Series 7 Exam: Everything You Need To Know

The series 57 exam is the Securities Trader Representative Exam. The test is  administered by FINRA. It assesses understanding of the information needed to be a licensed securities trader. The series 57 top off exam is taken in conjunction with the SIE exam. 

Anyone working on a trading desk or at a proprietary trading firm must obtain a series 57 license. Passing the series 57 exam is mandatory to make markets and trade on enhanced leverage  

A series 57 licensed trader may have direct access to the NASDAQ, OTC and other markets. It allows individuals to execute orders and to display quotes in various market centers. Series 57 licensed traders may engage in:

• NASDAQ trading 
• OTC trading 
• Proprietary trading 
• Trading on enhanced leverage 

The Series 57 Exam consists of 50 scored multiple-choice questions. You must answer every question. There is no “skip button”. The exam has a time limit of 1 hour and 45 minutes.  Each series 57 exam will contain experimental questions. As a result, the total number of questions will be 55-60. 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 57 exam is 70%. Test takers must answer at least 35 of the 50 questions correctly.

The test provides enough time for candidates to answer each question presented. The 1 hour and 45 minute time limit translates into 2.1 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 50-question practice tests. Taking series 57 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 57 Exam tests the candidates’ knowledge of critical functions.  These are the functions a registered trader must perform. The questions will cover:

• General trading practices 
• Becoming a market maker 
• The role of the floor broker 
• Trade reporting requirements
• Handling and displaying customer limit orders
• The role of ACT, ADF and TRACE
• Third market transactions 
• Alternative trading systems 
• Regulation NMS
• Making markets during syndication
• Option spread and straddle trading

The FINRA official outline breaks down the exam as follows

1. Trading Activities – 41 questions 
2. Maintaining Books and Records, Trade Reporting and Clearance and Settlement – 9 questions 

You must make an investment in your professional development. Your Series 57 license qualifies you as a licensed securities trader. Many Series 57 licensed representatives 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 57 exam include:

• Training materials
• Testing fees
• Registration fees.

Our most comprehensive training package for the series 57 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 57 exam is $80. 

Passing the Series 57 exams is a significant challenge. Obtaining a Series 57 license takes focus and dedication.  Students should not take this test lightly. You must prepare to take the exam and should make it a top priority. Prepare for the exam 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 thousands of practice questions. We recommend at least 60 hours of study time. This should ensure you pass your Series 57 exam and become a licensed securities trader

#1 Handling and displaying customer limit orders 

This section of the series 57 exam seems to present a lot of challenges for test takers. Broker dealers who accept customer limit orders are required to ensure that the orders are handled properly. FINRA has strict rules ensuring that broker dealers promptly route and display customer limit orders. Make sure you master these requirements. 

#2 Trade reporting

Trades must be reported promptly to the appropriate NASDAQ system. The prompt reporting of trades ensures that the market data reflects real time volume and prices. This is critical to the market’s integrity.  Knowing which reporting facility to use and the required time frames is critical to success on exam day.  Our series 57 video lectures cover all the systems in great detail. 

#3 Options

Options questions tend to be an area students find challenging. These questions are also the area where many students use too much time. The math calculations and option concepts must be committed to memory. To answer these questions quickly, we have designed a course that makes this easy. Our course contains more than 3 hours of video training for options. After reading our textbook and watching the videos, most students become option masters. In fact, our option secrets make it, so students never need to remember any option formulas.

All candidates must appear at an approved testing center to take the series 57 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 57 exam is 70%. 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 57 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. 

The series 57 exam is a top off exam. When combined with the SIE  exam, you will be a licensed securities trader. Some traders will also be required to pass the series 63 exam exam. This is the case if traders speak directly to customers. 

What is the best way to prepare for the series 57 exam ? 

It is very important to choose your Series 57  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 57 textbook is the foundation of our learning system. This book has everything you need to be successful.  Our Series 57 textbook is comprehensive and easy to follow. We strongly recommend that every student read the book completely. Take notes on key points. This will ensure you know more than the basics, it will ensure you know the facts. 

Our Series 57 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 57 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 57 training materials come with our greenlight money back guarantee. Review our series 57 exam prep features here