We often get asked to differentiate the Series 66 vs Series 7 Exams. The reason being, that one typically follows the other.
Anyone that has taken both of them will tell you that neither is a walk in the park. In today’s post, we take a deeper dive into what we believe are key differentiators, and where we see the most failure.
Series 66 vs Series 7: Two Titans
After the SIE exam, next in line is usually the Series 7 Exam. This exam goes deeper on virtually every topic covered in the SIE Exam.
Hence, almost everyone has a harder time with the Series 7 exam than the SIE Exam. Compared to the SIE Exam, the Series 7 is a behemoth at 125 questions, or 135 questions if you count the experimental ones.
However, the proverbial fun doesn’t stop there.
After the Series 7 Exam, most people move on to the Series 66 Exam. We generally caution against any sighs of relief after passing the Series 7, however. The Series 66 Exam is usually a bonus marathon after most people thought that they were done their only marathon.
So what do we see?
Well, the large majority of our students for the 66 Exam usually come to us after a failed first attempt. This exam is a mix of a law exam, and an analytical one. Although you might expect rote memorization to get you by on the law section, there is plenty of wordplay to challenge even the most astute legal scholars on the subject.
The analytic portion on the other hand, can be tackled with some memory tricks. This section can actually be easier than having to understand options on the Series 7. Nevertheless, topics like net present value (NPV), IRR, Rule of 72, among others can be quite tricky.
So Which is Harder?
Ultimately, that’s a really hard question to answer. But, we won't leave you hanging.
If we had a gun to our head and had to give an answer then we would probably say the Series 66. The reason we would say this is because we often see it give more problems to students than the Series 7.
In recent years, regulations have changed such that experienced advisors now have to take the 66. It has led to the unfortunate end of career for long established finance professionals.
There are a whole series of reasons why this is the case.
For newer students the biggest reason we see is simply study fatigue. It's a long exam, taken after another long exam (the Series 7).
Our advice is to try to take the Series 66 exam one step at a time. Don’t overwhelm yourself.
Different Strokes for Different Folks
Some students are much better at the analytical sections of exams, and other students are better at the comprehension portion - such as laws and regulations. The 66 has quite a substantial amount of all of the above.
For people that have been in the industry for quite a while, this exam may touch on some familiar rules and regulations. For newer students, learning these from scratch can be quite difficult.
Overall, the Series 66 is quite a challenging exam. The Series 7 difficulty level is not to be understated however.
Both can be conquered with the right amount of studying. Consequently, we recommend Kaplan as the top resource for both exams. From the hundreds of students that we see each year, those that use Kaplan tend to have the most success.
What are Some Other Differences?
When it comes to both exams, there is plenty to work on. The Series 7 has loads more Options content, while the Series 66 has loads more rules and regulations (and exceptions to those rules).
Each however, carries its own unique challenges.
The Series 7 Exam tends to have a lot of memorization, based especially on mechanical problem-solving. For example, if you know the steps to solving the maximum gain or loss for "Options Spreads" problems, then you’re most of the way home on those types of questions (here are some Series 7 Video Courses to help you).
On the other hand, the Series 66 Exam has a lot more scenario-dependent types of questions. For instance, a registered representative may not be allowed to solicit the sale of an unregistered non-exempt security, but they are allowed to sell the same type of security if the sale is unsolicited.
In short, each exam has plenty of content from which to confuse the exam taker.
That said, different people tend to have different experiences with each exam.
Analytical vs Mechanically (and Mathematically) Minded
Now let's talk about what we tend to see at Professional Exam Tutoring. What we find is that our students that are comfortable with mechanical, or even mathematical questions, typically have an easier time with the Series 7 Exam.
Topics such as Options, Convertible Bonds, Margin, and Fundamental Analysis, require a more formulaic approach. Anyone that is comfortable with math, will be fine here.
However, these same students, tend to find the more fluid rules applicable to state law challenging. The Series 66 Exam is full of this stuff (about 50% of the exam).
Some key feedback that we receive from students is that they have much more difficulty with the exceptions to the rules. Simple formulas, and memory tricks, don’t easily apply to the Series 66 exam.
Yes, But Is There a Difference in Passing Rates?
All in all, what you really might like to know is what we see around passing rates.
When it comes to the Series 7 vs Series 66, is that despite the different experiences we mentioned above, the passing rates are about the same for both exams.
Both are definitely harder than FINRA's SIE Exam. But, from what we hear and see, the passing rate is quite similar between the Series 66 and the Series 7.
As a result, the silver lining is that if you can pass the Series 7 Exam, then the Series 66 Exam is totally doable.
If you have any more questions, feel free to reach out! Good luck!
Frequently Asked Questions (FAQ)
Question: I had more trouble with the Series 66 Exam, even without a complex Options section. Why is that?
In general terms, the average person takes about six weeks. The Series 66 exam is a whole different animal than the Series 7 exam. For many people, it can be a double edged sword. For instance, there is much less math on the Series 66 exam, however, formulas and equation questions have a very concrete answers. Therefore, whether a student knows a concept or not is much more concrete. When the focus is more on case studies, and understanding the law and regulations, such as on the Series 66 Exam, it can be difficult to see the nuances between two similar, but different, scenarios. Many of the students that we come across at Professional Exam Tutoring have a hard time on the Series 66 exam for this reason. Try to become as proficient as possible at as many different scenarios that you can in order to improve your score.
Question: I'm passing my practice exams. Is that enough to go take the Series 66 Exam or the Series 7 Exam?
The short answer is, maybe. We have seen many students that have never passed a practice exam, go into the real exam, and pass. Mind you, it is very rare and we don’t recommend it. The reason we don’t, is that we see many more students fail when never having passed a practice exam. If you want to be very certain about passing, then aim high. Specifically, we recommend you score at least 85% on two full practice exams. We have found that this gives students the greatest chance of passing on the real exam. Anything less than that, and it’s usually a roll of the dice. Certain exam prep companies may tell you otherwise, but from our experience, a passing score on a practice exam is usually not a guarantee.
Question: I always get down to 50/50 and get the answer wrong. How do I fix that?
Unfortunately, the only way to fix this problem is to do more studying. It is a very good sign that you’re able to narrow down your multiple-choice answers to two answers. However, it’s even more ideal if you can narrow down to one. A sign of progress in your Series 66 exam or Series 7 exam studying is when you were able to eliminate many of the multiple-choice options. However, if you still have two to choose from, it’s probably for the simple reason that you don’t understand the concept well enough. A little more studying, unfortunately, is the best way to improve the situation.
Question: Can I pass the Series 66 Exam if I can pass the Series 7?
Generally speaking, the answer to this is yes. The average student that we see that can pass the Series 7 exam, is almost always capable of passing the Series 66 exam as well. Both are a similar difficulty level, and a similar length. That said, as mentioned, they are very different exams. The preparation involved for either is slightly different. Nevertheless, there is some overlap, and anyone that is capable to sit through a long exam like this Series 7 should be equally capable to pass the Series 66 exam. Persistence and determination tend to be the key factors. If you feel stuck at a certain score, more studying is all you can do. Often, that is the most common remedy.