SIE Trading & Accounts — Section 3 — about 23 of your 75 scored questions

What FINRA tests in Section 3

The knowledge areas of the SIE content outline for Trading, Customer Accounts and Prohibited Activities. FINRA weighs this section at 31% of the exam.

• Orders and strategies: market, limit, stop and stop-limit orders, long and short positions, bid/ask and spreads, trade capacity (agency vs. principal), markups and commissions
• Investment returns and trade settlement: total return, yield, tax treatment, regular-way settlement (T+1 for most securities), ex-dividend dates
• Corporate actions: splits, dividends, rights offerings, tender offers, mergers, and their effect on positions
• Customer accounts: cash vs. margin (Regulation T), options accounts, discretionary accounts, retirement accounts (traditional and Roth IRAs, 401(k)), education accounts, fee-based vs. commission accounts
• Account registrations: individual, joint (JTWROS, tenants in common), custodial (UGMA/UTMA), trust, corporate and partnership accounts, transfer on death, power of attorney
• Anti-money laundering (Bank Secrecy Act, CIP, SARs, CTRs, OFAC), books and records, Regulation S-P privacy, communications with the public, Regulation Best Interest and suitability
• Prohibited activities: market manipulation (pump and dump, marking the close, spoofing), insider trading, front running, churning, unauthorized trading, guarantees against loss, selling away, sharing in accounts, commingling and conversion

Key facts to know

FINRA SIE content outline, 3.1.3

Regular-way settlement for most securities (stocks, corporate and municipal bonds, options) is T+1 — one business day after the trade. Treasury securities and options also settle T+1; mutual funds generally T+1 as well.

12 CFR Part 220 (Regulation T)

Regulation T initial margin requirement is 50% of the purchase price; the Fed sets it, FINRA and firms may require more. Margin accounts require a signed margin agreement and hypothecation agreement.

FINRA SIE content outline, 3.2.3

A Currency Transaction Report (CTR) is filed for cash transactions over $10,000 in one business day; a Suspicious Activity Report (SAR) for suspicious transactions of $5,000 or more, within 30 days.

FINRA SIE content outline, 3.2.3

Customer Identification Programs (CIP) require, at minimum, name, date of birth, address and an identification number (SSN or taxpayer ID) before an account is opened.

FINRA Rule 3260

A discretionary account requires written authorization from the customer before the first discretionary trade, and each discretionary order must be marked as such and approved promptly by a principal.

FINRA Rule 2150

A registered representative may share in a customer's profits or losses only with prior written approval of the firm and in proportion to their financial contribution; guaranteeing a customer against loss is always prohibited.

Three practice questions with answers

From the Admezo bank for Trading, Customer Accounts and Prohibited Activities, outside the 20 free questions, as they appear in the app once answered — with the rule and a link to the source. Rules checked October 27, 2026.

1. 1 / 33Multiple choice3. Trading, Customer Accounts and Prohibited Activities — 3.3.1 Market Manipulation

   A trader at a broker-dealer receives a customer's large block order to buy ABC Corp and, before entering it, purchases ABC shares for the firm's proprietary account expecting the block to push the price higher. This practice is known as:

   • Front running (correct answer)
   • BMarking the close
   • CBacking away
   • DFreeriding

   Correct answer: A

   FINRA Rule 5270 prohibits front running: trading for a proprietary or related account while in possession of material, nonpublic market information about an imminent block transaction, before that information is public or the block is executed. Marking the close involves trades near the close to affect the closing price; backing away is a market maker refusing to honor a quote; freeriding is paying for securities with the proceeds of their sale.

   Source: finra.orgQuestion bank checked October 27, 2026

2. 2 / 33Multiple choice3. Trading, Customer Accounts and Prohibited Activities — 3.2.3 Anti-money Laundering

   On Monday a customer deposits $4,800 in cash at a broker-dealer branch. On Tuesday the same customer deposits $3,900 in cash, and on Wednesday $2,500 in cash, at the same firm. What is the total of the three deposits, and what does this pattern most likely indicate?

   • $11,200; the deposits were likely structured to avoid a Currency Transaction Report (correct answer)
   • B$11,200; nothing is required because each deposit is under $10,000
   • C$9,800; no CTR is required and no SAR is warranted
   • D$11,200; a CTR must be filed on each individual deposit

   Correct answer: A

   Under the Bank Secrecy Act, a Currency Transaction Report (CTR) is required for cash transactions exceeding $10,000 in a single business day. Breaking a larger amount into smaller deposits to avoid the threshold is structuring, which is itself a federal crime and a red flag that should prompt a Suspicious Activity Report (SAR) review under FINRA Rule 3310 and USA PATRIOT Act Section 352.

   Calculation

   Monday: $4,800
   Tuesday: $3,900
   Wednesday: $2,500
   Total = $4,800 + $3,900 + $2,500 = $11,200
   $11,200 exceeds the $10,000 CTR threshold, but each deposit is individually below it, so the pattern suggests structuring.

   Source: finra.orgQuestion bank checked October 27, 2026

3. 3 / 33Multiple choice3. Trading, Customer Accounts and Prohibited Activities — 3.3.1 Market Manipulation

   A market maker displays a firm quote to buy 1,000 shares of DEF Corp at $20.00. A broker-dealer attempts to sell 1,000 shares to the market maker at that price, but the market maker refuses to execute. The market maker's conduct violates:

   • AFINRA Rule 5130, the new issue rule
   • BRegulation T, because the quote was not paid for
   • FINRA Rule 5220 and the SEC firm quote rule, which prohibit backing away from a displayed quotation (correct answer)
   • DFINRA Rule 3240, which prohibits borrowing from customers

   Correct answer: C

   Backing away is a market maker's failure to honor a firm quotation for at least the displayed size when presented with an order. It violates FINRA Rule 5220 (Offers at Stated Prices) and the SEC firm quote rule (Regulation NMS Rule 602). Market makers must be prepared to execute at their published bid and ask up to the quoted size. FINRA Rules 5130 and 3240 concern new issue allocations and borrowing from customers, respectively.

   Source: finra.orgQuestion bank checked October 27, 2026

Practice all 93 Trading & Accounts questions

How to prepare for Trading & Accounts

Study tips, not a promise: Admezo doesn't guarantee a result beyond its pass guarantee.

• Draw the order types on a price line

  Buy limits and sell stops sit below the market; sell limits and buy stops sit above. A stop becomes a market order when triggered; a stop-limit becomes a limit order. Most order questions are solved by placing the order on the line.

• Know the thresholds and the dates

  T+1 settlement, 50% Regulation T, $10,000 CTR, $5,000 SAR, 30 days to file, ex-dividend one business day before record date. The section is full of numbers; keep a list and review it the night before.

• Prohibited means prohibited

  When an answer choice says a practice is allowed with the customer's verbal consent, it's usually wrong: guarantees against loss, sharing in accounts without approval, selling away and borrowing from customers are never cured by a conversation.

Trading & Accounts: frequently asked questions

The other sections of the SIE

• 1Knowledge of Capital Markets16% of the exam
• 2Understanding Products and Their Risks44% of the exam
• 4Overview of the Regulatory Framework9% of the exam

For the big picture — format, enrollment, retakes and fees — read the SIE exam overview, or browse the 20 free questions with answers.