It doesn’t matter where you are in your career for you to take the SIE exam. You might be a person who wants to change their career, an employee of a financial institution who lacks the right licenses, or even a college student. If you want to take any FINRA exam, like the Series 7 exam, then you have to go through the SIE exam.
It is, however, advisable for young people to take this exam at the beginning of their careers. The exam is not easy and comes with multiple-choice questions that will get you scratching your head for the correct answers.
The financial industry is changing. This means that the SIE exam covers new information with regard to new trends in the industry. It, therefore, means that people need to be well prepared to pass the exam. What is the best way to study for the SIE exam?
SIE Topic Breakdown
The SIE exam consists of seventy-five multiple-choice questions that should be answered within one hour and forty-five minutes. This means that you need to break down the SIE topics so that you can prepare well for all sections covered in the exam.
It is advisable to spend more time studying those sections that have more questions since the questions are not balanced throughout the different topics. Spend some time to choose good SIE study materials to ensure that you have all the content that you need.
The different topics you need to cover include Products and their Risks (covers 44% of the questions), Customer Accounts, Trading, and Prohibited Activities (covers 31% of the questions), Capital Markets (16% of the questions), and Regulatory Frameworks (9% of the questions).
Getting Familiar with Finance
Now that you have broken down the topics and know what you will be covering, you can start learning. You need to get familiar with finance and financial terms before you can sit for this exam.
You should be able to understand different financial rules, formulas, and definitions and where they are used in the financial industry. With the right study materials, you will find yourself at an advantage and will stand a chance of passing the SIE exam.
Time Management
This is a crucial skill that you will need to pass the SIE exam. It is recommended that you spend between forty minutes to one hour studying for this exam. It means that you need to start your preparations early, maybe one to two months before the exam.
Within that period, you need to manage your time well and allocate enough time and resources to the preparation of the exam.
In addition, it is important to note that the SIE exam is timed. You are supposed to answer 75 questions in less than two hours. If you are poor in time management, you will not be able to handle this.
Set Study Goals
One of the most challenging things that students go through is preparing for exams. However, if they implement project-based learning and set study goals that are attainable, measurable, specific, timely, and realistic, they can easily pass their exams. This also applies to the SIE exams.
For instance, you can set a goal to ensure that you have memorized the FINRA capital market rules within a specific period of time. This will ensure that you can track your progress easily and improve on the topics that are difficult for you.
The first step to setting study goals is identifying where to start. After that, you can set goals for each of the sections covered in the SIE exam and make sure you attain them.
Conclusion
Finally, you need to assess yourself to see how prepared you are. Depending on the study materials you choose to use, you should be able to get questions for every section that you have studied. You can also set the questions yourself or ask someone who has already taken the exam to do it for you. This will test how ready you are and show you the sections that you need to pay more attention to.
