CFA - Pros, Cons and Myths

There are a number of myths, pros and cons to taking the CFA exams and earning your Chaterholder, something that you should consider before taking the exam.
Timestamps
0:00 - Intro
0:48 - Pros
5:03 - Cons
8:13 - Myths
11:45 - Is it worth it?
The CFA (or Chartered Financial Analyst) Charterholder is one of the most well respected and highly sought after qualifications in the world of finance. This sounds great but as a result, the exams are a huge commitment on top of working the long hours expected when working in finance. Therefore before you commit to taking the exams you need to know everything about the exams, this includes the pros and cons of taking the exams, but also the myths behind taking the CFA.
Pros.
It's impressive. On average people take 300 hours to study for each exam, Over the course of 4-5 years. It takes a huge time commitment and dedication, making it a huge achievement. It also shows that you are smart and you work hard which is what every boss wants from any employee.
The CFA Charterholder is the highest credential in finance, so why not get it. It is something that only 167,000 worldwide have, which might sound a lot but there are 1.1 million people who work in financial services in the UK, and the UK is only a fraction of the total finance jobs in the world.
The Charter is internationally recognised, meaning that anyone in the world knows what has gone into becoming a Chaterholder. You may have gone to a really good university for your subject in your country but the person who is sitting in another country may not know that, it helps set you apart from the competition.
Finally it is relatively affordable. Costing between $2,500 - $8,000 (£2,000 to £6,000) on average to sit the exams (that’s assuming passing each level first time), and add in the additional teaching materials which can go up to $2,500 (£2,000). But compare that to MBA which can be in excess of $100,000 it is a steal.
Cons
Big time commitment. Becoming a CFA Charterholder is a huge time commitment. It takes on average 300 hours per exam and takes on average 4-5 years. So prepared to give up socialising and hobbies.
Another con that is less talked about is the opportunity cost. As people are so focussed on passing the CFA exams they may not work optimally, meaning they network less, may take less projects and not work long hours. Which is understandable, but doing those things could help in your job and further your career and is what you could be missing out on when sitting the CFA exams.
And remember that the Charterholder will not help your day job directly. The CFA is broad, and includes topics such as Equity, Fixed Income and Derivatives, each one of those areas are broad and could be an exam on their own. The exams will help you understand the whole universe that is the world of finance but it is unlikely to help your day to day job directly. The only way to do that is to do your job.
Myths
There are many myths that you may have heard about the CFA exams. The first is that it won’t get you into finance. The CFA charterholder will not get you into finance, it isn’t your golden ticket. If you have experience in something completely unrelated to the role employers will not hire you purely because you have the charterholder. You don’t just pass CFA Level One and have banks queueing up for you.
It also won’t further your career. As mentioned there is an opportunity cost to studying for the CFA. Those three letters after your name may be an achievement, but they do not mean that you are better at your job, need to be paid more or have the right for a promotion.
Passing first time does not make you better. Many people will like to quote that they passed first time, that in itself is a huge achievement, however it does not mean that the person is better at their job or a better finance professional as a result. Some people have more time to study, some people have jobs and bosses who are more supportive. Everyone’s circumstances are different which means that some people just don’t have the time to commit to studying that others can.
I hope that this helps with your journey into gaining the CFA Charterholder.
Links:
Check out two providers that help with CFA exam prep:
Wiley - www.efficientl...
Kaplan Schweser - kaplan.co.uk/c...
If you are interesting in investing instead:
Nutmeg - My favourite place for beginner investors - nutmeg.mention...
Trading212 - Place to pick stocks for no commission - www.trading212...
Good luck,
Anthony

[@mohameddawood5884]

Best summary video of CFA I’ve watched 👌🏼

[@anthonycotterfinance5094]

Thank you for your kind words Mohamed. Glad you found it useful.

[@albano2910]

absolutely yes

[@WaysToWealth]

I have heard many horror stories, especially the pass rate which you highlighted in the first vid. But only 9% passed all of them first try! The CFA always spoke volumes for your personal determination, and it definitely comes down to how bad you want it... Would love to take a shot but I am one of the myths haha I'm outside the finance industry! Awesome video Anthony L3!

[@federalfreemoneylackofrese9937]

I think the CFA made me more discipline somehow. I became way more productive when I started doing it.

[@anthonycotterfinance5094]

Well done. Definitely makes you focus on your time management.

[@GingerT1324]

I’ve seen so many videos on this subject and this was the best. Great work.

[@anthonycotterfinance5094]

Thanks Trevor . Much appreciated

[@alexmacdonald9352]

I’m going through it now, it’s no joke just sooo much to get through

[@JoseRojasYT]

Awesome summary of a CFA, looking forward to more content Anthony

[@mgnour]

Thanks for the video. Can u do a comparison between CFA and other designations as FRM, CAIA & CIPM and if it is worthly to have multiple of them??

[@CRAIGO10]

Nice video mate, Can't recommend the importance of professional qualifications myself!

[@RyanDinz]

Thanks for dropping the knowledge Anthony!

[@brickinvesting]

Awesome video man, the explanation is very understandable and def seems like a solid thing to have! Like #15

Thanks for this video Anthony! Writing level 2 in 9 days. Cheers.

[@anthonycotterfinance5094]

All the best Marc hope it was useful.

[@PasionDeArgentina]

@@anthonycotterfinance5094 Were you able to pass ? I hope so, I have exam coming up in 10 days

[@FluentinFinance]

Great stuff Anthony!!

[@Dividendology]

Very interesting. Thanks for sharing.

[@TheBiggestOne111]

Definitely a good review. The one what I looked for. I would like to ask you to compare CFA vs CQF (Certificate in Quantitative Finance)? I am really in a deadlock, cannot decide which one to study.

[@abhishekagar7581]

Thank you!! nice video!!

[@DisruptiveWealthCreation]

Some great content.

[@andresalmonte4772]

Good job, so proud

[@heshanpalliyaguruge6333]

Amazing video sir. Thank you. I am planning to pursue my CPA but this was very insightful. Any thoughts on the CPA?

[@JamesBrownInvesting]

Smashed the like 👍

[@deaz629]

Is the pass rate due to people not knowing finance in general i.e. they do not have a Bachelor of finance degree? Or it is still difficult for a person who has obtained a Finance degree?

[@deeremeyer1749]

How many levels did you pass and in how many attempts?

[@abhishekbal399]

AGREED WITH ALL BUT THE ANECDOTE OF BOSS LOVING YOUR CFA... WELL.... THINK AGAIN. ESPECIALLY IF THE BOSS IS NOT A CFA CHARTERHOLDER

[@virens1897]

Disagree mine isn’t & he appreciates it.

[@shankeith567]

I have two questions. I personally have two years of retail banking experience and was wondering what I would have to do to make myself marketable to capital market divisions and investment firms. Also another question would be would learning Python and R benefit me especially that we're moving towards AI in the next 10 years?

[@anthonycotterfinance5094]

For your first question, make sure that you show you are interested in finance, good excel modelling skills and meet people from those area so you have a good understanding of the role. For your second question, I do not know.

[@eljoshguerra]

I work in a capital markets team at an investment firm. Like Anthony said, excel modeling matters. Also, make sure you’re familiar with business intelligence (Power BI, Tableau, Salesforce, etc.) and that you have experience that attests of your work ethic.

[@kshitizobb3195]

Hello Anthony, I am a from India and loved you content. I'm a persuing graduation and very passionate about Finance and Capital markets, real estate so i had decided to persue to get more deep knowledge in the world of Finance and currently working on advance excel skills and Financial modeling and valuation. In future Can I get the internships after level1 or level2?

[@anthonycotterfinance5094]

Hi Kshitiz, that is great work. As you’re passionate about finance keep it up. You may be surprised that you might not need level 1 or 2 before you get an internship. So don’t think that you need the qualifications before the internship. Good luck!

[@kshitizobb3195]

@@anthonycotterfinance5094 A millon thanks to you Anthony

[@wasimshaikh4732]

CFA VS CQF can you explain difference

[@dylanwood319]

So someone looking to get into the field of finance should pursue the CFA? I’m confused. You mentioned that someone who doesn’t have a background in finance shouldn’t pursue ithe CFA and towards the end you mentioned that someone who is young and interested in getting a career in finance should pursue the CFA. Could you clarify? Maybe I misunderstood. Great video!

[@anthonycotterfinance5094]

That is a fair question. What I mean is that if you are just starting your career in finance then it is great and will help you further your knowledge quickly. However, if you have no relevant background in anything finance related then taking CFA won't be your golden ticket into the finance industry after you have been working in a completely different industry with no cross over in skill or experience.

[@dylanwood319]

@@anthonycotterfinance5094 thanks Anthony!

[@rc3769]

@@anthonycotterfinance5094 Why? I'm just coming out of the military and moving into finance and have found the fact that I am half way through the CFA to be immensely useful.

[@anthonycotterfinance5094]

@@rc3769 that is amazing work. The CFA is really useful to build your understanding. The qualification will certainly open doors but consider an example where there are two candidates going for the same job, 1 has 4 years of finance experience and no CFA, the other has no finance experience but the CFA. Just because someone has the qualification does not mean that they are hired. The CFA qualification can help get through the first screening but is unlikely that it is the sole reason someone is hired.

[@rc3769]

@@anthonycotterfinance5094 gotcha thanks

[@albano2910]

2:42 I have to disagree. On top of the costs you mention, to maintain your CFA credential you need to spend about 350 USD per year on average. Assuming an individual works 35 years after his CFA (gained at age of 30) it means that has to spend additional 12K dollars. Adding on average 3k exam costs it means it takes about 15k dollars overall. Anyway, still cheaper in comparison to top MBA worldwide (around 100k)

[@altcoinbrief]

Damn

[@robertogalvez2423]

Hi! Excellent video. I am 56 years old. Do you think it is a handicap to be older and go for the CFA? Thank you.

[@anthonycotterfinance5094]

Not at all. May not progress you career the same way if you were junior, but being older will not hinder your ability to pass the exams at all.

[@robertogalvez2423]

@@anthonycotterfinance5094 thanks a lot! 🙂

[@majidareef3555]

CFA vs MBA

[@KelechIwuaba]

Well there goes that plan. Jk. Great stuff

[@munafalihashmi4893]

I'm taking level 1 in November. Any tips for me?

[@anthonycotterfinance5094]

Do as many exams and practice questions as possible. Don't try to rewrite the notes.

[@Guillermo.hernandez]

Whatever you say Jimmy Fallon, na actually thanks!

[@081praveenrajr4]

❤ from India..

[@Usman-ml4ig]

It’s actually a Certification, not a Qualification..lol

[@kostadinstanchev4855]

Thanks for sharing this fantastic video.Is it possible to get in touch with you via email somehow?I have few questions which i think you might know the answers or to give me an advice if its not too cheeky ta

[@majidareef3555]

CFA vs MBA