Series 9 vs. Series 10: What’s the difference?
You’re likely here because you’re preparing to tackle the Series 9 and Series 10 exams, and you want to understand the differences between the two. Passing both the Series 9 and 10 is an important step toward advancing your career in securities supervision. Together, they form the legal qualification needed to become a securities sales supervisor or a branch manager position at a broker-dealer.
The content for both the Series 9 and Series 10 exams has been carefully crafted by analyzing the real-world functions of General Securities Sales Supervisors, ensuring the exams are relevant and closely aligned with your future responsibilities. If you’re engaged and interested in navigating the path to earning your Series 9/10 credentials, let’s dive into the core information you need to succeed on both exams.
If you’re already familiar with how the Series 9 and Series 10 exams differ and want to dive directly into Series 9 study material or a comprehensive preparation strategy, visit our Series 9 and 10 exam preparation guide.
Eligibility for the Series 9 and 10
First things first: to take this exam and obtain supervisor registration, you must:
- Be sponsored by a Financial Industry Regulatory Authority (FINRA) member firm or other applicable self-regulatory organization (SRO) member firm.
- Plan to (or have already taken and passed) the Series 7 and Securities Industry Essentials (SIE). They are required to get your General Securities Sales Supervisor registration.
Once you’ve met these requirements and your firm has registered for your exam on your behalf, you will be asked to submit fingerprints and related documents as part of the enrollment process.
When scheduling your exams, you are permitted to take Series 9 and Series 10 in any sequence as long as both are completed within the 120-day enrollment period. It’s not necessary to take both exams on the same day. However, passing only one exam will not qualify you for the license; you must complete both tests to be authorized as a supervisor.
Series 9 Basics: Supervision of Options Sales
The Series 9 is a comprehensive 55-question, multiple-choice exam. Candidates have 90 minutes to complete the Series 9 exam, and the examination fee is $130. The primary objective of the Series 9 is to test the ability to competently supervise sales of options accounts. While Series 9 focuses on the oversight of options-related activities, the Series 10 exam assesses supervision of broader securities sales activities.
The Series 9 exam covers these core topics:
- (F1) Supervision of Opening and Maintenance of Customer Options Accounts
- (F2) Oversight of Sales Practices and General Options Trading
- (F3) Monitoring Options Communications
- (F4) Supervision of Associated Persons and Personnel Management
A significant portion of Series 9 questions revolves around F1 and F2, with an emphasis placed on mastering the supervisory elements outlined in F2. F4 makes up the next most critical segment, while topics under F3 feature fewer questions. To successfully prepare for the Series 9 license, staying current with the latest updates and rule amendments is crucial: these are frequently published on SRO websites. Leveraging the most current Series 9 study material or reputable online content is recommended over older textbooks, which may not reflect recent rule changes.
The Series 9 exam does not penalize for guessing, so it’s wise to answer every question. During the test, you can use the calculator provided at the test center for your convenience.
A passing score for the Series 9 exam requires achieving a score of at least 70%.
Series 10 Basics: Supervision of General Security Sales
Series 10 is a longer, 145-question, multiple-choice exam that takes 4 hours to complete and has a $175 registration fee. Compared to the Series 9 exam, the Series 10 exam is longer and places greater emphasis on the supervision of general securities sales. While Series 9 evaluates candidates on supervising options account sales, the Series 10 exam is designed to assess broader supervisory skills within the general securities sector. This distinction is vital when comparing the Series 9 vs. Series 10.
Series 10 focuses on the following key subject areas:
- (F1) Supervision of Associated Persons and Personnel Management Activities
- (F2) Supervision of Opening and Maintenance of Customer Accounts
- (F3) Supervision of Sales Practices and General Trading Activities
- (F4) Supervision of Communications with the Public
A significant portion of the Series 10 exam questions fall within sections F2 and F3, highlighting the importance of customer account management and oversight of trading practices for candidates seeking the Series 10 license. As with studying for the Series 9, reviewing official online resources is often more reliable than consulting older book content; printed materials may not always reflect the latest information relevant to the Series 10 exam.
Like the Series 9, there is no penalty for incorrect answers on the Series 10; candidates are encouraged to answer all questions, even if guessing. A calculator approved and provided by the test center is also permitted during the Series 10 exam.
A passing score on the Series 10 exam is at least 70%.
Main similarities and differences
The Series 9 and 10 have a lot of crossover and are meant to assess your competency in the following topics:
- Sale of corporate securities
- Closed-end funds
- Money market funds
- REITs, mortgage-backed securities, and other asset-backed securities
- Equity options
- Options on (corporate) backed securities
- Mutual funds
- Variable annuities and variable life insurance
- Government securities
- Repos and certificates of accrual on government securities
- Municipal securities and municipal fund securities
- Direct participation programs
The main differences between the two tests are:
- The Series 9 focuses greatly on options, a financial instrument whose value is tied to an underlying security
- The Series 10 goes further into the competencies supervisors need to perform their roles
- The Series 10 explores financial instruments and investment vehicles in more detail
- The Series 10 is two and a half hours longer than the Series 9 and has a much larger scope
Many candidates choose to take the Series 10 before the Series 9 because the 10’s scope is so broad, leaving room to focus on the more specialized content of the 9. These licenses give you the right to supervise sales activities, but not other aspects of a member firm’s securities business, such as:
- Underwriting
- Trading
- Overall compliance with financial responsibility rules
In terms of compliance, General Securities Supervisors work to ensure that sales and other financial activities are done so in accordance with established FINRA rules and standards. However, they are not responsible for the broader oversight responsibilities granted to holders of the Series 24 license, another principal-level credential.
Takeaways
The Series 9/10 exams are a major requirement for individuals seeking to supervise the sale of securities at their firms. Typically, branch managers pursue these credentials to demonstrate their proficiency and advance in their careers. The key distinction between the Series 9 and 10 comparisons lies in their focus: the Series 9 exam concentrates on supervising options sales, whereas the Series 10 exam covers a broader range of general securities sales. Notably, the Series 10 exam has nearly three times as many questions as the Series 9 exam, and candidates are allotted more than twice as much time to complete it.
You can choose to take the Series 9 and Series 10 exams in any order, and you are not required to schedule both on the same day. In fact, most people take them weeks apart to ease the burden of studying. The testing process for these exams can be intense, but they represent an important career achievement for securities sales professionals. Whether you’re focusing on one test at a time or tackling both together, be sure to create a rigorous but attainable study schedule that allocates enough time for each topic.
