No, the CFA exam is not based on percentiles for passing; it is criterion-referenced, meaning candidates must meet a predetermined absolute standard known as the Minimum Passing Score (MPS). While results include a 10th/90th percentile chart to show your performance relative to others, passing depends solely on scoring above the MPS, which is generally considered to be around 70%.
The 10th and 90th percentiles were removed from the report because we have added scale scores. Scale scores add more precision to your results interpretation. The 10th and 90th percentiles only provide a comparison of your result against other candidates in the same administration.
CFA exam results do not reveal either. Instead, the percentage needed to pass the exam, i.e. the Minimum Passing Score, i.e. MPS, is set at 1600. Your 'score' is then scaled according to this 1600 MPS. If you failed, your score would be less than 1600, and if you passed, your score would be 1600 or more.
The CFA Level 1 passing score is not fixed every year, but it usually stays between 65% and 70%. CFA Institute does not publish an official cut-off, but this range is considered the minimum benchmark to pass.
Is CFA tougher than CA? A: The CFA and CA (Chartered Accountant) qualifications have different focuses and challenges. While both are demanding, many find CA to be more rigorous due to its extensive practical training and exams.
On average, allocate 15-20 hours per week for CFA Level 1 preparation. Plan for a longer overall preparation period, ideally around 5-6 months.
If you are currently a candidate in the CFA Program:
Include your participation in the CFA Program in the education section of your resume. (For example: “CFA® Program participant, CFA Institute.”) You may also list the levels completed. (For example: “Completed Level I in 2020.”)
Due to the vast material covered on the exams, the CFA® Institute suggests that candidates begin to prepare for each Level at least six months in advance, and recommends approximately 300 study hours per exam.
Difficulty Level
Some mock exams feel harder than the real CFA exam, incorporating trickier wording and more complex calculations. Others may oversimplify concepts, leading to a false sense of confidence.
For example, if a student has a percentile rank of 40%, this indicates the student performed at the same level or better than 40% of students at that grade-level on the exam, or that 60% of the students performed at a higher level.
How hard is the CFA Level III exam? Due to the difficulty of the essay format of the CFA Level III exam, it's deemed the most challenging CFA exam to pass although it has a higher pass rate than the Level II exam.
Think of it as the bell curve, where most outcomes sit close to the average and extreme results are rare.
CFA Level 2 Difficulty
The Level 2 test is widely considered to be the most difficult of the three exams. The biggest change when moving from Level 1 to Level 2 is the questions taking the form of what is referred to as “item sets.”
A candidate in the 90th percentile performed better than 90% of other TestGorilla candidates who took the same test. This shows their relative strength compared to a broader talent pool.
Listing CFA Level One in the education section of the resume
Write "Chartered Financial Analyst." Include a hyphen and "Passed Level 1" next to it with the year you earned the qualification. Write "CFA Institute" in parentheses. Place this above your college degree information.
CFA Exams Pass Rates
The CFA exams are perhaps the most challenging exams out there. They are often referred to as “bar none” the toughest exams—even harder than medical school or law school exams—with pass rates that hover around 50% and were much lower during the recent pandemic.
Yes, it is possible to pass the CFA Level I Exam with self-study. However, most CFA members strongly suggest that you prepare with a CFA expert who can help guide you through the curriculum and keep you motivated along the way.
Three months can be enough time, but typically it takes a candidate at least six months to prepare for the CFA Level 2 exam.
To sit your next level 1 exam, you need to obey the rule of 6 months between the exams. It means that at least 6 months need to pass between the exam you failed and your new exam window. Of course, you can retake your CFA exam at a later date, say in a year.