If you need help studying for the Securities Industry Essentials® (SIE®) exam or just want some more information about what the exam is like, you’ve come to the right place.
Click below to take a free SIE practice exam!
What’s on the SIE Exam?
First, let’s talk about the questions on the test. There are 85 multiple-choice questions total, but only 75 of the questions will count toward your score. Why is that?
The 10 unscored questions on the SIE exam are called “experimental” questions. These are added to the tests to determine if they’re good enough questions to add to future versions of the test.
The trick is that you won’t have any way of knowing which questions are scored and which ones are experimental. They will appear just like the scored questions throughout the test.
The time limit for the exam is 1 hour and 45 minutes. There aren’t any scheduled breaks, but you’re free to take restroom breaks as needed.
Let’s take a closer look at the different sections of the SIE exam.
1. KNOWLEDGE OF CAPITAL MARKETS
12 scored questions
- Regulatory entities, agencies, and market participants
- Market structure
- Economic factors
- Offerings
2. UNDERSTANDING PRODUCTS AND THEIR RISKS
33 scored questions
- Equity securities
- Debt instruments
- Options
- Packaged products
- Municipal fund securities
- DPPs
- REITs
- Hedge funds
- ETPs
- Investment risks
3. UNDERSTANDING TRADING, CUSTOMER ACCOUNTS, AND PROHIBITED ACTIVITIES
23 scored questions
- Trading, settlement, and corporate actions
- Customer accounts and compliance considerations
- Prohibited activities
4. OVERVIEW OF THE REGULATORY FRAMEWORK
7 scored questions
- SRO regulatory requirements for associated persons
- Employee conduct and reportable events
How to Register
If you work for a FINRA member firm, they can register you for the exam using a U4 form. Otherwise, you can register yourself through FINRA’s Test Enrollment Services System (TESS).
The exam fee is $80 regardless of how you register.
SIE Study Guide and Flashcards
Get practice questions, detailed study lessons, and complex subjects broken down into easily understandable concepts.
Exam Scores
The SIE exam is scored using a scaled scoring method. Here’s how it works:
For every question you answer correctly, you get one point added to your raw score. At the end of the test, your final raw score will be converted to a scaled score. This scaled score will range somewhere between 0 and 100.
You need a score of 70 to pass the test.
The reason your raw score is converted to a scaled score is because everyone who takes the SIE exam is given a slightly different set of questions. Since everyone has a different arrangement of questions, and because some questions are harder than others, converting your raw score to a scaled score ensures a more even playing field.
Retaking the Exam
If you didn’t get a passing score on your first try, that’s okay! You can retake the test after a 30-day waiting period.
Keep in mind that you will have to pay the full testing fee every time you retake the test.
Online SIE Prep Course
If you want to be fully prepared, Mometrix offers an online SIE prep course. The course is designed to provide you with any and every resource you might want while studying. The SIE course includes:
- Review Lessons Covering Every Topic
- 900+ SIE Practice Questions
- More than 300 Digital Flashcards
- Money-back Guarantee
- Free Mobile Access
- and More!
The SIE prep course is designed to help any learner get everything they need to prepare for their SIE exam. Click below to check it out!
FAQs
What is the SIE exam?
The SIE (Securities Industry Essentials) exam tests your basic knowledge of the securities industry.
How long is the SIE exam?
The time limit for the exam is 1 hour and 45 minutes.
How hard is the SIE exam?
The exam is considered to be somewhat difficult, with many test-takers noting that the wording of the questions is sometimes hard to grasp.
How many questions are on the SIE exam?
The exam contains 85 questions.
How much does the SIE exam cost?
The testing fee is $80.
What is the passing score for the SIE exam?
You’ll need to get a final scaled score of at least 70 to pass.
