What Does a CFA® Charterholder Do? (2024)

FAQs

What Does a CFA® Charterholder Do? ›

Chartered Financial Analyst® (CFA®) charterholders apply their knowledge and skills in a wide range of positions throughout the global finance industry. Distinguished by their commitment to set a higher standard of excellence, they are sought after as investment management professionals.

The pass rates for the CFA and CPA exams are similar, but the CFA certification typically takes candidates several years longer to obtain than the CPA certification. In that respect, the CFA certification is typically viewed as harder than the CPA because of the greater time commitment and work experience requirements.

You must pass all 3 levels of the CFA Program exam to become a CFA charterholder. The CFA charter is a global designation that helps you stand out to top employers everywhere. The CFA designation prepares you for a variety of job positions in the global finance industry.

The highest paid work for CFA charterholders generally comes as a Senior Portfolio Manager, Investment Banking Officer, or as a Corporate Finance Director.

Based on a recent survey, charterholders in the United States receive an average total compensation of around $300,000, with a median base salary of approximately $180,000. The remaining amount is distributed between cash bonuses and a combination of equity or profit-sharing arrangements.

CFA Charterholder vs. CPA Salary. Salaries can vary widely for both CFAs and CPAs based on location, experience level, and company size. That being said, according to Payscale the average salary for a CFA is $102,000 and the average salary for a CPA is $94,000.

With a pass rate of less than 11% for all three levels, the CFA passage rate is lower than most state bar exams.

Earning the CFA is a prolonged, pricey, and altogether challenging process that may not be right for every financial professional. To become a CFA, a candidate must pass the three-level exam, build up work experience in a related field, provide letters of reference, and apply to join the CFA Institute.

Limitations of the CFA Charter

The CFA charter is widely respected, globally-recognized, and a difficult undertaking to accomplish.

An MBA is more costly to acquire than a CFA and typically requires being a full-time student, while someone studying for a CFA can simultaneously hold a full-time job. However, the tradeoff is that after completion, an MBA often gives a bigger boost to your earnings potential than a CFA.

Who hires most CFA? ›

The average salary range is 67,786 USD to 217,242 USD for individuals who have successfully finished the Level 3 CFA exam.

A survey carried out using a sample of 50 CFA Level I candidates reveals an average IQ of 105. Assuming that IQs are distributed normally, carry out a statistical test to determine whether the mean IQ is greater than 100.

A lot of CFAs work in high-pressure environments that often come with demanding deadlines and high stakes. Therefore, you need to have a decisive attitude, the ability to compartmentalize stress, and an unfaltering ability to think clearly. It also helps to be self-aware and critical.

While CFA Charterholders earn slightly more than CPAs (according to this data, at least) both credentials significantly increase your earning potential. With enough hard work and ambition, you'll find plenty of opportunities to meet your personal financial goals with either the CPA or CFA.

When deciding whether to go for CPA or CFA, the first and foremost consideration is the relevance to your career. Other than that, CPA has more restrictive education and experience requirements, but once you get qualified, the process is much faster. CFA has a lower entry barrier, but it takes much longer to complete.

CFA® Accountants with CFA credentials often work in finance and investment. If you plan to devote your professional career to investing and advising others on investment decisions, a CFA could give you the background you need to succeed.

Many CFA charterholders consider the Level 3 CFA Exam the most difficult because of the time and thought needed to answer the constructed responses successfully. While the typical Level 3 CFA Exam pass rates are the highest of the CFA Exams, only around 56% of CFA candidates pass the exam.