The CFA Institute of the United States offers the CFA Exam, or Chartered Financial Analyst Exam. It consists of three exams and is open to financial analysts. The exam leads to a professional credential that is recognized all around the world. Candidates must be in their last year of their bachelor's degree or have at least four years of experience in the field before taking the CFA exam.

The candidate can become a CFA Charterholder after passing all three CFA tests. They must also adhere to the code of ethics, have four years of relevant job experience, and pay their dues. The code of ethics is strong, as are the professional behavior guidelines, and all CFA chartholders must adhere to them.

Exam candidates receive an unspecific score report because there is only a pass/fail rating rather than a score; however, the pass grade is stated at 70% but may vary, and the pass grade has been set by the Board of Governors after the exam has taken place, when they review the results with the assistance of psychometricians, and each question has a minimum passing score set for it, since 1989.

CFA test candidates often take one exam per year rather than all three at once. As a result, this procedure will take at least three years to complete. The tests are written at a postgraduate level and are geared for financial professionals.

Exam fees range from $600 to $930, depending on the registration date.

The CFA tests are known for being extremely difficult. According to statistics, just 35% of students pass the level 1 exam, while 46% pass the level 2 exam and a slightly higher 53% of candidates pass the level 3 exam. These figures come from the June 2008 tests.

Exam Outline for Three Exams

Level 1:

The emphasis is on the tools and inputs. Introduces approaches for asset valuation and portfolio management.

Level 2:

The course focuses on asset valuation, economic tools and inputs, financial statement analysis, and quantitative methodologies.

Level 3:

When it comes to the management of stock, derivative assets, and fixed income, the focus is on portfolio management as well as strategies for using tools, inputs, and asset valuation models.

The CFA Exam is a suggested exam for experienced and certified financial analysts who want to advance their careers.