Detailed guide on CFA vs CFP and how to choose the best course? (2024)

Are you a financial enthusiast looking for great career opportunities? Chartered Financial Analyst (CFA) and Certified Financial Planner (CFP) are two of the most prestigious certifications if you want to become a financial advisor.

While the CFP helps develop financial planning skills, the CFA focuses on investment analysis and corporate finance skills. In this blog, we will focus on the differences between CFA and CFP and how to choose the best course based on your career goals and interests. Let's start with the basics first!

What is a Certified Financial Analyst (CFA)?

The CFA Institute, the overseeing body for the CFA Charter, provides the designation. CFA has earned the global gold standard for financial analysis, with the community set to reach over 170,000 active charter holders by 2023.

Financial professionals with this charter designation have proven skills and expertise in portfolio management, financial reporting, investment analysis and specific business concentrations. CFAs also specialize in relationship and wealth management, trading, credit analysis, accounting, auditing and financial planning.

To obtain the CFA certification, candidates are required to pass three levels of exams on topics ranging from accounting and security analysis to cash management and others. The institute noted that candidates spend up to 300 hours of study to pass each of these three exams. Only 36% of those who took the first exam and 44% of those who took the second exam passed in November 2022, with 48% passing the third exam in August 2022. Candidates are required to pay a one-time registration fee.

The designation is given by the CFA Institute, the regulatory body for the CFA Charter. CFAs help clients make data-driven decisions about wealth planning, investments, insurance products and other short- and long-term financial goals.

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What is a Certified Financial Planner (CFP)?

The CFP Board in the United States and the Financial Planning Standard Board (FPSB) outside the United States offer Certified Financial Planning (CFP) certification.

Do you want to make a financial plan for your entire life? You have to work with a GVB! CFPs have expertise in various aspects of financial planning, such as tax planning, estate planning, retirement and insurance. They also adhere to the highest ethical standard, the fiduciary standard, putting the interests of their clients first.

To obtain CFP certification, it is mandatory for candidates to pass the CFP Board exam and commit to ongoing education programs that test and maintain their skills and certification process.If you want to read more,click here

Key Differences Between CFA and CFP

While we've already established the fundamental ways in which the two courses differ, a deeper understanding of their functional differences will give you a clearer picture.

• Syllabus

The CFA program consists of three levels. Level I revolves around financial principles, Level II focuses on accounting and financial analysis, and Level III helps build decision-making and portfolio management skills. The other major topics covered as part of the CFA program include financial reporting and analysis, economics, derivatives, quantitative methods, stock valuation, interest rates, corporate finance, alternative investments and portfolio management. Etc.

FPSB India has prepared a course program covering general principles of financial planning, professional conduct and regulation, education planning, investment planning, income planning and retirement savings, insurance planning and risk management, tax planning, estate planning, etc.

• Track roller

A CFA charter opens doors to exciting opportunities in finance and investments as a consultant, research analyst, portfolio manager, investment banking analyst, corporate finance analyst, relationship manager, financial advisor, etc.

Job profiles in the CFP domain are also exciting. With a CFP certification, you can take on roles as a financial advisor, trading and research associate, financial planner, estate planner, financial advisor, financial analyst, financial representative, etc.

• Pay

As stated byLiving coinCFA charter holders receive a salary ranging from INR 5 Lakhs to INR 44 Lakhs per annum, with an average of INR 20.7 Lakhs.

According toGlass doorCFP holders receive a salary ranging from INR 3 Lakhs to INR 11 Lakhs per annum, with an average of INR 5 Lakhs.

• Eligibility or experience required

To qualify as a CFA, the candidate must have completed a bachelor's degree and have at least four years of relevant work experience. You can start preparing for the CFA from your first year of exams.Do you want to know how?

To qualify as a CFP, the candidate must complete their bachelor's degree and have a minimum of 6000+ hours of relevant work experience or 4000+ hours of internship experience. However, to meet the four-year requirement, there is flexibility to combine education and work experience if it is consecutive and does not overlap.You can start preparing for the CFA from your first year of exams.Do you want to know how?

• Fees and costs

Depending on the time of registration,official CFA exam feesfall between INR 73,000 and INR 99,000 per attempt. There is a one-time registration fee of approximately INR 29,000, making the total cost of the CFA program range between INR 2.5 Lakhs and INR 3.5 Lakhs.

As of 2023, the standard registration period for the CFA is $1200 and is valid from February 2, 2023 to May 9, 2023 and is available for Level 1, Level 2 and Level 3. The early registration fee is $900 and is valid from November 14, 2022 to/ applicable to level 1, level 2 and level 3 from 1 February 2023.

CFP is much more affordable. The full CFP certification costs Rs 1 lakh or even less depending on the time of registration. 0.

• Availability of exams

Exams for the three levels of CFA take place several times a year. ThatCFA-exam in 2023is planned as follows:

On the other hand, exams for CFP are held every month. You can book the place at your convenience and pass the exams quickly.

• Difficulty

CFA is undoubtedly much more difficult compared to CFP. To receive the CFA charter, you must pass all three levels of exams. From 2013 to 2022, the average CFA pass rate was on the low side.

Over the past ten years, the average pass rate for the CFA has been approximately 41%, 45% and 52% for Level 1, Level 2 and Level 3 respectively. The CFP is much easier to achieve, and the historical pass rate has been well over 60% . The lower success rate of CFA reflects its difficulty and makes it a coveted achievement for any commercial aspirant.

If you're a student looking to jump-start your career, a CFP certification can put you on the right track. Understanding the basics of taxes, retirement planning, and investing can help you land a decent entry-level job in finance and investing.

CFA VS CFP – Enrollment Process

Follow the steps below to register for CFA:

1. Create an account atofficial CFA websitebefore the exam registration. However, to apply for a scholarship you must register much earlier.
2. Pay the exam fee for the relevant exam.
3. Schedule the testing appointment.

Did you know that 84% of our students recommend you join Proschool for your CFA Prep

Follow the steps below to register for CFP:

1. Create an account atofficial FPSB board website. Complete and complete the registration form.
2. Pay the registration fee.
3. Schedule the testing appointment.

Did you know that Proschool's CFP pass rate is higher than the national average?

How to choose between CFA and CFP

Choosing between the CFA and CFP designations can be difficult. But don't worry, a number of objective factors such as your career goals, personal interests, educational background and work experience will together guide you on the right path.

• Without a doubt, consider the employment opportunities and salary potential of both designations, along with the time and costs spent completing the courses.
• Keep your personal credentials and career goals in mind as these will have a major influence on your passion for any of the courses.
• If you are inclined towards investment management and analysis, the CFA designation is a good choice for you.
• If you are someone who is more inclined towards personal financial planning and helping individuals and families achieve their financial goals, then the CFP may be right for you.
• The CFA designation is highly respected in the financial industry and can lead to a variety of job opportunities and career paths.
• The CFP focuses on personal financial planning and may be a good fit for people who enjoy working with clients.
• If you are a student looking to build a career in finance, a CFP may be the right choice because the course will help you understand the basics of taxes, investing, retirement planning, insurance, and more.
• If you have good work experience and are looking for a masters-like course to upskill yourself, CFA is the right choice!

And yes, it is possible to obtain both: the CFA and CFP certifications, which can take your expertise and qualifications in investment management and personal financial planning to a whole new level! However, a designation as CFA will require a significant amount of time and energy, while CFP will require less effort.

How does IMS Proschool equip you for both?

With rigorous training from CFA and CFP experts from IMS Proschool, candidates will be mentored by the best in the industry. The teaching methods are quite progressive, with an emphasis on speed, depth and accuracy. The syllabus is covered in its entirety and in a timely manner so that students can also attend revision or doubt sessions. Regular interaction between teacher and student creates a positive, accessible environment, making lessons even easier.

Our unique course design is also available online, making it much more accessible. And finally, the versatile teaching at IMS Proschool gives you an edge over the other candidates, increasing your chances of finding a rewarding job! It's never too late to apply. Our parties start every 3 days! What are you waiting for?Sign up today. We are here to guide you all the way!

Frequently Asked Questions

• If I plan to take both CFA and CFP, which course should I take first?

Then you can first fill in the GVB designation. This is because the CFP designation covers a broader range of financial planning topics, including retirement planning, tax planning, estate planning and risk management. This knowledge can form the basis for the more specialized investment analysis and portfolio management covered by the CFA program.

The CFP designation has fewer training requirements than the CFA, which can make it more manageable while working toward the CFA designation. But ultimately, deciding which title you pursue first will depend on your personal career goals and interests.

• CFA vs CFP – How long does it take to complete these courses?

The CFA designation typically takes an average of four years, while the CFP designation can be completed in as little as 12 to 18 months.

• Do I need a financial background to take CFA and CFP courses?

No. While a financial background can be helpful, it is not a must-have. The curriculum for both courses is designed to provide a comprehensive knowledge of all topics covered, regardless of your previous educational or professional background.

• CFA vs CFP - Which is more difficult?

Yes. CFA is every day more difficult than CFP and a CFA takes longer to complete. Historically, only 11% of candidates can pass all levels of the CFA. You have to sit for 5 hours straight and answer all 10 modules in CFA in one go. This requires enormous concentration and mental strength.

• CFA vs CFP - Which is more expensive?

A typical CFA exam can cost you around $850. If you are unable to delete the attempt, you will be charged the same amount again on the next attempt. On the contrary, a CFP trial will only cost you $72.

In short, it is recommended to take it step by step. CFP helps you strengthen your foundation and gives you access to the investment world. With a strong foundation, it is always easier to pass tougher exams like CFA.