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 - https://www.efficientlearning.com/cfa/
Kaplan Schweser - https://kaplan.co.uk/courses/cfa

If you are interesting in investing instead:

Nutmeg - My favourite place for beginner investors - https://nutmeg.mention-me.com/m/ol/op...
Trading212 - Place to pick stocks for no commission - https://www.trading212.com/invite/Gv1...


Good luck,

Anthony