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.
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.
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A Chartered Financial Analyst® (CFA®) charterholder 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 Analyst® charterholders dig into the data of finance. They specialize in:
A CERTIFIED FINANCIAL PLANNER® (or CFP®) professional 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:
Then they put all those individual pieces together to build customized financial plans that will help clients meet their goals.
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.
To earn your CFA® charter, you’ll need:
To meet the CFP® requirements, you’ll need to complete the following:
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!
Both credentials require you to prove your competency through exams. And, let's be honest—both exams are challenging, but in different ways.
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:
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.
Want to start prepping? Grab our free CFP® study materials.
Your choice between the CFA® or CFP® certification path will help determine your career and daily responsibilities.
CFA® charterholders typically work in roles that involve:
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:
CFP® professionals typically work in client-facing roles:
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:
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.
According to the CFA Institute2, the median salary for CFA® charterholders is $180,000, with a total range from $85,000 to over $300,000. Income typically depends on role, experience, and location, so your mileage may vary in this case.
Based on CFP Board's 2024 compensation study, the median CFP® salary is $192,0003, with ranges broken down by experience:
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® certification if you:
Choose the CFP® certification if you:
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. Download our free ebook, Become a CFP® Professional with BIF, and get an in-depth look at the requirements to become a CERTIFIED FINANCIAL PLANNER® professional and how BIF can help you earn your certification in less than a year!
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