If you’re concerned you won’t pass the CFA exams because you don’t have a background in finance, you can officially set those worries aside.
The purpose of the CFA is to gauge your ability to analyze financial and accounting information. If you didn’t study these fields in college, you have the opportunity to learn them now! The exam revolves around concrete concepts laid out in Learning Outcome Statements (LOS) for each of its three levels. That means that with a strong plan for prep, you can learn everything you need to before the big day—even if you didn’t study finance in school.
Now, candidates with a background in finance, either through work or education, will no doubt have a better understanding of those core concepts right off the bat—but that doesn’t mean they’ll sail through the CFA without dedicated prep. There are two main reasons why.
1. Many topics will be new to exam preppers from all academic backgrounds. There are many topics that are new even to candidates with finance experience, particularly on the more advanced stages of the exam (Levels II and III). Those less-widely-known topics include alternative investments, fixed-income, and ethics … all of which are not covered in most finance undergrad programs. In short, anyone planning to take the CFA will need to prep. While a finance background can give you a running start, a lack of one is more likely to affect your confidence than your preparation.
2. Confidence can lead to complacency. In case you need more convincing, our expert CFA instructors find that many candidates with finance degrees actually perform worse on the exam. Why? Well, one of the major reasons is complacency. Many candidates with finance backgrounds feel overconfident and therefore don’t take the proper time to study and prepare as seriously as they need. In contrast, there are many candidates from other academic backgrounds, such as economics and engineering, who devise a thoughtful study plan, stick to it, and pass the exam.
The key for all future charterholders is to focus on meeting set study hour goals and homing in on the LOS of the exam—regardless of experience in finance.
Since prepping for the CFA is so crucial, it’s imperative that you use your time wisely. To do that, it’s also recommended that you seek help from a top-notch prep provider. CFA instructors know exactly what you’ll face on the test, and therefore they know exactly what you need to study. By helping you identify necessary topics, an instructor can save you time and energy through the entire process. You don’t want to waste valuable time on irrelevant subjects, and a prep instructor can make your study time more efficient.
How about what comes after the CFA? Are you required to have a finance background to obtain a charter? The short answer is, again, no. The CFA Institute simply requires you to have a bachelor’s degree (or equivalent) or be in the final year of your bachelor’s degree program. You’ll also need to have four years of relevant work experience, and, of course, you must pass all three levels of the CFA exam. The requirements make no mention of having any other sort of finance background.
So, your success on the CFA is not reliant on having a background in finance. What’s far more important will be your work ethic and study discipline leading up to the test. While CFA exams may be difficult, if you spend sufficient time studying, getting proper help, and learning all the LOS, you will be very likely to pass.
Want to get your baseline score? Take our CFA Level I mock exam to find out where you stand.
FAQs
While a finance background can give you a running start, a lack of one is more likely to affect your confidence than your preparation. 2. Confidence can lead to complacency. In case you need more convincing, our expert CFA instructors find that many candidates with finance degrees actually perform worse on the exam.
What background do you need for CFA? ›
The CFA Program is typically completed by those with backgrounds in finance, accounting, economics, or business. CFA charterholders earn the right to use the CFA designation after program completion, application, and acceptance by CFA Institute.
Can I take the CFA exam without experience? ›
Registration requires each candidate to hold a bachelor's degree or be enrolled in the last year of a bachelor's program. Applicants can also qualify by completing 4,000 hours of professional work experience or a combination of professional work experience and higher education.
Is CFA worth it for non-finance professionals? ›
Advantages of Earning the CFA Charter. Whether you have a finance background or a non-finance background, there are many advantages on your journey to the CFA charter. These include reputation, recognition, career progression, job opportunities, and a higher salary and these top benefits of the CFA charter designation.
Can you work in finance without a CFA? ›
Do you need a CFA to be a financial analyst? No. Financial analysts do not need the CFA credential to work in the field, but employers may prefer individuals with certification.
Can anyone take the CFA exam? ›
To be eligible for the CFA charter, you must have relevant work experience in the investment decision-making process, which includes evaluating or applying financial, economic, and/or statistical data.
Is CFA harder than CPA? ›
CFA vs CPA Exam difficulty
Both are challenging and require gaining skills and knowledge in complex topics. However, the CPA Exam generally requires less studying - around 80 to 120 hours per section compared to 300 hours per section of the CFA Exam, and the CPA Exam also has a higher pass rate.
Is it better to get a CFA or MBA? ›
Career aspirations: While there is certainly overlap in how business school graduates and charterholders apply their expertise, MBA programs are generally ideal for professionals who want to pursue management positions in any industry. A CFA designation suits professionals dedicated to working in the finance industry.
Can a beginner do CFA? ›
The CFA Institute requires that candidates pass a series of increasingly complex exams and complete a combination of 4,000 hours of professional work experience and higher education before earning the coveted title of Chartered Financial Analyst.
How much does CFA cost? ›
CFA Exam Fees and Additional Expenses. Registration costs vary depending on when a candidate decides to register for the exam. The total cost of all three CFA exams ranges from approximately $3,220 to $8,050, assuming three consecutive passes with no travel and accommodation costs.
If you are an active charterholder in good standing:
Include your designation after your name. (For example: “Jane Doe, CFA”) Include your charterholder status in the certifications or education section of your resume as “CFA® charterholder, CFA Institute.” You may also include the date your charter was issued.
Is CFA still respected? ›
According to the CFA Institute, this credential "is the professional standard of choice for more than 31,000 investment firms worldwide."1 It can be especially helpful if you don't have an undergraduate degree in finance, economics, or accounting, and your goal is a job or career in the finance industry.
Is CFA the hardest finance exam? ›
The Chartered Financial Analyst credential is one of the most demanding exams on Earth when it comes to preparation and study time required. The average pass rate for the CFA Level 1 is only 41%. For Level 2, you're looking at a passage rate of 45%. And Level 3 is not much easier at 52%.
How hard is CFA for non finance? ›
Passing the CFA exam without a finance background is challenging, but it is not impossible. Non-finance students can succeed on the exam by focusing on their strengths, developing a strong study plan, and practicing consistently. One way to overcome the knowledge gap is to take a CFA accounting course before the exam.
Is CFA equivalent to Masters? ›
Is the CFA Equivalent to a Master's Degree? Since both the CFA Program and an MSFA require an undergraduate degree in most cases and require about the same total amount of study, the CFA is generally considered to be equivalent to a master's degree.
Which bachelor's degree is best for CFA? ›
Which degree is the best for CFA? A degree in either finance or accounting is the best for CFA since these cover concepts of the CFA course. However, a degree in business is also useful for CFAs.
What do you need to be a CFA holder? ›
Regular Membership – pass your CFA Level 1 exam, acquire at least 4,000 hours of work experience over a minimum of 36 months and you can qualify as a Regular Member. Regular Membership as a Charterholder – pass all 3 exams in addition to the Regular Member requirements to receive your charter.
Is a CFA or MBA better? ›
Career aspirations: While there is certainly overlap in how business school graduates and charterholders apply their expertise, MBA programs are generally ideal for professionals who want to pursue management positions in any industry. A CFA designation suits professionals dedicated to working in the finance industry.
