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100+ Free Saudi Trader Broker Practice Questions

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Key Facts: Saudi Trader Broker Exam

60 questions

Trader Professional Exam is a computer-based test of 60 MCQs

Financial Academy - Trader Broker Details

90 minutes

Time limit for the examination session

Financial Academy - Trader Broker Details

70%

Pass mark - at least 42 of 60 questions correct

Financial Academy - Trader Broker Details

SAR 1,200

Trader Professional examination registration fee through the FA

Financial Academy - Program Fees

4 domains

Syllabus domains: Regulatory Structure, Conduct, Membership, and Trading Operations

Financial Academy - Trader Broker Syllabus

Muqassa

The Securities Clearing Center Company acting as Central Counterparty (CCP)

Saudi Tadawul Group

10 years

Minimum record-keeping retention period for transactions and client documents

CMA AML & CMI Regulations

100

Free original practice questions here

OpenExamPrep

The Financial Academy Trader (Registered Broker) Professional Exam is the mandatory licensing test for stock brokerage representatives in Saudi Arabia. Administered by the Financial Academy, it is a computer-based test of 60 multiple-choice questions completed in 90 minutes, with a 70% passing score (42 correct answers), costing SAR 1,200. It covers capital market regulations, brokerage conduct, Tadawul trading rules, short selling, daily trading operations, order management, and AML duties. This 100-question practice bank offers comprehensive prep across all syllabus domains with detailed explanations.

Sample Saudi Trader Broker Practice Questions

Try these sample questions to test your Saudi Trader Broker exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which regulatory body has the statutory authority to issue licensing and executive regulations under the Capital Market Law in Saudi Arabia?
A.The Saudi Central Bank (SAMA)
B.The Capital Market Authority (CMA) Board
C.The Ministry of Commerce
D.The Saudi Exchange (Tadawul)
Explanation: The Capital Market Authority (CMA) Board is the authorized body under the Capital Market Law (CML) of 2003 responsible for issuing executive regulations, rules, and licensing requirements for capital market activities. SAMA regulates banking and insurance, while Tadawul operates the exchange under CMA supervision.
2The Capital Market Authority (CMA) Board consists of how many members, and by what authority are they appointed?
A.Three members appointed by SAMA
B.Five members appointed by Royal Decree
C.Seven members elected by Tadawul shareholders
D.Nine members appointed by the Minister of Finance
Explanation: According to the Capital Market Law (CML), the CMA Board consists of five Saudi commissioners who are appointed by Royal Decree. They must be specialists and professionals in relevant fields to perform regulatory duties independently.
3What is the primary judicial body of first instance responsible for adjudicating securities disputes in Saudi Arabia?
A.The Commercial Court
B.The Committee for the Resolution of Securities Disputes (CRSD)
C.The Board of Grievances
D.The Appeal Committee for the Resolution of Securities Disputes (ACRSD)
Explanation: The Committee for the Resolution of Securities Disputes (CRSD) is the judicial body of first instance established under the Capital Market Law to handle all claims, disputes, and actions arising under the CML and its regulations. Commercial Courts handle general trade disputes, and the ACRSD is the final appellate body.
4Within what period must an appeal against a decision of the Committee for the Resolution of Securities Disputes (CRSD) be submitted to the ACRSD?
A.15 days
B.30 days
C.45 days
D.60 days
Explanation: Decisions of the CRSD may be appealed to the Appeal Committee (ACRSD) within 30 days from the date of notification of the decision. If no appeal is filed within this 30-day window, the CRSD decision becomes final and enforceable.
5Which entity within the Saudi capital market acts as the central counterparty (CCP) for clearing all equity and debt trades?
A.Edaa (Securities Depository Center)
B.Muqassa (Securities Clearing Center)
C.Wamid (Tadawul Group Tech)
D.The Saudi Exchange (Tadawul)
Explanation: Muqassa (the Securities Clearing Center Company) acts as the central counterparty (CCP) in the Saudi capital market. It is responsible for clearing trades, netting settlement obligations, and mitigating counterparty default risk. Edaa handles settlement depository and registry functions.
6Which corporate structure does the Saudi Exchange (Tadawul) operate under according to Saudi corporate law?
A.A closed joint-stock company
B.A limited liability company
C.A branch of the Ministry of Finance
D.A general partnership owned by local banks
Explanation: The Saudi Exchange (Tadawul) operates as a closed joint-stock company and is a subsidiary of the Saudi Tadawul Group Holding Company. It is regulated as an exchange operator by the CMA.
7Under the Capital Market Law, which of the following is explicitly excluded from the definition of a security?
A.Shares of listed joint-stock companies
B.Promissory notes and bills of exchange
C.Debt instruments issued by the Saudi Government
D.Units in real estate investment funds (REITs)
Explanation: Under the Capital Market Law, commercial papers such as promissory notes, checks, and bills of exchange are regulated under Commercial Papers Law and are explicitly excluded from the definition of securities under the CML regulatory scope.
8A firm that wishes to act as a broker by dealing as an agent on behalf of clients in Tadawul must obtain a licence for which CMI activity?
A.Advising
B.Arranging
C.Dealing
D.Managing
Explanation: Dealing is defined as conducting transactions in securities, either as principal (dealing as principal) or as agent (dealing as agent/broker). A broker must hold a Dealing licence to execute orders on behalf of clients.
9Who is responsible for appointing the members of the Committee for the Resolution of Securities Disputes (CRSD)?
A.The Minister of Justice
B.The CMA Board via a Board resolution
C.The President of the Saudi Tadawul Group
D.The Council of Ministers via a royal order
Explanation: The Capital Market Law specifies that the members of the CRSD are appointed by the CMA Board. The members are appointed for a renewable three-year term to ensure professional dispute adjudication.
10Which Saudi capital market institution is responsible for the registry of ownership and settlement of securities traded on the exchange?
A.Muqassa
B.Edaa
C.Tadawul
D.SAMA
Explanation: Edaa (the Securities Depository Center Company) operates the central securities depository (CSD) functions, registering ownership, safekeeping, and facilitating post-trade settlement of securities.

About the Saudi Trader Broker Exam

The Financial Academy Trader (Registered Broker) Professional Exam is a mandatory licensing test in Saudi Arabia required for individuals performing brokerage and trading functions on the Saudi Exchange (Tadawul). The exam ensures candidates meet Tadawul's and the Capital Market Authority's (CMA) competency standards. It covers the Capital Market Law of 2003, the roles of Tadawul, Muqassa, and Edaa, Market Conduct Regulations (preventing insider trading and market manipulation), brokerage regulations, Client Agreements, best execution, AML/CTF rules (CDD, STR, goAML, record-keeping), short selling and security lending regulations, price limits and volatility bands, order types and validity conditions, and electronic trading operations from order routing to market phases.

Assessment

60 multiple-choice questions across 4 domains: Regulatory Structure of the Saudi Capital Market (25%), Securities Brokerage Practice and Code of Conduct (25%), Tadawul Trading and Membership Rules (25%), and Trading Operations and Electronic System Functions (25%).

Time Limit

1.5 hours (90 minutes).

Passing Score

70% - candidates must answer at least 42 of 60 questions correctly to pass.

Exam Fee

SAR 1,200 through the Financial Academy. (Capital Market Authority (CMA) and Saudi Tadawul Group, delivered by the Financial Academy.)

Saudi Trader Broker Exam Content Outline

25%

Regulatory Structure of the Saudi Capital Market

Covers the Capital Market Law (CML) Royal Decree No. M/30 of 2003, the establishment, objectives and powers of the Capital Market Authority (CMA) and its Board, the ACSD and CRSD committees, the structure of the Saudi Tadawul Group, the functions of Tadawul (Exchange), Muqassa (Clearing Center), and Edaa (Depository Center), and the licensing of Capital Market Institutions (CMIs) and registered functions.

25%

Securities Brokerage Practice and Code of Conduct

Covers Market Conduct Regulations (prohibitions on insider trading, disclosure lists, market manipulation like painting the tape, wash trades, matching orders), client classification (retail, professional, counterparty), Client Agreement requirements, best execution, AML/CTF regulations (goAML registration, Suspicious Transaction Reports (STRs), Customer Due Diligence (CDD), and the 10-year record-keeping requirement).

25%

Tadawul Trading and Membership Rules

Covers the membership criteria for brokerage firms, broker obligations, margin trading rules, the short selling and security lending framework, price limits (+/- 10% daily limits and dynamic price limits/volatility bands), trading halts, and trade confirmation requirements.

25%

Trading Operations and Electronic System Functions

Covers electronic order entry, routing, execution, modification, and cancellation. Includes order types (limit, market, market-to-limit) and validity conditions (Day, GTC, GTD, IOC, FOK, hidden/iceberg orders), the electronic trading platform market phases (Pre-open, Opening auction, Continuous trading, Pre-close, Closing auction, Trading-at-last, Post-close), negotiated deals, and trade reporting.

How to Pass the Saudi Trader Broker Exam

What You Need to Know

  • Passing score: 70% - candidates must answer at least 42 of 60 questions correctly to pass.
  • Assessment: 60 multiple-choice questions across 4 domains: Regulatory Structure of the Saudi Capital Market (25%), Securities Brokerage Practice and Code of Conduct (25%), Tadawul Trading and Membership Rules (25%), and Trading Operations and Electronic System Functions (25%).
  • Time limit: 1.5 hours (90 minutes).
  • Exam fee: SAR 1,200 through the Financial Academy.

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

Saudi Trader Broker Study Tips from Top Performers

1Familiarise yourself with the functions of the Saudi Tadawul Group entities: Tadawul handles listing/trading, Muqassa handles clearing and acts as central counterparty, and Edaa handles custody/depository registration.
2Understand the difference between different order validity types: IOC (Immediate-or-Cancel) fills whatever is available immediately and cancels the rest; FOK (Fill-or-Kill) must be filled completely or cancelled entirely.
3Carefully study the Market Conduct Regulations, specifically how insider trading is defined (use of non-public, material price-sensitive information) and how market manipulation is detected (wash sales, matching orders to create false volume).
4Memorise the client classification categories (Retail, Professional, and Market Counterparty) and how they impact suitability and best execution obligations.
5Learn the AML rules: any suspicious transactions must be reported through the goAML portal to the Financial Intelligence Unit (FIU), and records must be kept for at least 10 years.

Frequently Asked Questions

What is the Financial Academy Trader (Registered Broker) Professional Exam?

It is the mandatory licensing exam required by the Saudi Tadawul Group and the Capital Market Authority (CMA) for individuals who perform stock brokerage and trading functions in Saudi Arabia. It is administered by the Financial Academy.

How many questions are on the exam, and what is its duration?

The exam consists of 60 multiple-choice questions to be completed in 1.5 hours (90 minutes).

What is the passing score?

The passing score is 70%, which requires candidates to answer at least 42 of the 60 questions correctly.

What are the key topics covered in the syllabus?

The syllabus is divided into four domains: Regulatory Structure of the Saudi Capital Market (25%), Securities Brokerage Practice and Code of Conduct (25%), Tadawul Trading and Membership Rules (25%), and Trading Operations and Electronic System Functions (25%).

What are the rules for short selling on Tadawul?

Short selling on Tadawul must be covered, meaning the seller must have borrowed the securities through a registered Securities Lending and Borrowing (SLB) agreement prior to entering the short sale order.

What are the daily price limits on Tadawul?

Tadawul applies daily price limits of +/- 10% for most equities (with +/- 30% for the first three days of new listings) alongside dynamic price limits (volatility bands) to prevent extreme price fluctuations.