How to Become a CFA®
The Journey to CFA® Charterholder
Is becoming a CFA charterholder something to which you aspire? Are you ready to devote hours of study and dedication to preparing for the exams? Is tackling any roadblocks in the financial system something that you find exciting? If your answers are a resounding "yes" to all these questions, march straight up towards what is considered the gold standard of financial certification: The Chartered Financial Analyst® (CFA).
To begin with, it is a common misconception that a strong financial background is necessary to pursue a CFA certification. In reality, while this background might help in passing the exams, anyone who is interested in working in the financial or portfolio management industry can take the CFA exam, regardless of their current profession as long as they fulfill the CFA eligibility requirements. Once these requirements are met, the candidate must also become a member of the CFA Institute (CFAI).
Passing the CFA exams
Often the first steps in obtaining the CFA charter is registering for and passing all three levels of the CFA exam. While the CFA Level 1 exam is more about subject knowledge and understanding, the CFA Level 2 exam is more about application and analysis. The CFA Level 3 exam on the other hand focuses more on information synthesizing and assessment. Keep in mind that these are difficult examinations, and candidates are advised to spend an average of 300 hours studying for each exam.
Fulfilling the work requirement / eligibility
For individuals considering enrollment in the CFA Program, it is important to note that eligible work experience may be obtained before, during, or after the completion of the program through full-time, part-time, or remote employment, as long as it contributes to investment decision-making. Specifically, the CFAI mandates that such experience must comprise a minimum of 4,000 hours and be completed in a minimum of 36 months. In addition, the CFAI as part of its CFA Program evolution 2024 updates announced that beginning in 2024, university students who have two years remaining in their undergraduate studies will be granted extended eligibility to participate in the CFA Program. This extension will allow for earlier preparation for internships and career opportunities in the investment field.
Submitting letters of reference
You must provide two to three letters of reference from someone who can speak to your expertise and integrity. When you apply for membership, you will be required to submit professional references, who will then be asked to remark on your job experience and professional conduct. You cannot serve as a reference for your own application.
Abiding by the Code of Ethics
The Code of Ethics and Professional Conduct serves as the worldwide ethical standard for investment professionals. As a CFA Program candidate or member of the CFAI, you must adhere to the Code and Standards that require you to put your clients' interests and the profession's integrity ahead of your own. It requires your actions to be respectful and professionally competent.
Applying for a membership with the CFAI
Once you've passed all three levels of the CFA exam, fulfilled your work requirements, and submitted two to three letters of reference, it is time to apply for membership with the CFAI. Once approved, you will have officially earned the CFA charter.
CFA Membership and Fee Structure
Obtaining a CFAI membership is unquestionably one of the most beneficial phases in your CFA journey. It allows you to be a member of the society that helps enhance professional standards in over 150 worldwide financial marketplaces. It also facilitates networking and volunteering, which keeps you up to speed on investment management, any particular CFA Program, and charter developments. Finally, you also get the gratification of knowing that you have contributed your time, skills, and expertise. But how do we go about applying for membership?
Types of CFA memberships
You don't have to be a CFA charterholder or a CFA Program candidate to join the CFAI as a member. Membership in the CFAI offers professional tools, networking opportunities, ongoing education, and other perks beyond the curriculum and tests. Although candidates from certain countries may be prohibited by law from becoming CFAI or society members. In such cases, it is advised to review the OFAC Compliance Policy before applying.
To represent the breadth of investment professionals' expertise, CFAI provides two membership levels:
- Regular Membership
- Affiliate Membership
The membership is meant for investment professionals directly involved in or supporting the investment decision-making process. Regular membership is a prerequisite to earning the CFA charter.
- Eligibility: A bachelor's degree or equivalent education/work experience and a passing score in all three levels.
- Benefits: Voting rights for CFAI Board of Governor elections. Access to the most recent research, CPL content, a member directory, and exclusive volunteer opportunities.
- Annual fees: $275 for the CFAI.
The membership is much more aligned for investment professionals who do not meet the eligibility requirements of regular memberships or do not intend to participate in the CFA Program.
- Eligibility: You must meet the eligibility requirements for your selected member society and become a member of that society.
- Benefits: Access to the latest research, continued professional learning content, member directory, and exclusive volunteer opportunities.
- Annual fees: $275 for the CFAI.
The CFAI membership costs $275 for the complete membership year, which begins on July 1 of each year. The yearly price for first-time members can vary based on the month they join. For example, if you joined in September, you would only be paying for 10 months in year 1.
Note: Please note that the CFAI and society dues are non-refundable and non-transferable.
Frequently Asked Questions
- Knowledge and Comprehension makeup Level 1
- Application and Analysis make up Level 2
- Synthesis and Evaluation make up Level 3
- Educational background
- Years of work experience
- City of residence
- Size and type of company
- Career path