CFA vs. CFP: Which Is Right for You?

Key Takeaways:

A chartered financial analyst (CFA) specializes in financial analysis.
A Certified Financial Planner™ (CFP®) specializes in financial planning.
Both certifications require the candidate to pass one or more exams and pay fees.

Chartered financial analyst (CFA) and Certified Financial Planner™ (CFP®) are common certifications for individuals working in finance, including financial advisors. These are designed to tell a client (or employer) that the holder has extensive education and training in certain types of financial work. The certification processes require applicants to have different amounts of experience and education. Let’s go over what separates these two certifications so that you can choose the right one for you.

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What Do Financial Advisors Do?

Financial advisors are experts in financial planning, investment management and other areas of financial services. They mainly help clients, which could be individuals, groups or other firms, achieve financial goals. Some financial advisors advise clients on a broad range of topics, including retirement planning, tax planning, risk management and alternative investments.

Others will focus specifically on one financial topic or situation. For example, a financial advisor who’s also a certified public accountant (CPA) may focus on tax management. Some advisors also work with specific clients, like professional athletes or individuals creating estate plans.

In order to showcase their expertise in a tangible way, advisors may put in the work to receive advanced certifications. The chartered financial analyst (CFA) and Certified Financial Planner™ (CFP®) are two of the most common and respected financial designations.

What Is a Chartered Financial Analyst (CFA)?

Financial professionals holding this credential have tested skills and expertise in portfolio management, investment analysis, financial reporting and specific business concentrations. With more than 200,000 active charter holders in 2024, this designation is globally recognized as a “gold standard” for financial analysis.

This designation is administered by the CFA Institute, an international organization that specializes in certification programs for investment professionals. Candidates must pass three exams that cover a range of finance topics, including accounting, money management, security analysis, and others.

The institute says that candidates invest more than 300 hours of study to pass each of the three exams. Only 48% of candidates who took the third exam in August 2024 passed, while only 44% and 47% of those who took the first and second exams that same month achieved a passing grade.

Historically, the third and final exam has a pass rate of just 51%.

CFAs specialize in relationship and wealth management, credit analysis, trading, accounting, auditing and financial planning. They typically help clients make data- or research-based decisions on investments, estate planning and insurance products, among other short-term and long-term financial planning goals.

What Is a Certified Financial Planner™ (CFP®)?

Financial professionals holding this designation are experts in different financial planning areas, including tax and estate planning, retirement and insurance.

The CFP® designation is awarded by the Certified Financial Planner™ Board of Standards, Inc. (CFP® Board), a nonprofit that sets and maintains standards for personal financial planning. Candidates must pass the CFP® Board exam and commit to ongoing annual education programs that test and maintain their skills and certification current.

CFP®s generally help clients create a financial plan to manage investments, retirement, insurance and taxes. These professionals are held up to a high ethical standard and have a fiduciary obligation to make decisions that protect the financial interests of their clients.

CFA vs. CFP®: What Are the Key Differences?

As we already covered, CFAs specialize in financial analytics. According to the CFA Institute, the two most common occupations for a CFA are portfolio manager and research analyst. Working with a CFA is common for people who want help with investing and asset allocation.

A CFP®, comparatively, focuses on financial planning. Common occupations for CFPs® include financial planner, wealth manager and financial advisor. While both of these certifications are common, CFP® is the more common certification for a financial advisor because it is more tailored to financial planning with individuals.

If you’re looking for a financial advisor, you can be confident that someone with either of these certifications has gone through the work of understanding how to manage your finances. Inversely, if you want to bolster your resume with one of these certifications, the one you choose will depend on the kind of work that you want to do.

The table below sums up key differences in focus, education and experience requirements, and salaries and fees:

CFA vs. CFP® Comparison

Category	CFA	CFP®
Professional Focus	– Investment management	– Long-term financial planning
Education/Experience Requirements and Exams	– Requires a bachelor’s degree or work equivalent. – Must pass three six-hour exams on economics, corporate finance, equity investment strategies, quantitative methods, financial reporting and analysis. – A CFA charter holder averages almost 1,000 hours of study for all three exams and has four years experience.	– Requires bachelor’s degree. – Must complete financial planning coursework. – Has to pass multiple choice exam (taken in two three-hour sessions) on financial planning, education planning, insurance planning, income planning, estate planning, retirement planning and risk management. – CFP® holders have 6,000 hours of professional experience in financial planning, or 4,000 hours of apprenticeship experience, in addition to other requirements.
Salary	– The CFA Institute says a CFA charter holder on average earns $180,000 per year.	– The CFP Board says its financial planners with between five and 10 years of experience earn a median income of $150,000. Those with between 11 and 20 years of experience earn a median income of $225,000.

General Requirements for Becoming a CFA

A financial professional deciding whether to pursue a CFA vs. CFP certification.

The CFA Institute administers the CFA certification program. In order to receive certification, you must become a member of the CFA Society and pay the annual membership dues.

Completing the CFA program requires that you have a bachelor’s degree (or an equivalent) and four years of professional work experience in an investment decision-making process. There are also three levels of exams that applicants must pass.

Each level of the CFA exam has a distinct focus that builds on knowledge progressively:

Level I: Primarily emphasizes investment tools and foundational knowledge, covering topics like ethics, quantitative methods, economics, financial reporting and analysis. This level focuses on basic concepts and principles, particularly understanding financial statements and general portfolio management concepts.
Level II: Concentrates on asset valuation and application, diving deeper into financial analysis and how to value various types of investments, such as equities, fixed income and derivatives. This level is more application-focused, requiring candidates to understand and analyze complex investment scenarios and financial statements in greater detail.
Level III: Focuses on portfolio management and wealth planning, emphasizing the synthesis of concepts across investment types to develop client-centered strategies. This level integrates knowledge from Levels I and II, with an emphasis on practical applications, portfolio construction, risk management and advisory processes.

In general, CFA holders primarily work in occupations that center on investing, including investment analysts, portfolio managers, wealth managers, strategists and consultants.

As a side note, “certified financial advisor” is a common misnomer for the CFA certification. Although this might sound like a logical title for a financial advisor designation, it is entirely inaccurate. So the next time you come across a CFA, remember that it stands for chartered financial analyst.

General Requirements for Becoming a CFP®

Like the CFA program, CFP® candidates need to meet certain education and experience requirements set by the CFP Board. In order to earn the CFP®, you need a bachelor’s degree from an accredited college or university, as well as 6,000 hours of experience related to financial planning (or 4,000 hours through an apprenticeship program). You’ll also need to complete a CFP Board-registered education program.

The process culminates with a 170-question exam that takes place over the course of two three-hour sessions on a single day. The multiple-choice exam uses real-life situations to assess an applicant’s ability to use broad financial planning knowledge. Overall, the CFP® program is shorter and less rigorous than the CFA program. If you think this could be the program for you, you can learn more about CFP® certification requirements here.

How Do Other Designations Compare With CFA and CFP®?

Financial advisors hold many designations that aim to serve clients in similar but different ways. As we covered earlier, a CFP® can help you create a financial plan but others like a CFA can offer financial analysis for investments and portfolio management for individuals and corporations.

Many advisors have multiple designations, which allow them to specialize competitively in their focuses. Let’s take a look at other common certifications and how they can help with your financial needs:

Chartered financial consultant (ChFC): Financial professionals holding this designation complete coursework in financial education. Like CFPs®, they must further their education by earning additional credits after getting the ChFC designation. While ChFCs can overlap with CFP®s in financial planning services, they can also stand out in modern financial areas as experts in estate planning for same-sex couples and employee benefits.
Certified public accountant (CPA): This designation is common among tax preparers and accountants, and demonstrates that a financial professional has at least two years of public accounting experience and passed the Uniform CPA Exam. Advisors with this license can help clients optimize a tax plan to help reach investment and retirement goals.
Chartered investment counselor (CIC): These financial professionals are high-level experts with proven investment counseling and portfolio management skills. CIC holders have at least five years of work experience at an Investment Adviser Association-member firm, where more than half of their job focuses on investment counseling and portfolio management. CICs are must re-certify annually and typically work with large portfolios.

Bottom Line

A man decides whether a CFA vs. CFP is right for his financial situation.

CFA and CFP® certifications are both common for financial advisors. For prospective clients, working with an advisor who has one or the other may not make a huge difference. Both certification programs teach applicants how to handle someone’s financial future. CFAs typically work more in the field of financial analytics and investing, while CFP® professionals usually focus on financial planning with individual clients. Keep in mind that getting a CFA is also a longer process with more exams.

Tips for Finding a Financial Advisor

A financial advisor can help you manage your investments and set financial goals. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
We covered two common certifications in this article, but there are a number of others. For example, a CPA may be more helpful for tax planning and a chartered life underwriter (CLU) is probably your best choice for life insurance help. As you look around, be sure to check out this list of the top financial advisor certifications.