# Understanding the Series 3 Exam: Eligibility, Requirements, and Alternatives

> **Definition**
>
> The Series 3 is an exam that investment professionals must pass to sell commodity futures and options on commodity futures.

## What Is the Series 3?

Candidates must pass the Series 3 exam to register with the [National Futures Association (NFA)](https://www.investopedia.com/terms/n/nfa.asp) and sell commodity futures and options in the U.S. derivatives market.

The Series 3 is administered by the [Financial Industry Regulatory Authority (FINRA)](https://www.investopedia.com/terms/f/finra.asp) on behalf of the NFA.

The Series 3 is among several FINRA exams, like [Series 7](https://www.investopedia.com/terms/s/series7.asp) for brokers selling various securities.

Candidates do not need to be sponsored by a firm to take the Series 3.

The exam consists of 120 multiple-choice questions in two parts, and candidates have two and a half hours to complete it. Candidates must achieve a score of around 70% on each part to pass the exam—that's not official, but is the widely accepted pass rate.

### Key Takeaways

*   Passing the Series 3 exam is required to sell commodity futures and options in the U.S. derivatives market.
*   Candidates must score around 70% in the Series 3 exam's two parts to pass.
*   The exam comprises 120 multiple-choice questions and costs $130.
*   Alternative exams to Series 3 include Series 31 and Series 32, depending on registration status and business nature.
*   Candidates can register for futures industry exams through the FINRA website.

## Understanding the Series 3 Exam Structure

The Series 3 exam covers options, futures, hedging, margins, and market rules for brokers. The exam has 120 questions in two parts and takes two and a half hours. Unlike Series 7, candidates don’t need a firm's sponsorship for Series 3.

Candidates need around a 70% score in each part to pass, though it's not official. Those who fail can retake the exam but might face a waiting period. The exam costs $130.

> **Important**
>
> To sell commodity futures contracts, passing the Series 3 exam is usually required.

The NFA, a self-regulatory organization for the U.S. derivatives market, mandates proficiency for those applying as a futures commission merchant (FCM), retail foreign exchange dealer (RFED), introducing broker (IB), [commodity pool operator (CPO)](https://www.investopedia.com/terms/c/cpo.asp), commodity trading advisor (CTA), leverage transaction merchant (LTM), or [associated person (AP)](https://www.investopedia.com/terms/a/associatedperson.asp).

Typically, individuals must pass the Series 3 within two years of applying for NFA membership. Exceptions include:

*   The person is currently a registered floor broker.
*   The person passed Series 3 over two years ago and has no registration gap over two years in NFA roles like AP or FB.

Applicants must register online at the [FINRA website](http://www.finra.org/industry/enroll-series-exam) for futures exams. FINRA typically informs the NFA when someone passes a futures exam. Sometimes, the NFA may ask candidates to prove they passed.

> **Fast Fact**
>
> The Series 3 is also known as the National Commodities Futures Examination.

## Exploring Alternatives to the Series 3 Exam

Rather 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:

*   Futures Managed Funds Examination (Series 31)
*   Limited Futures Examination-Regulations (Series 32)

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.

Visit the [NFA's Proficiency Requirements page](https://www.nfa.futures.org/registration-membership/how-to-register/proficiency-requirements.html) for more on Series 3 and other exams. For test day details, visit [FINRA's On the Day of Your Qualification Exam](http://www.finra.org/industry/exam-day) page.

## The Bottom Line

The Series 3 exam is essential for professionals who want to sell commodity futures and options, making it a critical step for careers in the U.S. derivatives market.

Pass the exam to register with the National Futures Association (NFA), which provides opportunities for candidates in various professional roles in the commodities and futures markets.

With an unofficial but widely accepted pass rate of around 70% in each of its two parts, the Series 3 tests knowledge on options, futures, hedging, and market rules. Candidates do not require firm sponsorship to take the exam.

Alternatives to the Series 3 include the Series 7, 30, 31, 32, and 34 exams, which cater to different specializations in the financial sector. Candidates should carefully consider their career paths and the specific proficiency requirements set by the NFA when choosing which examination to pursue.