CFA Exam: Cost, Curriculum and Difficulty

A chartered financial analyst (CFA) is someone who holds a professional designation from the CFA Institute, an international association of financial professionals. CFAs primarily review individual investments, market trends and other factors to help individuals shape their portfolios and achieve a target asset allocation. Many financial advisors and wealth managers are CFAs. And earning a CFA certification means passing the CFA exam. If you’re interested in becoming a CFA, or if you’re planning on working with one and want to know what kind of education and training they undergo, here’s what to know.

A financial advisor can answer your questions about their certifications and trainings to help you find the best match for your long-term goals.

What Is the CFA Designation?

The CFA Institute awards the CFA designation to financial professionals who demonstrate advanced knowledge of investment analysis, portfolio management and financial markets. Industry experts consider the credential one of the most rigorous certifications available for investment management.

The CFA Institute, which administers the designation, is a global nonprofit organization focused on promoting ethical standards, education and professionalism in the investment industry. Through its certification programs and research initiatives, the organization aims to strengthen trust and transparency in global financial markets.

The CFA program established a consistent professional standard for investment professionals. Before the designation was introduced in the 1960s, there was limited standardization in how analysts and portfolio managers were trained. The CFA credential was designed to fill that gap by creating a structured curriculum that emphasizes investment analysis, portfolio construction and ethical decision-making.

Today, the CFA designation is recognized internationally and held by investment professionals working in asset management firms, hedge funds, investment banks, wealth management firms and institutional investment organizations. Because earning the designation requires passing three rigorous exams and meeting professional experience requirements, the credential is often associated with advanced expertise in securities analysis and portfolio management.

Career Paths for CFA Charterholders

The CFA designation can support a wide range of career paths in the investment management and financial services industries. Many professionals begin pursuing the credential early in their careers while working in entry-level roles such as investment analyst, research associate, or financial analyst. In these positions, the knowledge gained through the CFA curriculum can help professionals develop a deeper understanding of financial markets, valuation techniques and portfolio construction.

As professionals gain experience and complete additional levels of the CFA program, they may move into mid-career roles that involve greater responsibility for investment decision-making. These roles can include portfolio manager, equity research analyst, fixed-income analyst or investment strategist. In these positions, CFA charterholders may analyze market trends, evaluate securities, and help construct investment portfolios for institutional or individual clients.

At the senior level, CFA charterholders may advance into leadership roles such as chief investment officer (CIO), director of research, managing director or head of portfolio management. In these positions, they often oversee investment teams, develop firm-wide investment strategies or manage large institutional portfolios.

Firms that frequently employ CFA charterholders include asset management companies, investment banks, hedge funds, pension funds and wealth management firms. The designation is also common among professionals working at registered investment advisory firms and institutional investment organizations.

What Is the Chartered Financial Analyst Exam?

The CFA exam is actually not just one test, but three, designated Levels I, II and III. The tests, which only come in English, are offered multiple times a year. The Level I and Level II exams are typically taken in February, May, August and November. Level III exams have been available in February or August. Future CFAs must pass each stage of the exam, in order, to achieve the certification. ¹

You’ll need a valid passport to register for the exam, as well as meet at least one of these requirements:

• Hold a bachelor’s degree or equivalent
• Be within 23 months of completing your bachelor’s degree when sitting for the Level I exam, and complete your degree before sitting for Level III
• Have at least 4,000 hours of professional work experience, accumulated over a minimum of three sequential years
• Have a combination of higher education and professional work experience that satisfies the 4,000-hour requirement over at least three sequential years, without counting overlapping periods twice ²

Passing all three CFA exams does not automatically grant a financial advisor the CFA charter. Candidates must also satisfy the CFA Institute’s qualifying work experience requirements, obtain the necessary references and become regular members of the CFA Institute. The professional experience requirement for the charter includes at least 4,000 hours completed over a minimum of 36 months and must relate to investment decision-making or work that informs it.

CFA Exam: Levels I, II & III

The chartered financial analyst exam is a three-level certification process designed to test candidates’ expertise in investment management, financial analysis and ethical standards. Each level builds upon the previous one, increasing in complexity and depth.

Level I

In terms of content and structure, Level I of the chartered financial analyst exam covers 10 topics. They fall into four general categories:

• Ethical and professional standards
• Investment tools (quantitative methods, economics, financial reporting and analysis)
• Asset classes (equity investments, fixed-income, derivatives and alternative investments)
• Portfolio management and analysis (corporate finance and portfolio management)

The exam happens over two sessions of two hours and 15 minutes each. Both sessions combined, the Level I exam features a total of 180 multiple choice questions (four hours and 30 minutes). The CFA Institute recommends that exam-takers allot themselves 90 seconds to answer each question. All exam questions are multiple choice. ³

Level II

Level II includes sets of vignettes with 88 accompanying multiple-choice questions. ⁴ The exam is divided into two sessions of two hours and 12 minutes each (four hours and 24 minutes combined). Exam questions cover:

• Ethical and professional standards
• Quantitative methods
• Economics
• Financial statement analysis
• Corporate issuers
• Equity investments
• Fixed-income
• Derivatives
• Alternative investments
• Portfolio management and wealth planning

Level III

Level III of the exam consists of vignettes with multiple choice questions and essay responses. The exam involves two equal sessions of two hours and 12 minutes each (four hours and 24 minutes combined). ⁵ Exam questions cover:

• Asset allocation
• Portfolio construction
• Performance measurement
• Derivatives and risk management
• Ethical and professional standards
• Specialized pathways in portfolio management, private markets or private wealth

How Difficult Is the CFA Exam?

The CFA exam is distinctly tougher than the typical standardized tests you might have taken to get into college. According to the CFA Institute, the average 10 year pass rates for 2014-2023 are as follows ⁶ :

• Level I: 41%
• Level II: 45%
• Level III: 52%

“This is a graduate level program and requires substantial, consistent effort over time,” says Cynthia Meyer, a CFA and financial planner at Financial Finesse, a financial wellness company. “Passing each level requires mastering a comprehensive body of knowledge.”

These figures describe the 2014-2023 period rather than pass rates for 2026. Results vary by exam administration, and the CFA Institute publishes updated pass rates as candidates complete each testing window.

The CFA Institute doesn’t release the minimum passing score for each level, but based on these numbers, it’s clear that the exam isn’t easy. Attaining a passing grade requires hours of study and preparation.

What Does the CFA Exam Cost?

For 2026, the CFA Institute eliminated the one-time enrollment fee previously charged to new candidates. Exam registration fees depend on the level and whether a candidate registers during the early or standard pricing period. ⁷

The registration fees for 2027 are:

A candidate who registers early for all three levels would pay $3,520 in exam registration fees. Registering at standard rates for all three would cost $4,570. These totals assume the candidate passes each exam on the first attempt and exclude taxes, optional preparation materials and other expenses. The CFA Institute offers several scholarship programs for eligible exam-takers to help with the cost.

You should note that a $250 rescheduling fee applies if you decide to reschedule within the exam window.

Registration costs can also vary if a candidate retakes an exam. The CFA Institute generally limits candidates to two exam attempts per calendar year, with restrictions on taking exams in consecutive windows or within six months of one another.

Preparing for the CFA Exam

In terms of prep time for the CFA exam, Meyer recommends a minimum of 300 hours. Assuming you study three hours everyday you’d need to give yourself a good three months to prepare. Meyer says she studied two hours a day, five days a week, beginning in the fall, to prepare for a June test date. The last two months prior to taking the exam, she increased her study time to include half-day practice exams.

The CFA Institute offers online materials to help students prepare, along with a directory of exam prep service providers. Meyer says taking review classes can be well worth the cost to potentially increase your chances of passing the exam on the first try and avoiding expensive retakes. Professional tutoring and instructional help cost even more.

“Unless you’ve been working as an analyst for a long time, or just finished your Master’s in Finance, you’ll need to budget another $600 to $1,500 per test level for prep classes and materials,” Meyer says.

If you can’t afford to take CFA exam prep classes, you can also purchase review books. These guide you through the types of concepts the exam covers. Some also offer practice problems and tests to prep you for what to expect on exam day. This can be a cost-effective way to get ready for the exam, but it requires a certain amount of discipline.

Bottom Line

Earning a CFA certification can help to demonstrate your specialized knowledge and expertise in investment analysis. Getting your CFA requires taking a three-part test. You should consider how much time you can commit to studying and preparing before registering for a difficult exam. Also, think about whether being a CFA speaks to the type of work you actually want to do. You may find that another designation, such as the certified financial planner (CFP) designation, might be more appropriate.

What to Consider When Choosing an Advisor

• Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Understanding the alphabet soup of letters that follow a financial professional’s name can sometimes be confusing. Learning the different financial certifications and what they mean can help you decide which type of financial advisor best suits your needs.
• In evaluating financial advisors, take time to ask yourself what you need help with the most. For example, that may be saving for retirement, developing an investing strategy for a second home or creating a comprehensive wealth management plan. Knowing what you need from an advisor can make it easier to narrow down the field to one that fits your objectives.

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