How Hard Are CFA Exams? CFA Pass Rates Explained | Zell (2024)

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How Hard Are CFA Exams? CFA Pass Rates Explained | Zell? ›

In 2024, 49% of those who took Level I passed, better than the historical average going back a decade (43%) and from the exam's beginnings in 1963 (46%). The CFA exams consist of three levels: CFA Level I, CFA Level II, and CFA Level III. Each builds on and requires passing the previous.

Here's what you should know about pass rates on the CFA: Average pass rates tend to fluctuate. Level 1 pass rates have hovered around 37% Level 2 pass rates have been around 45%

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.

To pass CFA Level I, you probably need to target 70% in as many topics as possible... In other words, you don't have to get more than 70% in everything to pass. Some say you can get as low as 65%, or even 63%. You don't even need to get more than 51% in everything to pass.

The test to become a Chartered Financial Analyst is one of the most challenging credentialing exams. With a pass rate of less than 11% for all three levels, the CFA passage rate is lower than most state bar exams.

CFA vs CPA Exam difficulty

Both are challenging and require gaining skills and knowledge in complex topics. However, the CPA Exam generally requires less studying - around 80 to 120 hours per section compared to 300 hours per section of the CFA Exam, and the CPA Exam also has a higher pass rate.

Passing Scores

Candidates must get a minimum passing score (MPS) of 70% on the multiple-choice questions on the CFA Level I exam, a minimum score of 65% to 70% on the multiple-choice questions on the CFA Level II exam, and a minimum passing score (MPS) of 60% on the multiple-choice questions on the CFA Level III exam.

It won't guarantee a job or a raise, but it shows your commitment and knowledge of basic financial concepts. To advance in your finance career, you'll need to continue pursuing the CFA charter by passing Levels II and III.

You don't have to be smart to pass a CFA exam. Because ultimately, each of the three exams is not a test of intelligence.

The CFA exams are difficult, taking about 4-6 hours each. Candidates must complete 180 questions during that time in the Level I exam, which is not an easy task. To be successful, candidates need more than just intelligence and stamina.

Are CFA mocks harder than exams? ›

Are Mock Exams Easier than the CFA Exam? CFA mock exams can be slightly more challenging than the actual exam simply because candidates are still preparing for the exam and haven't finished studying. The best mock exams are designed to simulate the actual testing interface and format.

CFA Level 2 Passing Score

For the second level of the CFA, you will need a score of at least 65% to have a good chance of passing, although from year to year any score under 70% can be a pass or fail based on that year's weighted scoring.

There are three tests to take before you become a charter member. The Level II test is the second, so when you complete it, you only have one more to go. Passing the Level II exam also demonstrates your dedication to your career and learning and can result in increased opportunities in your professional life.

CFA exams are considered the most challenging out there—even harder than medical school or law school exams—with pass rates under 50%.

Considering their pass rates—approximately 50% for the CPA exams, around 13.5% for candidates completing all three levels of the CFA exams, and roughly 70% for the Florida bar—statistics would suggest that the CFA credential is in fact the hardest.

Instead, a deep understanding of the principles is necessary to pass this level successfully. It would be safe to generalize that most CFA charterholders would call Level 2 the hardest of the CFA Exams. However, with patience, dedication, and practice, candidates can conquer the Level 2 Exam.

Salary Expectations

Determining how much money you can expect to earn after passing all three CFA exams is difficult to determine. If you earn the CFA designation as a mid-level analyst, it's fair to expect a 15-20% increase in salary.

Very few candidates pass all three CFA exams on their first attempt. CFA Institute estimates it takes the average successful candidate four years to complete the CFA Program. So failing one level, if not two, makes you an average candidate.

Not a curve

The Angoff Method purely determines how well someone who has the required knowledge to have passed the CFA® exam level would have scored and then relates the individual candidates to that benchmark.