What is on the Series 4 exam?

The Series 4 exam has 125 scored multiple-choice questions (135 total, including 10 unscored), and candidates have 3 hours 15 minutes to complete it. The content outline on this page lists every tested topic with the number of questions and the percentage of the exam it accounts for.

How long is the Series 4 exam?

Candidates have 3 hours 15 minutes for the Series 4 exam, covering 125 scored multiple-choice questions (135 total, including 10 unscored).

What score do you need to pass the Series 4 exam?

The passing score for the Series 4 exam is 72%.

How much does the Series 4 exam cost?

Registering for the Series 4 exam costs $200, paid to FINRA. Prep materials are a separate cost.

Who administers the Series 4 exam?

The Series 4 exam is administered by FINRA, which sets the official content outline and scoring.

FINRA Series 4
Exam information

What it is, what's tested, and how it's scored.

Series 4 exam details

The Series 4 exam, or the Registered Options Principal Qualification Exam, is designed to test an entry-level principal's competency to perform their duties as registered options principals. These duties include supervising a firm's options personnel, complying with statutory provisions, managing accounts and trading, and enforcing exchange rules and regulations governing options trading.

The Series 4 exam is hosted by FINRA and costs $200 to register. Participants have 3 hours 15 minutes to answer 125 scored multiple-choice questions (135 total, including 10 unscored). The passing score is 72%.

Time

3 hours 15 minutes

Format

125 scored questions (135 total)

Exam fee

$200

Passing score

72%

Exam dates

Offered year-round

Details

FINRA

Eligibility and sponsorship

To qualify for Registered Options Principal registration, candidates must first qualify as a General Securities Representative by passing the Series 7 and satisfying its FINRA Securities Industry Essentials (SIE) co-requisite. Candidates must also be associated with and sponsored by a FINRA member firm or other eligible self-regulatory organization (SRO) to take the Series 4 exam. You will need to work with your company's compliance team to complete and submit a Form U4.

Administration of the exam

The Series 4 exam is taken on a computer, with a tutorial provided beforehand.

Each exam includes 10 unscored pretest items placed randomly, for a total of 135 questions: 125 scored and 10 unscored. Pretest items are randomly distributed throughout the exam. There is no penalty for guessing, so candidates should answer all questions. The Series 4 exam duration is three hours and 15 minutes.

Candidates cannot bring reference materials, and strict penalties apply for cheating on FINRA exams, including being barred from the organization.

The Series 4 is offered year-round by appointment, subject to testing-center availability.

Scoring of the exam

All candidate test scores are standardized onto a common scale through a process called equating. This adjustment compensates for minor differences in difficulty among different exam item sets, enabling fair score comparisons. As a result, all candidates are evaluated against the same passing criteria, regardless of the specific set of questions they encountered.

FINRA's Series 4 exam summary

Supervise the Opening of New Options Accounts

17%

21 questions

Evaluates knowledge of customer classifications, types of accounts and documentation, customer identification, due diligence, and ethics.

Supervise Options Account Activities

20%

25 questions

Highlights best interest obligations and suitability requirements, sales activity monitoring, performance reviews, investment strategies, and position and exercise limits.

Supervise General Options Trading

24%

30 questions

Focuses on electronic orders, exercise notices, assignments, delivery and payment, reporting, execution, and prohibited activities.

Supervise Options Communications

9 questions

Covers telemarketing, contacting and corresponding with customers, retail communications, and disclosures.

Implement Practices and Adhere to Regulatory Requirements

10%

12 questions

Evaluates knowledge of supervisory requirements, SRO requirements, and ethical guidelines.

Supervise Associated Persons and Personnel Management Activities

22%

28 questions

Covers hiring, order types, trading strategies, supervising conduct, and grounds for disqualification.

Achievable Series 4 content outline

Types of options

Covers the characteristics and uses of equity, index, yield-based, foreign currency, FLEX, and government and mortgage futures options. Introduces the different option products that a Series 4 principal must understand and supervise.

Supervise opening of options accounts

Covers the review and approval of new options accounts. Focuses on required documentation, disclosures, suitability, compliance, verification, and written agreements.

Supervise general options trading

Focuses on supervising options trading activity and identifying exceptions or errors. Covers exercise and assignment, position and exercise limits, trade corrections, margin, risk management, and Regulation SHO.

Supervise options communications

Covers supervisory requirements for options-related communications. Includes retail, institutional, and telemarketing communications, as well as applicable review requirements.

Implement practices and adhere to regulations

Focuses on establishing supervisory controls and maintaining compliance with securities regulations. Covers required procedures, regulatory obligations, and books and records.

Supervise associated persons and management activities

Covers supervision of registered representatives and other associated persons. Includes hiring, conduct, continuing education, registration requirements, and maintaining knowledge of options markets and products.

Series 4 exam: quick answers

What is on the Series 4 exam?: The Series 4 exam has 125 scored multiple-choice questions (135 total, including 10 unscored), and candidates have 3 hours 15 minutes to complete it. The content outline on this page lists every tested topic with the number of questions and the percentage of the exam it accounts for.
How long is the Series 4 exam?: Candidates have 3 hours 15 minutes for the Series 4 exam, covering 125 scored multiple-choice questions (135 total, including 10 unscored).
What score do you need to pass the Series 4 exam?: The passing score for the Series 4 exam is 72%.
How much does the Series 4 exam cost?: Registering for the Series 4 exam costs $200, paid to FINRA. Prep materials are a separate cost.
Who administers the Series 4 exam?: The Series 4 exam is administered by FINRA, which sets the official content outline and scoring.

More questions about the exam and how to prepare for it? Series 4 FAQ

FINRA Series 4Exam information