Greetings, our dear reader!
Welcome to an informative guide to Series 7 practice exam.
This is our fourth article in the Series 7 study hub articles.
In this article, we give you access to five full-length free Series 7 practice exams.
We also have practice questions for each of the four functions of the Series 7 exam.
In total, you’ll have 900 practice questions.
By the end of this read, you’ll have tips on how to make the most of the practice exams, what the actual Series 7 exam entails, and why you should consider taking the exam.
In short, we’ll discuss:
- Series 7 practice exam
- Getting the most of Series 7 practice exam and quizzes
- Series 7 exam overview
- Why take the Series 7 exam
Let’s get started right away.
Other free series 7 study materials:
- Series 7 exam prep
- Series 7 study plan
- Series 7 study guide
- Series 7 practice exams
- Series 7 flashcards
- Series 7 cheat sheet
- Series 7 Exam FAQ
- Best Series 7 study materials
Series 7 Practice Exam
The practice exams simulate the structure and format of the actual exam.
You’ll test your understanding and have a feel of how the actual exam is structured.
Our goal is to help you find out your areas of weakness and strengths using the practice exams.
We’ve also put together Series 7 practice questions by domain.
Once you’ve established where you need to put more effort, you can take the practice tests in the individual domains to polish your knowledge.
Series 7 Practice Quizzes by Domains
The Series 7 exam is broken down into four domains.
Each domain has a set number of questions.
The domains cover different topics that you must be well conversant with.
The Series 7 practice tests are also broken down into these domains to prepare you effectively for the exam.
Just as the domains are weighted differently in the Series 7 exam, so are the practice exams.
So, ensure the Series 7 exam prep courses you purchase have practice questions that reflect the exam structure.
Here are the domains:
- Seeks Business for the Broker-dealer from Customers and Potential Customers (7%, which translates to 9 questions)
- Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives (9%, making 11 questions)
- Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records (73%, which is 91 questions)
- Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions (11%, that’s 14 questions)
We’ve designed four (4) sets of practice quizzes for each Domain. Each set has 25 questions to help you prepare effectively for the Series 7 exam.
Here you can start your Series 7 Domain Quizzes right away.
Domain 1: Seeking business for the broker-dealer from customers and potential customers
Domain 1: Quiz 1
Domain 1: Quiz 2
Domain 1: Quiz 3
Domain 1: Quiz 4
Domain 2: Opening accounts after obtaining and evaluating customers’ financial profiles and investment objections
Domain 2: Quiz 1
Domain 2: Quiz 2
Domain 2: Quiz 3
Domain 2: Quiz 4
Domain 3: Providing customers with information about investments, making suitable recommendations, transferring assets, and maintaining appropriate records
Domain 3: Quiz 1
Domain 3: Quiz 2
Domain 3: Quiz 3
Domain 3: Quiz 4
Domain 4: Obtaining and verifying customers’ purchase and sales instructions and agreements; processing, completing, and confirming transactions
Domain 4: Quiz 1
Domain 4: Quiz 2
Domain 4: Quiz 3
Domain 4: Quiz 4
Getting the Most of Series 7 Practice Exam and Quizzes
The FINRA Series 7 exam has 125 scored questions, where you must score 90 of the exam questions to pass.
Series 7 sample questions help you prepare for the exam and hopefully pass on the first attempt.
So, here are expert tips to help you make the most of the Series 7 practice tests and exams.
Use Practice Questions Early and Regularly
Most test-takers wait until a few weeks before the exam to take the Series 7 practice exams.
However, the earlier you start, the better.
It’s important to create a baseline early on when starting your exam prep to know where you are starting from and the benchmark to measure your improvement.
That means you should take a full-length FINRA Series 7 practice exam a few weeks into your studies.
From there, schedule practice tests and exams every two weeks.
This will help you find out your areas of strength and weakness.
You can determine how to tailor your exam preparation techniques to focus more on your weakest point early.
Again, practice exams are an active way of learning.
When taking the practice exam, you are forced to go through all the answer choices before picking the right one.
Your mind goes to work to determine which choice is the right one and why.
Even in the elimination, your mind must also determine why the other choices are incorrect.
Simulate Test Taking Conditions
FINRA Series 7 exam is taken in the testing center.
You cannot get into the exam room with any study materials.
You’ll only be given scrap paper.
So, when taking the full-length Series 7 practice exam, emulate the same.
Don’t refer to your study materials.
It’s best to take the exam in a different location from where you study every day.
A place like a library is ideal.
Pay full attention to each question just like you would the real exam.
Again, start and complete the questions within the given 3 hours and 45 minutes.
Finally, learn how to pace yourself during the exam.
This will prepare you well for the actual Series 7 exam questions.
Review Right and Wrong Answers
Once you have taken the practice exam, review the questions one by one.
Reviewing the correct answers helps you reinforce the knowledge you already know.
The wrong ones point you to the areas where you need to put in more effort.
You can create flashcards for concepts you find difficult to grasp or, even better, use our digital flashcards.
Leverage the Series 7 study guide for an overview of the key concepts in the topic you are weak in.
You can even combine targeted practice questions, flashcards, and other study tools to zero in the chapters you are not doing well.
Passing the FINRA Series 7 exam requires an in-depth understanding of the concepts, and the practice questions and quizzes help you do just that.
Series 7 practice questions guide you in the areas you are weakest.
Series 7 Exam Overview
The Series 7 exam is formerly the general securities representative qualification examination.
The exam is designed for aspiring registered representatives.
The exam was developed to ensure candidates know the industry’s rules and regulations and have the required knowledge to perform the duties and responsibilities of registered representatives.
Majorly, test takers are tested on different investment scenarios based on specific investment criteria.
The general securities representative exam aims to equip registered representative with the skills and knowledge to guide clients through the highs and lows of the securities market.
The examination is broken down into four functions of registered representatives.
Each function is weighted differently.
Function 1: Seeking business for the broker-dealer from customers and potential customers. This function makes up 7% of the exam. That is 9 questions.
Function 2: Opening accounts after obtaining and evaluating customers’ financial profiles and investment objections. Function 2 constitutes 9%, which translates to 11 questions.
Function 3: Providing customers with information about investments, making suitable recommendations, transferring assets, and maintaining appropriate records. This makes up 73% of the exam. That’s 91 questions.
Function 4: Obtaining and verifying customers’ purchase and sales instructions and agreements; processing, completing, and confirming transactions. This section is 11% of the exam. That is 14 questions.
To be eligible for this test, exam takers must be sponsored by a self-regulatory organization member firm or FINRA member firm.
The sponsoring firm is required to file the Uniform Application for Securities Industry Registration (Form 4U).
Once filled and the enrollment fee of $245 is paid, candidates receive an email with instructions about the exam.
Test-takers have 120 days from the day they receive the email to schedule the exam on the FINRA website.
Additionally, the securities industry essentials exam is a co-requisite for the Series 7 exam.
That is, passing the Series 7 exam and the SIE exam qualifies you for the Series 7 license.
The exam has 135 multiple-choice questions that take 3 hours and 45 minutes to complete.
Ten questions are unscored.
That leaves you with 125 scored questions.
The passing score for the exam is 72%.
Failure to meet the passing score will require you to retake the exam.
And you’ll have 30 days waiting period to retake the exam.
There’s no limit to how many times you can take the exam.
The catch, though, is that the sponsoring firm must pay $245 every time you retake the exam.
This qualification allows you to sell and purchase a wide range of securities products, including:
- Direct participation programs
- Investment company products
- Options
- Variable contracts
- Corporate securities
- Municipal fund securities and hedge funds
- Venture capital
- Real estate investment trusts (REITs)
- Exchange-traded funds (ETFs)
They cannot sell:
- Real estate
- Commodities futures
- Life insurance products
Why Take the Series 7 Exam
Series 7 license gives you an entry point into the financial securities industry.
Straight up, the Series 7 license exam covers an extensive knowledge of the financial industry.
You’ll learn about retirement plans, equity, debt instrument, options, packaged securities, taxation, and investment risks, to mention a few.
Further, the SIE exam is a co-request for the Series 7 exam.
The securities industry essentials exam covers introductory knowledge of the securities industry market, types of securities products and their risks, and regulatory agencies’ functions and prohibited activities.
Earning the Series 7 license means you have basic and advanced securities industry knowledge.
Moreover, it gives you the license to sell and buy a wide range of securities products, except for life insurance products, commodities, real estate, and futures.
The Financial Industry Regulatory Authority has strict regulations for industry professionals with Series 7 certification.
They are held to the highest standards.
With the Series 7 license, you can get an entry-level position as a registered representative and climb the career ladder to become a financial advisor.
Financial advisors help clients create financial plans that best suit their investment goals and financial needs.
You can also choose to work with clients directly in investment management.
In a nutshell, taking the Series 7 exam is the start of your career journey in the financial securities industry.
There are loads of possibilities as you advance your career.
Conclusion
One of the best Series 7 exam prep study materials is practice exams.
Practice exams simulate the real exam.
You’ll have a feel of what the exam is like early on and feel more confident.
It also allows you to work on your areas of weakness before the exam.
When used with other study materials such as Series 7 flashcards and cheat sheets, your Series 7 exam prep goes to the next level.
So, dedicate enough time for practice exams and questions early to increase your chances of passing the exam the first time.
Series 7 Practice Exam Frequently Asked Questions
Are Series 7 practice exams harder than the actual exam?
Yes. Series 7 practice exams are harder than the actual exam to better prepare candidates for the actual exam. The goal is to understand the questions and ensure you know what makes the answer correct. Work on the concepts to have a broader view of each topic.
How difficult is the Series 7 exam?
The Series 7 exam is regarded as the most challenging FINRA qualification exam. The exam has a pass rate of 65% for first-time test-takers. And to pass, you must score 72%. Make the most of Series 7 exam prep courses to have any chance of passing the exam.
How long should I study for Series 7?
It depends. Candidates with experience or education in finance, accounting, or economics take 80-100 hours. Those without experience take around 150 hours. To make the most of your study time, review FINRA’s Series 7 content outline. Create a study plan to put in the hours.
How much does the Series 7 exam cost?
The Series 7 exam costs $245. Previously, it was $305. If you fail the exam on the first attempt, you’ll be required to pay the same amount for a retake. All the subsequent retakes still cost $245. Your best bet is to ensure you pass in the first trial.
What are the passing scores for the Series 7 exam?
To pass the Series 7 exam, you must score 72%. That means you get 90 questions correct out of the 125 scored questions in the test. The best indicator that you are ready is consistently scoring 80% and above in the practice exams.
What is the best way to study for Series 7?
– Create or download a Series 7 study plan
– Have a routine and stick to it throughout your studies
– Use Series 7 flashcards and cheat sheets
– Use practice questions at the end of each chapter to reinforce the information learned.
– Take full-length practice exams
– Revise the practice exams
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