Is CFA Level 1 Easy to Pass? Key Insights
The Charter Financial Analyst (CFA) Level 1 Exam is recognised worldwide as a qualification specifically for finance and investment management. It is the entry point to the prestigious CFA charter. This charter is widely considered the golden benchmark in the finance industry worldwide. Using this CFA exam, most finance professionals pursuing careers in investment banking, portfolio management, and financial analytics intend to build more competence and create better career opportunity avenues.
Complexities surrounding this CFA Level 1 are some of the most discussed among CFA aspirants. Most candidates find the exam to pass wholly manageable, given a disciplined strategy for preparation. Others find it complicated and wholly part of a vast syllabus coupled with the limited time they have to prepare for it. Difficulty, in general, lies in the learning background, preparation strategy, and knowledge about finance.
So, is CFA Level 1 easy to pass? In this blog, we will break down exam structures, analyze pass rates, and discuss what can hinder all of the above. For anyone about to sit for the CFA exam, a well-structured CFA course will greatly increase success opportunities.
Understanding CFA Level 1: Exam structure and syllabus
A CFA level 1 exam is meant primarily to assess the candidate’s basic investment management, financial reporting, and ethical standard-playing. This exam is computer-based and will allow four windows in a year: February, May, August, and November.
Exam Format:
• Duration: 4.5 hours (given in two sessions as 2 hours 15 minutes each).
• Number of Questions: Two 180 multiple-choice questions (90 each session).
• Question Style: Scenario-based and fact-based multiple-choice questions.
Key Topics and Their Weightage:
| Topic | Weightage (%) |
| Ethical and Professional Standards | 15-20% |
| Quantitative Methods | 8-12% |
| Economics | 8-12% |
| Financial Reporting and Analysis (FRA) | 13-17% |
| Corporate Finance | 8-12% |
| Equity Investments | 10-12% |
| Fixed Income | 10-12% |
| Derivatives | 5-8% |
| Alternative Investments | 5-8% |
| Portfolio Management | 5-8% |
(Source: CFA Institute Official Website)
Ethical and Professional Standards dominate much of the top weight, and it’s fundamental to passing the exam. Financial Reporting and Analysis (FRA) is, again, a difficult area, most especially for candidates who have no set knowledge in accounting principles.
Many find it an all-encompassing but elementary part, and they find themselves losing their grip on the management of time and retention of information. But success can be attained with a planned study schedule and learned guidance.
Pass Rates and Exam Difficulty: What the Statistics Say
One of the best ways to measure the extent of CFA Level 1 difficulty is to view the historical pass rates. From the data provided by the CFA Institute, the average pass rate for the CFA Level 1 in the last few years has been between 36% and 43%.
Comparison Between passing rate of Level 2 and Level 3:
| Exam Level | Average Pass Rate (2020-2024) |
| CFA Level 1 | 36%-43% |
| CFA Level 2 | 40%-50% |
| CFA Level 3 | 45%-56% |
(Source: CFA Institute Exam Statistics)
They do indicate, however, that CFA Level 1 is tough but not quite the toughest within the CFA framework; it would, however, require fairly significant ramp-up efforts. In fact, candidates who underestimate the amount of topics they will need to study- 300 to 400 hours – will find the going tough.
A study has reported that students who undertook at least four full-length mock tests before the actual day had a 60% greater chance of passing tests than those who limited their prep to reading alone. Some reasons most often heard for failure include:
- Lack of a structured study plan.
- Poor time management.
- Inadequate exposure through mock examinations.
- Ignore important high-weight topics like FRA and Ethics.
Join the CFA course at Boston Institute of Analytics to maximize your chances of passing it because you learn from industry experts who have prepared this examination.
What Makes CFA Level 1 Manageable?
While CFA Level 1 is demanding, certain aspects make it more approachable compared to other competitive exams.
1. The Format of Multiple Choices
Unlike essay-format examinations, the CFA Level 1 examination comprises a mixture of multiple-choice questions entirely. This implies that candidates do not have to produce long answers but pick out the answers considered the best.
2. No Negative Marking
The benefit is that there is no penalty for an incorrect answer. Thus, the candidate can afford to make educated guesses without fear of losing marks, thereby increasing the odds of a higher score.
3. Basic Conceptual Level
With far more emphasis on case studies and applications, Level 2 takes much deeper into all things CFA, while Level 1 treats its syllabus in a somewhat basic conceptual way. Thus, quite a number of candidates with finance backgrounds find Level 1 relatively easier as it concerns itself with very fundamental theories rather than practical applications.
4. Study Material Availability
A plethora of study resources is out there for candidates, such as:
- CFA Institute Books (Comprehensive but long).
- Third-party prep providers such as Kaplan Schweser, Wiley, and Bloomberg Prep (Straight to the point and well organized).
Online courses and coaching centers, wherein Boston Institute of Analytics provides a complete CFA examination prep framework with expert guidance and practice exam papers.
In a given survey shared by CFA Exam Prep (2023), candidates using a structured prep course were 35% more likely to pass as opposed to self-study.
5. Flexible Scheduling
The CFA Level 1 exam is held four times a year, in February, May, August, and November, thereby allowing whoever is interested great leeway to decide when to examine or retake it if necessary.
Thus, CFA Level 1 exams have some interesting challenges, but they can be best dealt with through a working study plan coupled with right resources.
Study Strategies to Pass CFA Level 1 Easily
Passing CFA Level 1 entails structuring one’s schedules with discipline and study techniques. Here are some time-tested techniques for maximizing candidates’ chances of success.
1. Create a Structured Study Plan
For Level 1, the CFA Institute recommends studying for 300-400 hours. An effective plan should:
- Be structured to time each subject according to its weightage.
- Allocate 12-16 weeks for conceptual learning.
- Set aside 4-6 weeks for practice exams and revisions.
- If studying for more than six months, study for at least 10-12 hours a week.
According to research, Candidates had a 25% higher chance to pass the exams if they studied regularly over six months instead of cramming in the last two months.
2. Concentrate on High-Weightage Topics
Some topics count more towards the final score than others. These are which should be treated with all priority:
- Ethics (15-20%) This helps in flipping scores upward as an overall score.
- Financial Reporting & Analysis (13-17%) This is integral for any understanding of corporate finance.
- Fixed Income & Equity Investments (10-12% each) This is also considered pertinent for asset valuation concepts.
3. Practice Extensively
- It’s best to do 4-6 full-length mock exams before the test.
- Use CFA’s official question bank alongside third-party question banks (Kaplan, Wiley).
- Study the incorrect answers in detail, determining weak spots.
As per CFA Exam Insights (2024), candidates completing at least five mock exams carried a 70% pass probability for Level 1.
4. Active Learning Techniques
- Flashcards help reinforce formulas and key concepts.
- Concept Mapping strengthens retention by visually connecting topics.
- Summarizing key points in short notes.
Studies released by Harvard Learning Research indicate that active learning improves exam retention by 45% compared to passive study methods.
5. Effectively Manage Time
Adopt the Pomodoro Technique to mitigate burnout (25 minutes study, 5 minutes break).
While doing mock exams, solve 90 questions in each session within 2 hours and 15 minutes to simulate exam conditions.
6. CFA Course – Expert Guidance
The impact of expert guidance can never be underestimated in boosting one’s preparation level. The CFA Course offered by Boston Institute of Analytics focuses on:
- Expert faculty with real-world finance experience.
- Structured study materials aligned with CFA Institute guidelines.
- Mock exams and feedback for improving test performance.
Joining a structured CFA course can significantly improve your success rate. If you’re unsure about the eligibility requirements for the CFA exam, check out our detailed guide: Eligibility Criteria for the CFA Exam: Who Can Apply?
Who Finds CFA Level 1 Easy and Who Finds It Difficult?
The CFA Level 1 exam is a difficult test of financial knowledge; however, its difficulty varies from one candidate to another, depending on their own background and experience.
Who Have an Easier Time?
- Finance Graduates & MBAs: Finance, economics, or business candidates have covered many core CFA topics in their classes. Studies have suggested that finance students are about 30-40% more likely to pass Level 1 at their first attempt (CFA Exam Performance Review, 2024).
- Strong Mathematical Backgrounds: The CFA Level One exam contains some rigorously quantitative sections such as statistics, probability theory, and financial mathematics. Those having solid mathematical skills like engineering and actuary types tend to find these sections easier.
- Candidates with Prior Accounting & Investment Exposure: Professionals in the field of investment banking, financial analysis, or accounting already begin their careers familiar with topics such as FRA, Equity Investments, and Fixed Income, thus giving them an edge.
Who Has a Harder Time?
- Candidates from Non-Finance Backgrounds: Those who have had no earlier exposure to financial concepts require the most effort to master the technical jargon, valuation models, and accounting principles.
- Working Professionals Having Little Time for Study: The balancing act of putting together CFA preparation alongside any full-time job is quite a tough task. Studies depict that for candidates who are unable to give at least 10-12 hours per week for study activities, their chances of passing drop significantly.
Regardless of background, a well-structured study plan, along with professional coaching like the CFA course at Boston Institute of Analytics, helps to narrow the gap in knowledge and increases chances of success.
Conclusion: Is CFA Level 1 Easy to Pass?
The CFA Level 1 exam is challenging but is passable with the right approach. Success lies in effort and time, consistent effort, and time management.
For those with a finance background, the exam may feel easier, while non-finance candidates may require additional effort to grasp financial concepts. However, resources like mock exams, study groups, and expert-led CFA courses can make a difference.
One great example is Jhen L., who successfully cleared CFA Level 2 and secured a prestigious role as an Investment Analyst at HSBC after enrolling in the Boston Institute of Analytics CFA TestPrep Course. Watch her inspiring journey here:
For aspirants looking for the best CFA course, the Boston Institute of Analytics provides expert-led training, structured study plans, and personalized mentoring to maximize success.
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