diff --git a/tests/test_cli.py b/tests/test_cli.py
new file mode 100644
index 00000000..35a136e5
--- /dev/null
+++ b/tests/test_cli.py
@@ -0,0 +1,68 @@
+#
+# Copyright 2014 Quantopian, Inc.
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+import os
+from unittest import TestCase
+from six import iteritems
+
+from zipline.utils import parse_args
+from zipline.utils import cli
+
+
+class TestParseArgs(TestCase):
+    def test_defaults(self):
+        args = parse_args([])
+        for k, v in iteritems(cli.DEFAULTS):
+            self.assertEqual(v, args[k])
+
+    def write_conf_file(self):
+        conf_str = """
+[Defaults]
+algofile=test.py
+symbols=test_symbols
+start=1990-1-1
+        """
+
+        with open('test.conf', 'w') as fd:
+            fd.write(conf_str)
+
+    def test_conf_file(self):
+        self.write_conf_file()
+        try:
+            args = parse_args(['-c', 'test.conf'])
+
+            self.assertEqual(args['algofile'], 'test.py')
+            self.assertEqual(args['symbols'], 'test_symbols')
+            self.assertEqual(args['start'], '1990-1-1')
+            self.assertEqual(args['end'], cli.DEFAULTS['end'])
+        finally:
+            os.remove('test.conf')
+
+    def test_overwrite(self):
+        self.write_conf_file()
+
+        try:
+            args = parse_args(['-c', 'test.conf', '--start', '1992-1-1',
+                               '--algofile', 'test2.py'])
+
+            # Overwritten values
+            self.assertEqual(args['algofile'], 'test2.py')
+            self.assertEqual(args['start'], '1992-1-1')
+            # Non-overwritten values
+            self.assertEqual(args['symbols'], 'test_symbols')
+            # Default values
+            self.assertEqual(args['end'], cli.DEFAULTS['end'])
+        finally:
+            os.remove('test.conf')