Series 7 vs SIE: what each exam covers

The SIE and the Series 7 are two different FINRA exams, and people often mix them up. Here is how they compare, using the figures on FINRA's own exam pages.

Side by side

FINRA states that association with a firm is not required to take the SIE, but that a qualification exam requires association with a member firm. The Series 7 page says candidates must be associated with and sponsored by a FINRA member firm (or applicable SRO member firm).

What each exam is for

The SIE (Securities Industry Essentials) is the foundational exam. FINRA says passing it alone does not qualify anyone for registration or to engage in securities business. Its results stay valid for four years.

The Series 7 is a qualification exam for the General Securities Representative role. FINRA lists the SIE as its corequisite, and to register you need to pass the SIE and a qualification exam appropriate for the type of business. The Series 7 assesses activities including sales of corporate securities, municipal securities, investment company securities, variable annuities, direct participation programs, options and government securities.

Other qualification exams sit at the same level for different roles. FINRA names the Series 6, 7, 22, 57, 79, 82, 86/87 and 99 on the SIE page.

Corequisite, not "after"

Because FINRA calls the SIE a corequisite of the Series 7, you can pass it before or alongside. The practical sequence for most people: pass the SIE, get sponsored by a firm, then take the Series 7.

How to think about studying for each

The SIE is broad and shallow. The Series 7 is narrow in its purpose and deep in its content: FINRA's outline puts 91 of its 125 items on providing investment information and recommendations, which is where products, options, bond math and suitability live. That is why bond and yield calculations, such as those in the bond yield calculator, belong in Series 7 preparation.

For the full outline, read what the Series 7 covers. For one of its trickiest topics, see options strategies, explained. An Encodr Series 7 course is in the works, described on the Series 7 coming-soon page, and you can browse all exam prep courses.