The SIE Exam difficulty level is hard to pinpoint precisely. While the SIE exam is hard for some test takers, others won’t likely have a problem with it. In this post I whittle down what makes it difficult for some, and a cake-walk for others.
SIE Exam Difficulty: Step Up to the Starting Line
On your 18th birthday you have not only earned your right to vote in the United States, but also to take FINRA’s SIE exam. It might not be the milestone most associate with their 18th birthday, but if you want a future in the securities industry, it’s not a bad idea to start studying around that time. However, chances are that as an 18 year old, it might take you a few months to ramp up.
That said, whether you’re 18 years old without any background in finance, or 45 years old without any background, the answers to the SIE exam won’t come naturally. The SIE exam is hard for some people for the simple reason that it’s a brand new subject. In this case, as an SIE exam tutor, I would highly recommend that you leave yourself at least two months to study.
In my experience with students, the SIE Exam difficulty is not so much due to the challenging nature of the questions. It’s more so the novelty of the content (for some). For those with no background in finance, it can be like learning another language. Take your time to look up definitions when you don’t know them. Investopedia is a great resource for this. It’s like Wikipedia, but for all things investing related. Admittedly, I still use it, and I’ve been in the industry for well over a decade.
Starting the Race When It’s Half Over
Now for those of you with an economics, finance, or business degree. There is likely going to be less of a learning curve to climb for you. In fact, I know some students that have walked into the exam without studying and passed (Note: This is the rare exception!).
One way to lessen the SIE exam difficulty, is to buy the right study books. Your SIE Exam study material can be a major reason for how well you do, and how long it takes you to study. Stick to the mainstream providers (Knopman and/or STC). Once you start scoring over 85% on their practice exams, you’re good to go.
In some situations however, the SIE exam can still be hard even for those of you with a business degree. No investment experience can make the practical knowledge needed for financial markets seem foreign. Order types, Options, and Bonds often get less attention in traditional college-level course curriculum than the real-world. The SIE exam is fairly theoretical, but still has a healthy dose of real-world curriculum.
Overall, the SIE exam’s difficulty level is very much dependent on each individual’s background.
You need to get a score of 70%, or higher, to pass. During your SIE exam prep, be honest with yourself about how much knowledge you have going in. If you have a hard time defining a “stock” or “bond” for example, then you should expect to take about two months to study on average. Very few people can pass with only a week or two of studying.
The longer you spend time learning the curriculum, the more confident you’ll be, and better your odds of success.
Good luck!