Why CFA? The Benefits of CFA vs. MBA, CMA, CPA, and CFP

CFA stands for Chartered Financial Analyst. It’s a professional designation you can earn if you want a career in finance. Other options include a Master of Business Administration (MBA), Certified Management Accountant (CMA), Certified Public Accountant (CPA), and Certified Financial Planner (CFP). What CFA benefits make a CFA course worth it?  In this post, we help you decide by conducting a detailed comparative analysis of CFA vs. MBA, CFA vs. CMA, CFA vs. CPA, and CFA vs. CFP.

What Is CFA?

Awarded by the CFA Institute, CFA is intended for investment professionals. To get the CFA designation, you must fulfill the following conditions:

• Pass all three CFA exams
• Accumulate 4,000 hours of relevant work experience over at least 36 months
• Gain acceptance as a regular member of the CFA Institute (requiring professional references)

Below, we flesh out specific points based on which we will compare CFA to MBA, CMA, CPA, and CFP.

• Eligibility: The conventional pathway requires a bachelor’s degree, but you may enter the program with 4,000 hours’ worth of combined full-time work experience and university education.
• Expertise: CFA is hyper-focused on investment analysis and portfolio management.
• Cost: Taking all three CFA exams costs approximately AED 15,868 ( $4,320), inclusive of the one-time exam enrolment fee. Add to this the cost of a CFA prep course, approximately AED 4,900 ($1,334) per exam, and the AED 1,098 ($299) CFA annual fee. The total amounts to around AED 31,600 (about $8,600) for a CFA qualification.
• Career Prospects: CFAs typically work as investment analysts, portfolio managers, investment consultants, wealth managers, and investment strategists.
• Salary: CFAs earn an average salary of AED 661,000 ($180,000).

CFA vs. MBA

Below, we provide information on the master’s of business administration program that you can use for a point-by-point CFA vs. MBA comparison.

• Eligibility: MBA is a postgraduate degree, so it requires at least an undergraduate degree.
• Expertise: MBA provides both theoretical and practical training in business management. Finance is one of its themes, and in some business schools, such as The Wharton School of the University of Pennsylvania, MBA students can major in finance with a special focus on investment analysis methods.
• Cost: An MBA costs tens of thousands of dollars, at least AED 100,000 ($27,200) in tuition fees for some two-year programs, with some one-year MBA programs priced at AED 299,500 ($81,541); that’s 216% to 948% higher than the cost of CFA.
• Career Prospects: An MBA is a good credential for business executives and managers. It’s nice to have but not required for finance posts.
• Salary: MBAs earn an average salary of AED 393,000 ($107,000), approximately 68% less than CFAs.

CFA offers greater value for money than MBA for finance professionals. An MBA is more expensive, has more stringent eligibility requirements, may earn you less, and provides a wider scope of training than you may need as an investment professional.

CFA vs. CMA

Should you be a certified management accountant instead of a CFA? Here is a detailed CFA vs CMA comparison:

• Eligibility: CMA applicants must become members of the Institute of Management Accountants. Getting certified requires passing two CMA exams, two years of continuous full-time employment in relevant roles, and a bachelor’s degree, which may be waived if you’re a CFA or have another qualified professional designation.
• Expertise: CMAs are trained management accountants versed in the fields of accounting and financial management.
• Cost: Obtaining a CMA can cost you nearly AED 6,000 ($1,600) in program entrance, exam, and IMA membership fees plus around AED 8,000 (approximately $2,200) in course review fees—a total of AED 14,000 (approximately $3,800). That’s less than half (44%) the expected cost of obtaining a CFA.
• Career Prospects: CMAs primarily qualify for management and cost accounting, financial planning and analysis, strategic decision-making support, and corporate finance roles.
• Salary: CMAs in the Americas earn a mean annual compensation of AED 510,521 ($138,993). Average salaries are lower in other parts of the world (typically one-half to a third of). The average CMA compensation is 30% lower than the average CFA salary.

CFA costs more than a CMA, but it pays more, too. CFA is the better option if you want to focus on investments and investment analysis. Get a CMA if you are an accountant who wishes to specialize in financial management.

CFA vs. CPA

Below is information on the certified public accountant credential. It will help you make a CFA vs. CPA comparison.

• Eligibility: You need a bachelor’s degree, four exams, and 150 schooling hours to obtain a CPA.
• Expertise: CPAs focus on financial accounting, auditing, accounting regulation, and business (particularly accounting functions). 
• Cost: The cost of the CPA exams falls somewhere around AED 7,346 ($2,000). Add the cost of CPA review classes, which can cost up to AED 18,300 ($5,000). That’s around AED 25,700 ($7,000) of total expenditure, about 81% of what you’ll spend to earn a CFA.
• Career Prospects: The CPA qualification is becoming a standard requirement, especially for accountants, comptrollers, financial managers, and chief financial officers.
• Salary: CPAs have an average salary of AED 257,110 ($70,000), 61% less than the average salary of a CFA.

CFA is the gold standard in finance, while CPA is the gold standard in accounting. If you want to work in the investment industry, become a CFA. If you want to work as a high-level accounting professional in any industry, become a CPA.

CFA vs CFP

Should you become a certified financial planner instead? Below are the features of the CFP program you can use for a CFA vs. CFP comparison.

• Educational Level: A CFP must have a bachelor’s degree, pass one exam, and log from 4,000  to 6,000 hours of work experience.
• Expertise: CFPs focus on financial and investment planning for individuals.
• Cost: The CFP board exam costs around AED 3,400 ($925), and a CFP exam preparation review course costs about AED 5,100 ($1,400). Add to that approximately AED 2,400 ($655), which is the cost of applying for certification and the certification fee, and obtaining the CFP credential can cost you around AED 10,950 ($2,980), which is about 29% of the cost of obtaining a CFA qualification.
• Career Prospects: CFPs typically work as financial planners, financial advisors, investment advisors, financial consultants, and wealth managers.
• Salary: CFPs earn an average salary of AED 293,840 ($80,000), which is less than half the average salary of CFAs.

CFAs and CFPs both learn about investments but for primarily different purposes. CFPs provide investment and financial planning advice to individuals, while CFAs advise organizations and corporations and manage sizable portfolios.

Get a CFA by Studying With Us

Imagine yourself 10 years from now. If you’re a portfolio manager, an investment analyst, an investment consultant, a wealth manager, or a finance and investment strategist in that vision, become a CFA. The CFA designation is the globally recognized professional qualification when it comes to careers that require investment analysis. Phoenix FT can help you along the path to your dream career as a CFA professional with our CFA training course packages. We can help increase your chances of passing your CFA exams on your first try through:

• Full-time tutors: Our tutors are full-time employees, not freelancers, so they’re always available to support students.
• Professionally filmed online courses: We created dedicated online video courses for online learners instead of recording live classes to ensure superior quality.
• Tailor-made study notes: Our full-time tutors make study notes to complement lessons perfectly.

If you don’t pass the exam on your first try, face-to-face course students can retake the courses with our lifetime pass guarantee. We also have a recruitment arm to help place you in a relevant role after you’ve earned your CFA designation. Contact us to inquire about our CFA review program, or enroll now.