If you’re passionate about finance, you’re in luck. Finding a job you love that also pays well is the dream, and the finance industry delivers. After all, jobs in the finance industry made nearly double the median annual salary of careers in other niches in 2023.
But… where do you even start?
If you’re overwhelmed by trying to figure out “all the things,” I’ve got you. Whether your CFA® journey leads to career opportunities in portfolio management, corporate finance, or something else entirely, I’m here to lay out your foolproof plan for how to become a CFA® in 5 steps. Not only that, you’ll get pro tips for every single step and two additional tips on maximizing your appeal to future employers.
Key Takeaways
- Start with College or Relevant Work Experience: You can begin the CFA® program in your junior year of college or qualify with 4 years of relevant work experience in finance, such as financial analysis or portfolio management. A degree isn’t required, but it’s recommended for career growth.
- Meet Eligibility Requirements: To register for the exams, you need an international passport, proficiency in English, and residency in a participating country.
- Pass All Three CFA® Exams: The exams consist of three levels, each requiring over 300 hours of study. Preparation through practice exams and study courses is key to passing.
- Complete 4,000 Hours of Relevant Work Experience: You must gain 4,000 hours (about three years) of work experience in investment decision-making roles. Internships and part-time work count toward this requirement.
- Apply for Charterholder Membership: Once you’ve passed the exams and gained the necessary work experience, apply for CFA® membership with 2-3 professional references and pay annual dues. Once approved, you’ll be a CFA® charterholder!
Step 1: Earn a Bachelor’s Degree
The CFA Institute typically requires candidates to have a bachelor’s degree or equivalent before earning the CFA® charter. However, you don’t need to wait until graduation to begin your journey. You may be able to start the program within 23 months of your graduation month, likely your junior year as an undergraduate student.
Recommended Degrees
While technically, any bachelor’s degree will do, the following fields are highly recommended to align with CFA® Program content:
- Finance
- Accounting
- Economics
- Business Administration
If college isn’t your path, don’t worry—you can still qualify for the CFA designation with four years of relevant professional work experience.
To meet the CFA requirements, this work must involve investment decision-making or activities that contribute directly to investment decisions. This includes roles in financial analysis, asset management, portfolio management, investment banking, corporate finance, and risk management.
Essentially, your job should involve evaluating investments, analyzing financial data, or making recommendations that impact financial decisions.
Pro Tip: While you can earn the CFA without a formal degree, the finance industry often values education highly, especially for more competitive roles. A bachelor’s degree in finance, economics, or accounting can boost your chances and make you more appealing to potential employers.
Step 2: Meet Eligibility Requirements
Before you can register for the CFA® exams, you need to meet a few basic requirements:
- Have an international travel passport. You’ll need this to register for and take the exams.
- Take the exams in English. Since the CFA® Program is English-only, brushing up on your language skills might be helpful. However, if you’re reading this article, you’re probably good to go.
- Live in a participating country. Most countries are eligible but double-check the CFA Institute’s Sanctions Compliance Policy list to be sure.
Pro Tip: These steps are straightforward but crucial. Skipping even one of them could derail your progress, so apply for your passport ASAP.
Step 3: Pass the CFA® Exams
The CFA® exams are no joke. There are three levels to conquer: Level I, Level II, and Level III. Each exam tests your skills in areas like asset management, risk management, investment tools, investment banking, wealth management, and beyond. Here’s what you need to know:
- Pass Rates: Historically, pass rates are around 40-50%, so these exams are challenging.
- Study Time: Candidates typically spend over 300 hours studying for each level. Plan your time wisely! Retake fees are currently $690 per exam, so pass on the first try if you can.
- Practice Makes Perfect: Mock exams and practice tests are your best friends. They’ll not only help you identify weak areas but also get you comfortable with the exam format.
Pro Tip: The best way to ensure your success is to invest in a reputable prep course, like AnalystPrep or Kaplan-Schweser. These courses offer structured study plans and resources to boost your chances of success.
Step 4: Earn Your Work Experience
I mentioned earlier that work experience is one route to becoming a CFA® charterholder. Regardless, you’ll need 4,000 hours of professional work experience in roles related to investment decision-making.
Here are a few examples of qualifying positions:
- Portfolio Manager
- Financial Analyst
- Risk Manager
- Wealth Planner
Pro Tip: Your work experience doesn’t have to be full-time. Internships, part-time roles, and volunteer positions can count as long as they meet the CFA Institute’s criteria.
Step 5: Apply for Charterholder Membership
You’re almost there! Once you’ve passed all three exams and completed your work experience, it’s time to apply for membership with the CFA Institute. Here’s what you’ll need:
- References: You’ll need two to three professional references who can vouch for your character and finance-related work experience. If one of the references is from an active member of your local CFA® society, you only need 2. If not, you must have 3.
- Fees: Be prepared to pay annual dues to both the CFA Institute and the CFA® society in your area. This will cost between $400 and $550 per year.
- Professional Conduct Statement: You must file the Institute’s Professional Conduct Statement and Member Agreement every year and turn it in with your dues.
Once approved, you’ll officially be a CFA® charter holder, ready to take the financial industry by storm!
Pro Tip: The CFA Insitute doesn’t require continuing education credits to maintain your membership status. However, they recommend around 20 hours every year. This is a great way to stay up-to-date and ahead of the curve in the industry.
Tips to Set You Apart
Getting your CFA® charter is a huge accomplishment, but standing out in a crowded field of investment professionals requires a little extra effort. Here’s how you can go above and beyond:
Network Like a Boss
You’ve probably heard the saying, “It’s not what you know, but who you know.” While your CFA® designation proves you know your stuff, the difference between a six-figure and seven-figure salary lies in your soft skills and connections.
How to Build Your Network
- Join Your Local CFA® Society: These groups offer events, mentorship programs, and job boards that can boost your career. You have to pay dues anyway; why not make that investment worth your while?
- Find a Mentor: Connect with a seasoned CFA® charterholder who can offer advice and guidance. It’s the cheat code for success, truly. You’ll learn the mistakes to avoid, the people you need to know, and shortcuts and strategies for working your way to the top.
- Attend Industry Events: Conferences and seminars are great strategies for meeting new connections and maybe even new friends in the industry. Plus, practicing your social skills is always time well spent.
- Leverage LinkedIn: Use LinkedIn to connect with peers, recruiters, and industry leaders. A simple message like, “I’m a CFA® candidate looking to learn more about [topic]—can we connect?” can go a long way. Boost your pitch by giving genuine compliments, highlight learning from each other, and lead with value (ex., I know you love XYZ; here’s an article you might enjoy).
Networking isn’t just about landing your first big job; it’s about building relationships that can support your career for years to come.
Pro Tip: A lot of CFAs® are ambitious; if you want to get to the top, start here—and don’t wait until you have your charter to start! Build strong relationships with your professors to get a head start.
Invest and Share
Want to prove to employers that you don’t just talk the talk? Build your own investment portfolio and share your journey.
Why This Matters
Managing your own portfolio demonstrates your ability to make sound, real-world investment decisions. Employers will see that you can:
- Analyze risks and rewards effectively.
- Apply the portfolio management strategies you’ve learned.
- Walk the walk when it comes to finance.
How to Share
Don’t keep your insights to yourself! Platforms like LinkedIn, Medium, and even YouTube are fantastic for showcasing your expertise. Write posts about your investment strategies, share lessons from your CFA® studies, or create tutorials on financial topics. And, this ties in beautifully to my tip on networking as well!
Pro Tip: Sharing your knowledge not only enhances your personal brand but also makes you more appealing to potential employers.
Conclusion
Think about it: how many investments in the world let you put in $5,000 for exams and fees and get six figures back? It sounds wild, but that’s exactly what you’re doing when you earn your CFA® charter.
By following these five proven steps—earning your bachelor’s degree, meeting eligibility requirements, passing the exams, gaining work experience, and applying for membership—you’ll join an elite group of investment professionals. And if you want to stand out even further, networking and showcasing your skills can give you a competitive edge.
Good luck!
FAQs
It typically takes 4-5 years to become a CFA®, though this can be much shorter or longer, depending on how quickly you pass the exams and accumulate the required work experience.
Both are challenging, but the CFA® exams are considered more intense due to the lower pass rates and the breadth of material. The CPA focuses more on accounting, while the CFA® covers the investment decision-making process and discusses investment analysis, portfolio management, and finance.
You need a bachelor’s degree or equivalent work experience, plus the ability to pass all three levels of CFA® exams and complete 4,000 hours of relevant work experience.
Earning the Chartered Financial Analyst designation pays off, with salaries often averaging between $100,000. However, some portfolio managers and CFOs earn well over $200,000 annually, and even in the millions, depending on experience, location, and role.
Yes! You can qualify with four years of relevant work experience instead of a degree. However, many finance industry employers are a little more “old school” and prefer candidates with formal education.
