Blog 11 minutes read

CFP vs CFA Credentials: Two Roads Diverge

Carrie Mick July 25, 2025

Two roads diverge in the wood, and the one you travel will make all the difference.

Like Robert Frost, you're at a fork in the road, facing two unfamiliar paths and falling into a slight existential crisis. Except instead of choosing a literal path through the woods, you're choosing a professional credential that will influence, if not dictate, your career trajectory.

Basically, the same thing.

So, let's talk about the CFA vs CFP^® certification. We're here to map out both trails so you can make an informed decision and take the path that aligns with your goals, career aspirations, and strengths.

CFA vs CFP^®: What Are They?

Taking a surface-level look at the CFA and CFP^® credentials, there's a lot of overlap between the two. They're both seen as the gold standard credentials in their profession, but one is about mastering the markets, while one is about mastering life's financial complexities.

Watch and learn

What Is the CFA?

A Chartered Financial Analyst^® (CFA^®) is someone who has proven competence in investment and financial analysis. It's awarded by the CFA Institute, a global nonprofit organization dedicated to advancing educational, ethical, and professional standards in the investment industry.

Chartered Financial Analysts dig into the data of finance. They specialize in:

Investment Analysis: Dissecting companies, markets, and securities to uncover investment opportunities
Portfolio Management: Constructing and managing investment portfolios for maximum return
Financial Modeling: Building complex models to forecast performance and assess risk
Quantitative Analysis: Using mathematical and statistical methods to evaluate investments

What Is the CFP^® Certification?

A CERTIFIED FINANCIAL PLANNER^® (or CFP^® practitioner) is someone who has proven competence in financial planning, specifically as it relates to topics like estate planning, tax planning, and investment planning. It’s awarded by CFP Board, also a global nonprofit organization who sets educational, ethical, and professional standards in the financial planning industry.

CFP® professionals take a holistic approach to personal finance—their expertise spans:

Retirement Planning: Helping clients build sustainable retirement income strategies
Estate Planning: Ensuring wealth transfers efficiently across generations
Tax Planning: Optimizing tax strategies to maximize after-tax wealth
Insurance Planning: Protecting clients against financial risks
Education Planning: Funding children's educational goals
Investment Planning: Aligning investments with personal goals and risk tolerance

Then they put all those individual pieces together to build customized financial plans that will help clients meet their goals.

CFA vs CFP: How to Earn the Credential

Now that you know the basic difference between a CFA vs CFP^® credential, let's break down what it takes to earn each designation. Because when you’re choosing between two paths, knowing the obstacles can help you decide (and avoid large boulders, thorny brambles, and rodents of unusual size).

For either one, you’ll need to meet education, exam, experience, and ethics requirements, but the specifics are different.

CFA Requirements

To earn your CFA charter, you’ll need:

Education: A bachelor’s degree in any major (or the equivalent) You can register for Level I of the exam while you are in the last two years of your undergraduate program, but you’ll need to have your degree to register for the other exam levels.
Experience: At least 4,000 hours of relevant, professional work experience completed in at least 36 months
Exam: Pass all three levels of the CFA Exam
Ethics: Commit to a code of ethics and submit two to three reference letters

CFP® Certification Requirements

To meet the CFP^® requirements, you’ll need to complete the following:

Education: A bachelor’s degree (in any subject) and complete a CFP Board-Registered coursework program, including a Capstone course
Experience: 6,000 hours of relevant experience or 4,000 hours of experience through an apprenticeship program under the guidance of a practicing CFP^® professional.
Exam: A single, comprehensive exam
Ethics: Sign the code of ethics and submit a background check

Exam Tip: Having certain credentials or advanced degrees make you eligible for the CFP® Accelerated Path where you can bypass much of the coursework and go straight to the Capstone and then exam!

CFA vs CFP: Exam Difficulty and Pass Rates

Both credentials require you to prove your competency through exams. And, let's be honest—both exams are challenging, but in different ways.

CFA Exam: The Marathon

The CFA Exam consists of three individual exams, each around 4.5 hours and consisting of multiple choice and essay questions that build on the knowledge and skills gained from the prior level. The CFA Institute recommends at least 300 hours of study for each level, and you also need to complete a Practical Skills Module at each exam level that takes between 10 and 20 hours.

The 10-year average pass rate for the CFA Exam¹:

Level I: 41%
Level II: 46%
Level III: 51%

CFP^® Exam: The Sprint

The CFP^® Exam is a single, six-hour exam consisting of 170 multiple choice questions. The pass rate ranges between 60 and 65%. While it’s only a single exam and has a higher pass rate than the CFA Exam, it’s not a total walk in the park. You’ll still need to study hard and know your stuff.

CFA vs CFP: Career Paths and Roles

Your choice between the CFA or CFP^® certification path will help determine your career and daily responsibilities.

CFA Career Paths: The Numbers Game

CFA charterholders typically work in roles that involve:

Portfolio Management: Managing investment portfolios for institutions or high-net-worth individuals
Investment Analysis: Researching and analyzing securities, markets, and investment opportunities
Wealth Planning: Focusing on investment strategy within comprehensive wealth management

You’ll take a broader scope to evaluate financial data, conduct market research, and provide investment recommendations to help clients make informed financial decisions.

Common Employers:

Investment banks (Goldman Sachs, Morgan Stanley, J.P. Morgan)
Asset management firms (BlackRock, Vanguard, Fidelity)
Hedge funds and private equity firms
Insurance companies' investment arms

CFP Career Paths: The People Business

CFP® professionals typically work in client-facing roles:

Financial Advisors: Providing comprehensive financial planning services to individuals and families
Financial Planners: Developing detailed financial plans and strategies
Wealth Managers: Managing all aspects of clients' financial lives

You’ll work directly with clients to discuss their needs and goals, whether that’s saving for a child’s college fund or saving for retirement. Then, you’ll create and implement strategies that will help them achieve that goal.

Common Employers:

Wealth management firms (Merrill Lynch, UBS, Wells Fargo Advisors)
Financial planning firms or Registered Investment Advisor firm (may be a large company, small boutique firm, or even your own business)
Insurance companies (Northwestern Mutual, New York Life)
Banks and credit unions

CFA vs CFP: Salary Information

No matter which path you choose through the woods (we’re still on the Robert Frost poem allegory here), at the end of each is a pile of money waiting for you. Not literally, but both a CFA charter and CFP^® certification do provide greater salary opportunities. Also, don’t forget that income typically depends on role, experience, and location, so your mileage may vary in this case.

CFA Salary Information

According to the CFA Institute² the median salary for CFA charterholders is $180,000, with a total range of $85,000 to over $300,000. Income typically depends on role, experience, and location, so your mileage may vary in this case.

CFP® Salary Information

Based on CFP Board's 2024 compensation study, the median CFP® salary is $192,000³, with ranges broken down by experience:

5-10 years: $126,945 - $213,126
11-20 years: $170,000 - $346,500
20+ years: $225,000 - $400,000+

Which Is Better, CFA or CFP?

Okay, you’re still at the fork in the road, the sun is starting to set, and you have to make a choice. You know what lies ahead on each path, what kind of obstacles are in place, and what’s waiting for you at the end.

So, which is better?

The right answer depends solely on what you want to do and where you see yourself.

Choose the CFA if you:

Love analytical work: You get excited about financial models, market research, and quantitative analysis
Want to work with larger organizations: You're drawn to managing large portfolios or advising corporations
Thrive on complexity: You enjoy diving deep into investment theory and market dynamics
Want to dig into numbers: You prefer spreadsheets to client meetings

Choose the CFP® certification if you:

Enjoy helping people: You find fulfillment in guiding families through major financial decisions
Like variety: You want to work across multiple areas of finance rather than specializing in investments
Are a natural communicator: You excel at explaining complex concepts in simple terms
Are entrepreneurial: You might want to start your own practice someday

The Ultimate Question

As you stand at the fork in the road, consider your personality, career goals, and what energizes you professionally. Are you drawn to the analytical rigor of investment management, or do you find meaning in helping families navigate their financial futures? The yellow wood awaits. Which path will you take?

Also, we’re biased, but we really think the CFP® certification is better.

At BIF, you're never alone as you go down the path towards CFP® certification; we're by your side every step of the way, from finishing your CFP® coursework to studying for the exam. Connect with a student advisor today to learn more about getting started with BIF.

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CFP vs CFA Credentials: Two Roads Diverge