CFA Certifications: Advantages and Disadvantages

It's pretty easy to bump into someone in the financial profession who is really excited about entering the chartered financial analyst (CFA) program. Sometimes they know what they are getting into, sometimes they don't. They may have no idea how much time it takes or exactly how having the charter may help or hurt them.

Make no mistake—earning the CFA designation is a grueling process, so before you commit, consider what it takes to earn it, how it will benefit you and your career, the negatives of going through the process, and whether the pros outweigh the cons.

The CFA Institute requires four steps to become a CFA. They include:

For many people, the most difficult part of earning a charter is fulfilling the educational requirements. The CFA program consists of three exams encompassing a "candidate body of knowledge" (CBOK) that the CFA Institute believes is necessary for those in the investment profession.

The test for level I is given in February, May, August, and November, while the exams for levels II and III are given three times and twice a year, respectively, on alternating months. Candidates must pass each level before moving on to the next.

Pass rates tend to hover around half. In February 2023, pass rates were 38% for the level I exam and 48% for the level III exam. Pass rates were also at 44% for the November 2022 level II exam.

The investment of time is crucial. The CFA Institute estimates the average candidate should expect to spend at least 300 hours preparing for each level. In fact, the average candidate spends an average of 323 hours preparing for each exam (303 hours for level I; 328 hours for level II; 344 hours for level III).

Before entering the chartered financial analyst (CFA) program, be sure you've considered the costs, the time commitment, and whether it's likely to help you to get to where you want to go in your career.

Once you've considered the time required to pass the levels, you must next look at the professional requirements needed. Before a candidate can become a CFA, they must have accrued 36 months of acceptable work experience. Fortunately, the CFA Institute's definition of acceptable experience is fairly broad, encompassing such areas as trading, economics, and corporate finance.

For work experience to qualify, time must be directly involved in the investment decision-making process or producing a product that impacts that process. However, there are a number of candidates who enter the program and are not in fields where anything they do can be construed to be within the realm of acceptable experience. Some of these candidates may find that while they are able to pass the educational requirements, they will not receive the designation because they do not have the required professional experience.

Finally, before candidates can receive their charters, they must join the CFA Institute. If you need help, the CFA Institute's website explains the process in detail.

The so-called "pass rate" of individuals who take the three-level CFA exam (10-year average).

To help you decide whether to pursue the charter, let's take a look at how it might be beneficial to you and your career.

First, there is an educational benefit; you will learn a great deal and add a great credential to your CV. Then, there is a boost to your reputation. People in the business know the time and dedication it takes to earn the charter. When they see you have earned it, they will likely believe you have the ability, dedication, ethical grounding, and analytical skills necessary to do the job in question.

There also may be financial benefits. You may see your salary increase after you've become a CFA or you may surpass other applicants who don't have this designation when competing for a new job. The operative word here is "may." Hard work, skill, luck, dedication, political savvy, and character have just as much to do with one's success in the investment profession as education, so don't view the charter as your golden ticket to financial paradise.

There are a number of financial fields in which having the charter is a substantial plus. The obvious one is investment management. As the investment industry continues to become more competitive and more commoditized, it will become almost imperative for any credible investment manager to earn the charter.

Outside of investment management, there are a number of other professions in which charterholders will benefit considerably:

Beyond this list, there are a number of professions in which having the CFA charter helps, but where it is not a career roadblock if the financial professional does not have it.

The CFA charter is not a guaranteed path to riches and glory. Before taking the plunge, carefully consider several drawbacks to earning one.

Becoming a CFA is a huge investment in time, between studying for and taking the exams and logging the minimum 4,000 hours of experience required over 36 months. You will sacrifice time with family and friends and the pursuit of hobbies you enjoy. And after committing all that time, there is no guarantee that you will earn the charter.

While this factor may not be a major consideration, it is worth pondering. A level I candidate will pay a one-time program enrollment fee plus an exam registration fee. Level II and III candidates will pay a registration fee as well. There is also the cost of the books and study programs you'll have to buy. Altogether, you should expect to spend a few thousand dollars each time you attempt the exams.

The CFA is not a cure-all remedy for an ailing career. If you're enrolling in the program to jump-start a stalling career, you may want to look at other reasons your career is not moving forward first. Perhaps before investing inordinate amounts of time and a substantial amount of money into building your pedigree, you might choose to improve your soft skills, such as work ethic and political suaveness.

According to the CFA Institute, the median total compensation for charterholder portfolio managers is $177,000 and the median base salary is $126,000. The difference between the two numbers is a result of the impact of cash bonuses and long-term incentives.

To become certified, you must pass the three-level CFA exam; build up work experience before, during, or after the program; submit several references; and apply to join the CFA Institute.

By most accounts, the three-level CFA exam is challenging to pass. Each level of the exam typically warrants at least 300 hours of preparation and the pass rate is roughly less than 50% (over a ten-year average).

Both the CFA and the MBA are valuable to financial professionals looking to develop their expertise, bolster their reputation, and advance their careers. Possessing both can give an individual a leg up as well. Financial professionals who work as money managers and registered investment advisors are especially keen to get a CFA.

A variation of the good old-fashioned cost-benefit analysis may be the best way to decide whether or not to undertake the program. On paper, plot out the costs versus the benefits of becoming a CFA. Your decision may change as your career changes. A lost promotion in five years may make earning the designation more worthwhile.

Undergraduate Teacher Certification Requirements

Undergraduate Teacher Certification Requirements

Drexel offers a number of education certification and degree programs that prepare students for formal teacher certification. Once a student has successfully completed their undegraduate course of study and all qualifying teacher certification exams required by the Pennsylvania Department of Education (PDE), Drexel recommends the student to the PDE for the appropriate teaching certificate.

The School of Education requires that students maintain at least a "B" average (3.0 GPA) in content courses needed for teacher certification in addition to earning a grade of "B" or better in each core pedagogy course required for certification.

All undergraduate students are required to obtain and submit updated and current copies of the required clearances to the School of Education annually in order to participate in classroom observations and student teaching in Pennsylvania. All full-time undergraduates will receive assistance in gaining these clearances during their first term. Non-PA students should contact their state's department of education or school district office for a list of clearances required in their state.

This initial certification qualifies a teacher to teach for a maximum of six years. The six years need not be continuous. To continue teaching after the six years are completed, the teacher must receive an Instructional II Certification.

The Instructional II Certification is considered a permanent certification. A teacher applying for Instructional II Certification must have:

The Pennsylvania Educator Certification Tests (PECT) are required for Grades PreK–4 and Special Education. All undergraduate and dual degree BS/MS students are required to pass the Pre-service Academic Performance Assessment (PAPA) basic skills exam. In addition, students will be required to take the appropriate exam exam for each area of certification they wish to obtain.

For more information about examinations and registration:

All undergraduate and dual degree BS/MS students seeking certification in middle (grades 4–8) or secondary (grades 7–12) levels are required to pass exams from the PA Education Certification Tests (PECT) and the Praxis II Series. Students must pass both the Pre-service Academic Performance Assessment (PAPA) basic skills exam exam and the appropriate Praxis II Content Knowledge test for each area of certification they wish to obtain.

For more information about examinations and registration:

To maintain Instructional I and Instructional II Certifications, the PDE requires a teacher to complete one of the following every five years:

Note: For those working to acquire Instructional II Certification, the 24 semester credits or 36 quarter credits needed to apply for Instructional II may also count toward Act 48 requirements.

Download the Pennsylvania Department of Education’s Frequently Asked Questions about Act 48 [PDF].

Best Database (DBA) and SQL Certifications for 2023

While database platforms have come and gone through the decades, database technology is still critical for multiple applications and computing tasks. IT professionals often seek database certifications to demonstrate their knowledge and expertise as they navigate their career paths and pursue professional growth. 

While database certifications may not be as bleeding edge as Google cloud certifications, cybersecurity certifications, storage certifications or digital forensics certifications, database professionals at all levels possess in-demand career skills — and a plethora of database-related jobs are waiting to be filled.

We’ll look at some of the most in-demand certifications for database administrators, database developers and anyone else who works with databases.

To get a better grasp of available database certifications, it’s helpful to group these certs around job responsibilities. This reflects the maturity of database technology and its integration into most aspects of commercial, scientific and academic computing. As you read about the various database certification programs, keep these job roles in mind: 

These database job roles highlight two critical issues to consider if you want to be a database professional:

NoSQL databases — called “not only SQL” or “non-relational” databases — are increasingly used in big data applications associated with some of the best big data certifications for data scientists, data mining and warehousing, and business intelligence.

Here are details on our five best database certification picks for 2023.

IBM is one of the leaders in the worldwide database market by any objective measure. The company’s database portfolio includes industry-standard DB2, as well as the following:

IBM also has a long-standing and well-populated IT certification program that has been around for more than 30 years and encompasses hundreds of individual credentials. 

After redesigning its certification programs and categories, IBM now has a primary data-centric certification category called IBM Data and AI. It includes a range of database credentials: 

IBM’s is a big and complex certification space, but one where particular platform allegiances are likely to guide readers toward the handful of items most relevant to their interests and needs. 

Database professionals who support DB2 (or aspire to) on IBM’s z/OS should check out the IBM Associate Certified DBA — Db2 12 certification. It’s an entry-level exam that addresses routine planning, working with SQL and XML, security, operations, data concurrency, application design, and concepts around database objects.

This certification requires candidates to pass one exam. Pre-exam training and familiarity with concepts, or hands-on experience, are recommended but not required. 

Certification name

IBM Certified Database Administrator — Db2 12 (z/OS)

Prerequisites and required courses

None required; recommended courses are available.

Number of exams

One: C1000-122: Db2 12 for z/OS DBA Fundamentals (63 questions, 90 minutes)

Cost per exam

$200 (or local currency equivalent) per exam. Sign up for exams at Pearson VUE.

URL

https://www.ibm.com/training/certification/C8003803

Self-study materials

The certification page includes self-study materials, including a study guide and a learning path. 

Did you know? IBM’s certification offerings are among the best system administrator certifications IT professionals can achieve.

Microsoft Azure offers a broad range of tools and add-ons for business intelligence. Azure is a cloud computing platform for application management and Microsoft-managed data centers. Microsoft certifications include various Azure offerings based on job role and experience level.

Microsoft’s certification program is role-centric, centered on the skills you need to succeed in specific technology jobs. Because Azure has such a broad scope, Azure certifications span multiple job roles. However, specific certifications exist for the following positions:

There are also certifications for learners at different experience levels. 

For those looking to take their Azure knowledge to the next level, the Microsoft Certified: Azure Data Fundamentals certification is the perfect place to start. This certification is for beginner database administrators interested in using Azure and mastering data in the cloud. It offers foundational knowledge of core concepts while reinforcing concepts for later use in other Azure role-based certifications, such as those listed below: 

Certification name

Microsoft Certified: Azure Data Fundamentals

Prerequisites and required courses 

This certification does not have any prerequisites. However, for absolute beginners, Microsoft offers an Azure Fundamentals certification. 

Number of exams

One exam, DP-900, which is administered via Pearson VUE or Certiport.

Cost per exam

The exam costs $99 in the United States, though the cost changes based on where it is proctored. 

URL

https://learn.microsoft.com/en-us/certifications/exams/dp-900

Self-study materials

Microsoft offers one of the world’s largest and best-known IT certification programs, so the exam is well supported with books, study guides, study groups, practice tests and other materials. Microsoft also offers a free online learning path.

Oracle runs its certifications under the auspices of Oracle University. The Oracle Database Certifications page lists separate tracks depending on job role and product. MySQL is perhaps the leading open-source relational database management system (RDBMS). Since acquiring Sun Microsystems in 2010 (which had previously acquired MySQL AB), Oracle has rolled out a paid version of MySQL and developed certifications to support the product. 

If you’re interested in pursuing an Oracle MySQL certification, you can choose between MySQL Database Administration and MySQL Developer. 

The Oracle Certified Professional, MySQL 5.7 Database Administrator (OCP) credential recognizes professionals who can accomplish the following tasks:

The certification requires candidates to pass a single exam (the same exam can be taken to upgrade a prior certification). Oracle recommends training and on-the-job experience before taking the exam.

Did you know? According to Oracle, approximately 1.8 million Oracle Certified professionals globally hold certifications to advance their networking careers and professions to validate their IT expertise. 

For individuals interested in working in the Oracle environment who have the necessary experience to become a database administrator, Oracle’s Database SQL Certified Associate Certification is another top Oracle certification and an excellent starting point. This exam encompasses an understanding of fundamental SQL concepts that individuals must grasp for database projects. 

By earning the certification, individuals demonstrate that they have a range of knowledge in core SQL concepts:

This certification also requires candidates to pass a single exam. While Oracle does not specify any prerequisites, the company does state candidates should have familiarity working with the command line. 

SAP SE has an extensive portfolio of business applications and analytics software, including cloud infrastructure, applications and storage. The SAP HANA platform’s foundation is an enterprise-grade relational database management system that can be run as an appliance on-premises or in the cloud. The cloud platform lets customers build and run applications and services based on SAP HANA. 

SAP offers a comprehensive certification program built to support its various platforms and products. We’re featuring the SAP Certified Technology Associate — SAP HANA cert because it aligns closely with other certifications we’ve highlighted and is in high demand among employers, according to job board surveys. 

This certification ensures database professionals can install, manage, monitor, migrate and troubleshoot SAP HANA systems. It covers the following skills:

SAP recommends that certification candidates get hands-on practice through formal training or on-the-job experience before attempting this exam. The SAP Learning Hub is a subscription service that gives certification candidates access to a library of learning materials, including e-learning courses and course handbooks. 

The annual subscription rate for individual users on the Professional certification track is $2,760. This online training program is designed for those who run, support, or implement SAP software solutions. Though this may seem like a steep price for online training, you will likely be able to pass any SAP certification exams you put your mind to by leveraging all the learning resources available to SAP Learning Hub Professional subscribers. 

Typically, SAP certifications achieved on one of the two most recent SAP solutions are considered current and valid. SAP contacts professionals whose certifications are nearing end-of-life status and provides information on maintaining their credentials.

Certification name

SAP Certified Technology Associate — SAP HANA 2.0 SPS05

Prerequisites and required courses    

None required.

Recommended: Hands-on experience and the following courses: 

Number of exams

One exam: SAP Certified Technology Associate — SAP HANA 2.0 SPS05, exam code C_HANATEC_17 (80 questions, 180 minutes)

Cost per exam

$500

URL

https://training.sap.com/certification/c_hanatec_17-sap-certified-technology-associate—sap-hana-20-sps05-g/

Self-study materials

The certification web page includes a link to sample questions. SAP HANA trade books and certification guides are available on Amazon. The SAP Help Center offers product documentation and a training and certification FAQs page. The SAP Learning Hub (available on a subscription basis) provides access to online learning content.

Tip: To broaden your skill set, consider pursuing the best sales certifications to better sell and implement various IT solutions, including databases.

Additional database certification programs can further the careers of IT professionals who work with database management systems. 

While most colleges with computer science programs offer database tracks at the undergraduate, master and Ph.D. levels, well-known vendor-neutral database certifications exist, including the following: 

These are some additional certifications: 

These credentials represent opportunities for database professionals to expand their skill sets — and salaries. However, such niches in the database certification arena are generally only worth pursuing if you already work with these platforms or plan to work for an organization that uses them.

Key takeaway: Pursuing additional database certifications can be helpful for professional development if you already work with these platforms or plan to work with them in the future. 

Before pursuing certifications, consider their popularity with employers to gain a helpful perspective on current database certification demand. Here’s a job board snapshot to give you an idea of what’s trending.

Certification

SimplyHired

Indeed

LinkedIn Jobs

LinkUp

Total

IBM Certified Database Administrator — DB2

867

1,337

1,911

753

4,868

Azure Data Fundamentals

2,052

4,154

283

2,322

8,811

Oracle Certified Professional, MySQL Database Administrator

339

473

143

23

978

Oracle Database SQL Certified Associate Certification

138

177

10

273

598

SAP HANA

32

37

57

466

592

If the sheer number of available database-related positions isn’t enough motivation to pursue a certification, consider average salaries for database administrators. SimplyHired reports $91,949 as the national average in the U.S., ranging from $64,171 to over $131,753. Glassdoor’s reported average is somewhat lower at $84,161, with a top rung for experienced senior DBAs right around $134,000.

Choosing the best IT certifications to enhance your skills and boost your career can be overwhelming, especially as many available certifications are for proprietary technologies. While picking a database certification can feel like locking yourself into a single technology family, it is worth remembering that many database skills are transferable. Additionally, pursuing any certification shows your willingness to learn and demonstrates competence to current and future employers. 

Ultimately, choosing which certification to pursue depends on the technologies you use at work or would like to use at a future employer.

Jeremy Bender contributed to the reporting and writing in this article.