The Series 3 is the National Commodity Futures Exam. It is required in order to trade futures and commodities. The exam is administered by the Financial Industry Regulatory Authority (FINRA). If you pass the exam, you can obtain a series 3 license. Here’s what you should know about preparing for the exam and taking the test.
What Will Be on the Exam?
The exam will consist of one hundred and twenty scored multiple-choice questions, plus an additional ten experimental questions that are not scored. It is structured into two parts. The first is Market and Trading Functions and the second is Regulations. Many of the questions have multiple steps that you have to work through, which is why unlike other FINRA exams, this one will likely take you the entire allotted time to complete. On average, it takes about two and a half hours to finish. If you get a score of seventy percent or greater, you pass, and you can get your series 3 license.
How Should I Prepare for the Exam?
Like with any test, studying beforehand is essential. It is recommended that you spend forty to fifty hours preparing for the series 3 exam. Although, this may seem excessive, you have to master a lot of material and it will take a few weeks just to read through all of the content that will be covered.
Should I Take A Course before the Exam?
A course can be very beneficial for learning all of the material on the series 3 exam. Courses will include a textbook, video lectures, practice exams, and support from a professional instructor who knows the series 3 inside and out. Practice exams in particular can be very helpful to learn the material by trial and error and to gage where you are in your knowledge before you officially take the exam.
What If I Fail the Exam?
If you aren’t sufficiently prepared, it’s possible that you won’t make the seventy percent score. If that’s the case, you can take the exam again after a thirty-day waiting period. If you fail again, you are subjected to the same thirty-day period. After failing a third time, or any time after that, the waiting period increases to one hundred and eighty days.
The series 3 license exam will be easy enough if you study hard and prepare for it properly, either with training courses or independent study. Good luck!