Aspiring finance professionals often raise a question, “Can I take the CFA exam without having experience?” And the answer is a big yes. You could go ahead to pursue a US CFA (chartered financial analyst) designation even without any prior work experience. If this question comes to your mind about how to pursue a US CFA without experience, this article will walk you through the steps. There are different eligibility criteria established by the CFA Institute for becoming a CFA charterholder. Some work experience is an advantage, but it is not a requirement to sit for the exam. You can be a recent college graduate or transitioning into the field of finance and still qualify for admission to the CFA program.
CFA Without Experience
Taking the CFA exam without work experience might seem to be a big challenge, but it is one that is very much possible. The main aim of the CFA program is to test your knowledge in various areas of finance like investment management, financial analysis, ethics, etc. The program consists of and has three levels: Level I, Level II, and Level III. Each level consists specifically of exams to test up on the candidate’s understanding of finance principles, professional ethics, and analytical skills.
According to the nature of a given candidate, there are specific educational requirements. One is required to have the following to enter CFA examinations:
- A bachelor’s degree or similar from a recognized institution or be in the final year of undergraduate study.
- 4,000 hours of work experience or more accrued over a period of three years.
You can enter the CFA pathway without having any work experience at all. You may sit for the Level I examination while you are still in school or without relevant work experience. However, gaining at least four years of relevant work experience in a finance role will be needed before granting the CFA charter.
| Steps to Take the CFA Exam Without Experience | Details |
| Eligibility Criteria | Hold a bachelor’s degree or be in your final year of undergraduate education |
| Level I Exam | Can be taken without any work experience. |
| Level II & III Exams | Must be passed after gaining 4 years of work experience in a relevant role |
| Work Experience Requirement | 4,000 hours of professional work experience required, but only needed before becoming a CFA charterholder, not to take the exams. |
CFA Without Work Experience: Is It Possible?
You can absolutely pursue a CFA career without having been in the finance sector. Many candidates from very diverse backgrounds, including graduates fresh from university, have successfully started their CFA program with no prior finance experience.
This is the proof that you’re able to go through CFA completion without working experience:
- Academic qualification: The CFA Institute permits candidates who are having completed their bachelor’s or in their final year of undergraduate studies to register for Level I exam. So you definitely can take the examination even when you have not worked in finance before.
- Importance of Examinations: The CFA examination tests a facet of your knowledge of investment management to ethics and financial reporting, among many other topics. Passing the Level I exam shows basic understanding in these even without demonstrating proficiency through prior work experience.
- No experience registration requirement is a must: No requisite work experience is required to register for CFA exam. You can be a final year student applying for the exam just after having completed your graduation, thereby giving a jump-start to your CFA journey without the pressure of having professional experience in finance.
Getting CFA Without Work Experience: How to Start a Journey?
Even if you do not have previous working experience to back you, you can actually forge ahead with CFA via a specific approach. Following are the steps that will get you closer to the CFA without work experience:
Step 1: Registered CFA Exam
The first step in your journey to being a CFA candidate is registration for CFA exam. The Level I exam can be applied for as long as you meet the following criteria:
- Bachelor’s degree or final year student: If you are in your final year of undergraduate studies, you can actually register for the test and take it while finishing your requirements for that degree.
- Provide educational details: part of registration requires that you provide proof of your educational qualification. The same goes for students who will need to submit proof of being in the final year.
Step 2: Organize Your Study Schedule
Without previous work experience, preparing for the CFA exam can be tough. However, it is possible to maximize one’s chances for success through developing a study plan and following it. Below are some steps to organize your study schedule:
- Time allotment for each topic: The CFA syllabus consists of areas such as financial analysis, economics, corporate finance, ethics, and portfolio management. Each of these areas should be given time according to individual familiarity and difficulty level.
- Study Materials: Use study guides as given by the CFA Institute or alternatively, get prep courses from other companies such as Kaplan or Wiley to boost preparation.
- Practice questions and mock exams: Based on the above assumption, do as many mock exams and practice questions as possible before your actual exam day to familiarize yourself with the format and time limits.
Step 3: Get Some Experience Late in Your Career
The first step after passing the Level I exam is then to accumulate work experience relevant to the Level II and Level III examinations. The CFA Institute stipulates that you must complete 4,000 hours (which on average means a total of 3 years) of work in a relevant activity.
Although you might have had no work experience at the point of starting, work experience may be gained after passing Level I. Most CFA candidates gain this experience by working in:
- Investment banks
- Asset management firms
- Hedge funds
- Financial advisory firms
Be sure to log any work experience earned, as it will be a major part of your application for the CFA charter on passing the finals.
Key Advantages of Getting a CFA Without Work Experience
Obtaining a US CFA without work experience creates many significant advantages that could propel your career in finance. It provides one with such credentials and knowledge that one can get new openings early. These advantages include early career opportunities, professional advancement, and advantages in choosing a career path.
Early Career Opportunities
Starting the CFA without work experience allows one to be exposed to numerous career opportunities at an earlier stage in one’s career. The sooner you begin studying for the CFA exams, the sooner you will learn valuable financial knowledge that can be an additional edge in the competitive finance industry.
Professional Growth
Completing the CFA exams early on in one’s career builds a strong foundation in finance. The CFA is a great credential and gives one knowledge that can enable a person to perform well as an equity research analyst, portfolio manager, or financial consultant, among other things.
Flexibility in Career Path
Without work experience, a CFA program allows one to have flexibility in various career paths. Many firms, however, appreciate candidates who have demonstrated strong comprehension of finance and investment management on the basis of their CFA exams, regardless of whether the applicant has work experience.
Challenges of Studying for a CFA Without Work Experience
Studying for the CFA without having any work experience can be entirely challenging and more difficult than with work experience. You can start the CFA program without any background experience, but there are obstacles you have to cross. Some of these hardships are as follows: the lack of a practical application of knowledge, meager networking opportunities, and the stress of balancing examination with gaining experience later on.
Absence of Practical Application
Without Experience, matching the theory you learned in class with real-life financial situations is a huge challenge. With its stringent and rigorous curriculum, one finds it quite difficult to understand how theory can be applied during practice without a job in finance for some time.
Limited Opportunities for Networking
People with work experience in the finance sector mostly get networking privileges so that they can build a professional network. Those without such privileges usually seek avenues mostly dependent on the Internet communities, CFA study groups, and school contacts.
CFA Without Experience FAQs
1. Can I do CFA without work experience?
Yes, you can go through CFA examinations without having the requisite experience. But in order to have the CFA charter, one needs to earn 4,000 hours of experience in a vocation relevant to investment.
2. What is salary of a CFA without experience?
The salary of CFA would probably not come pretty much lower than 50K. But most probably an entry-level CFA to entry-level competition would be handling around 50 and 70K income with no experience currently.
3. Does CFA Require Experience?
For taking the exams, the person isn’t required to show any work experience, but to earn the CFA charter, the member must have 4,000 hours of relevant work experience.
4. Can pass CFA without a Finance Background?
Yes, the CFA exam can be passed without a finance background, but more effort and studying will be necessary for full understanding of financial concepts.
5. How Much is CFA Level 1?
CFA level 1 registration ranges from $900 to $1,500 for an early, standard, or late entry into the examination. Some extra costs for study materials must also be added.
