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What Is the SIE Exam?

The Securities Industry Essentials® exam, or SIE exam, is an assessment offered through FINRA for prospective professionals in the securities industry. It is considered an entry-level exam and covers products and their risks, regulatory agencies, prohibited practices, and the structure of the securities industry markets.

The SIE exam is given as a way for students and prospective candidates to demonstrate their knowledge of the industry to potential employers and firms. It is offered to anyone age 18 or older, and the results are considered valid for four years. You don’t need to be associated with a broker-dealer in order to take the exam.

While the SIE exam does help demonstrate basic industry knowledge, it does not qualify the examinee to participate in any sort of securities industry business or even register with a FINRA member firm. In order to do that, you’ll need to pass the SIE exam along with a qualification exam relevant to the type of business you want to conduct. For example, if you want to become a registered representative, you’ll need to pass both the SIE exam and the Series 7 exam.

Such qualification exams are only available to those who are employed by or otherwise associated with a FINRA member firm.

What Is an SIE Exam Prep Course?

An SIE exam prep course is a focused financial industry course designed to help students pass the SIE exam, ideally on the first attempt. Courses vary but may include study materials, lectures, practice exams, and question banks. As students move through the material, they become prepared for specific sections of the exam.

How Long Do You Need to Study for the SIE Exam?

The SIE exam itself is composed of 75 questions and takes an hour and 45 minutes to complete. A passing grade is 70 or above.

In order to pass the SIE exam, you will likely need to dedicate many hours over the course of weeks (or months) to study the material. While everyone retains information a bit differently, it’s recommended that you spend at least 50 hours seriously studying before your exam. If you don’t already have a strong financial background, you should probably dedicate even more time to your prep.

With that said, the current pass rate of the SIE exam is about 82% overall.

How Much Does an SIE Exam Prep Course Cost?

There are many different SIE exam prep courses to choose from, depending on how much help you think you need and how you learn best.

For example, you can purchase a generic online review course for as low as $40, though it’ll be mostly self-guided. If you want an in-person prep course, you can expect to pay somewhere in the neighborhood of $200 to $300. 

Some prep courses have a better reputation (and pass rate) than others, so choose the one that best suits your schedule, learning style, and comfort level with the SIE exam. Also, keep in mind that while a prep course can be an invaluable investment, it won’t replace the hours of independent study that you should still commit to the exam.

Is an SIE Exam Prep Course Worth It?

While it is possible to pass the SIE exam without taking a prep course, students are able to become more efficient in studying for the exam. Courses focus on the topics known to be covered on the exam and can take practice exams to see where their strengths and weaknesses are. In doing so, students don't waste time studying concepts they are already strong in and can focus on improving weak areas.

How We Chose the Best SIE Exam Prep Courses

To help determine the best SIE exam prep courses, we looked at factors such as cost, published pass rate, and availability. Since different examinees respond to certain class structures differently, it’s important to choose the model that best suits you—whether that’s online, in-person, or in a book.

We also looked at what is offered in each course, such as review books, flashcards, practice exams, access to instructors for questions, and the like. Additionally, we took course policies, such as money-back guarantees, into account. Ultimately, using our roundup of the best SIE exam prep courses, you will find the right program to help you pass your exam and advance your career.