how the series 3 works
the 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 exam consists of 120 multiple choice questions in two parts and candidates have two hours and 30 minutes to complete it unlike the series 7 exam candidates do not need to be sponsored by a firm in order to take the series 3 candidates must achieve a score of around 70 in each part to pass the exam there is no official pass rate but the widely accepted pass rate is around 70 those who fail to pass may take the exam over again although they may be subject to a waiting period the exam costs 130 anyone who wants to sell commodity futures contracts must generally pass the series 3 exam the nfa a self regulatory organization for the u s derivatives market requires anyone who is applying for nfa membership as a futures commission merchant fcm retail foreign exchange dealer rfed introducing broker ib commodity pool operator cpo or commodity trading advisor cta leverage transaction merchant ltm or as an associated person ap of these entities to satisfy proficiency requirements in most cases individuals seeking nfa membership or registration as an associated person must pass the series 3 exam within two years before they apply that s unless to sign up for any futures industry exams an applicant must apply online at the finra website typically finra will notify directly the nfa that an individual has passed one of the futures industry exams in some circumstances however the nfa may request that candidates provide proof that they passed alternatives to the series 3rather than the series 3 individuals may be eligible to take other exams and pursue other registration options based on their registration status and the nature of the business they conduct those include other certification exams related to the series 3 are the series 30 nfa branch manager examination and series 34 retail off exchange forex examination the series 3 is not considered a prerequisite or corequisite for any of these other exams for more information on the series 3 and other futures industry exams visit the nfa s proficiency requirements page and for more details on taking the test visit finra s on the day of your qualification exam resource page 