Top Professional Finance Certifications
A list of the top certifications for finance professionals.
A list of the top certifications for finance professionals.
If you’re considering a career as a financial analyst, or already working as one, having a professional finance certification can significantly increase your earning power, reputation, and ability to deliver high-quality financial analysis. This guide will walk you through each of the top finance certifications and designations for professionals around the world looking to advance their careers as financial analysts.
The CFA designation is highly sought after by finance professionals around the world. It consists of three levels and takes an average of about 4 years to complete all 3 levels. CFA is definitely one of the top finance certifications.
The main focus of this finance certification is on portfolio management and investment analysis. The main exam topics include: ethical and professional standards, quantitative methods, economics, financial reporting and analysis, corporate finance, portfolio management, equity, fixed income, derivatives, and alternative investments.
The CFA designation costs between $4,000 and $5,000 depending on whether or not you have rewrite any exams, and how early (or late) you register for your exams. The pass rate to obtain the full CFA certification (all 3 levels) is below 20%.
Highly regarded and internationally recognized as one of the leading financial certifications. It is a requirement for many jobs in asset management and equity research. Completing this designation demonstrates a certain level intelligence and work ethic (it’s a good filter).
This designation stands out from other finance certifications because the pass rate is so low and the amount of material covered is so vast. It may be an expensive goal that you never actually achieve. The curriculum is heavily focused on portfolio management, which may not be relevant for many career paths in corporate finance.
Many finance professionals choose to have an accounting designation instead of a finance certification. CPA is the gold standard in the accounting world and also plays really well in a finance career path. The CPA curriculum consists of auditing and attestation, business environment and concepts, financial accounting and reporting, and regulation.
The total cost of a CPA certification (start to finish) is about $3,000 and is typically covered by the students’ employers. The pass rate per exam varies but for a first attempt is about 50%.
CPA only has a minor focus on corporate finance and thus is more suitable just for accounting jobs. Additionally, the journey to complete the accreditation can be long.
The CAIA certification is focused on alternative investments and geared towards people in asset management and hedge fund industries. The main topics covered in the CAIA are: ethics, hedge funds, private equity, real assets, structured products, asset allocation, and risk management. CAIA is one of the top finance certifications.
The cost of the CAIA finance certification is about $3,000 (in total) and the program consists of two levels. The pass rate is about 70%.
This certification is great for niche areas of finance, such as managing alternative investments like private equity, real assets, and hedge funds. It only takes 12-18 months on average to complete.
It is not as versatile as other designations like the CFA or CPA.
Earning a CFP designation can be a great path for anyone looking at a career in investment or wealth management. As the name implies, it’s focused on financial planning, which is the retail or high net worth segment of investment management. CFP is one of the top finance certifications.
CFP is one of the finance certifications that represents great value as it only costs about $2,000 but can be higher or lower depending on how many course materials you purchase. The pass rate is about 67%.
It is good value and a great differentiator for retail banking, private banking and wealth management careers.
This certification has a fairly narrow focus and is not very portable to other finance careers outside of wealth management.
The FRM certificate is designed for professionals pursuing careers as risk officers, risk analysts, and other positions in risk management. The cost of the designation is about $1,500 and takes approximately a year to complete. The pass rate is approximately 50% for the FRM.
This is a good path if you want to have a very specific career in risk management and differentiate yourself. Compared to the above finance certifications the FRM is one of the most niche and targeted. It’s very cost and time effective as well.
The FRM designation is not as globally recognized as something like the CFA or CPA. It’s not portable to other areas of finance outside of risk management.
Another popular option for corporate finance professionals is to obtain a financial modeling certification from an Institute like CFI. Course topics range from how to build a financial model to advanced valuation techniques and sensitivity analysis, all using practical applications in Excel. The full Financial Modeling & Valuation Analyst Program (FMVA) at CFI is $497 and comes with over 20 courses and over 50 hours of video instruction. The pass rate is approximately for 70% FMVA.
The most practical analyst skills learned in this certification include:
Below is a comparison table of various criteria, timing, cost, duration, and focus for each of the 6 financials designations.
|Number of Levels||3||1||2||2||2||1|
|Costs||$4,000 to $5,000||$1,000 to $3,000||$3,000||$2,000||$1,500||$497|
|Exam Pass Rate||30-50%||40-50%||70%||67%||40-50%||70%|
|Content Focus||Portfolio Management, Investments||Financial Reporting, Audit||Real Assets, Alternative Investments||Financial Planning||Financial Risk Management||Financial Modeling, Valuation|
|Career Application||All Encompassing||Accounting and Finance||Asset Management||Retail and Wealth Management||Risk Management||All Encompassing|
|Study Time (hrs)||300 - 350 per exam||Varies||200 per exam||Varies||200 - 300 per exam||100 - 200 total|
|Completion Time||3-5 years||2.5 - 5||1-2 years||4 years||<1 year||<1 year|
|Work Experience||4 years||1 year||1 year||3 years||2 years||n/a|
The above table was prepared without prejudice from publicly available information on each designation’s website.
CFI is on a mission to help you advance your career. That means providing all the tools, training, and templates you need to be a world-class financial analyst. Armed with the ability to distill large amounts of complex information into clear takeaways and recommendations, you’ll have confidence you need to rise through the ranks.
In addition to the financial modeling and finance certifications listed above, we also have a wide range of free resources to help you develop your skills as a certified financial analyst.
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