CFA Vs CFP | Where Do the Paths Differ?

Pursuing a Chartered Financial Analyst® (CFA) charter or Certified Financial Planner® (CFP) certification can open exciting doors for your future. Discover which financial accolade best matches your career goals and expertise.
Skilled CFA and CFP advisors partnering with clients to steer financial challenges

CFA and CFP are popular financial credentials with distinct areas of expertise.

CFA charterholders within the global financial services industry work as investment analysts, portfolio managers, strategists, consultants, and wealth managers. Charterholders typically work with institutional investors, such as hedge funds, investment banks, and asset management firms. They might analyze investment opportunities, research financial markets, and manage investment portfolios.

CFPs frequently work as financial planners, advisors, consultants, and wealth managers. They often work with individual clients, helping them achieve their financial goals through personalized planning and advice. A professional might spend their time meeting with clients, creating financial plans tailored to needs and goals, and providing ongoing support and advice to help clients achieve their objectives.

CFA Charterholder vs. CFP Certification

Each designation requires different qualifications, training, and skill sets. CFA is considered more rigorous and specialized, requiring you to complete 3 comprehensive exams focused on investment analysis, portfolio management, and financial markets. CFP requires you to complete a comprehensive exam covering a broader range of financial planning topics, such as retirement, tax, and estate planning.

Eligibility Requirements

To be eligible to sit for the CFA, you must hold a bachelor's degree, have at least 2 years remaining in your undergraduate studies, or have equivalent experience or higher education. If you plan to enroll in the CFA charter program and register for the 3 exams for the first time, you must have an international travel passport.

The CFP certification requires either 4,000 hours of CFP-compliant apprenticeships or 6,000 hours of professional financial planning experience.

Exam Difficulty

The CFA Exam is divided into 3 levels. Each exam is more challenging than the other, with an average pass rate of 43% in the last 10 years. CFA Exam topics are broadly categorized as financial concepts, portfolio management, financial analysis, and accounting.

AVERAGE CFA EXAM PASS RATES
Level 1 Level 2 Level 3
2015 42.5% 46% 53%
2016 43% 46% 54%
2017 43% 47% 54%
2018 44% 45% 56%
2019 41.5% 44% 56%
2020 49% 55% 56%
2021 29% 41% 42%
2022 36.75% 42.6% 49%
2023 37.25% 46.6% 47.5%
2024 44% 48.5% 48.5%
10-year
average
(2015-24)
40% 45% 51%

The CFP designation is easier to obtain than the CFA charter. The historical pass rate has been above 60%, with 2024 at 64.5%.

Charter and Licensure

To obtain the CFA charter, you must pass all 3 levels of the CFA Exam, have the required work experience, meet ethics and professional standards set by CFA Institute (CFAI), and apply for membership with the administering organization.

The CFP is a licensed credential granted by the Certified Financial Planner Board of Standards. You must pass the CFP Exam, hold a bachelor's degree, complete a CFP Board-registered education program, and have at least 3 years of relevant work experience.

Salary and Career Paths

The 2024 CFA Institute Compensation Study notes that a charterholder with a bachelor's degree can expect a median total income of $190,000, while those with an MBA earn up to $257,000.

A CFP with less than 5 years of experience can expect to earn a median total income of $103,000. With 5-10 years of experience, the potential goes up to $150,000. Professionals with 20 years of experience can expect to earn $225,000.

CFA Charterholder Career Path
Top 5 Roles Average Salary
Buy-side research $98,800
Consulting $100,500
Investment banking $118,500
Risk management $111,500
Corporate executive $142,700
CFP Certification Career Path
Top 5 Roles Average Salary
Lead advisor $92,300
Personal financial planner $96,700
Client services advisor $103,100
Associate advisor $67,200
Wealth management advisor $103,100

Pros and Cons

Both designations are highly respected in the financial industry, indicating a high level of expertise and professionalism. Here are some pros and cons for each:

Frequently Asked Questions (FAQs)

The cost of obtaining a CFA charter can vary depending on study materials and exam fees but can range from $2,600 to more than $4,000. The cost of obtaining a CFP certification can also vary, but it generally ranges from $825 to $1,025.

The CFA Exam is considered harder than the CFP Exam due to its rigorous curriculum and 3 levels with low pass rates. According to CFAI’s historical data covering 10 years, the average pass rate was 43%.

The CFP exam has a pass rate ranging from 62% to 66%.

Yes. It is possible to hold both credentials. However, the 2 designations are focused on different areas of expertise, so it is more common for individuals to pursue one or the other, depending on their career goals and interests.

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