CFA Level III is widely considered the most challenging, or at least the most "tricky," exam in the series due to its unique, subjective constructed-response (essay) questions, which require application rather than just memorization. While Level II is often deemed the most technically demanding, Level III requires deep knowledge, expert-level portfolio management skills, and high-pressure, concise writing.
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.
CFA Level 3 Difficulty
Level 3 is considered by many to be the most cognitively demanding because it requires subjective written responses rather than just multiple-choice.
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.
Average Age of CFA Candidates
Although many candidates are in their late twenties or early thirties, the Program has a wide age range. Many begin at 35, 40, or even 50. Some of the most thoughtful, determined candidates are the ones who start later. Experience is not a burden.
Start Your CFA Exam Level III Prep Early
Starting early to prepare for the Level III CFA Exam means beginning to prepare six-to-nine months before your exam day, and be finished three months out from your exam date. Many successful CFA charterholders credit their study routine for their success in taking the CFA 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 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.
But obtaining a CFA is no easy feat. CFA exams are considered the most challenging out there—even harder than medical school or law school exams—with pass rates under 50%. The certification process demands years (yes, you read that right) of dedication, time, and effort.
People blame burnout after months of study, overconfidence from past academic success, poor time management during the exam, or simply not practicing enough with mocks. Others admit to skipping entire topics like derivatives or ethics, or to suffering from crippling exam anxiety on test day.
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.
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.
Candidates who are unsuccessful after six attempts at the same level are no longer eligible to register —this applies to attempts under both existing and newly created accounts.
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.
“First-time Level III test takers fared best, with an overall pass rate of 59 percent. Test takers with at least one deferral behind them had a passing rate of 33 percent. The ten-year average pass rate is 51 percent. We encourage candidates to stay on schedule, if at all possible.”
Key Highlights:
Many CFA charterholders consider the Level 3 CFA Exam the most difficult because of the time and thought needed to answer the constructed responses successfully. While the typical Level 3 CFA Exam pass rates are the highest of the CFA Exams, only around 56% of CFA candidates pass the exam.
Choose the CFA for deep, technical investment roles (portfolio management, equity research) with lower cost and self-study focus, or the MBA for broader leadership, strategy, and career pivots across industries, offering powerful networking but with higher cost and time commitment, making it ideal for general management or transitioning into finance. Your choice depends on your specific career goals: deep specialization (CFA) vs. broad business acumen and leadership (MBA).