SIE Exam Difficulty Level: How Hard Is It to Pass?

(Updated June 25, 2024) The difficulty of the SIE Exam can vary significantly among test takers. While some find the SIE Exam challenging, others breeze through it with relative ease. In this article, we'll explore what contributes to the varying difficulty levels, provide insights on the best study materials, and compare the SIE Exam with the Series 7 Top-Off.

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How Hard is the SIE Exam?

By Professional Exam Tutoring, June 25, 2024

The Securities Industry Essentials (SIE) exam tests a candidate’s understanding of general concepts in four key areas within the securities industry.

SIE Exam Pass Rate

The Financial Industry Regulatory Authority (FINRA) reports an SIE exam pass rate of 74% among 58,264 first-time test takers as of January 2019. Although the average pass rate is above 70%, don’t assume that it’s easy. Candidates who pass the exam on the first attempt take the SIE exam seriously and are thoroughly prepared.

SIE Passing Score

A passing score for the SIE exam is 70%.

Number of Questions on the SIE Exam

There are 75 SIE exam questions.

Duration of the SIE Exam

You have 1 hour and 45 minutes to complete the SIE exam.

With 75 questions and a required score of 70%, the SIE exam doesn’t offer a large margin for error. You must correctly answer at least 53 out of the 75 questions. If you have prior education or experience in the financial sector, you may already be familiar with some of these key concepts. If not, a well-designed online course and study program will cover everything you need to know.

Overview of SIE Exam Content

  1. Knowledge of Capital Markets (16%)

    • This section tests understanding of regulatory entities, agencies, and market participants. Topics include Self-regulatory Organizations (SROs), types of markets, economic factors, the Federal Reserve’s role, and more.
  2. Understanding Products and Their Risks (44%)

    • Focuses on different types of equity, debt instruments, options, and packaged products, as well as the investment risks associated with each.
  3. Understanding Trading, Customer Accounts, and Prohibited Activities (31%)

    • Covers the fundamental concepts of trading, including types of orders, trade capacity, compounds of return, and types of dividends.
  4. Overview of Regulatory Framework (9%)

    • Tests knowledge of self-regulatory organizations, their requirements and processes, employee conduct, reportable events, and several by-laws and rules.

SIE Exam Difficulty: A Starting Point

Upon turning 18, you're eligible to take the FINRA SIE exam—a crucial step if you're pursuing a career in the securities industry. However, the difficulty of the SIE Exam isn't necessarily tied to age or experience. Whether you're an 18-year-old or a 45-year-old without a background in finance, the multiple-choice questions can be equally perplexing.

Key Insight: The challenge often lies in the novelty of the content. For those new to finance, the SIE Exam can feel like learning a new language. Utilizing resources like Investopedia can help, and we recommend allowing yourself six to eight weeks to study if you're unfamiliar with financial concepts.

Leveraging Your Background to Mitigate SIE Exam Difficulty

For those with economics, finance, or business degrees, the SIE exam may be easier. Some have passed without studying, but this is rare.

To make the SIE exam easier, get the right study materials, like STC's books. Scoring over 85% on their practice exams means you're ready.

Even with a business degree, the exam can be challenging. Experience with investments helps, as topics like Order types, Options, and Bonds may be less familiar. Personal investing experience is beneficial.

You need a 70% or higher to pass. Be honest about your knowledge. If unsure about basics like "stock" or "bond," plan for about two months of study. Most can't pass with just a week or two of preparation.

The more you study, the more confident you'll be, improving your chances of success.

Recommended Study Tips and Materials for the SIE Exam

The study material you choose for the SIE Exam greatly affects your chances of success. This exam is different from what your boss took, so their guidance may not be helpful and could be counterproductive. Instead, rely on advice from professionals. As an experienced SIE exam tutor, I can provide you with the right guidance.

Video Courses: Focus on difficult topics like Options, Annuities, and Bonds. Providers like STC and Kaplan offer helpful video courses. Our courses cover complex topics in detail and leave the basics for your textbooks. This approach makes our courses both thorough and affordable.

Check out our course samples below to see how we address the SIE exam difficulty:

Old Faithfuls: STC and Kaplan

When it comes to SIE exam study materials, STC and Kaplan are the industry leaders. Their content is similar, so there's no need to buy both. Here’s a comparison:

Kaplan SIE Exam Study Material

Kaplan is known for clear explanations and straightforward language in their texts. They offer a QBank with a large supply of practice questions that can be broken down by topic. However, some students find Kaplan’s questions a bit easier, leading to potentially inflated practice scores.

STC SIE Exam Study Material

STC is the preferred choice for many students and financial advisors on Wall Street. Their materials are thorough, and their practice exams provide an accurate assessment of your progress. STC’s “Digital E-Course” package includes study material, practice questions, exams, and "Greenlight Exams" which are tough but help ensure you’re ready for the real exam. Aim for 80% or higher on STC practice exams to feel confident about passing the SIE exam.

What STC Offers:

      • Comprehensive and reliable study material
      • Accurate practice exams
      • Preferred by many financial professionals

While other options like Pass Perfect and Training Consultants are available, STC stands out as the most reliable. For personalized help, consider booking a tutor.

By selecting the right study material, you can effectively tackle the SIE exam difficulty and succeed.

Avoiding a Failed SIE Exam

Efficient Studying: Understanding concepts deeply rather than just memorizing them is key. Investopedia can be a great tool for clarifying difficult terms.

Quality Practice Questions: Ensure the practice questions are reflective of the actual exam. STC's materials are highly recommended for their accuracy.

When to Start Your SIE Exam Prep

Begin your prep as soon as possible, especially if you're aiming for a career in the securities industry. The SIE Exam for beginners can be daunting. Early preparation can alleviate stress and make you more marketable to potential employers.

Starting Point: Use STC’s robust curriculum and practice extensively. Personalized tutoring can also significantly reduce study time and enhance understanding.

Key Differences: SIE Exam vs. Series 7 Exam

The SIE Exam is an introductory exam with a broader, more general focus, whereas the Series 7 Exam delves deeper into specific topics like options and debt securities. While the SIE Exam requires understanding basic definitions and concepts, the Series 7 Exam demands more detailed knowledge and calculations.

Preparation Strategy: Allocate at least six weeks for the SIE Exam and two months for the Series 7 Exam. Approach each step with focus and dedication.

Final Tips for Success

  1. Consistent Practice: Aim for high scores on practice exams.
  2. Understand, Don't Memorize: Use tools like Investopedia for deep learning.
  3. Quality Materials: Stick with trusted study guides and practice tests.
  4. Start Early: Begin your preparation as soon as possible.

For personalized tutoring and more insights, call Professional Exam Tutoring at (646) 797-3028 today!

Frequently Asked Questions (FAQs)

No, but it’s highly recommended. Other materials like Kaplan and Knopman can also be effective.

The exam covers a broad range of topics. Focus on all sections but pay extra attention to options, bonds, and annuities.

Yes, especially if you're studying without a tutor. Comprehensive reading ensures you cover all necessary material.

Customizing your own Quizlet can be very helpful. Use it to reinforce concepts that you find challenging.

Take the Next Step with Professional Exam Tutoring

Ready to tackle the SIE exam and succeed? Choose the best SIE exam study material to ensure your success on this critical licensing exam. At Professional Exam Tutoring, we provide expert guidance and comprehensive resources to help you ace the FINRA SIE exam and other qualification exams.

Join many successful candidates from FINRA member firms who have trusted us with their exam preparation. Don't leave your future to chance—get the support you need to pass your licensing exam with confidence.

Call Professional Exam Tutoring today at (646) 797-3028 to get started on your path to becoming a qualified FINRA member firm professional. Take the exam with the best preparation and achieve your career goals!



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3 thoughts on “SIE Exam Difficulty Level: How Hard Is It to Pass?

  1. Don’t use Kaplan or STC. Solomon Exam Prep has (by far) much better materials. Especially for the SIE.

    Do yourself a favor.

  2. Hi Rob, thanks for the message. Did you use Solomon yourself, or heard it used with success multiple times through others? Always interested to hear feedback for what works for the Series 7 Top-Off!.

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