Free Series 57 Practice Exam
Series 57 Securities Trader practice exam covering equity trading, market making, Regulation SHO, short sale rules, and FINRA trading regulations. No signup required.
Series 57 Exam Topics
Trading Activity & Conduct
Order handling, trade reporting, best execution, front-running, trading ahead, and prohibited trading practices. ~48% of Series 57 — largest section.
Equity Security Trading Rules
Regulation NMS, short sale rules (Regulation SHO), trading halts, circuit breakers, and exchange rules. ~22% of Series 57.
Compliance & Regulatory Requirements
Recordkeeping, trade reporting to FINRA, regulatory examinations, and broker-dealer compliance obligations for trading operations. ~18% of Series 57.
Market Making
Market maker obligations, quote requirements, trading on the bid and offer, and stabilization. ~12% of Series 57.
Full Series 57 Practice Exam
All four sections mixed and weighted by the official FINRA Series 57 blueprint. 50 questions, 105 minutes.
About the Series 57 Exam
The Series 57 Securities Trader (Equity Trader) exam licenses individuals to engage in proprietary and agency trading of equity securities at FINRA-member broker-dealers. It replaced the older Series 55 exam in 2018. The Series 57 is required for traders who execute equity trades on behalf of a broker-dealer's own account (proprietary trading), execute agency trades for institutional or retail customers, or engage in market-making activities in equity securities.
The exam contains 50 scored questions (60 total with 10 unscored) with a 105-minute time limit and a 70% passing score. The SIE is a prerequisite. The Series 57 focuses on equity trading mechanics, order types, regulatory requirements for traders under Regulation SHO and FINRA trading rules, and market structure. It does not cover options trading — that requires the Series 4 (principal) or is covered under the Series 7.
Series 57 Exam Topic Breakdown
| Topic | Weight | Key Areas |
|---|---|---|
| Equity Trading Activity | 49% | Order types, execution, market structure, quote requirements, trade reporting to FINRA/TRF, short sale mechanics |
| Equity Trading Regulations | 33% | Regulation SHO (short sales, locate requirement, close-out), Regulation NMS, FINRA trading rules, manipulation prohibitions |
| Recordkeeping and Reporting | 10% | Trade reporting obligations, blotters, order tickets, firm records required for trading operations |
| Ethical Trading Practices | 8% | Prohibited trading practices, front-running, trading ahead of research, market manipulation, FINRA Rule 5010 series |
Sample Series 57 Exam Questions
1. Under Regulation SHO, before executing a short sale in an equity security, a broker-dealer must:
2. A trader at a broker-dealer executes a sell order for a customer and then, 30 seconds later, executes a proprietary short sale in the same security at a lower price. This most likely violates:
3. Under FINRA rules, trades in over-the-counter equity securities must be reported to the Trade Reporting Facility (TRF) within:
Series 57 Study Tips
Equity Trading Activity (49%) and Regulations (33%) together make up 82% of the exam — concentrate your preparation there. Regulation SHO is the most heavily tested regulatory framework: know the locate requirement, the close-out requirement (Rule 204), the alternative uptick rule (Rule 201), threshold securities, and the distinction between failure-to-deliver under Reg SHO and ordinary settlement fails.
For market structure, understand the difference between exchange-listed and OTC markets, the role of market makers, the NBBO (National Best Bid and Offer), and how Regulation NMS protects customer orders. Trade reporting to the TRF — including the 10-second reporting window — is a consistent exam topic. Know the prohibited practices cold: front-running, trading ahead, marking the close, and layering/spoofing are all tested.
Frequently Asked Questions — Series 57
What replaced the Series 55 exam?
The Series 57 Securities Trader exam replaced the Series 55 Equity Trader exam in October 2018. The content is substantially similar — both cover equity trading, Regulation SHO, and FINRA trading rules — but the Series 57 is updated to reflect current market structure including Regulation NMS, electronic trading, and updated FINRA rules. If you passed the Series 55, you are grandfathered and do not need to retake the Series 57.
Who needs the Series 57 license?
The Series 57 is required for associated persons of FINRA member firms who engage in proprietary trading of equity securities, act as market makers in equity securities, or execute equity trades as part of their firm role. It is not required for registered representatives who simply take and execute customer orders — that is covered by the Series 7. The Series 57 is specifically for trading desk roles at broker-dealers.
What is Regulation SHO and why is it so important for the Series 57?
Regulation SHO is the SEC rule governing short sales of equity securities. It has three key requirements tested heavily on the Series 57: the locate requirement (locate shares before shorting), the close-out requirement (buy in fails within specified timeframes), and the alternative uptick rule (circuit breaker restricting short sales after a 10% intraday decline). Nearly one-third of the exam covers Regulation SHO and related FINRA trading rules — it is the single most important topic to master.
How is the Series 57 different from the Series 7?
The Series 7 is a broad registered representative license covering all types of securities products and customer account activities. The Series 57 is a narrow specialist qualification for equity traders doing proprietary and market-making business. Many Series 57 holders work on trading desks and hold the Series 57 without the Series 7 — their role is trading, not customer advising. The Series 57 focuses on market mechanics, order execution, and trading regulations that are not deeply tested on the Series 7.
How long does it take to study for the Series 57?
Most candidates study 40–60 hours over 3–4 weeks. The Series 57 is considered a mid-difficulty FINRA exam. Candidates with trading desk experience often find the trading mechanics intuitive and focus their study on the regulatory sections. Regulation SHO, trade reporting, and FINRA Rule 5010 series (prohibited practices) are the most rule-heavy areas and require careful study for candidates without prior exposure.