Two Exams, One Career Path
In 2018, FINRA restructured its licensing exams and introduced the Securities Industry Essentials (SIE) exam as a co-requisite to the Series 7. Understanding how these two exams relate — and how to prepare for both — is essential for anyone entering the financial services industry.
What Is the SIE Exam?
The Securities Industry Essentials (SIE) exam is a foundational knowledge test that covers basic securities industry concepts. Unlike the Series 7, you can take the SIE without a firm sponsor — anyone 18 or older can register and sit for it.
The SIE covers four main areas:
- Knowledge of Capital Markets (16%): How markets work, types of securities, economic factors
- Understanding Products and Their Risks (44%): Equity, debt, options, packaged products, alternative investments
- Understanding Trading, Customer Accounts and Prohibited Activities (31%): Order types, account types, regulations
- Overview of the Regulatory Framework (9%): FINRA, SEC, SROs
What Is the Series 7?
The Series 7 — officially the General Securities Representative Qualification Examination — is the primary license for financial advisors who want to buy and sell securities on behalf of clients. You must be sponsored by a FINRA-registered broker-dealer to take the Series 7.
The Series 7 covers six main areas:
- Seeks Business for the Broker-Dealer (7%): Prospecting, client profiles
- Opens Accounts After Obtaining and Evaluating Customer Financial Profile (9%): Account types, suitability
- Provides Customers with Information About Investments (73%): The core of the exam — equity, debt, options, packaged products, retirement accounts
- Obtains and Verifies Customer Purchase and Sales Instructions (11%): Order types, trade execution
The SIE tests foundational knowledge — what securities are and how markets work. The Series 7 tests applied knowledge — how to actually serve clients, execute trades, and comply with regulations in a professional context. The Series 7 is significantly harder and more comprehensive.
Which Do You Take First?
Option 1: SIE First (Before Getting Sponsored)
Since you can take the SIE without a sponsor, many candidates pass it first to demonstrate commitment to potential employers. A passing SIE score is valid for 4 years, giving you time to find a sponsor and complete the Series 7.
Option 2: Both Together (After Getting Sponsored)
Most firms sponsor candidates for both the SIE and Series 7 simultaneously. You study for both at the same time and take the SIE first, then the Series 7 shortly after. This is the most common path.
Option 3: SIE Only (For Now)
If you're exploring the industry but not ready to commit to a firm, passing the SIE demonstrates seriousness and gives you a 4-year window to find sponsorship and complete the Series 7.
How the SIE and Series 7 Content Overlap
About 60–70% of SIE content overlaps with Series 7 content. This means studying for the Series 7 essentially prepares you for the SIE as well. The main areas where the Series 7 goes deeper:
- Options: The Series 7 has far more complex options questions than the SIE
- Municipal securities: More detailed on the Series 7
- Retirement accounts: More comprehensive on the Series 7
- Suitability and compliance: More scenario-based on the Series 7
Study Strategy: Preparing for Both Exams
Use a Series 7 Prep Course as Your Primary Resource
Since Series 7 content covers everything on the SIE and more, a good Series 7 prep course (Kaplan, STC, or Achievable) will prepare you for both exams simultaneously.
Take SIE Practice Exams Separately
The SIE has a different question style and emphasis. Take at least 3–5 full SIE practice exams before your test date.
Schedule SIE First, Series 7 Two Weeks Later
Most candidates schedule the SIE about 2 weeks before the Series 7. This gives you a confidence boost and keeps the material fresh.
Many candidates assume the SIE is easy because it's "just the basics." The pass rate is around 74% — lower than you might expect. Treat it seriously and prepare properly.
After You Pass Both: What's Next?
Once you've passed both the SIE and Series 7, you're a licensed General Securities Representative. Most advisors then pursue the Series 66 (which combines the Series 63 and 65) to become a licensed investment adviser representative as well.
Ready to find a firm to sponsor your Series 7 journey? Explore our Series 7 Sponsorship resources, or find opportunities in your city — from Chicago to Atlanta to Seattle. You can also test your knowledge right now with our free Series 7 Practice Quiz.
Passing the SIE before I found my sponsor was the best decision I made. It showed firms I was serious, and it meant I only had to focus on the harder Series 7 material once I was hired. I passed both within 6 weeks of starting my training program.
