Becoming a Chartered Financial Analyst® (CFA®) is no small feat. Whether you’re aiming to break into investment banking, portfolio management, or wealth planning, the CFA® charter is one of the most respected credentials in the finance industry.
But don’t just take my word for it—let’s hear what other candidates have to say about the journey.
From meeting the educational requirements to acing the exams, here’s what you need to know, based on real experiences from CFA® hopefuls and charterholders.
Key Takeaways
- Educational Requirements: To start your CFA® journey, you need either a bachelor’s degree or four years of professional work experience in finance. You can also enroll during your final year of college.
- Time Commitment: The CFA® exams require extensive preparation. Plan for around 300-400 hours of study per level, and practice exams and mock exams are essential to your success.
- Work Experience: To qualify for the CFA® charter, you need four years of relevant professional experience in investment-related roles, with at least 50% of your time spent on the investment decision-making process.
- Networking Opportunities: Joining your local CFA® society and connecting with professionals in the industry can provide valuable networking and career opportunities as you work toward earning your CFA® charter.
- Continuing Education: Once you’ve earned the CFA® designation, maintaining your credential requires ongoing professional development and adherence to ethical standards set by the CFA® Institute.
Meeting Educational and Work Requirements: Start with the Basics
To begin your CFA® journey, you’ll need to meet one of the following criteria:
- Bachelor’s degree: You can register for the CFA® Level 1 exam once you’ve earned your degree.
- Final year of your Bachelor’s program: If you’re still in school, you can register for Level 1 if you’re within two years of graduating. Just make sure to complete your degree before moving on to Level 2.
- Professional work experience: You’ll need at least 4,000 hours of paid professional experience over a minimum of three years. While the work doesn’t have to be directly related to finance or investment, it does need to be paid, and even internships count.
One Reddit user confirmed, “A bachelor’s degree or four years of relevant work experience is all you need to start. I signed up during my last year of college, and it worked out fine!” So, if you’re still studying, don’t stress—you can get started as soon as you’re ready.
Keep in mind that work experience and education cannot overlap—your work hours need to be separate from your time in school. Along with these requirements, you’ll need a valid international passport and be comfortable taking the exam in English since it’s only offered in that language.
Lastly, to become a CFA®, you’ll need to meet the CFA® Institute’s professional conduct standards by signing a conduct statement and ensuring you live in a country where the CFA® operates. Make sure to review the list of participating countries to avoid any issues during registration.
“I’m a level 3 candidate with no degree (I’ve got about 15 years of industry experience). I’ve had my work experience already approved, so now I just need to pass the thing.” – CFA® Thread
Registering for the CFA® Program: Stay Disciplined
Once you’re eligible, the next step is registering for the CFA® program through the CFA® Institute. This involves creating an account, signing the professional conduct statement, and paying the registration fees. You’ll receive your study materials and get access to practice exams.
A Reddit user added some humor to the process: “Just sign up for the next available Level 1 test. They’ll ship you a lot of books, and people on forums will keep complaining about how much they’re studying but don’t worry, if you took a few Econ classes at school, you’ll be good!”
When registering, be mindful of the different exam windows and deadlines. CFA® exams are held several times a year, so it’s important to select a window that aligns with your study schedule. Early registration offers a discount, so it’s beneficial to plan ahead.
The CFA Exams: It’s All About Putting in the Hours
Most of figuring out how to become a CFA® involves looking at three levels of exams, including the timeline of registration, deadlines and updated CFA® exam dates.
- Level I CFA® exam focuses on investment tools and ethical standards.
- Level II CFA® exam dives into asset valuation, risk management, and equity investments.
- Level III CFA® exam puts it all together, emphasizing portfolio management and wealth planning.
Each of the CFA® program exams requires extensive preparation, and candidates often mention that the volume of material can be overwhelming. One Reddit user shared:
“The best thing you can do is work through as many questions as possible and make sure you learn and understand them as you go. Focus on practicing areas you struggle the most with and the areas with a larger proportion of the exam, like ethics. Nothing you do will guarantee a pass, but that’s about the best you can do to prepare.”
If you’re preparing for the CFA® exams, plan to invest about 300-400 hours of study time per level. Practice exams and mock exams are essential to ensure you’re ready for the real thing. It’s important to develop a consistent study routine, which CFA® review courses can help with, tackle the material in smaller chunks, and review it regularly.
Many candidates recommend starting at least six months before the exam to give yourself plenty of time to absorb the material without feeling overwhelmed. Using some of the best CFA® resources can help with this part of your professional goals.
Work Experience: Applying Knowledge on the Job
While you’re studying for the exams, you’ll also need to build up your work experience. The CFA® Institute requires at least four years (or 48 months) of relevant experience in areas like portfolio management, investment analysis, or corporate finance to qualify for the Chartered Financial Analyst® designation.
Another CFA® candidate put it this way: “Balancing work and study was the hardest part for me, but by the time I passed Level III, I already had enough experience to qualify for the charter.”
Remember, the work experience requirement doesn’t have to be completed before you take the exams—you can gain it during or after your studies. Just make sure it’s in the right areas. Key points to remember:
- 50% Rule: At least 50% of your work experience must involve the investment decision-making process, such as managing client portfolios, analyzing financial data, or making investment recommendations.
- Timing: Experience can be gained before, during, or after the CFA® exams, but it must be full-time, professional work that directly relates to the investment process.
- Tracking: Keep detailed records of your work experience as you progress through the CFA® exams to ensure it meets CFA® Institute’s requirements when applying for your charter.
- Networking: Engage with peers and mentors in the finance industry to help identify career opportunities that align with CFA® requirements.
By focusing on gaining relevant experience while studying, you can ensure you’re ready to apply for your CFA® charter when the time comes.
Networking and Joining the CFA® Institute: Make the Most of It
Once you’ve passed the exams and met the CFA® work experience requirements, the final step is to apply for membership in the CFA® Institute. This professional membership connects you to a global network of investment professionals and offers continuing education opportunities.
Reddit users suggest that networking through your local CFA® society is incredibly valuable. One user explained, “Joining your local CFA® society is a must. The networking and career opportunities you’ll get are well worth the effort.”
CFA® Institute membership is more than just a credential; it’s an opportunity to stay connected to the investment community. You’ll have access to educational resources, events, and mentorship opportunities that can support your career advancement.
Local CFA® societies often host networking events, career fairs, and workshops that allow you to engage with other professionals, learn about new trends in finance, and potentially open doors to new job opportunities. As one CFA® candidate explained, “Probably best to attend society events. They’re actually decent where I live + networking. CFA also has intangible benefits as well.”
Active involvement in your local society can also help you stay up to date on continuing education requirements, which are crucial for maintaining your CFA® charter.
Conclusion
The CFA® program is tough, and the exams require a lot of dedication. But with the right mindset and preparation, your questions about how to become a CFA® can be a part of the past. The CFA® designation opens up a world of opportunities in finance, from investment banking to wealth management and portfolio management.
Beyond the credentials, the knowledge and skills you gain through the CFA® program are applicable to various roles in finance, from asset management to corporate finance. Having a CFA® designation not only enhances your credibility in the finance industry but also demonstrates your commitment to professional standards and ethical practices.
Whether you’re looking to advance in your current role or pivot into a new career in investment management, earning the CFA® charter can be the key to unlocking new job opportunities in the financial industry.
FAQs
The CFA® program is a three-level exam series that covers various topics, including investment tools, portfolio management, and wealth planning.
On average, it takes around three to four years to pass all three levels of the CFA® exams and gain the required work experience.
Candidates need either a bachelor’s degree or four years of relevant work experience in finance or investment management.
CFA® practice questions, mock exams, and a disciplined study schedule are key to success. Most candidates spend at least 300 hours preparing for each exam level.
CFA® charterholders work in roles like portfolio management, investment banking, wealth management, and risk management.
