CFA Level 2 is widely considered significantly harder than Level 1 due to its shift from direct recall to intense application, complex vignette-style questions, and greater depth in topics like Equity, Fixed Income, and Accounting. While Level 1 tests broad knowledge, Level 2 requires integrating concepts, with lower average pass rates often reflecting this jump in difficulty.
CFA difficulty level increases at each step. Candidates often find Level 2 the most challenging because you can no longer rely on rote memorization. The vignettes test whether you can interpret data, link concepts and solve problems under pressure.
Level I of the CFA Program usually has the lowest pass rate which could imply it's the most difficult exam in the program. However, this will not apply to every candidate because each person will have different strengths and weaknesses.
Of the 3 CFA Levels, Level 2 is often regarded as the toughest level due to its intense focus on application and item set format. With a recent average pass rate of around 45–50%, CFA Level 2 needs solid preparation, smart planning, and steady effort.
Three months can be enough time, but typically it takes a candidate at least six months to prepare for the CFA Level 2 exam.
Is CFA Level 3 harder than CA? Well, the answer to this is CFA Level 3 harder than CA is that there is no clear-cut answer to it. Both are difficult in their own way, as CFA Level 3 focuses on portfolio management and requires strong application skills. However, CA is much more broader.
While both CFA and a master's are equally challenging, the only differences come in when CFA is said to be more rigorous due to its specialised contents and demanding exam structure.
However, let's put things into perspective: the CFA Level 1 exam is not a math test. The CFA Institute has made it clear that calculations will account for no more than 30% of the questions on the exam. To put it in numbers, that's a maximum of 54 out of the 180 questions.
The CFA may be down, but it's not out, financial advisors say. A total of 116,727 people sat for all three levels of the CFA exam in the first eight months of 2024, down 2,735 from the same period in 2023, according to the CFA Institute.
In spite of all odds, average students pass CFA exams regularly by: Employing study schedules with an emphasis on key subjects. Focusing on ethics and key notions, which have high exam weighting. Utilising quality preparation materials and practice exams.
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.
The Level II CFA exam is widely considered to be one of the most difficult professional exams. Of the three CFA exams–Level II often claims the title of the most difficult level.
2,390 of the total 204,000 CFA Charterholders work at RBC, the highest number for any single employer worldwide.
The CFA Level III Exam Curriculum can be More Difficult
Level III of the CFA exam has more integration of topics in a single question. For example, a constructed response question or item set question may combine the concepts from Ethical and Professional Standards with Asset Allocation.
MBAs offer a broad education in business principles, while CFAs specialize in investment analysis and portfolio management. Loans for MBA study can mean a heavy debt burden. It takes an average of over four years to complete the CFA program due to its rigorous exam requirements.
Too many candidates rely on memorization—formulas, definitions, and shortcuts—hoping it will be enough. But let me be clear: the CFA exam does not reward rote learning. The exam is designed to test how well you can apply concepts, not just recall them.
Fixed income is generally regarded as one of the most difficult CFA subjects in CFA studies. Its difficulty lies in grasping bond features, pricing models, yield computation, and sensitivity to changes in interest rates.