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Demand for financial analysts is expected to keep growing, with the Bureau of Labor Statistics (BLS) projecting 6% job growth through 2034.1 Professional certifications can help you deepen your knowledge, signal expertise and potentially improve your earning power in a competitive job market. Comparing financial analyst certifications can help you decide which credential best fits your career path.
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Do Financial Analysts Need to Be Certified?
Financial analysts don’t necessarily need to hold specific certifications to work in the field. However, employers may require analysts to complete one or more licensing exams as a condition of employment. Additionally, a certification could help you to secure more senior financial analyst roles.
Some of the exams analysts may need to complete include:
| Securities Industry Essentials (SIE) | The SIE assesses your basic knowledge of the securities industry and is typically a prerequisite for completing other licensing exams. |
| Series 7 | A Series 7 license qualifies you to be a general securities representative, meaning you can sell securities in the U.S. |
| Series 63 | The Series 63 exam qualifies you to sell securities in a specific state. |
| Series 79 | This exam qualifies you to be an investment banking representative. |
| Series 86 and 87 | The Series 86 and 87 exams assess your knowledge and ability to perform the functions of a research analyst. |
Your job role and place of employment can determine which licenses you’ll need to obtain. Note that certain FINRA licenses require employer sponsorship to obtain.
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Which Financial Analyst Certification Do You Need?
The answer to this question ultimately hinges on your preferred career path. With that in mind, here are some of the most commonly sought-after financial analyst certifications that might be a good fit for your situation.
1. Chartered Financial Analyst (CFA)
What they do: Chartered financial analysts perform financial analysis and high-level investment management. They may be employed by investment banks, advisory firms, broker-dealers, insurance companies, financial research firms, and public or private corporations.
How to obtain CFA certification: Candidates must pass the three-part CFA exam, administered by the CFA Institute. You must also hold a bachelor’s degree or higher and have a combination of 4,000 hours of work experience and higher education experience. CFA Institute membership is also required.
2. Chartered Alternative Investment Analyst (CAIA)
What they do: Chartered alternative investment analysts specialize in analyzing alternative investments, such as private equity and hedge funds. They may work for private equity funds, hedge funds, venture capital firms or advisory firms that focus on alternative investments.
How to obtain CAIA certification: Candidates must complete two levels of qualifying exams and join the CAIA Association. The CAIA Association offers exams twice a year. Candidates are recommended to dedicate a minimum of 200 hours of study time to each one.
3. Certified Investment Management Analyst (CIMA)
What they do: Certified investment management analysts focus on portfolio management, risk assessment and investment analysis. These financial professionals may be employed by wealth management firms and advisory firms that cater to high-net-worth clients or offer consulting services to endowments and corporations.
How to obtain CIMA certification: The Investments & Wealth Institute offers CIMA certification. You must apply for certification, complete an approved education program, meet work experience requirements and pass the CIMA exam.
4. Chartered Financial Consultant (ChFC)
What they do: Chartered financial consultants provide financial advice to clients, which may include individuals or organizations. They can advise on a range of topics from college planning to estate planning to retirement planning. Advisory firms may employ chartered financial consultants, or ChFCs may run independent businesses.
How to obtain ChFC certification: The American College of Financial Services administers ChFC certification. Candidates must complete eight required courses and their final exams, and agree to a code of ethics. You must have a minimum of three years of experience in financial planning or a related profession to use the designation.
5. Certified Financial Planner™ (CFP®)
What they do: A Certified Financial Planner™ provides holistic financial planning services to their clients. CFP® professionals may work as financial analysts, investment managers, wealth management advisors, portfolio managers and client services advisors.
How to obtain CFP® certification: The CFP® Board oversees the process for obtaining certification. There are four core requirements: education, examination, experience and ethics. You must complete certification coursework through a CFP® Board-approved program before you can sit for the CFP® exam.
6. Financial Risk Manager (FRM)
What they do: Financial risk managers analyze financial data and trends to assess risk and predict investment outcomes. They may specialize in a certain type of risk, such as market risk or credit risk, and work for investment banks, wealth management firms and RIAs.
How to obtain FRM certification: The Global Association of Risk Professionals administers FRM certification. Anyone can register to complete the two required FRM exams. You must also have at least two years of full-time work experience to complete your certification.
7. Certified Management Accountant (CMA)
What they do: Certified management accountants specialize in corporate finance and management accounting. They can work in accounting roles or be employed as financial analysts. CMAs are generally focused on internal accounting processes and decision-making, while certified public accountants (CPAs) can offer financial consulting and tax preparation.
How to obtain CMA certification: The Institute of Management Accountants offers CMA certification. Candidates must complete two exams that span 12 core competencies, including cost management, corporate finance and professional ethics. You’ll also need to join the Institute of Management Accountants and meet work and education requirements to obtain certification.
8. Financial Modeling and Valuation Analyst (FMVA)
What they do: Financial modeling and valuation analysts are specialists in modeling and valuation. They can work in corporate finance roles, investment banking, private equity or mergers and acquisitions.
How to obtain FMVA certification: The Corporate Finance Institute offers FMVA certification. You’ll need to choose 17 courses from a list of 54 to complete, and the curriculum is entirely self-paced. The final step in certification is completing the FMVA exam.
9. Chartered Mutual Fund Counselor (CMFC)
What they do: A chartered mutual fund counselor evaluates, recommends and manages mutual fund investments. They analyze their clients’ portfolios to determine which mutual funds may be a good fit, based on goals and risk tolerance. CMFCs who work for registered investment advisors are held to a fiduciary standard.
How to obtain CMFC certification: Kaplan, in conjunction with The College for Financial Planning, is the issuing body for the CMFC credential. At this time, the credential is no longer offered to new candidates. However, existing CMFC credential holders can complete renewals through Kaplan by completing an approved number of continuing education credits.
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Frequently Asked Questions (FAQs)
How to Choose a Financial Analyst Certification?
The type of certification you pursue can depend on the clientele you work with and the services you offer. If mutual funds are a key component of your investment strategy, for example, then a CMFC designation could prove valuable. If you’re primarily interested in investment and portfolio management as a whole, on the other hand, a CFA credential may be the better choice.
Do Financial Analyst Certifications Require Continuing Education?
Yes, financial analyst certifications typically require you to complete a minimum number of continuing education hours annually or biannually to maintain your certification. The exact number of courses and the information that must be covered varies by certification. Many financial analyst designations require CE credits in ethics.
How Much Does Financial Analyst Certification Cost?
The amount you’ll pay to become certified as a financial analyst depends on the designation you pursue. At a minimum, you’ll typically need to pay one or more exam fees. You’ll also need to factor in the cost of study materials; CFA exam prep, for instance, can easily run several hundred to several thousand dollars.
Is CPA or CFA Better for Financial Analysts?
The answer depends on your career goals. If you’re interested in an accounting specialty, then it would likely make sense to obtain CPA certification. On the other hand, if you’re more interested in analysis and investment management services, you’d likely benefit more from the CFA certification.
Bottom Line
A financial analyst certification could be a worthwhile investment if you’re hoping to expand your business or are looking for new career opportunities. Researching different certifications, their requirements and what they’re designed to help you do professionally can make it easier to narrow down which ones might be right for you.
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- Once you earn certification as a financial analyst, you may be on the hunt for a job. Entry-level jobs can provide an opportunity to break into wealth management and portfolio management. You may also consider how you can leverage your network to connect with prospective employers. If you’re looking for more flexibility in how you work, you may debate the merits of going independent as an advisor.
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Article Sources
All articles are reviewed and updated by SmartAsset’s fact-checkers for accuracy. Visit our Editorial Policy for more details on our overall journalistic standards.
- “Financial Analysts.” Bureau of Labor Statistics, https://www.bls.gov/ooh/business-and-financial/financial-analysts.htm#tab-6.