CFA® Requirements: How to Get CFA® Certification

The Chartered Financial Analyst designation is one of the most sought-after credentials in the world of investment management and financial analysis. If you aim to work in fields like portfolio management, investment banking, or wealth planning, the CFA® charter can help set you apart from other professionals.

With an average CFA® salary of just over $132,000, becoming a CFA® can put you at more than double the national average wage. However, the CFA® requirements and figuring out how to get a CFA® certification can be very confusing.

Thankfully, it doesn’t have to be.

I’ve created a detailed guide to help you understand what it takes to earn your CFA® designation and how you can become a CFA® charterholder in today’s competitive market.

Key Takeaways

• Meet Educational and Work Experience Requirements: Ensure you have either a bachelor’s degree, relevant work experience, or a combination of both. Most candidates start with a bachelor’s program, and many move on to a master’s degree program.
• Pass All Three CFA® Exams: Prepare thoroughly for each level with CFA® prep courses, focusing on building a deep understanding of investment tools, financial reporting, and portfolio management.
• Gain 4,000 Hours of Relevant Work Experience: Make sure your work contributes to the investment decision-making process.
• Commit to Ethical Standards: Uphold the CFA® Institute’s Code of Ethics and Professional Standards throughout your career.
• Apply for CFA® Membership: Submit your work experience, provide references, join a local CFA® society, and pay membership dues.

CFA® Requirements: What You Need to Get Started

Before you can register for the CFA® program exams, you’ll need to meet specific educational and experience requirements outlined by the CFA® Institute. These requirements offer flexibility, so even if you don’t have a traditional academic background, there are other ways to qualify.

• Bachelor’s Degree: Most CFA® candidates begin the program with a bachelor’s degree in hand. If you’re an undergraduate student, you can still sign up for the Level I exam in your final year, but you’ll need to complete your degree before moving on to the Level II exam. The CFA® Institute doesn’t require a specific major, so you don’t need to have studied finance or economics—although having a background in these subjects can be helpful when preparing for the CFA® exams.
• Work Experience: If you don’t have a bachelor’s degree, you can still qualify for the CFA® program with at least 4,000 hours of professional work experience in the investment profession. This experience must be spread over a minimum of three years. Your experience can include roles in investment analysis, portfolio management, commercial banking, or other fields where you are actively involved in the investment decision-making process.
• Combination: You can also qualify with a mix of professional experience and education. For instance, if you have partial higher education and some relevant work experience, you may still be eligible to begin the CFA® journey. This flexibility allows more people to pursue the CFA® charter and become part of a global network of professionals.
• CFA® Institute Membership: Once you’ve passed all three exams and gained the required work experience, you’ll need to apply for CFA® Institute membership to officially become a CFA® charterholder. Being a member grants you access to a network of investment professionals, continued education resources, and participation in local CFA societies, which are valuable for career advancement.

CFA® Exam Levels: What You Need to Know (Including 2025 Changes)

The CFA® exam is known for its complexity and rigor, making it one of the most challenging exams in finance. It’s divided into three levels, each focusing on key areas such as finance, investment analysis, and portfolio management. To earn the CFA® designation, you must pass all three levels, with each level becoming more demanding. Starting in 2025, the CFA® Institute is introducing significant changes that will enhance the program and better align it with practical, on-the-job skills.

Here’s an overview of each level and what’s new for 2025.

CFA® Level I: Building the Foundations

The Level I exam lays the groundwork for your CFA® journey. It covers essential topics like finance, ethics, and investment tools. You’ll dive into financial reporting, ethics, quantitative methods, and economics—topics crucial for understanding the broader investment landscape. This exam consists of multiple-choice questions, making it an introduction to the CFA® curriculum, but don’t let that fool you. Even though it’s entry-level, it requires thorough preparation, with the CFA® Institute recommending at least 300 hours of study.

For those who may not come from a finance background, this level may require additional effort to grasp the fundamentals. It’s designed to ensure that candidates have a solid understanding of the core principles they’ll build on in the later levels.

What’s Changing in 2025?

Starting in 2025, the CFA® Institute is adding a new Financial Modeling module to the Level I exam. This digital skills module will provide candidates with practical, real-world financial modeling skills. Although it won’t be graded, completion of this module is mandatory, offering hands-on training that directly applies to what you’ll face in your investment career.

CFA® Level II: Getting Deeper into Financial Analysis

Level II is where things start to get more challenging. It focuses on applying what you’ve learned in Level I to real-world situations. Topics like equity valuation, derivatives, and corporate finance are emphasized, and the exam moves beyond multiple-choice questions to include vignette-style case studies that require deeper analysis and interpretation.

You’ll need to put in more study hours (350-400 is typical) to master the material at this level. You’re expected to analyze more complex financial data and apply it to scenarios you might encounter in investment roles. The skills you build in Level II are crucial for roles in equity research, corporate finance, and asset management.

What’s Changing in 2025?

The CFA® Institute is introducing an Analyst Skills module at Level II, where candidates will learn key analytical techniques used in professional settings. There will also be optional modules on Python Programming, Data Science, and Artificial Intelligence. While these digital modules won’t be graded, they are required for completion before you can move on to the next level.

CFA® Level III: Mastering Portfolio Management

Level III is the final stage of the CFA® exams and focuses heavily on portfolio management and wealth planning. Here, you’re tested on your ability to develop integrated investment strategies, applying everything you’ve learned from the previous levels. Topics such as behavioral finance, risk management, and performance measurement come into play. What sets Level III apart is the inclusion of essay-style questions, where you’ll be required to explain and defend your investment decisions.

You’ll need at least 300 hours of study time to prepare for this level. The ability to clearly communicate your investment strategy is a crucial skill for those aiming for senior roles in portfolio management, private wealth management, or investment consulting.

What’s Changing in 2025?

Starting in 2025, CFA® candidates will be able to choose specialized pathways at the Level III exam. There will be three options:

• Portfolio Management (traditional Level III format)
• Private Wealth
• Private Markets

Each pathway will have a common core of study, but candidates can focus on the job that best aligns with their career goals. All pathways will still lead to the CFA® charter, and they will all maintain the same level of rigor.

What Else is New for 2025?

In addition to the changes at each exam level, several broader improvements are being introduced in 2025 to make the CFA® program more efficient and practical for candidates:

• Digital Badging: As candidates pass Levels I and II, they will receive digital badges. These badges are designed to showcase progress to potential employers, helping candidates demonstrate their commitment and skills early on in the program.
• Study Material Reductions: To better align with the recommended 300 hours of study time per level, the CFA® Institute is reducing the volume of study materials. This ensures a more focused curriculum, removing redundant or outdated content. Introductory content will still be available for those who need it, but it will no longer be tested or needed on practice exam materials.
• Extended Eligibility for Level I: Announced in 2022 but going into effect fully by 2025, candidates can now register for the Level I exam if they are within two years of completing their undergraduate degree. This change opens the program to a wider group of students and allows them to begin their CFA® journey earlier.

Gaining Work Experience

Passing the CFA® exams is only part of the equation. You’ll also need to gain relevant work experience that proves you can apply the skills and knowledge you’ve acquired. According to CFA® requirements, candidates must accumulate at least 4,000 hours of relevant work experience over a minimum of three years. This work experience is a key factor in becoming a CFA® charterholder, as it shows your ability to handle real-world investment challenges.

• Investment Roles: Most candidates meet this requirement through positions in portfolio management, financial consulting, investment research, or securities analysis. You’ll need to document how your role involves making or contributing to investment decisions.
• Decision-Making Roles: The CFA® Institute emphasizes that your work experience must contribute to the investment decision-making process. For example, if you’re in an advisory or consulting role, your work should influence the direction of an investment portfolio or client assets.
• Consulting and Advisory: Experience in investment advisory, consulting, or wealth management roles can also count toward your 4,000 hours as long as you’re actively involved in creating or advising on investment strategies. Keep detailed records of your responsibilities and how your work aligns with CFA® Institute guidelines.

It’s important to note that not all finance-related jobs qualify. Your work needs to have a direct impact on investment outcomes, so roles like accounting or general financial planning may not count. The CFA® Institute provides specific criteria for qualifying experience, so make sure to review their guidelines carefully.

Upholding Professional Conduct (Ethics)

The CFA® designation is not just about passing exams and gaining work experience. As a CFA® candidate and eventual charterholder, you are expected to uphold a high standard of ethical conduct throughout your career. The CFA® Institute’s Code of Ethics and Professional Standards are core to the program and must be followed by all members.

• Integrity: You’re required to act with honesty and integrity in all professional dealings. This means putting your clients’ interests first and being transparent in your communication.
• Client Interests: One of the core principles of the CFA® Institute’s ethical code is that you must always prioritize your clients’ best interests. Your recommendations should be based on solid research and analysis, not personal gain.
• Due Diligence: CFA® charterholders must conduct due diligence before making any investment decisions. This ensures that your clients receive the best possible advice and that you’re fully informed about the assets you’re recommending.

Adhering to these ethical guidelines is not optional. Before receiving your CFA® charter, you’ll need to confirm your commitment to these principles. And after becoming a charterholder, you’ll be expected to maintain these standards for the rest of your career.

Becoming a CFA® Charterholder

Once you’ve passed the CFA® exams, met the work experience requirements, and agreed to follow the CFA® Institute’s ethical standards, you’re ready to apply for membership and officially become a CFA® charterholder. Here’s a step-by-step guide to what you’ll need to do:

• Submit Work Experience: You’ll need to document and submit your 4,000 minimum hours of relevant work experience to the CFA® Institute. Be as detailed as possible, showing how your role contributed to the investment process and decision-making.
• Provide References: You’ll need two or three professional references to verify your work experience and ethical conduct. These references should come from colleagues or supervisors who can speak to your role and responsibilities.
• Join a Local CFA® Society: Membership in your local CFA® society is highly encouraged, as it provides networking opportunities and access to professional events. Being part of a local CFA® society can also help with career advancement.
• Pay Membership Fees: Once your membership is approved, you’ll need to pay annual dues to maintain your status as a CFA® charterholder. The cost is a small price to pay for the opportunities and prestige that come with holding the CFA® designation.

After completing these steps, you’ll officially receive your CFA® charter. This accomplishment will not only enhance your resume but also open doors to new career opportunities in fields like investment management, commercial banking, and wealth planning.

Conclusion

To wrap it up, becoming a CFA® charterholder is a big commitment, but it’s worth it. You’ll need to meet the educational requirements, pass all three exam levels, and get the right work experience. Plus, with the new updates coming in 2025, the program is getting even more practical with specialized pathways and hands-on skills. By sticking to the process and joining the CFA® Institute, you’ll open doors to exciting career opportunities in investment management and financial analysis.

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