This page is dedicated to finance professionals who aspire to become a CFA charter holder.
In this website we will share with you the steps on how to become a CFA, as well as the necessary steps to plan, study for and pass 3 levels of the CFA exam on your first attempt.
How to Become a CFA Charterholder
The first step is NOT on showing you how to enter the CFA program. It is on WHY you want to be one, and whether it’s worth it.
1. Identify Benefits of the CFA Designation
The CFA designation is granted by the CFA Institute. In order to enter the CFA program, you need to become a member and pay annual fees.
What do you gain as a member? Besides the ticket to the CFA exam, does it help in networking and developing your skill as a finance professional?
- 5+3 reasons why you want to be a CFA charter holder
- Why you should NOT go for the CFA designation
- Pros and cons analysis by Investopedia
2. Compare CFA Designation with Other Qualifications
To see if CFA is the one to go for, you have to spend the time researching on other relevant qualifications.
There isn’t one that matches exactly with CFA, but a few are close enough in terms of the industry coverage and level of recognition.
If you are a finance professional with lots of exposure in accounting (or vice versa), CPA is a good choice and we recommend taking a closer look at that. If you are more into risk management, FRM could be an equally good qualification.
You can also learn about finance, investment and management from an MBA as well.
3. Determine the Difficulty: Can You Make It?
The CFA exam is notorious for its difficulty. Level 1 has a very wide coverage, Level 2 goes deeper in similarly wide coverage, and Level 3 is a beast.
Unlike most US professional exams, the CFA program is a marathon, as in it takes several years to complete the whole program.
A typical candidate spends 300 hours for each level, meaning 900 hours for the entire exam (and this doesn’t count possible retakes).
Are you ready for this challenge? Back to the first point, have you identified one solid benefit to make the CFA investment worth it?
4. Evaluate the Benefit vs Cost
Ultimately, most of us get licenses and qualifications for a better future, in terms of career prospect and salary.
The CFA program is expensive at $3,000 at the bare minimum. This does not count the intangibles such as the time, sweat and tears involved. It is good idea to perform a SWOT analysis and make sure this investment makes sense.
Looking at longer-term, does the CFA title help your personal and professional growth?
5. Fulfill the Exam Requirements
The entry barrier of the CFA exam is surprisingly low. You are qualified as long as you have a bachelor degree in any discipline. Even if you don’t have a university degree, you can still take the exam as long as you have 4 years of experience, in any field.
This means that practically anyone who either study or work for 4 years after high school is able to sit for the exam.
Specifically, in order to take the first (Level 1) exam, you need to have:
Bachelor Degree or Equivalent
- Bachelor degree; or
- 4 years of investment or non-investment related experience; or
- A combination of the above, but part-time work cannot be counted.
Good Command of English
- There is no specific requirement, but the exam is conducted in English
You will need to sign the Professional Conduct Statement and Candidate Responsibility Statement, and have a valid passport.
6. Sign Up for the CFA Program
If you spend the time thinking through steps 1 to 5, and still decide to continue, welcome!
The following steps show you how to register, plan, study for and pass the this exam.
The CFA designation is granted to individuals who complete the CFA Program. A typical aspiring CFA takes 4 years to become a CFA, although in theory the program can be completed within 18 months.
Beware of Deadlines
The exam is offered twice a year for level I, and once a year for Level II and III. This is a sequential exam, meaning you must take Level 1 first.
It is critical that you plan ahead in order not to avoid deadlines or running out of time to study.
The early-bird registration starts as early as 9 months before the exam date.
How to Register
[We will provide a summary of the registration process shortly.]
7. Create a Study Plan
For good and proper planning, you need to go over the format and curriculum.
Level 1 Format
- Multiple choice questions only.
- There are 240 questions equally divided into morning session (3 hours) and afternoon session (3 hours).
- The questions are NOT adaptive i.e. each question is independent of each other.
- All questions are equally weighted and there is no penalty for guessing.
Level 1 Curriculum
The CFA program is a graduate level coursework that includes self-studying of 1o topics relevant to the investment field
- Ethical and Professional Standard
- Quantitative Methods
- Financial Reporting and Analysis
- Corporate Finance
- Equity Investments
- Fixed Income
- Alternative Investments
- Portfolio Management and Wealth Planning.
These topics are organized into study sessions, each with assigned readings, learning outcome statements and problem sets. There are three level of exams to test the knowledge gained from these study sessions.
8. Prepare for the Exam
CFAI includes a comprehensive reading materials, known as the CFAI text book, as part of the package.
In theory, you don’t need third-party guides to take the exam; but in practice, most candidates get supplements to speed up the studying, or to work on their weaker areas.
Schweser is the most popular among these CFA review course providers. The up-and-coming is Wiley, formerly known as the Elan Guides, and their videos are especially popular.
- Pros and cons of major CFA review courses
9. Fulfill Experience Requirements
Once you pass Level III, you need to accumulate 4 years of relevant experience before obtaining the charter. You can do this before, during or after the exams.
Relevant experience are defined quite broadly. Examples include:
- Evaluating or applying financial, economic, and/or statistical data as part of the investment decision-making process involving securities or similar investments;
- Supervising, directly or indirectly, persons who practice such activities; or
- Teaching such activities.
Click here for details on CFA work experience requirements.
10. Join CFA Institute as Charter Member
Upon completion of the third (Level III) exam and 4 years of relevant experience, your will be invited to become a CFA charter holder. Continuing professional education (CPE) is required to maintain the charter holder status.
How to Become a CFA in the Fastest Way?
It depends on your commitment and whether you can pass the 3 exams on your first try.
The fastest you can accomplish this is 18 months — Level I in December, Level II in June, and Level III in June the year after. Here is a video on how you can achieve that:
Would You Like More Information?
We know the process sounds complicated, but once you take the first step on how to become a CFA, it’s very doable. We are more than happy to help you along the way!
If you find this article helpful, you may check out:
- Our frequently asked questions page, or
- Our CFA Level 1 course which is completely free. You can learn more about this mini e-course here, or sign up directly below.
Join us if you want to get tips on how to plan,
study and get your CFA designation… on your first attempt!