Series 3 Exam

If you'd like to become registered to sell commodities or futures contracts, you'll need to take the Series 3 exam – or the National Commodity Futures Examination – administered by the Financial Industry Regulatory Authority (FINRA).

Introduction to the Series 3 Exam

The Series 3 exam is a required exam if you plan to register with the National Futures Association.  As mentioned previously, the test is designed to qualify individuals to sell futures contracts and commodities, and is required for anyone who wants to become a commodity trading advisor or an introducing broker.  You may, depending on your registration status and what kind of business you do, be eligible to take one of the alternative tests (Series 31 or Series 32).

Registering for the Series 3 Exam

Test-takers must register by submitting a U-10 form and the $95 exam fee to FINRA, either online or by paper mail.  There is no prerequisite to take the Series 3 exam, and you do not need to be sponsored in order to take the test.  The required paperwork and online application process can be accessed on the National Futures Association (NFA) website at www.nfa.futures.org.

Series 3 Exam Questions

The Series 3 test contains 120 multiple choice questions, and you will have two hours and thirty minutes to complete the test.  The test is divided into two sections that cover the following: options and contracts, margin and settlements, hedging, futures theory, analysis, customer accounts, and CFTC and NFA rules.  You will receive one point for every question correctly answered, and incorrectly answered or skipped questions will not count against you.  To pass the Series 3 test, you will need to correctly answer 84 of the 120 questions correctly – or at least 70% of the test.

You will only be tested on the current rules and regulations.  The Series 3 exam is updated regularly to include only questions related to the current rules and interpretations.  You will not be questioned about outdated regulations or interpretations that have been superseded.  To get a better idea of what exactly you'll be tested on, check out the detailed study guide provided on the NFA website.  This guide also provides sample questions to give you an idea of how the questions will be structured.

What to Expect on Exam Day

You'll want to arrive early to your test site on the day of your exam.  This will give you time to take care of any paperwork – or just to get turned around in case you find yourself lost.  If you require any additional accommodations during the exam, you should make these known during the exam registration process.  You won't be able to use any external reference materials; however, the test administrator will provide you with scratch paper and a basic calculator if you need one. 

Your final score – as well as the percentage of questions you've answered correctly in each section – will be available immediately following the completion in the test.  In order for your scores to be reported, you'll need to submit a printout of your exam results to FINRA.  FINRA will, in turn, report your results to your firm or employer.