What does CFA stand for? In finance, CFA stands for Chartered Financial Analyst, a professional credential for people who analyze investments and manage money. It is awarded by the CFA Institute, a global association of investment professionals, to candidates who pass three levels of exams and meet work experience and ethics requirements.
Seeing CFA after an analyst's name, say on a firm's team page, tells you that analyst holds the charter. The same letters also name the CFA franc, a currency used in West and Central Africa, and a few organizations, so the setting matters.
Quick facts
Stands for
Chartered Financial AnalystOther meanings
CFA franc (African currency); Country Fire Authority (Australia)Type
InitialismHow to say it
C F A, letter by letterAwarded by
CFA InstituteWritten as
Jane Smith, CFANot to be confused with
CPA (accountant), CFP (financial planner)
What does CFA stand for, and who earns it?
| Letter | Word | Sense |
|---|---|---|
| C | Chartered | Granted a formal charter by the awarding body |
| F | Financial | About money, markets and securities |
| A | Analyst | Someone who studies data and makes judgments |
People who earn the charter often work as portfolio managers, research analysts, investment strategists, risk managers or consultants at banks, funds and insurance companies. Students and early career workers who have passed some exams but not finished are called candidates, not charterholders.
How the CFA program works
- Level I covers the basic tools: ethics, financial reporting, economics, quantitative methods and an introduction to asset classes.
- Level II focuses on valuing assets, using case style questions.
- Level III centers on portfolio management and wealth planning.
Each level is a separate exam, and many candidates spend a few hundred hours studying for each one. Pass rates are often below half. Besides the exams, a charterholder must have a set amount of qualified work experience, join the institute and agree to follow its code of ethics and standards of professional conduct each year.
On a job posting: "CFA charterholder or progress toward the CFA designation preferred." The employer would like someone who has the charter or is partway through the exams.
CFA franc and other meanings
| Context | Stands for | Example |
|---|---|---|
| Investing, careers | Chartered Financial Analyst | "She passed Level II of the CFA." |
| West African currency | Communauté financière africaine (African Financial Community) | The West African CFA franc, shared by several countries |
| Central African currency | Coopération financière en Afrique centrale | The Central African CFA franc |
| Australia, emergency services | Country Fire Authority | A volunteer based fire service in the state of Victoria |
The two CFA francs are separate currencies used by two groups of African countries, though they share a name and history. In travel or economics news, CFA almost always means the franc rather than the credential.
Using the CFA designation in a signature
- Place the letters after the full name, set off by a comma: "Luis Ortega, CFA."
- Use capitals and no periods.
- Only charterholders may use the letters this way. Candidates often write "CFA Level II Candidate" instead.
- Use "a" before it in speech since it begins with a consonant sound: "a CFA charterholder."
- The institute asks that CFA be used as an adjective, as in "CFA charterholder," rather than as a noun such as "she is a CFA." In casual speech, people say both.
Saying it is simple: each letter on its own, "C F A." That makes it an initialism; acronym vs abbreviation explains the term.
CFA vs CPA, CFP and MBA
Finance has several credentials with similar letters. Here is how they differ in focus:
- CFA: investment analysis and portfolio management.
- CPA: certified public accountant, a state license for accounting, audits and tax work.
- CFP: certified financial planner, for advisers who help families plan budgets, retirement and insurance.
- MBA: master of business administration, which is a university degree, not a professional charter.
A CFO, or chief financial officer, is a job title and may hold any of these, or none.
CFA in sentences
- "He is studying for the CFA while working at a bank."
- "The fund's research team includes four CFA charterholders."
- "Prices in the market were listed in CFA francs."
- "She added CFA to her email signature after the charter was awarded."
Other money and office letters sit together under business acronyms, sorted by field.
Questions people ask
What is the CFA full form?
The CFA full form is Chartered Financial Analyst. It is an investment credential awarded by the CFA Institute.
How many levels are in the CFA exam?
There are three levels, called Level I, Level II and Level III. Candidates must pass them in order.
Is a CFA better than a CPA?
They serve different careers. The CFA is aimed at investment analysis, while the CPA is a license for accounting, auditing and tax work.
What does CFA stand for in money from Africa?
In the CFA franc, the letters come from French. For the West African franc they stand for Communauté financière africaine, and for the Central African franc, Coopération financière en Afrique centrale.
Can I put CFA after my name after passing Level I?
No. Only people who have been awarded the charter may use CFA after their name. Candidates usually state the level they have passed instead.