How To Earn Your Series 3 LicenseIf you are looking to conduct business with the public on the U.S. futures exchanges, then you probably are wondering how to pass the Series 3 exam ? How much you need to study for it, what material is covered in the exam, and what are some tips that will increase your chances of obtaining the Series 3 license on your first try?
About Your Series 3 License
The Bank Training Center provides numerous Series 3 exam preparation courses - such as Series 3 seminars, Series 3 online courses, and Series 3 exam practice tests - all designed to help you pass your Series 3 exam and earn your Series 3 license.
The securities trader Series 3 license is known formally as the National Commodities Futures license and is a proficiency test issued by the National Futures Association (NFA), the self-regulatory organization for the U.S. futures industry. It is required of individuals who:- Offer or solicit business in futures or options on futures at a futures commission merchant (FCM) or introducing broker (IB) or who supervise any such person
- Are associated with a commodity trading advisor (CTA) who solicits discretionary accounts or who supervises persons so engaged
- Are associated with a commodity pool operator (CPO) who solicits funds for participation in a commodity pool or who supervises such persons
About Your Series 3 Exam- Your Series 3 exam prep class can be taken via in-person seminar, online, self-study, or interactive formats
- Recommended study time is 40 hours for the course materials, plus several additional hours to take the sample Series 3 exam prep questions
- Series 3 candidates are not required to be sponsored to sit for the licensing exam; however, candidates are required to be sponsored to receive their Series 3 license
- Candidates must submit a Form U10 and applicable fee to the Financial Industry Regulatory Authority (FINRA). After FINRA confirms that the form was received and processed, a 120-day window will be opened in which the applicant may schedule and take the exam
- Exams for your securities trader Series 3 license can be scheduled at any Prometric test center nationwide
- Candidates who are successful in passing the Series 3 exam will have a period of two years to find a sponsor who will submit their registration documentation
- Candidates who are NOT successful in passing the Series 3 exam must re-file the Form U-10 and processing fee with FINRA, whereby a new 120-day window will be opened
- In-depth licensing questions should be directed to the National Futures Association (NFA) at 800-621-3570
Recommended Series 3 Courses & Available Training OptionsTo find training for earning your Series 3 license, including Series 3 exam preparation or Series 3 exam practice tests, simply click on any of the recommended courses below, or search under "Licensing/Designations" in the search box thereafter for "Series 3".
Good luck on your Series 3 exam! |
Series 3 Exam Requirements and InformationThe Series 3 exam covers topics that commodities brokers need to know, such as options, futures, hedging, and margin requirements, as well as market and regulatory rules.
The first part of the Series 3 exam covers the basics of the futures markets. You'll need to understand futures contracts, hedging, speculating, futures terminology, futures options, margin requirements, types of orders, basic fundamental analysis, basic technical analysis and spread trading. The exam will test your understanding of theory and ability to calculate the results of a trade from a profit and loss and margin perspective.
The second part of the Series 3 exam consists of market regulations. The underlying goal of these questions is to test your ability to act in a proper and ethical manner when it comes to clients.
The Series 3 test is a total of 120 true/false and multiple choice questions and students are required to score at least a 70% on each section to earn a Series 3 license. The test costs $130 and students are given 2.5 hours to complete both sections.
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