The Chartered Financial Analyst charter is the Mount Everest for financial professionals. The three CFA exams are tough with low pass rates. But there are payoffs that go beyond the satisfaction of attaining the CFA Charter: The CFA has historically had the greatest monetary value of any financial degree or designation.
What is a CFA?
Originally known as the Association for Investment Management and Research (AIMR), the CFA Institute awards CFA charters globally. Candidates take part in the CFA Program, writing a series of three exams comprising CFA Level I, Level II and Level III. These are self-study exams that test a wide range of financial knowledge. The self-study curriculum can be accessed online through the CFA Learning Institute Ecosystem, which has the curriculum, questions, and mock exams. There are other resources and coaches through other websites or schools, for example, Schweser.
Exam dates
The CFA level one exam can be written four times a year in February, May, August, or November. The level two exam can be written three times a year in May, August, or November. Level three can be written twice a year, in February or August. The candidates are able to take the exam two times per year, but not in consecutive windows or less than six months apart.
Exam levels
Level one of the CFA Program covers a broad range of material, including ethics, economics, accounting, corporate finance and investment analysis. It’s a broad intro into the world of investing. Level two covers financial and security analysis in more depth, and level three concentrates on portfolio management.
Levels one and two are multiple-choice exams, whereas level three includes a written section.
Pass rates
The pass rates for the CFA Program are very low. The level one pass rate is traditionally in the low 40 per cent. The pass rate for the May 2025 exam, for example, was 45 per cent, which is slightly above the historical average of 41 per cent.
The level two pass rate was in the low 30 per cent range historically, but more recently has trended up. For example, the May 2025 level two pass rate was 54 per cent. Historically, the level three exam has had the highest pass rate in the low 50 per cent range. But more recently it has slightly trended down, in February 2025 the pass rate was 49 per cent.
CFA exam prep
The exams are set by the CFA Institute and are written only in English at locations worldwide. There are several private preparation companies that offer educational materials available for sale and run study seminars. Local CFA chapters also run preparation courses for local candidates. Universities have recently begun to offer Master of Finance courses that incorporate CFA material. Students registered in these programs must complete their university studies and then also complete the CFA exams independently.
Gold standard
The CFA Charter has become the global “working papers” for both investment research and portfolio management. It’s required for registration as a portfolio manager in many jurisdictions.
The average CFA candidate has a Bachelor’s or Master’s degree in Business or Finance and spends an average study time of 200 to 400 hours on each level. Several surveys have shown that the CFA designation has the greatest monetary value of any degree or designation.
The CFA work experience qualification
The CFA exams can be written without prior financial analysis experience. But to be awarded a CFA Charter, candidates must have four years of experience, during which at least 50 per cent of their time was spent directly involved with making or supporting investment decisions. Work must be full-time and can be earned before, during, or after the candidate has passed the CFA Program. References are required from colleagues and supervisors, with at least one reference from a CFA Charterholder. Only upon successful review by the CFA Institute will a candidate be awarded their full CFA Charter.
CFA Institute by the numbers:
- Number of members: 190K+
- Countries with members: 160+
- Number of societies: 155+
- Number of CFA Charter Holders: 97 per cent of members
Source: CFA Institute
Learn more about each individual CFA level.
