Enhance your finance resume with the SIE

College graduation marks the beginning of new and exciting finance career paths, but it can also be a stressful period filled with uncertainty. As graduates celebrate their achievements with family and reflect on memorable experiences with friends and classmates, most face the challenge of navigating the competitive job market. The transition from student life to landing a full-time role often stirs concerns about employment prospects and the steps required to launch a successful finance career.

In today’s highly competitive environment, companies offering entry-level finance jobs receive hundreds, sometimes thousands, of resumes for just a few positions. Standing out among applicants is essential, especially for business and finance graduates seeking to kick-start their careers. Passing the Securities Industry Essentials (SIE) exam is one of the best ways to improve your chances of securing a sought-after position in finance and open doors to a wide range of jobs.

What is the SIE?

Introduced by the Financial Industry Regulatory Authority (FINRA) in 2018, the SIE exam serves as an introductory licensing test for aspiring professionals entering the securities industry. Successfully passing this foundational FINRA exam is necessary to obtain proper licensing and work with financial institutions for roles involving securities like stocks, bonds, and mutual funds.

Beyond being a prerequisite for several positions, the SIE exam provides a valuable introduction to key financial concepts. It covers important areas such as different financial products like stocks, options, and bonds; understanding market dynamics; evaluating investor suitability; and navigating securities regulations. While the exam offers broad coverage of crucial topics, it is designed to give candidates a general overview rather than an in-depth analysis.

Before the SIE exam was implemented in October 2019, individuals aspiring to work in finance had to be sponsored by their prospective employers to begin their licensing journey. This meant employers took responsibility for both training and licensing processes.

Today, expectations have shifted: employers now look for candidates who have independently studied for and passed the SIE exam before submitting applications for finance jobs. There is no sponsorship requirement; anyone can register for the exam for a $80 fee. Test-takers are given 1 hour and 45 minutes to complete 75 multiple-choice questions. The first-time pass rate stands at around 74%, indicating that while the exam is challenging, motivated candidates can usually prepare and succeed within 2 - 4 weeks using quality study materials.

What is the SIE used for?

Numerous jobs in finance require candidates to pass the SIE exam to conduct business. Here are several examples of SIE jobs commonly available to qualified applicants:

• Financial advisor
• Private wealth associate
• Client relationship associate
• Research associate
• Trading representative
• Financial services consultant
• Equity research associate
• Social media compliance analyst
• Relationship banker
• Investment banking analyst

For certain finance career paths, job postings might not explicitly state completing the SIE as a requirement. Some large investment firms may hire top-tier candidates lacking the SIE, even providing paid study time to obtain it post-hire. However, these exceptions typically apply only to highly competitive profiles. For most job seekers aiming for entry-level finance jobs, passing the SIE exam beforehand remains critical.

Why you should take the SIE

There are two main advantages to passing the SIE exam prior to employment:

First, candidates save employers valuable time and resources by obtaining the SIE in advance. Since SIE study programs typically take 2 - 4 weeks, hiring employees who have passed the exam eliminates weeks of unproductive time and reduces upfront costs. Without having the SIE credential, new hires cannot participate fully in securities transactions or offer recommendations, often relegating them to basic administrative roles. Those who have completed the SIE can quickly move into substantive positions, shortening onboarding time and benefiting both employer and employee.

Second, successfully passing the SIE exam demonstrates to hiring managers a candidate’s commitment and capability to master complex financial concepts. One of the biggest challenges for large brokerage firms, including industry leaders such as Fidelity, Charles Schwab, and Vanguard, is investing resources in employees who may ultimately fail required FINRA licensing exams. Despite thorough screening processes, many new hires struggle with these exams each year and face termination as a result. Candidates who possess the SIE have already proven their ability to prepare for and excel at demanding financial assessments, making them far more appealing in a crowded talent pool.

Key takeaways

Passing the SIE exam before applying not only saves organizations significant amounts of money and training time but also signals readiness and dedication to employers. Attaining this foundational credential dramatically increases your chances of being hired for competitive finance jobs. Even for finance career paths where the credential may not be immediately required, employers view SIE holders favorably and assume they have a strong drive and financial acumen. Business and finance students would be wise to pursue the SIE exam ahead of graduation and take full advantage of enhanced employment prospects within the financial industry.

Ready to take the next step?

If you’re preparing for the SIE exam and want to get a sense of what to expect, try a free SIE practice exam to review sample questions and assess your readiness. Understanding how to study for the SIE exam is crucial for success, and comprehensive test prep resources can make all the difference. Whether you need focused study materials for the Securities Industry Essentials (SIE) exam or are also preparing for the Series 7 exam, you’ll benefit from Achievable’s modern, online courses. Each Achievable course offers a user-friendly online textbook with practical examples, thousands of interactive quizzes, and multiple full-length practice exams to support your SIE exam preparation. Join the thousands of aspiring professionals we’ve helped study for the SIE and take the next step in your financial career.