Series 3: Definition and Exam Information  

The Series 3 license, formally known as the National Commodities Futures Examination, allows individuals to sell futures contracts, options on futures and certain forex products. Administered by FINRA on behalf of the National Futures Association (NFA), the Series 3 exam evaluates a candidate’s understanding of derivatives markets, hedging strategies and regulatory requirements. Passing the exam is typically required for professionals seeking to work as commodities brokers or in futures trading roles.

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What Is the Series 3?

The Series 3 qualifies individuals to act as an associated person (AP) of a futures commission merchant (FCM) or introducing broker (IB), allowing them to solicit orders and advise clients on derivatives transactions. In practice, this often involves working with hedgers, such as agricultural producers or energy firms, or speculators seeking exposure to commodities, currencies or interest rate markets.

The exam reflects the structure of the futures industry, combining market knowledge with regulatory oversight. Candidates are tested not only on how futures and options function, but also on topics like margin requirements, leverage, daily settlement and the role of clearinghouses in managing counterparty risk.

The Financial Industry Regulatory Authority (FINRA) administers the exam on behalf of the National Futures Association (NFA), which oversees registration and compliance for derivatives professionals. While FINRA is commonly associated with securities licensing, its role here is limited to test delivery, with the NFA setting competency standards for those entering the futures industry.

The Series 3 consists of 120 multiple-choice questions split across two sections: market knowledge and regulatory requirements. A passing score is 70%, and scores are rounded down to the nearest whole number, meaning a 69.9% does not meet the threshold. ¹

Series 3 Requirements 

Unlike several other licensing exams, candidates don’t need a sponsor to take the Series 3. Simply apply to take the Series 3 via the FINRA website. After that, you’ll fill out the required paperwork. Subsequently, you’ll receive notice from FINRA with your designated testing window. Finally, candidates will need to pay a $140 exam fee.

Once you pass the Series 3, you have two years to register with the NFA. ²

Preparing for the Series 3 

To prepare for the Series 3, you’ll need to familiarize yourself with the topics covered on the exam. These topics include the basics of the futures and options market, hedging, speculating, margin requirements, types of orders, spreading, and market regulations.

Experts recommend studying between 40 and 80 hours for the Series 3 exam. Preparation methods should be a combination of practice tests, written materials, and in-person instruction. Those with experience trading futures and options will find the exam to be less difficult. However, such experience is not a prerequisite to taking the exam.

Like other exams administered by FINRA, you’ll have to wait 30 days to retake the Series 3 if you fail it on your first or second attempt. If you fail the Series 3 three times, you will be subject to a 180-day waiting period every time you take the exam thereafter. ³ Candidates who fail after that 180-day waiting period may want to take a second look at commodities futures trading and reconsider if it’s the right profession for them.

What a Series 3 License Means

A Series 3 license authorizes a financial professional to sell commodity futures contracts as well as options on those futures. Candidates who pass the exam are then able to register with the NFA within two years of passing the exam.

The Series 3 is a common designation for commodities and futures professionals. Those who take the Series 3 could also be stockbrokers, though they will also need to take and pass the Series 7 exam.

Alternatives to the Series 3

While the Series 3 focuses on futures and commodities, other licenses cover different areas of financial services. The right path depends on whether someone plans to work with securities, provide advice or specialize in forex markets.

Series 7

The Series 7 allows representatives to sell a broad range of securities, including stocks, bonds, options and mutual funds. It is commonly held by registered representatives working for broker-dealers and is often required for more general investment roles.

Series 6

The Series 6 is more limited, permitting the sale of packaged investment products such as mutual funds, variable annuities and unit investment trusts. It may appeal to professionals focused on retirement products or insurance-based offerings.

Series 34

The Series 34 is required for individuals who want to engage in retail forex transactions. It is often paired with the Series 3 for those working across both futures and foreign exchange markets.

Series 65 or 66

These licenses qualify individuals to provide investment advice for a fee, rather than execute trades, aligning more closely with financial planning roles.

Bottom Line

The Series 3 is a FINRA-administered exam that qualifies individuals to sell commodity futures and options on futures. Passing it can open the door to roles in the futures and commodities markets, though those interested in becoming stockbrokers would need to obtain additional licenses.

With more than 80 hours of preparation and 120 multiple-choice questions, the Series 3 can be daunting. Candidates must earn a score of 70% to pass the Series 3, though the exam’s scoring method rounds any percentage points down to the next whole number. Candidates who pass are set for careers in commodities. But those who fail more than three times have to wait nearly half a year to retake it.

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