Understanding the difficulty of the Series 7 Top-Off Exam is crucial for anyone planning to take the series 7 exam. First offered in October 2018, the Series 7 Top-Off Exam has received mixed feedback from students. This guide will break down the challenges of the exam and offer tips for your exam prep. If you need any extra help, check out our video courses or our Series 7 tutoring options.
Key Points:
- Duration: 3 hours 45 minutes
- Questions: 135 (10 unscored)
- Passing Score: 72%
- Format: Multiple choice
- Prerequisite: SIE exam
The Financial Industry Regulatory Authority (FINRA) designed the Series 7 exam to assess the competency of entry-level general securities representatives. Passing the Series 7 exam is essential for anyone who wants to become a registered representative and work in the securities industry.
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How Hard is the Series 7 Exam?
The difficulty of the Series 7 exam varies depending on the student's background. Here’s what you need to know:
The Basics:
- Content: The exam covers topics such as municipal securities, options, investment company products, direct participation programs, and variable contracts.
- Preparation: It’s essential to have a thorough understanding of the material. Over-preparing is better than under-preparing.
Study Tips:
- Memorize Rules and Formulas: Familiarize yourself with Series 7 formulas and key definitions.
- Practice Questions: Doing as many practice questions as possible is crucial. Focus on understanding the questions rather than just memorizing answers.
- Focus on Weak Areas: Topics like options, suitability, and municipal securities are often challenging. Spend extra time on these areas.
What to Study
The Series 7 exam has been updated, so it’s important to use current study materials. Topics such as customer accounts, broker-dealer rules, and financial products are heavily tested. Make sure your study time is well-distributed across all topics.
When Are You Ready?
Aim to consistently score around 85% on practice exams. This will give you confidence that you’re ready to take the series 7 exam. Remember, it’s better to be over-prepared.
Series 7 Top-Off Difficulty: Math, Math, and More Math
One major reason the Series 7 exam is difficult is the math. You’ll need to calculate and understand various formulas, including conversion ratios, margin requirements, and options strategies. If math is not your strong suit, make sure to spend extra time practicing these calculations.
Series 7 Study Material: STC or Kaplan?
Kaplan:
- Strengths: Kaplan’s text is known for clear explanations. Their QBank provides a vast database of practice questions, allowing you to drill down on specific sub-topics.
- Feedback: Students who use Kaplan’s QBank report higher practice scores and better preparation.
STC:
- Strengths: STC’s materials are comprehensive and well-organized. Their practice exams provide a good gauge of your progress.
- Feedback: Some students find STC’s questions less challenging, which may lead to overconfidence.
In a Nutshell
From our experience at Professional Exam Tutoring, students who consistently score over 85% on STC or Kaplan practice questions usually pass the Series 7 exam. We recommend using a combination of both STC and Kaplan materials for the best preparation.
Best Series 7 Tutors in New York City
If you’re looking for a Series 7 tutor, consider Professional Exam Tutoring. With decades of experience, our tutors are experts in the financial industry and can provide personalized instruction to help you pass the Series 7 exam.
Other Notable Tutors:
- series7examtutor.com: Run by Michael Weiss, offering both online and in-person tutoring.
- Capital Advantage Tutoring: Ken provides flexible tutoring options and has extensive industry experience.
- Empire Stock Broker Training Institute: Offers online classes and study guides.
Hard Series 7 Questions: Where to Focus Your Study Time
When preparing for the Series 7 Top-Off Exam, certain topics require extra attention. Below are the areas that commonly trip up students and strategies to help you pass the Series 7 exam.
Key Areas to Focus On:
1. Options
Options are the most requested topic for help. Start with spreads, which are the most challenging, followed by straddles and hedging strategies. Review these topics regularly, ideally for an hour each week.
2. Convertible Bonds
Understanding convertible bonds involves calculating the conversion ratio, understanding parity prices, and determining arbitrage opportunities. Break down these steps and practice regularly.
3. Cost Basis, Taxable Gains, and Losses
Learn to calculate whether a bond's value should be accreted or amortized over time. Recognize when a bond is trading at a discount or premium and practice the associated calculations.
4. Municipal Bonds: Tax Equivalent Yields
Tax Equivalent Yields (TEY) are challenging due to the complex calculation: TEY = After-Tax Yield / (1 - Tax Rate). This formula makes different bonds' yields comparable. Practice regularly to get comfortable with these calculations.
5. Suitability
Understanding what financial products are suitable for different types of investors is crucial. Familiarize yourself with different scenarios, like recommending muni bonds to conservative investors or stocks to young investors. Study this topic at least twice a week.
Study Tips for the Series 7 Top-Off Exam:
- Map Out Your Timeline: Plan when to take the exam and how long you need to study.
- Prioritize Your Topics: Study the hardest subjects first to give them the most review time.
- Create a Study Schedule: Write down your study plan, setting clear deadlines for each topic.
- Incorporate Review Sessions: Regularly review previous topics to keep them fresh in your mind.
- Practice Questions: Do as many practice questions as possible, using multiple providers to avoid memorizing answers.
- Green Light Exams: Use STC’s Green Light Exams two weeks before your test to gauge readiness.
- Test Day Preparation: Know your exam location, eat a good meal, and avoid any last-minute stress.
FAQs
Does the Series 7 Top-Off Exam take longer to study than the SIE Exam?
Yes, the Series 7 Top-Off Exam is more in-depth and requires more study time.
Why do you suggest Kaplan over STC for the Series 7 Top-Off?
Kaplan’s QBank questions more accurately reflect the exam’s difficulty.
Is it OK to take the Series 7 Top-Off Exam before the SIE Exam?
While possible, it’s not recommended as the SIE Exam provides foundational knowledge.
How long should I wait after failing the Series 7 Top-Off Exam?
Take a few days to regroup, then resume studying to keep the material fresh.
Ready to Pass the Series 7 Exam?
Boost your score and pass the Series 7 exam with Professional Exam Tutoring. Our expert tutors specialize in helping you become a qualified general securities representative. Whether you're preparing for the FINRA SIE exam, Series 6, or other qualification exams, we have the resources and expertise you need.
At Professional Exam Tutoring, we offer personalized exam prep to ensure you grasp essential concepts in municipal securities, investment company products, variable contracts, and direct participation programs. Our tutoring covers everything from understanding securities industry essentials to making suitable recommendations and confirming transactions.
Why Choose Us?
- Expert Tutors: Our tutors have extensive experience in the financial industry and are skilled at breaking down complex topics.
- Comprehensive Exam Prep: We cover all the essential topics, including municipal securities, suitable recommendations, and more.
- Flexible Study Options: Choose from in-person or online tutoring sessions to fit your schedule and study time.
- Proven Success: Our students consistently achieve passing scores on their representative exams, including the Series 7 license.
What We Offer:
- Personalized Tutoring: Tailored sessions that focus on your specific needs and study areas.
- Practice Questions: Extensive practice to reinforce your understanding and improve your performance.
- Study Materials: Access to top-notch study materials from leading providers like STC and Kaplan.
- Support and Guidance: Ongoing support to help you stay on track and achieve your goals.
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16 thoughts on “Series 7 Top-Off Difficulty: How Hard is the New Series 7 Exam?”
Great advce! I was previously licienced in the industry for over 12 years with the Series 6,63, 7, 66, 9 and 10, before taking some time off which caused my licences to expire before I went back to the insurance undustry. I am currently studying for the SIE using STC study material, and will then take the 7 and 66 so I can better help my clients . I am wondering if I should get the STC Text with the Kaplan Text and Qbank to study for the series 7. Based on my past of being previously licienced, what Kaplan and STC material should I combine to study for and pass the series 7 Exam. Thank You.
Hi Withle, I would definitely recommend the STC for the SIE, but Kaplan for the Series 7. A combination for the Series 7 Top-Off would be much better. Like you said, the STC Text and Kaplan Text (plus the QBank – very important!) should be enough. You ultimately want to drive your Kaplan scores up to 85%+ and you’ll be ready. Good luck!
Jim , thanks for getting back to me. Which programs practice exams should I use, STC or Kaplan.
Also which program of the many out there would you reccomend for series 66 exam. Thanks
Regards,
Withle
For the Series 7 I definitely recommend Kaplan’s practice exams at the moment. STC is great too but you need much higher scores to ensure a passing grade, and scores in the mid-80s will typically due with Kaplan. For the Series 66, I am a little less helpful. We don’t currently tutor that topic yet, but I have heard that STC is a good resource for it. Feel free to reach out if you have any other questions. Good luck!
Jim, I am using pass perfect and failed with a 62 score. Pass perfect is provided by my employer. I studied Monday-Friday and weekends and took 15 practice exams. I scored anywhere from high 60’s to 70’s but never 80’s on prep exams. Any experience with pass perfect. I felt prepared but on exam day, I felt like I didn’t know a lot of the questions and nerves took over.
Do you recommend mixing Kaplan at this point ? I am willing to buy it even though my employer provide us with pass perfect. I didn’t have a strong finance background. Any other recommendation?
Yes, I would definitely recommend mixing in Kaplan. You can buy their QBank (without buying their text package) for less than $80 and it is definitely worth it! Pass Perfect material (and questions) is quite hard to understand from the feedback I’ve heard from my students (and experience teaching with their material). Kaplan is the best (as of now) for the Series 7. Aim to score in the mid-to-high-80s though. Leave yourself a buffer if you can. Good luck!
Jim, I have been studying for the Series 7 Top-off exam for over a year and I just failed for the second time today with a score of 59. I’m using Kaplan and I’ve been scoring quite well on the practice exams with 70s and 80s after taking them multiple times. I’ve used all 2200 of the Q-bank questions and put in countless hours of study time even asking one of my financial advisors for help. When I get my results from the exam it shows I’m weak in every area. At this point I’m kind of dumbfounded as to what I’m doing wrong and why I keep scoring so low on this exam. Do you have any recommendations that you could pass along?
Hi Genie, thanks for the message. Sorry to hear about your results. It’s a tough exam, and a lot of people run into the same problem.
First of all, it’s great that you are doing a lot of questions, and Kaplan is the best resource for the Series 7 – so far so good! Your scores on the practice exams, on the other hand, are lower than I would be comfortable sending you into the exam with. If you have taken the practice questions multiple times, you want to be scoring 90%+ on your practice exams (because some of your points will reflect the fact that you have memorized some of the answers). See if you can reset your QBank with Kaplan and start over. Unfortunately I know that might not be what you’d like to hear but it’s probably the best way to go about it. Try to refrain from taking the exam, if your employer will let you, until your scores consistently hit over 90%. Hope that helps! Good luck!
Hi Jim,
I want to get some feedback from you regarding the Series 6 top off exam. I failed it twice. 1st test, 68, 2nd test 66. I’m using Kaplan and went through all of the practice exams/mastery exams and Qbank questions. I focused on weak chapters and scored pretty well. I mainly focused on the biggest section of the exam. I got to a point where my simulated exam scores were in the 90’s. I felt like I was prepared. After reading some of the comments I think my nerves may have also got the best of me. I wanted to get your opinion if I should follow the tips you mentioned above but for the Series 6 top off. In the past I’ve purchased and used STC for my Life and Health and SIE and passed both exams first time. I love how STC explains the material. I think I may just double up and utilize both (STC & Kaplan). Should I read both books? Or just read one and take exams from both books? Any other suggestions will be helpful and greatly appreciated.
Yes, switching up the text might be helpful. Often when our students report having scored really well on the practice questions (85% +) and then fail, it is usually because they have memorized the questions. A change of material will help but I wouldn’t recommend re-reading the textbook – except for specific topics where you feel you still need help. STC is about equal to Kaplan when it comes to how they prepare you for the Series 6, in our view. It sounds like you are really close to passing. A little more studying, and some fresh questions might help get you there. Good luck! P.S. Check out our latest blog post on the Series 6 difficulty if you’d like more info.
Hi Jim, I am currently studying for the series 7 exam. I am using STC complete study materials and plan to also use the Kaplan series 7 Qbank to go along with the STC study materials. At what point should I start taking the using the questions from the Qbank and how many questions or tests should i utilize from the Qbank? Also I do not have a window open yet for the series 7. because the testing sites are closed because of the pandemic. How should I proceed with a study schedule since I have no idea as to when I will be taking the Exam. I will greatly appreciate your suggestions. Thanks
Hi Prime – I would definitely suggest to keep moving forward with your studying. The online testing by FINRA has already started and you will want to be ready to roll out as many firms start adapting to this new reality. Use STC for the practice questions, however Kaplan’s textbook is totally fine and a great resource. I hope that helps!
Hi Jim, thanks for getting back to me. However the study materials that I am currently using
is STC. I was asking about using the Kaplan Qbank as a supplement and wanted to know how to proceed with using it along with the STC questions. (See my earlier message)
Thanks for youe help.
Yes, using the Kaplan Qbank is a good supplement. Actually, in many cases it is better than STC (as of this writing). I would use it to drill down on questions in specific sections that are giving you issues. The Qbank allows you to identify specific topics in which you are scoring low, and select those for a set of practice questions. I would take a look at what areas you are scoring less than 60% and make a 20 practice question quiz. Do that over and over in different sections and that should help! 🙂
Not being an absolute novice, what do you recommend to study and pass the SIE & Series 7 exams from Kaplan: the Premium, Essential, or Basic package? Thank you!
Hi Will – the basic package is usually good enough. The most important thing for each of those are the practice exams for the STC material, and the Q-Bank for Kaplan. Hope that helps!
Jim
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