Series 4 Exam: Everything You Need To Know

The Series 4 Exam is the Registered Options Principal Exam. The exam is administered by FINRA. It assesses understanding of the information needed to be a licensed Options Principal. 

A Series 4 license takes your financial services career to the next level.  You must get a Series 4 license if you:

• Become a department supervisor conducting options business 
• Supervise option sales practices 
• Approve option communications  
• Approve option accounts 
• Approve option worksheets 

The Series 4 Exam consists of 125 scored multiple-choice questions. The exam has a time limit of 3 hours and 15 minutes.  Each Series 4 exam will contain experimental questions. As a result, the total number of questions will be 130-135. These questions are not identified during the test. Nor do they count towards the candidate’s final score. Each exam provides more time for test takers to answer these questions

The passing grade for the Series 4 exam is 72%. Test takers must answer at least  90 of 125 questions correctly.

Each test provides enough time for candidates to answer every question presented. The time limit on the series 4 exam is 3 hours and 15 minutes. This translates into 1.5  minutes per question. Test takers who have challenges interpreting questions, may find themselves pressed for time. Rushing to answer every question has a negative impact on performance. Ensure you have the ability to complete the test in the time allotted. To do this you must take 125 question  simulated exams.Taking practice exams is a big part of any candidate’s exam preparation. The questions presented are challenging. Students must have a deep understanding of the critical information required to pass.

The Series 4 Exam tests the candidates’ knowledge of critical functions.  These are the functions a registered options principal must perform. The questions will on the series 4 will cover:

• Option Risk Disclosure Documents 
• Supplemental Option Disclosures
• The Options Clearing Corporation
• Margin Requirements
• Margin for Uncovered Options 
• Portfolio Margin
• Discretionary Option Accounts
• Activities of Trading Permit Holders 
• Option Communications
• Option Exercise & Assignments 
• Position Limits 
• Large Option Position Reporting
• Spreads and Straddles 
• Condors and Butterflies  
• Hiring Employes 
• Form U4, U5 & U6
• Registration Requirements
• Continuing Education Requirements
• Outside Business Activities
• Private Securities Transactions 
• Annual Compliance Meetings 
• Anti-money Laundering (AML)
• New Product Training 
• Trading and Market Making
• Retail Communications 
• Customer Complaints 
• Branch Offices & OSJs

The FINRA official series 4 exam outline is as follows:

1. Supervise the Opening of New Options Accounts – 21 questions
2. Supervise Options Account Activities – 25 questions
3. Supervise General Options Trading – 30 questions
4. Supervise Options Communications – 9 questions
5. Implement Practices and Adhere to Regulatory Requirements – 12 questions
6. Supervise Associated Persons and Personnel Management Activities – 28 questions

You must make an investment in your professional development. Your Series 4 license qualifies you as a general securities principal. Many Series 4  licensed principals enjoy lucrative and successful careers. If you have to pay out of pocket, the costs are relatively low. This is true compared to other certifications and college expenses. Some employers pick up or reimburse the costs.  The cost to take the Series 4 Exam include:

• Training materials
• Testing fees
• Registration fees.

Our most comprehensive training package for the Series 4 Exam is $289. This comes with everything you need and includes free shipping. Other providers charge as much as $600 for similar packages.

The testing fee for the Series 4 exam is $155.

The series 4 exam is one of the most challenging FINRA exams. Obtaining a Series 4 license takes focus and dedication.  Students should not take this test lightly.  The series 4 exam covers areas many people are never exposed to in their careers. Many people who take the series 4 exam are coming from the retail brokerage side of the business. As such, they never experience dealing with complex option strategies and compliance issues. These two areas are heavily tested on the exam. Candidates working in trading departments find the supervision of customer accounts the most challenging. You must prepare to take the exam and should make it a top priority. Start by reading a textbook completely with a highlighter. You must read the book, there are no shortcuts and students need to understand this. Watch each video class that corresponds to the chapters in the book. This will provide you with more information on the concepts covered in each chapter. You must clear your schedule, shut off your phone and focus. In addition to the knowledge required,  you must master the application. Do this by taking as many practice questions as you can. We recommend at least 70 hours of study time for the series 4 exam

All candidates must appear at an approved testing center to take the Series 4 Exam. Prometric test centers are available throughout the US. In fact, Prometric has more than 3,000 test centers.  Many exam centers are open 7 days a week. Students may schedule the exam at any location on any day that the center is open. To schedule an exam appointment, visit the prometric website.

You will receive your result of the exam immediately upon completion. Your results are displayed on the screen. You will get a certified copy of the results from the exam center. The passing score for the Series 4 Exam is 72%. Candidates who pass will not receive a numerical score. The exam report only states that the student achieved a passing grade. This is evidence that the student passed the Series 4 Exam. Students who do not achieve a passing score receive a numeric score for the exam. A range of the performance in each scored section is included in the report.

Students who do not pass the exam must wait 30 days before retaking the exam. During this time it is crucial to maintain the current level of proficiency. Make a detailed account of the exam. Make notes on the entire experience, especially areas of difficulty. A second unsuccessful attempt will result in another 30 day waiting period. A third unsuccessful attempt results in a 6 month waiting period.

It is very important to choose your Series 4 study material carefully. Quality study material produced by a professional level publisher is key. At a minimum your training materials should contain:

• A comprehensive textbook

• Well produced video training classes

• Challenging test banks

Always start with the textbook. Our Series 4 textbook is the foundation of our learning system. This book has everything you need to be successful.  Our textbooks are comprehensive and easy to follow. We strongly recommend that every student read the books completely. Take notes on key points. This will ensure you know more than the basics, it will ensure you know the facts. 

Our Series 4 video lectures follow our textbooks chapter by chapter. Each lecture provides more details on the content contained in the reading. Different examples show you how the concepts are tested. Best of all, we include feedback from thousands of actual Series 4 test takers. This will help you master the material. Make sure you watch each video lecture to ensure complete understanding. Every video lecture is followed by a quiz. This tests your immediate comprehension of the material.

From there move to the practice tests. Take topic focused custom quizzes. Go back to the videos and chapters in the textbook to firm up areas of weakness.  Now you are ready to take simulated final exams.  Take as many as you can and keep track of your results. Take as many as you can and keep track of your results. The more you take, the more prepared you will be.

Our Series 4 study material will ensure your success on exam day. Complete with a comprehensive physical textbook, Video lectures and challenging test banks. We are so confident in our Series 4 training course. that we offer you a money back greenlight pass guarantee. Review our Series 4 Exam prep features here