals such as qualified plan administrators (for example, those managing 401(k) plans) and insurance company employees. By contrast, the Series 7 is standard for those working at brokerage firms and full-service securities companies.

If you have a choice between the Series 6 vs. Series 7, consider the following factors:

• Difficulty. The Series 7 exam is recognized as being significantly more difficult than the Series 6 exam. Series 7 includes a wider array of topics, is more than twice the length of Series 6, and poses challenging questions on subjects that are far less prominent in the Series 6 license exam.
• Job function. The job functions covered by the Series 6 and Series 7 licenses differ substantially. Earning a Series 6 license authorizes you to sell a limited range of securities, while the Series 7 license allows you to sell virtually all types of securities.
• Marketability. Choosing between the Series 6 vs. Series 7 can impact your professional marketability. Because the Series 7 credential encompasses a broader scope of securities activities, it is required by a larger number of securities firms compared to the Series 6. Holding a Series 7 license on your resume demonstrates that you have passed a more rigorous exam and are qualified for a broader range of positions, which enhances your appeal to potential employers.
• Future career. The Series 7 license generally provides more expansive career opportunities compared to the Series 6. Holding the Series 7 increases your eligibility for roles that require a broader knowledge of securities and is also a prerequisite for advanced FINRA exams like the Series 9/10 General Securities Sales Supervisor or the Series 24 General Securities Principal exams.

While these points often highlight the advantages of obtaining a Series 7 over a Series 6 license, it’s important to recognize the difference in exam difficulty between Series 6 and Series 7. Many professionals still opt for the Series 6 if its scope aligns with their current job requirements and long-term goals in the financial industry.

Why do some financial advisors take both the Series 6 and Series 7 exams?

The Series 7 license encompasses the full range of topics included on the Series 6 exam, making the Series 6 vs. Series 7 comparison important for those planning their licensing path. If you sit for and pass the Series 7 exam, you will not need to separately obtain a Series 6 license, as the Series 7 credential meets or exceeds the regulatory requirements covered by the Series 6. However, because the Series 7 license exam is more rigorous and covers a broader set of securities and regulations, many financial advisers at mutual fund or insurance firms opt to begin with the Series 6.

Earning a Series 6 license provides new advisers with the exact qualifications needed for roles focused on mutual funds, variable annuities, and insurance products. Firms of this type typically offer training programs and courses specifically tailored to help new hires successfully complete the Series 6 examination.

After securing your Series 6 license, you have the flexibility to pursue the Series 7 license in the future if you wish to broaden your professional opportunities or expand the range of securities products you are permitted to sell. This progressive approach allows advisers to gain valuable industry experience and meet immediate job requirements while preparing for the more demanding Series 7 exam at their own pace. Many advisers appreciate this path, as it enables them to continue working and fulfilling their responsibilities with a Series 6 license before taking on the added challenge of the Series 7 exam when it aligns with their career goals.

How do I study for the Series 6 or Series 7 exams?

Passing your Series 6 or Series 7 exam is a serious endeavor, and it will not come easily without you putting in the work. While some firms will offer you the ability to take live classes or a structured program, the majority of firms ask you to prepare on your own. For that, you should use a trusted self-service online program as the cornerstone of your studies. Online programs offer far more convenience and functionality than books, and options like tutoring and boot camps are best utilized once you already have a foundational understanding of the material. You should choose a prep program that fits your schedule and learning style to give you the best chance for success.

Closing

Passing the Series 6 and Series 7 exams can open significant doors in the finance industry, giving you the authority to sell a broad range of investment products. The Series 6 is often seen as a stepping stone to a Series 7, allowing professionals to gain experience in selling a limited number of securities before being qualified to transact more complex options. Before embarking on the licensing process, make sure you understand the rights granted by each Top-Off exam to see which one is right for your career goals. Be sure to leverage your sponsoring firm’s resources and quality Series 6 or 7 study materials to round out your preparation.

Study for the Series 6 or Series 7 exams with Achievable

A proven online program like Achievable’s Series 6 exam prep course and Series 7 exam prep course is an excellent option for your studies:

• Industry-leading pass rates: Our pass rates for our Series 6 and Series 7 customers are far above the national average and above the published averages of other vendors.
• Easy to understand: We have written our content in an easy-to-understand way that uses real world examples to help make the math and legalese of the FINRA Series 6 and 7 exams approachable to anyone.
• Optimizes your memory: Our advanced learning algorithm continually optimizes your review schedule to maximize your memory retention and exam readiness over time, focusing on improving your weak areas and giving you certainty that you’re ready to pass the test.
• Tons of practice exams: Our Series 6 and Series 7 programs each contain 35+ unique practice exams, ensuring that you have all the material you need to be completely prepared on test day.
• Study anywhere: Our program is accessible on any device, so you can study on your commute, at the gym, or on lunch break – wherever is convenient for you.
• We offer an industry-leading Pass Guarantee to all customers.

It’s no wonder that reps love our FINRA courses.