A certified financial planner (CFP) and a chartered financial analyst (CFA) are both respected credentials that professionals in the financial services industry can earn — but they have several key differences.
If you’re looking to consult with a financial advisor, you may be wondering which credentials you should prioritize. While both CFAs and CFPs are highly respected, you should be aware of the differences, as well as the pros and cons of each.
Here’s what you need to know about CFAs versus CFPs and how to decide which financial professional might be most helpful to you.
Key takeaways
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CFPs focus on long-term financial planning, while CFAs hone in on investment tools and valuing assets.
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CFPs usually work one-on-one with clients looking to reach financial goals like buying a home and retiring.
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CFAs are often employed by larger institutions like banks and hedge funds.
What is a CFA?
CFAs typically focus on investing within large-scale corporate situations, such as banks, hedge funds, insurance companies, money managers, private equity firms and pension funds. They can serve in a variety of roles in which they offer investment advice or analysis — such as investment analyst, portfolio manager, strategist, consultant and wealth manager.
To earn their CFA credentials, these professionals need to take three exams that test the fundamentals of investment tools, valuing assets, portfolio management and wealth planning. They also need one of the following:
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A bachelor’s degree
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Be within 23 months of graduation from the date they sit for the Level I exam
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4,000 hours of full-time work experience and university education accrued over a minimum of 36 months
It’s not an easy endeavor. The CFA Institute estimates that successful candidates spend approximately 300 hours studying per exam, and there’s only a 38 percent pass rate for the Level I.
But upon passing, they get to join the more than 200,000 CFA charterholders worldwide who span 164 markets, according to the CFA Institute.
The main benefit of working with a CFA is that they are experts in investment analysis and valuing assets, such as stocks and bonds. However, many of them may not offer the long-term financial planning that individuals seek, as they typically work for corporations.
But don’t rule them out completely — some CFAs do also have their CFP certifications or work with individual clients at large firms or through their own businesses.
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What is a CFP?
CFPs focus on financial and investment planning for the long term, helping clients prepare for everything from buying a house to retiring. They tend to have a hands-on approach to clients’ finances and work with everyday people as opposed to large institutions (although many investment firms and banks hire CFPs to work with customers).
These professionals often work as financial planners, financial advisors, investment advisors, financial consultants or wealth managers. They can join larger firms or work for themselves. Often, they work with multiple generations within a family.
CFPs also have to undergo a rigorous process to earn their credentials. This includes passing a 170-question, multiple-choice exam split into two three-hour sections. They also need to have a bachelor’s degree, finish college or university-level coursework through a CFP Board-registered program, and get 4,000 to 6,000 hours of work experience.
As of 2025, there are roughly 103,000 CFP professionals, according to the board.
CFPs gather in-depth knowledge of your financial situation and can give you tailored advice to help you meet your financial goals. The main drawback for some people is that hiring a CFP can be expensive. They often charge a percentage of your assets under management, a retainer or subscription, commissions, fixed fees per service or an hourly rate.
How to decide which one you need
Like with most personal finance decisions, the choice between working with a CFP or CFA should come down to your individual financial situation. For many people seeking advice as they advance toward long-term financial goals like retirement, a CFP likely makes sense.
These experts can help you through various life stages, whether it’s financially preparing to grow your family, setting up an investment account to pay for your child’s education or generating enough income to step back from work.
CFAs tend to make more sense for institutions or high-net-worth clients. They work with those who are focused specifically on investing but don’t often offer the wide range of personal finance advice you may need.
Bottom line
CFPs and CFAs are both well-respected professionals in the financial services industry, but they end up in different roles, with different clients and responsibilities.
When looking for a financial advisor, carefully consider which one makes sense for you and your financial goals before committing to working with one. If you’re looking for financial planning for the long term, you may want to turn to a CFP.
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.
