Difference Between CFA and CA
CFA or Chartered Financial Analyst and it is an ideal choice for individuals that are keen on learning the insights of finance and risk management or in other words Investment banking and portfolio management whereas CA or Chartered Accountant is preferred by individuals who are willing to gain expertise in accountancy, audit, and taxation.
Explained
CFA focusses on Investment Management and covers topics in Finance like Corporate Finance, Ethics, Equity Investments, Derivatives, Fixed Income while preparing you for careers in Investment Banking, Research, Portfolio Management whereas, CA focusses on Accounting, Taxation, and Auditing and prepares you for careers in budgeting, accounting & auditing, and management accounting.
That phase when you have to choose between two careers is but of course very confusing as you do not know what decision to make. Of course, your entire career depends on this decision, taking it definitely is not going to be easy. And then deciding between two toughest career options that are CFA® (Chartered Financial Analyst) and CA (Chartered Accountant). Maybe a little information can help you decide between the two.
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What is the Chartered Financial Analyst® (CFA®)?
The CFA® Program focuses on investment management. The top employers of charterholders include the most respected financial corporations in the world, e.g., JPMorgan, Citigroup, Bank of America, Credit Suisse, Deutsche Bank, HSBC, UBS, and Wells Fargo, to name a few.
Many of these are Top investment banks, but the CFA® Program focuses on the knowledge and skills most relevant to the global investment management profession from the standpoint of a practitioner.
Investment professionals who hold the CFA®designation (or CFA® charter) meet rigorous educational, work experience, and ethical conduct requirements.
Only those who complete three graduate-level examinations, four years of work experience, and annual membership renewal (including ethics and code of professional conduct attestation) are permitted to use the CFA® designation. Complementary codes and standards (such as the Global Investment Performance Standards and Asset Manager Code) help enhance this professional distinction.
What is a Chartered Accountant (CA)?
CA is an internationally recognized profession and a chartered accountant can work in all fields of business and finance, for example, taxation, auditing, and general management. CA’s can be employed by government bodies, public and private sector companies as well. In-short skilled CA’s are always in demand in all industries. The candidates have to qualify through different levels of examinations along with a vigorous process of training to become a qualified CA.
A CA can manage financial accounts for an organization, be a tax accountant, management accountant, be a budget analyst and of course the most interesting an auditor. The international recognition of this degree gives you the ability to even working abroad under this qualification. To remain professionally competitive the chartered accountants’ institute encourages members to undertake a minimum level of continuing professional development.
CFA vs CA Infographics
CFA and CA Exam Requirements
#1 – CFA® Requirements
- CFA® requires 4 years or 48 months of a combination of education and relevant work experience which is acceptable by the CFA® institute. However, the examination of the individual-level needs to be completed before the same.
- The CFA® program needs to be completed by mastering the latest CFA® syllabus and clearing 3 6 hourly examinations.
- It is important becoming a member of the CFA® institute along with registering as a member with your local CFA® member’s society.
- Most importantly you need to adhere to the code of ethics and standard of professional conduct of the CFA® institute.
#2 – CA Requirements
- To enter into the profession you can appear for CPT after clearing your 12th or you can directly take up the intermediate exam after you complete your graduation.
- The intermediate exam that is divided into 2 groups is to be cleared after completing the 1st group that is the IPC level the candidate needs to undergo training as an article assistant for a minimum of 3 years in a chartered firm.
- During the 3rd year of training before the candidate appears for the finals, the trainee also gets an option of working in an industry
- Before being articled the trainee also has to complete a 100 hrs IT training and also soft skills development orientation program.
Comparative Table
| Section | CFA | CA |
|---|---|---|
| Certification organized by | CFA is organized by The CFA Institute (American Based Institute) | CA is organized by The Institution of Chartered Accountant of India (ICAI) |
| Number of levels that need to be cleared | CFA is a simple 3 year course of three levels Level 1,2 and 3 all the levels are a course of 1 year each | To clear CFA you need to clear 3 levels that takes about 4 years and more to clear successfully, these levels are CPT, IPCC and the finals. CPT is a course of 2 years, IPCC is 1 year and so are the finals |
| Duration of exams | Across CFA Part I, II, III levels, there are morning and afternoon sessions of 3 hours each | Each exam at each of the levels is of 3 hour duration. It takes at least 4 years to complete CA including all of the three exam levels. |
| Exam window | CFA Part I, II & III level exams are conducted on the first Saturday of June every year, Part I exam can also be taken in December | CA and IPCC Final Exams will be start from 2nd May 2017 to 16th May 2017. |
| Focus subjects | CFA focuses on ethics, accounting, corporate finance, equity investments, fixed income and portfolio management | CA focuses on business environment and concepts, financial accounting and reporting, audit and attestation and regulations. |
| Passing percentage | To clear CFA you need Level 1 42%, level 2 46% and for level 3 54%. The 14-year average pass rate for all three levels of CFA (from 2003 to 2016) was 52% | To clear CA you need Audit and Attestation 46.35%, business environment and concepts 55.46%, financial accounting and reporting 47.60% and finally for regulation 49.41%. The Pass Percentage of Nov 2016 Exam is 32.53% (Both Groups) |
| Fees | CFA fee is approximately $1350 including registration and examination. | CA fee is approximately $ 900 - $1000 including registration and examination |
| Job titles | CFA: Investment banking, portfolio management and equity research | CA: Public accounting, management accounting, government accounting and internal auditing |
Why Pursue the CFA® Designation?
The differentiating benefits of earning the CFA® designation include:
- Real-world expertise
- Career recognition
- Ethical grounding
- Global community
- Employer demand
The sheer demand for the CFA® charter speaks to the difference it makes.
For more information, refer to- CFA® Programs
Why Pursue CA?
CA gives you the flexibility of working in all the industries as an auditor, accountant and also a budget analyst. CAs can offer their services in the capital market as well. CAs can set up their own practice and also develop their own clients; they can also work in a CA firm or they can also join companies that can be government, private and public sectors. CA can be practiced internationally. CAs are in demand in the manufacturing and the finance industry. They do not necessarily need to work on excel sheets, calculations, numbers and number crunching, they can also work as auditors and work on increasing the company’s profitability. CA is also a very good and settled career option for women these days.
Conclusions
Both of these credentials are of the highest weightage in the accounting and finance industry. Both of which will require dedication and sincere efforts to get through. Whichever is your choice, All the very best :-)
If you learned something new or enjoyed the post, please leave a comment below. Let me know what you think. Many thanks and take care. Happy Learning!
Recommended Articles
This has been a guide to CFA vs CA. Here we discuss the top differences between CFA and CA professions along with their exam requirement. Do we also discuss why to purse them? You may also have a look at the following articles –
Radha Darak says
Sir, I am in class XII and a non math student. Can a CFA be a good option for me in future ? Please reply. And other tips ( if required) I’ll be much obliged thank you.
Dheeraj Vaidya says
Hi Radha, yes CFA can be a great option. It’s a bit early for you to consider CFA however. You can only appear for CFA if you are done with your graduation or are in the last year of graduation. You can also look at this CFA guide to learn more about this global certification.
John says
I am pursuing a B.sc Honours In maths from st stephens college,new delhi, and the course is for three years, so will I be able to register for the cfa exams in my third year?
Dheeraj Vaidya says
Hi john. You can give CFA exam level 1 when you are in your third year. For more details, you may check this link https://www.cfainstitute.org/programs/cfaprogram/register/Pages/index.aspx
Sai says
Sir, Currently I am in the 12th standard and will be appearing for my board exams in March-17.. I have already joined CA-CPT classes. I’m very keen to know more about CFA. So should I go for CA or CFA? I’ve heard passing In CFA is comparatively easier than CA. I just want to earn good money for that I’m ready to work hard.
Dheeraj Vaidya says
Hello Sai, you can continue with your CA-CPT prep. CFA will not require a lot of efforts as compared to CFA. In fact, CA + CFA qualification can provide an excellent combination for many Financial Analyst profile.
Good luck,
Dheeraj
Himansh says
Hey Dheeraj
Nice presentation!!
I am a CA currently working in a PSU but i am really looking forward to pursue CFA to add to my analytical capabilities & for some growth prospects…cud u just tell me the level of complexity of CFA?? Are there any specific set of skills u shud excel in to do that?
As far as my view on CA is that its not such a hard nut to crack if right efforts r made.
Please do tell me what do you think.
Dheeraj Vaidya says
Hi Himansh, CA’s usually don’t find CFA to be tough. If you are willing to spend time for preparation, it should be a cake walk. Only some areas you must focus are the quant heavy topics like Quantitative analysis, Fixed Income and Derivatives. Also, ethics is a bit tricky to most of us!
Vishal says
Hi Dheeraj,
I must appreciate your efforts for putting these valuable information in a very structured manner. I cleared my graduation in 2004 and started working. However, still not satisfied with my nature of work. I still would like to pursue one out of these two career. Surprisingly, post reading this article I feel the CFA is like a degree which is more relevant to be fit into any job/s. However, if I understand correctly CA is a professional degree which can be used as independent consultant (Freelancer). Also, anyone can continue providing their services till the age he/she would like to. Kindly correct, if you find anything unusual in my understanding. Great thank you in advance.
Dheeraj Vaidya says
Hi Vishal, you are right. CFA certification is industry standard these days. CFA takes much less time and energy to complete as compared to CA. CA seems to be very difficult in comparison and also, it is focussed on accounting and auditing. Choose CA only if you are interested in accounting. Chosse CFA if you want to broadbase your relevancy for a Corporate Finance job.
Alankrit says
Sir i want a comparison between ca and cfa regarding the difficulty level and p.a. Average salary earned by a cfa and a ca ?
Thanks
Dheeraj Vaidya says
Hi Alankrit, Between CA and CFA, CA (chartered accountancy) is much more difficult as less number of students pass the exam.
For the average salary comparsions between CFA and CA, please look at these links –
Salary of CA
Salary of CFA
Thanks,
Dheeraj
Muskan says
I am doing BBA and am currently in first year. I wish to pursue either CA or CFA but I’m confused. What should I do? Also should I do it simultaneously with BBA or after graduation? And I’m also learning German..have already done 3 levels from Max Mueller. What are the opportunities for these courses in Germany?
Dheeraj Vaidya says
Hi Muskan, for starting CFA you should have completed graduation (or should be in last year). For CA you can start anytime. However, between CFA or CA, first you need to decide whether you want to go into core accounting or Corporate finance kind of roles. If accounting, then CA is the right choice and if you choose corporate finance/investment banking, then you can opt for CFA.
Also, CFA certification has a global appeal including Germany. CA is more Indian, so not known much in the global arena.
Hope this helps,
Dheeraj
mohit says
Sir I m studying in class XII nd I want to know what is better for me to opt…
CA OR CFA….
Dheeraj Vaidya says
Hi Mohit, Are you prepared to work hard then do both? However, CFA is much easier as compared to CA. You cannot start CFA without starting your graduation.
Thanks,
Dheeraj
Sayali says
Hello sir. Is job guaranteed after completing all levels of CFA?
Dheeraj Vaidya says
Hey Sayali,
I don’t think there is any job guarantee that clearing CFA can give. However, it does maximizes your chances of getting a job.
nityajyoti chakraborty says
if u do not get a job after cfa then no problem u can easily start your own financial or investment firm or company which will lead to ur great wealthy carrier
priya says
Sir
Can we do cfa n b com together?
Dheeraj Vaidya says
Which year in B.com are you in? Are you also a CA?
Rosh A Issac says
First of all, kudos to you for putting up this comprehensive article. It makes a whole lot of sense, when it comes from an Indian who has a clear idea of the perks of both CA and CFA. A lot of my doubts has been cleared through the article. Just a very simple doubt. Im a BCom student. Which among the two is tougher? Considering I am a BCom student with a decent financial as well as accounting base but not indepth knowledge in either finance or accounting, Which among CA and CFA is tougher a)in terms of difficulty in passing the exam b)In terms of the quantum of effort to be put in?
Dheeraj Vaidya says
Hi Rosh,
Strictly comparing between CA and CFA, my guess is that CA is tough due to low passing marks and humongous study material.
CFA on the other hand is easier to pass due to high pass rates and requires less study hours (compared to CFA).
Thanks,
Dheeraj
Vishrutha says
Is CA recognised globally ? And which of them is paid better ?
Dheeraj Vaidya says
CA by http://www.icai.org is only recognized in India and a few more countries. Between the two, CFA is globally recognized. Paywise, it depends on the kind of role that you are into. Actually both pay well.
Thanks,
Dheeraj
Tshwanelo says
Hi. Dheeraj,
I’m Accounting Degree and I have been in the auditing field for 1.5years and currently studying for my CA. But my heart as always been in Finance and investment banking and I’m considering pursing CFA and ACI dealing certificate. What are you thoughts?
Dheeraj Vaidya says
Hi Tshwanelo, If you have very keen interest in Finance and Investment Banking, then you should enroll for CFA examination.
ashish goel says
Hi sir, i’m b.com 3rd year student I want to know what course I should adopt for career benefit. I need some direction because I didn’t understand what I should do
Dheeraj Vaidya says
Hi Ashish, Do you want to get into accounting career or Investment Management. If accounting, then go for CA. If you like Investment Management, IB kind of roles, then go for CFA.
Thanks,
Dheeraj
Karan Rajesh says
Hey I Completed my Bcom and now looking for work in banking sector…. Can I do CFA along with my work…. Plus CFA be a better alternative to CA?
Dheeraj Vaidya says
Yes Karan, you can take CFA along with your work. It is not difficult to take along with work. I guess CFA is better alternative to CA if you are considering Investment Management, Portfolio Management, IB kind of roles.
thanks,
Dheeraj
Swapnil says
Liked your article…would like to get in touch to get some more information. I am currently a student ! It would be great if you could email me back..
Cheers !
Dheeraj Vaidya says
Hi Swapnil, thanks for your feedback. Looking forward to interacting with you.
Best,
Dheeraj
kaushik says
sir i am now intrested in doing cfa. I tried ca cpt but i coudnt clear, so what am i supposed to do.?? can i join cfa?
Dheeraj Vaidya says
yes Kaushik. Ofcourse you can take CFA Examination. CFA exam is much simpler and easier as compared to CA.
Good luck,
Dheeraj