Are certifications like CFA, CA, FRM actually worth it anymore?
I’m planning a career in high finance (IB/PE mainly), and I keep hearing mixed stuff about professional certs like CFA, CA, FRM, CPA, CMT, etc. Some say they’re a waste unless you’re in AM or risk, others say they’re good for credibility if you didn’t go to a target school.
Would love to hear honest takes from people actually in the industry:
Are any of these actually useful for breaking into IB/PE?
Do they carry any weight when you already have decent internships or a solid degree?
If not, what’s actually worth focusing on instead — modeling courses? networking? target MBA?
Just trying to figure out what’s actually worth the time and what’s just resume filler at this point.
Appreciate any insight.
For a career in high finance, particularly IB and PE, certifications like CFA, CA, FRM, and others generally hold limited value compared to other priorities like networking, internships, and academic performance. Here's a breakdown based on the most helpful WSO content:
CFA:
CA/CPA:
FRM/CMT:
What to Focus On Instead:
Certifications as Resume Boosters:
In summary, for IB/PE, certifications are not a game-changer. Focus your time and energy on networking, gaining relevant experience, and honing your technical skills. Certifications like the CFA might be worth considering if you're pivoting to asset management or risk, but for IB/PE, they are more of a "nice to have" than a necessity.
Sources: Is CFA® necessary for investment banking ?, Are there any relevant certifications/designations worth getting other than MBA/Masters? CFA, CAIA, certificate programs, etc., Q&A: From Big4 Audit -> Big4 Advisory -> MBA -> AM Portfolio Manager, Q&A: 3rd Year PE Associate ($10bn+ AUM, MBO/LBO, equity, mezz, distressed debt), 5 things I wish I had known when I was a business undergrad...
bumped. Interested
Certs like the CFA are hundreds of hours of studying, cost a few thousand, and aren't really applicable for PE. Unless you want to book out most of your weekends for the next 2+ years and spend $5k to get a marginal nod in an interview, it's not worth it. Equity research, asset management and some private credit seats however see it as a semi-criteria for promotion and will sometimes sponsor the test fees.
When I was at an AM, they absolutely loved the CFA for some reason.
People who didn't have it were pressured into getting it. Even one of the PMs felt like he had to get it despite being a PM for years.
The CFA process was one of the biggest time wasters of my entire life. Literally no one cares about it.
Same
Only value is you can shoot the shit about most topics in finance enough to not look like a total idiot or wall flower
But not worth the cost at all
I see
It's a comprehensive way of upgrading your knowledge while forcing you to learn I would argue. It's definitely over-expensive for what it is but I enjoyed it.
Like I know I wouldn't be bothered to learn Fixed Income beyond duration nor would I be familiar with the intricacies of DB pension accounting if it had been left up to me.
What certs would you say are certainly deal breakers
Idk if you're using the term deal breakers correctly but I'll answer as if you did. No certs are deal breakers - no one's going to not hire you for having one of these certs.
Also no one is going to hire you simply for having these certs. Nor will any of them (or any certs) significantly change your prospects in IB/PE.
CFA Charterholder here. Started in wealth management years ago and in IB now. Think it may have helped in WM but nobody really cares in IB.
I'm going to give it to you straight. It opened some doors, but my MBA opened up a lot more doors. CFA Program was a great education, but as far as actual ROI...I'm like 50/50 sometimes on if the work was worth it. Not trying to be a downer but giving it to you straight. If you go into ER, or higher levels of WM, you might get volun-told for it, but it's just not really a thing in IB. I'm glad I have it. It certainly doesn't hurt you. I did learn a lot. If I ever won the lottery or some crypto shitcoin made me rich, I'd know how to manage my money a lot better than a bunch of wealth managers at my firm. The education was solid, but as far as opening career doors, it opened some, just not as many as I expected if I'm being honest.
CA is more of an overseas thing, equivalent to CPA here. That's a different credential entirely. Do it if you want to do accounting, but otherwise it doesn't matter. We're bankers. We hire accountants to do the QoE for us. FRM is a different track entirely, as is CMT.
I think a better macro level question is if you could define what your desired end-state is, which that might help then narrow down what you want to do as far as extra credentials, if any are really needed or not.
Really helpful advice man...I was exploring cfa/other certs because I'm going to go to a non target for ug but get a mba from a target...so I just wanted to understand from someone who has explored a similar path.
Blow the GMAT out of the water, do good in your immediate job after undergrad, get some "real life" extracurriuclars you can talk about like involvement in some kind of civic or young professionals type group, really anything to show you're well rounded. Then get into that top MBA and you'll be set
CFA Program certainly won't hurt. You can do level 1 just to say you did it. I'm just giving it to you straight as far as the ROI I got from it.
IB/PE then your best shot is best school with the highest GPA possible. CFA is recognized everywhere. FRM is strictly risk and if you want to do that then it may be good. CMT is almost a joke to some, but some shops will look for them from time to time.
Ultimately, the CFA carries the most weight aside from the CPA in the states. It can open doors but is not a guarantee. Ultimately, its focus is geared towards portfolio management and research.
It's definitely a thing in Canada. Branch managers with CFAs in Toronto. But maybe the time used is better spent finding a way to move to the US instead of doing the CFA
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