How Hard Is CFA Exam? A Comprehensive Analysis of All Three Levels of CFA Exam

In this article, Shiksha.com has presented the intricacies of each CFA level and explored the difficulty level, exam pattern and syllabus of the CFA program.

How Hard is the CFA Exam?

How Hard Are the CFA Exam? The CFA exam is known for its high difficulty levels. In other words, the CFA program is known for its rigorous examination process and challenging nature. The CFA exam assesses the student's proficiency in the field of finance and investment management. The overall average CFA pass rate of all three levels of the exam is as low as 41%. 

Spread across three levels, the CFA exam is known to be one of the most difficult and time-intensive exams. As each CFA level has a unique exam pattern and syllabus, CFA students face a daunting yet rewarding journey. While Level 1 of the CFA exam focuses on building a base in finance and investment principles, Level 2 and 3 emphasize application, analysis and integration of knowledge. In this article, Shiksha.com presents the intricacies of each CFA level and explores the difficulty level, exam pattern, and syllabus of the CFA program.

CFA Pass Percentages

The average CFA pass rate is only 41% of all three levels combined, as mentioned before. This means that less than 50% of the candidates who appear for the CFA exam get through all three levels of the CFA program and earn the Chartered Financial Analyst designation. The CFA exam requires discipline, rigourous hard work, consistent practice, and long hours of study. In simple words, to pass the CFA exam, one needs to study hard, practice and take the exam.

The CFA exam result has a Minimum Passing Score (MPS) assigned for each level of the CFA exam. Students are not awarded numerical scores but when receiving the CFA exam result, their result mentions how they performed in each topic area which is presented in a percentage range.

Also Read: When is the CFA exam 2026?

How Hard is The CFA Level 1 Exam?

Level 1 of the CFA exam usually has the lowest pass rate compared to the other two levels. This could imply that Level 1 is usually the most difficult level. The Level 1 CFA exam can be the most comprehensive exam which requires a lot of discipline. The CFA Level 1 pass rate is 41% on average.

CFA Level 1 serves as the introduction to the CFA program and covers a broad spectrum of the fundamental concepts across the ten topic areas of the CFA syllabus. The toughest topic of the Level 1 curriculum can vary for each student appearing for the exam. The most heavily weighted topic in the CFA exam is Fixed Income, Derivative Investments and Financial Reporting and Analysis. No matter what the background of the candidate is, each topic of the CFA Level 1 exam can be challenging if one is ill-prepared.

Also Read: What to Expect of Level 1 CFA Exam 2026

CFA Level 2 Difficulty

The CFA Level 2 syllabus is the same as the previous level. The weightage of the topics is also more or less similar. Hence, the candidates can keep up with the same study routine. As recommended by experts, candidates must dedicate a minimum of 300 study hours in order to pass the CFA exam.

CFA Level 2 exam is widely considered to be the most difficult level of the CFA program. CFA Level 2 consists of vignettes and accompanying multiple-choice questions. This is a major change in the CFA exam pattern for Level 2. CFA level 2 delves deeper into the application and analysis of financial concepts and investment principles. It builds upon the foundation established in the Level 1 curriculum. This level requires candidates to analyze complex scenarios and apply critical thinking skills.

Also Read: What to Expect of the Level 2 CFA Exam

CFA Level 3 Difficulty

Candidates need to pass Levels 1 and 2 to reach Level 3 of the CFA exam. Level 3 of the CFA exam requires candidates to master time management. The average pass rate of Level 3 is 48% and is considered one of the easiest levels of the CFA program. This level has a new question format called the ‘constructive response’. These are essay-type questions. The Portfolio and Wealth Management topic is weighted 35-40% of the total exam so candidates should expect to demonstrate their expert writing and judgment skills when answering questions from this topic. This level of the CFA exam has only 7 topics and topics such as Quantitative Methods, Corporate Issuers, Ethical and Professional Standards and Financial Statement Analysis are eliminated. Additionally, the integration of ethics and professional standards throughout the exam requires candidates to uphold the highest ethical standards in their responses.

Hence, the transition from multiple-choice questions in Level 1 to item-set questions in Levels 2 and 3 reflects the shift towards assessing candidates' ability to analyze complex scenarios and make informed decisions. Additionally, the inclusion of constructed response questions in Level 3 adds another layer of complexity, testing candidates' written communication skills and ability to articulate their ideas effectively.

Also Read:

• CFA Level 3 Specialized Pathways
• Practical Skills Module: When and How to Approach PSM

CFA Exam 2026: Important Topics

Check the list of important CFA exam topics:

CFA Preparation Tips 2026

In order to effectively prepare for the CFA exam and pass all three levels of the exam, students should diligently follow the 300 study hours rule. Given below are a few CFA preparation tips to ace the exam:

Know the Syllabus: It is important to be clear with the CFA exam syllabus. Using the curriculum provided by the CFA Institute is highly recommended. The CFA curriculum provided by the institute offers comprehensive coverage of the topic areas under each CFA level and at the same time provides practice questions and examples to reinforce learning.

Structure Study Plan: It is importnat to develop a study plan which outlines the students’ study routines leading up to the exam date. Allocate specific time for every topic area based on its weightage. A well made plan will help the students cover all the topics whilst staying on track with CFA preparation.

Practice: There is no alternative to practising what the students have studied. Students should solve as many practice questions and CFA mock exams as possible. Practice questions will help the students check their understanding of the CFA syllabus, identify areas of weakness, and improve their time management. Additionally, taking mock exams simulates the exam-day experience and helps the students gauge their preparedness.

Focus on Ethics and Professional Standards: Dedicate extra time to studying the Ethics and Professional Standards portion of the curriculum. Ethics is a significant component of the CFA exams and requires thorough understanding and adherence to the CFA Institute's Code of Ethics and Standards of Professional Conduct. Focus on understanding the principles and applying them to real-world scenarios.

Use the Feynman Technique: The Feynman Technique is a four-step method to prepare for an exam or concept. The technique states that the individual should approach a particular concept as if they are teaching it someone. The four steps of Feynman Technique are:

1. Study a concept

2. Teach it simply

3. Identify the gaps in the understanding

4. Simplify the explanation by using clear language

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