What is CFA? The qualification, exams and a practical study plan
Understand the CFA qualification, entry requirements, difficulty and passing scores, then turn the differences between Levels I, II and III into a study plan.
RubricMark · Sources checked: 21 October 2026
What does CFA stand for?
CFA stands for Chartered Financial Analyst. The CFA charter is a professional investment credential awarded by CFA Institute. The CFA Program is the education and examination pathway towards it; passing one exam is a stage in that pathway.
To earn the charter, complete all three exam levels and the required Practical Skills Modules, meet the qualifying work-experience requirement, and obtain CFA Institute membership. The charter work requirement is at least 4,000 qualifying hours over a minimum of 36 months. Enrolling for Level I and qualifying for the charter are separate decisions.
In Japan, the designation is known as CFA協会認定証券アナリスト. You may also see 米国証券アナリスト in search results. Read that as a common search description of an international investment credential, rather than evidence of a US government licence.
Official references: CFA Institute: earning the charter; 日本CFA協会：CFAプログラムの概要
What are the CFA entry requirements?
Level I enrolment has three routes: a completed bachelor’s degree or equivalent; eligible undergraduate status within 23 months of graduation; or a qualifying combination of professional work and higher education totalling 4,000 hours over at least three consecutive years.
Education and work dates cannot overlap when calculating the combined route. Candidates also need a valid international travel passport and must meet the programme’s other policies. The exams are in English. Check the official criteria before paying: eligibility to enrol does not establish eligibility to use the CFA designation.
Official references: CFA Institute: enrolment requirements and policies
CFA Level 1, Level 2 and Level 3: what changes?
Level I tests foundational concepts through standalone multiple-choice questions. Level II asks you to apply analysis to vignettes. Level III combines item sets and constructed responses, bringing portfolio decisions, client constraints and a chosen specialised pathway together.
For Level I, explain why each answer choice is right or wrong. A correct calculation is more useful when you can name the assumption that makes the formula appropriate. For example, distinguish an annual compound return from the total return across several years.
For Level II, annotate only the evidence needed for the current question. Record whether you used a historical or forecast figure, a per-share or total value, and the correct reporting period. A formula recalled correctly can still produce the wrong answer when it uses the wrong exhibit.
For Level III, practise the action requested by the command word. A recommendation needs a decision tied to the case; a justification needs the reason for that decision. The official exam guide permits concise bullet points. If two reasons are requested, give two distinct reasons, rather than a long list of alternatives.
| Level | A useful question after an attempt |
|---|---|
| I | Can I explain the concept without looking at the formula? |
| II | Which sentence or exhibit supports this answer? |
| III | Does my response address the command and the client’s constraint? |
Official references: CFA Institute: Level I exam; CFA Institute: Level II exam; CFA Institute: Level III exam
How difficult is CFA, and how much study time should you plan?
CFA preparation requires breadth, application and sustained study. CFA Institute reports that successful candidates spend more than 300 hours on average preparing for each level. That is a reported average, not a minimum that guarantees a pass or a personal prediction.
Begin with an honest check of your accounting, statistics and financial-English foundations. Record what you can explain, what you can calculate, and what you can only recognise when the answer is already on screen. Those are different starting points.
Plan the required Practical Skills Module as well as exam revision. CFA Institute requires at least one completed PSM at each level to receive the exam result and estimates 10–20 hours per module. Reserve time for it instead of discovering the requirement after the exam.
Use published pass rates to understand a particular cohort and exam window. They do not tell you your individual chance of success. A better preparation check is whether you can solve unfamiliar questions, explain the errors you made, and keep your reasoning clear under time pressure.
Official references: CFA Institute: Level I exam; CFA Institute: Practical Skills Modules; CFA Institute: results and pass rates
What is the CFA required score to pass?
CFA Institute’s current results guide lists minimum passing scale scores of 1,600 for Level I, 2,600 for Level II and 3,600 for Level III. These are scale scores, not percentages of questions answered correctly.
The raw percentage needed can vary slightly between exam versions because of differences in difficulty. Do not convert 1,600 out of 1,900 into a required accuracy rate, or treat a fixed “70% passes” rule as an official guarantee.
Your practice accuracy remains useful for finding gaps in a topic. Keep it alongside the type of error and the time you used. A RubricMark practice result is feedback for your next attempt; it is not an official CFA scale score or a pass prediction.
| Exam level | Minimum passing scale score |
|---|---|
| Level I | 1,600 |
| Level II | 2,600 |
| Level III | 3,600 |
Official references: CFA Institute: understanding your exam results (PDF)
How to use CFA practice questions and mock exams
Use focused questions to find a specific gap, review the reasoning, and attempt a different question independently. Use a full practice exam periodically to check pacing and topic coverage, then return to the areas that need attention.
The examples above illustrate the different tasks without an account. Choose a level to browse its available Practice Hub sets and access requirements. Use your registered candidate resources and current curriculum alongside independent practice.
- Choose one objective: a concept, a calculation or an application to a case. Try the questions before opening your notes.
- Classify each miss: concept, formula choice, calculation, reading, or timing. A guessed correct answer still deserves review.
- Write one correction in your own words. For a calculation, name the inputs and units; for a case, identify the evidence you overlooked.
- Attempt a new question after a gap. Check whether the correction transfers to a changed situation.
- After a full practice exam, separate accuracy from pacing. Spend the next focused session on the error you can explain and address.
Studying CFA across English and Japanese
Japanese explanations can help you understand a new concept, while practice in English prepares you to read the actual task. Link the English term to its financial meaning and the action required, then test that understanding in a short case.
Build a two-column glossary from words that changed your answer, rather than every unfamiliar word. Add the sentence that showed the meaning. In a fixed-income question, for example, “duration” concerns price sensitivity to yield changes; translating it only as an ordinary length of time loses the financial idea.
Practise command words as tasks. For “justify”, state a reason linked to the decision. For “calculate”, identify the quantity and units. For “evaluate”, weigh the relevant evidence against the stated objective. These are study prompts, not a substitute for the current official question instructions.
When a passage feels slow, separate the cause: technical vocabulary, sentence structure, or finance knowledge. Reread one sentence and paraphrase its role in the case. Then answer a fresh question in English, so the exercise tests understanding rather than memory of a translation.
| English term | Japanese study cue | Check in the case |
|---|---|---|
| required return | 要求収益率 | Is this a discount rate or an expected return? |
| intrinsic value | 本源的価値 | Is the value per share or for the whole business? |
| liquidity constraint | 流動性制約 | How much cash is needed, and when? |
| justify | 根拠を示す | Have I connected the reason to the recommendation? |
Official references: CFA Institute: enrolment requirements and policies
Where do you check CFA exam dates and fees?
Use CFA Institute’s dates-and-fees tool for your level and exam period. Check the registration deadline, appointment scheduling deadline and exam window separately. An available exam period is not confirmation of a booked appointment.
When budgeting, distinguish early or standard registration from study materials, any retake or appointment-change costs, and applicable local taxes. For a budget in Japanese yen, use the current exchange rate at the time you pay rather than treating an old conversion as a fixed fee.
Match your study material to the exam year and your Level III pathway. A dated article or an old set of notes may explain a concept well while using an earlier syllabus. The official registration record and current curriculum should settle questions about your exam.
Official references: CFA Institute: dates and fees
CFA salary and career value: what should you compare?
CFA study is relevant to investment analysis, portfolio management and related roles. It does not establish a guaranteed salary or job offer. Evaluate the credential against the work you want to do, the skills that role requires and your relevant experience.
For salary research, compare the same country, currency, role and seniority. Check the year, sample and whether a figure includes bonuses. A survey of experienced portfolio managers cannot establish what a new Level I candidate will earn.
For Japanese readers comparing CFA and CMA, CFA Society Japan identifies CMA holders as members of the Securities Analysts Association of Japan. The two designations have distinct requirements. Use each body’s current rules to compare the qualification with your target work; do not assume that one qualification automatically confers the other.
Choose the next action you can assess: understand a concept, interpret an exhibit, or justify a portfolio decision. The level-specific examples and practice links on this page are a starting point for that work.
Official references: CFA Institute: investment career paths; 日本CFA協会：会員制度と入会手続き