The CFA (Chartered Financial Analyst) program is one of the most prestigious finance certifications globally, but it is also one of the toughest. While passing CFA Level 1 is a big achievement, candidates often debate which of the next two levels is more challenging: CFA Level 2 vs Level 3. If you are preparing for these levels, this blog will provide a detailed comparison of CFA Level 3 difficulty and CFA toughest level, helping you understand which one requires more effort.
Understanding CFA Level 2 and Level 3
CFA Level 2 Overview
CFA Level 2 primarily focuses on the application of financial concepts learned in Level 1. It has a vast syllabus with a strong emphasis on:
- Equity Valuation
- Financial Reporting and Analysis
- Fixed Income and Derivatives
- Portfolio Management
- Corporate Finance
- Ethics and Professional Standards
The CFA Level 2 exam is known for its item-set format, where candidates must analyze case studies and answer six questions related to a given scenario.
CFA Level 3 Overview
CFA Level 3 is the final and arguably the most difficult part of the CFA journey. It focuses extensively on portfolio management and wealth planning, requiring candidates to develop an advanced understanding of how to apply financial principles to real-world investment scenarios.
Unlike Level 2, the CFA Level 3 exam includes:
Deepak Goyal CFA & FRM
Founder & CEO of RBei Classes
- 16,000+ Students Trained in CFA, FRM, Investment Banking & Financial Modelling
- 95% Students Successfully Placed • 94.6% Pass Rate In Exam
- Constructed Response (Essay) Questions
- Item-Set Questions
The essay section is particularly challenging because it requires writing structured responses rather than selecting multiple-choice answers.
CFA Level 2 vs Level 3: Key Differences
| Feature | CFA Level 2 | CFA Level 3 |
| Focus Area | Advanced Financial Analysis | Portfolio Management & Wealth Planning |
| Exam Format | Item Set (Multiple-Choice) | Essays & Item Set |
| Concept Application | More Calculations & Quantitative | More Subjective & Conceptual |
| Difficulty Level | High Due to Content Depth | High Due to Essay Section |
| Pass Rate | ~45% | ~50% |
Which CFA Level is Tougher?
CFA Level 2 Difficulty
CFA Level 2 is heavily quantitative, requiring candidates to be proficient in complex calculations. The exam tests deep analytical skills, and the vast syllabus makes it time-consuming to prepare for.
CFA Level 3 Difficulty
Many candidates find CFA Level 3 more challenging because of the essay section. Writing structured, concise, and accurate answers under time constraints requires strong writing and critical thinking skills. The CFA Level 3 difficulty lies in conceptual clarity rather than just calculations.
Tips to Pass CFA Level 2 and Level 3
CFA Level 2 Preparation Tips
- Master Financial Reporting & Analysis: This section is heavily tested and can boost your score.
- Focus on Practice Questions: Item-set questions require analytical thinking, so solve as many as possible.
- Use High-Quality CFA Books: Study materials like Kaplan Schweser, CFA Institute Curriculum, and Deepak Goyal Sir’s coaching can be highly beneficial.
- Time Management: The syllabus is vast, so allocate sufficient time to each topic.
CFA Level 3 Preparation Tips
- Practice Essay Writing: Time yourself while answering essay questions to improve speed and accuracy.
- Understand Portfolio Management: Since this is the core of Level 3, deep dive into wealth management concepts.
- Revise Ethics and Behavioral Finance: These are high-weightage topics that are crucial for passing.
- Enroll in the Best CFA Coaching: If you’re looking for CFA classes online, Deepak Goyal Sir’s CFA coaching offers structured guidance with high success rates.
Conclusion
Both CFA Level 2 and Level 3 are challenging in different ways. Level 2 is more calculation-intensive, while Level 3 demands strong writing and conceptual understanding. If you are preparing for the CFA toughest level, strategic planning and expert guidance can help you clear the exam in one attempt.
Why Choose RBei Classes for CFA Coaching?
RBei Classes, led by Deepak Goyal Sir, is one of the best CFA coaching institutes in India, Dubai, and the USA. With over 10 years of experience, Deepak Goyal Sir provides in-depth subject knowledge and personalized mentorship to ensure CFA success.
Looking for the best CFA Level 2 or CFA Level 3 coaching? Join RBei Classes today and take your CFA preparation to the next level!
For more details on CFA online coaching or to enroll in CFA classes, visit our website or contact us today!
