The Chartered Financial Analyst (CFA) designation is globally recognized as one of the most prestigious qualifications in the finance industry. For those who want to create a rewarding career path in investment management, corporate finance or financial analysis, clearing the CFA level 1 is a crucial step on a demanding but gratifying path.
CFA Level 1 doesn’t make the candidate a full charter holder but successfully passing it shows mastery of key concepts in ethics, quantitative methods, economics, financial tools, and portfolio management. This is important because it assists candidates to lay good foundation which is appreciated in the market by prospective employers.
After clearing the CFA level one, one of the biggest questions that many ask is, “How much can I make?” A number of factors affect the expected salary including the geographical location, the position held, years of experience and the employer. In today’s blog post, let’s discuss the average salaries that CFA Level 1 holders receive Internationally and some tips on how one can gain better pay in the finance sector.
What is CFA?
The CFA (Chartered Financial Analyst) is a globally recognized professional credential offered by the CFA Institute. It is considered one of the most prestigious qualifications in the field of investment management and financial analysis. The exam is designed to assess the competence and integrity of professionals in fields like portfolio management, investment banking, equity research, and corporate finance.
To understand more about CFA as a course in detail, read- All About CFA
Overview of CFA Level 1 Certification
CFA Level 1 is the foundation of the CFA program, which progresses through three levels. It focuses on financial reporting, ethics, portfolio management, and quantitative analysis. Successfully passing Level 1 demonstrates commitment to mastering essential finance skills and opens doors to entry-level roles such as financial analyst or research associate.
As you progress to CFA Level 2 and eventually CFA Level 3, the curriculum deepens, focusing more on complex financial analysis and portfolio management, ultimately preparing you for advanced roles and the CFA charter.
To understand more about CFA level 1 as a course, read- All About CFA Level 1
Factors Affecting CFA Level 1 Salaries
While passing CFA Level 1 is a significant achievement, the salary you can expect to earn depends on several important factors. Understanding these can help you better position yourself for higher compensation and career growth.
Geographical Location
- One of the biggest determinants of salary for CFA Level 1 holders is where you work. Finance hubs like New York, London, Hong Kong, and Dubai tend to offer significantly higher salaries due to the concentration of financial institutions and higher demand for skilled professionals.
- For example, in New York, a CFA Level 1 holder might earn between $70,000 and $90,000 annually, whereas in smaller U.S. cities or developing markets, salaries could be closer to $50,000.
- In contrast, regions with lower living costs or smaller financial sectors may offer less in terms of salary.
- For instance, a CFA Level 1 holder in India or Eastern Europe might expect starting salaries between $15,000 and $25,000, but these roles often come with lower costs of living and other lifestyle benefits.
- Additionally, emerging markets like India, China, and parts of Africa are seeing rapid growth in the finance sector, which could lead to higher salaries in the future as demand for finance professionals increases.
Work Experience
- While passing CFA Level 1 can boost your credibility, pre-CFA work experience plays a crucial role in determining your salary.
- Candidates who enter the CFA program with relevant finance experience—such as those who have worked as financial analysts, accountants, or in banking—are often able to command higher salaries after passing Level 1.
- For example, someone with 2-3 years of experience in finance might earn between $60,000 and $80,000 in an entry-level role, while a fresh graduate might start at around $45,000 to $50,000.
- Additionally, internships, part-time roles, or related work in fields like accounting or consulting can also enhance your salary potential after passing CFA Level 1.
Job Role
The type of job role you secure after passing CFA Level 1 also has a significant impact on your salary. Some of the most common roles for CFA Level 1 holders include:
- Financial Analyst
- Research Analyst
- Risk Analyst
- Junior Trader
- Investment Banking Analyst
- Corporate Finance Analyst
- Each role offers a different salary range depending on its responsibilities and the sector it’s in.
- For instance, investment banking analysts typically earn more than financial analysts or research analysts due to the demanding nature and higher revenue potential of investment banking.
- An investment banking analyst in London or New York could earn between $70,000 and $100,000, while a financial analyst in the same regions might earn between $50,000 and $70,000.
Employer Type
The type of employer you work for is another key factor in determining your salary as a CFA Level 1 holder. Different types of firms offer varying compensation structures:
Investment Banks:
Known for offering some of the highest salaries, particularly in financial hubs. These firms may also offer bonuses and other incentives that can significantly boost your total compensation.
Asset Management Firms:
Salaries are competitive but often slightly lower than investment banking. However, asset management firms may offer a better work-life balance.
Hedge Funds and Private Equity:
These sectors often provide lucrative compensation packages, particularly for junior analysts who show promise in helping grow the firm’s portfolio.
Consulting Firms:
While consulting firms may not always pay as high as investment banks, they offer diverse experiences and a strong foundation for career growth.
Government and Regulatory Agencies:
While salaries in the public sector tend to be lower, these roles offer stability, benefits, and often shorter working hours. A CFA Level 1 holder working in a regulatory capacity could expect salaries ranging from $40,000 to $60,000, depending on the country.
Average CFA Level 1 Salary by Region
The salary for a CFA Level 1 holder can vary significantly depending on the region, driven by factors such as cost of living, economic conditions, demand for financial professionals, and the overall strength of the local finance industry. Let’s explore the average salary for CFA Level 1 holders across major regions:
North America (USA and Canada)
North America, particularly the United States, offers some of the highest salaries for CFA Level 1 holders. Cities like New York, San Francisco, Chicago, and Toronto are global financial hubs where finance professionals are in high demand.
United States:
- In the U.S., salaries for CFA Level 1 holders range between $65,000 and $90,000 annually, with New York being at the upper end of the spectrum.
- Entry-level roles in investment banking, asset management, and corporate finance typically pay more than roles in smaller financial centers.
Canada:
- In Canada, salaries for CFA Level 1 holders range between CAD 55,000 and CAD 75,000.
- Toronto and Vancouver are the primary financial hubs where finance professionals are paid more compared to other Canadian cities.
Europe (UK, Germany, Switzerland)
In Europe, London remains one of the top financial centers globally, offering competitive salaries for CFA Level 1 holders. Other major financial hubs include Zurich in Switzerland and Frankfurt in Germany.
United Kingdom:
- In the UK, CFA Level 1 holders can expect salaries ranging from £40,000 to £60,000.
- In London, where financial firms are concentrated, salaries are at the higher end of this range, particularly in sectors like investment banking and private equity.
Germany:
- In Germany, salaries range between €50,000 to €70,000.
- Frankfurt, being the financial hub, offers higher salaries due to the concentration of banks and financial institutions.
Switzerland:
- Zurich and Geneva are two of the best-paying cities in Europe for finance professionals.
- CFA Level 1 holders in Switzerland typically earn between CHF 70,000 and CHF 100,000.
Asia-Pacific (Singapore, Hong Kong, India)
The Asia-Pacific region is experiencing rapid economic growth, and cities like Singapore and Hong Kong have become global financial centers, offering competitive salaries for CFA Level 1 holders.
Singapore:
- In Singapore, salaries for CFA Level 1 holders range between SGD 50,000 to SGD 80,000.
- Singapore is known for its strong financial services sector, including investment banking, asset management, and private equity.
Hong Kong:
- Salaries for CFA Level 1 holders in Hong Kong range from HKD 300,000 to HKD 500,000 annually.
- Hong Kong’s financial industry, driven by banking, equity research, and hedge funds, makes it one of the most attractive locations for CFA professionals.
India:
- Salaries in India are significantly lower compared to Singapore and Hong Kong, ranging between INR 600,000 to INR 1,200,000 annually.
- However, India’s financial sector is growing rapidly, and there is increasing demand for CFA professionals, particularly in investment research, financial analysis, and consulting roles.
Middle East (Dubai, Qatar)
The Middle East, particularly Dubai and Qatar, is known for offering tax-free salaries and attractive compensation packages for CFA Level 1 holders. The region has been focusing on becoming a financial hub, offering great opportunities in sectors like banking, private equity, and real estate investment.
Dubai:
- In Dubai, CFA Level 1 holders can expect to earn between $60,000 and $85,000 per year.
- The salary packages often include housing allowances and tax-free compensation, making it a lucrative option for finance professionals.
Qatar:
- Qatar offers similar salary ranges, between $55,000 and $80,000.
- With the presence of sovereign wealth funds and a growing banking sector, finance professionals in Qatar can find high-paying opportunities.
Africa (South Africa)
In Africa, South Africa is the primary financial hub, with Johannesburg leading the way. While salaries for CFA Level 1 holders in Africa are lower compared to other regions, the financial sector is growing, particularly in banking, investment management, and corporate finance.
South Africa:
- CFA Level 1 holders in South Africa can expect to earn between ZAR 400,000 and ZAR 700,000 annually, depending on the role and the specific industry.
- Johannesburg offers the highest compensation due to its role as the financial capital of the country.
Comparative Analysis Table for the Country/Region-wise Salary Section
| Region | Country | Average Salary (Local Currency) | Converted Salary (USD) | Key Financial Hubs | Industries |
|---|---|---|---|---|---|
| North America | USA | $65,000 – $90,000 (USD) | $65,000 – $90,000 | New York, San Francisco | Investment Banking, Asset Management, Corporate Finance |
| Canada | CAD 55,000 – CAD 75,000 (CAD) | $50,000 – $60,000 | Toronto | Asset Management, Corporate Finance | |
| Europe | UK | £40,000 – £60,000 (GBP) | $55,000 – $80,000 | London | Investment Banking, Private Equity, Hedge Funds |
| Germany | €50,000 – €70,000 (EUR) | $60,000 – $80,000 | Frankfurt | Banking, Investment Management | |
| Switzerland | CHF 70,000 – CHF 100,000 (CHF) | $75,000 – $100,000 | Zurich | Private Banking, Asset Management | |
| Asia-Pacific | Singapore | SGD 50,000 – SGD 80,000 (SGD) | $45,000 – $60,000 | Singapore | Investment Banking, Private Equity, Asset Management |
| Hong Kong | HKD 300,000 – HKD 500,000 (HKD) | $38,000 – $65,000 | Hong Kong | Equity Research, Investment Banking, Hedge Funds | |
| India | INR 600,000 – INR 1,200,000 (INR) | $7,500 – $15,000 | Mumbai | Investment Research, Financial Analysis | |
| Middle East | Dubai | AED 220,000 – AED 310,000 (AED) | $60,000 – $85,000 | Dubai | Private Equity, Real Estate, Investment Banking |
| Qatar | QAR 200,000 – QAR 290,000 (QAR) | $55,000 – $80,000 | Doha | Sovereign Wealth Funds, Real Estate | |
| Africa | South Africa | ZAR 400,000 – ZAR 700,000 (ZAR) | $30,000 – $50,000 | Johannesburg | Banking, Corporate Finance, Investment Management |
The map below shows the adjusted average salary for CFA Level 1 holders across various regions of the world.
Entry-Level Job Roles for CFA Level 1 Holders
Passing CFA Level 1 is a significant achievement that opens the door to various entry-level roles in the finance industry. While these positions are generally the starting point in your CFA journey, they provide crucial experience and opportunities for future advancement.
Financial Analyst
Financial analysts play a crucial role in helping companies make informed decisions by analyzing financial data, preparing reports, and making recommendations for improving financial performance. They often work in industries such as investment banking, asset management, and corporate finance.
Responsibilities:
- Analyze financial data, including income statements, balance sheets, and cash flow statements.
- Develop financial models to project future performance.
- Provide recommendations on investment opportunities and financial strategies.
- Assist with budgeting, forecasting, and evaluating company performance.
Salary Range:
Financial analysts with CFA Level 1 typically earn between $50,000 and $70,000 annually, depending on their location, experience, and the type of firm they work for. Salaries are generally higher in finance hubs such as New York, London, and Singapore.
Below is an image taken from Glassdoor depicting the average global salary of a Financial Analyst after completing CFA Level 1.
Research Analyst
Research analysts work for investment firms, hedge funds, or asset management companies, where they help identify investment opportunities by analyzing markets, industries, and individual companies. This role is highly data-driven and involves extensive research and reporting.
Responsibilities:
- Conduct thorough research on markets, industries, or specific securities.
- Analyze economic trends and how they affect company performance.
- Write research reports to inform investment decisions.
- Collaborate with portfolio managers and senior analysts to develop investment strategies.
Salary Range:
Research analysts with CFA Level 1 can expect to earn between $45,000 and $65,000 per year, with potential for performance bonuses. Salaries are higher in investment hubs such as Hong Kong or New York.
Below is an image taken from Glassdoor depicting the average global salary of a Research Analyst after completing CFA Level 1.
Risk Analyst
A risk analyst evaluates and manages financial risks for companies, ensuring that risks related to investments, liquidity, and credit are identified and mitigated. This role is vital in industries like banking, insurance, and investment management.
Responsibilities:
- Identify potential financial risks (market, credit, liquidity risks).
- Develop models to measure risk exposure.
- Monitor risk levels and implement strategies to mitigate them.
- Prepare detailed reports on risk exposure and mitigation strategies for senior management.
Salary Range:
Risk analysts typically earn between $55,000 and $80,000 per year. In larger markets such as London or Dubai, compensation could be on the higher end of this scale.
Below is an image taken from Glassdoor depicting the average global salary of a Risk Analyst after completing CFA Level 1.
Junior Trader
A junior trader supports senior traders in executing buy and sell orders, managing portfolios, and analyzing market trends. This fast-paced role is common in investment banks, hedge funds, and brokerage firms and often serves as a stepping stone to more senior trading positions.
Responsibilities:
- Assist senior traders in executing trades in equities, bonds, and other financial instruments.
- Monitor market trends and news to identify trading opportunities.
- Manage day-to-day administrative tasks, such as maintaining trade records and reconciling portfolios.
- Analyze trade performance and provide reports to senior management.
Salary Range:
Junior traders with CFA Level 1 can expect to earn between $50,000 and $80,000, with salaries being higher in major financial markets such as New York, Hong Kong, or London. Bonuses can also significantly boost compensation, especially in high-performing trading environments.
Below is an image taken from Glassdoor depicting the average global salary of a Junior Trader after completing CFA Level 1.
Investment Banking Analyst
Investment banking analysts are responsible for supporting senior bankers in deal-making activities, including mergers and acquisitions (M&A), initial public offerings (IPOs), and other financial transactions. This role is one of the most prestigious entry-level positions in finance, often leading to high-growth career opportunities.
Responsibilities:
- Prepare financial models and valuations for companies involved in M&A or other financial transactions.
- Conduct industry research to support transaction recommendations.
- Assist in preparing pitch books and presentations for clients.
- Support the execution of deals, including due diligence and regulatory filings.
Salary Range:
Investment banking analysts typically earn between $70,000 and $100,000, with substantial bonuses that can sometimes double the base salary. In cities like New York or London, compensation can be even higher, especially at top-tier firms.
Corporate Finance Analyst
A corporate finance analyst works within a company’s finance department, assisting in financial planning, budgeting, and capital allocation. This role involves working closely with senior management to assess the company’s financial health and identify areas for growth and efficiency.
Responsibilities:
- Prepare financial reports, forecasts, and budgets for management.
- Analyze company performance and develop strategies to improve profitability.
- Assist in the evaluation of mergers, acquisitions, and other strategic investments.
- Conduct internal audits and assess financial risk.
Salary Range:
Corporate finance analysts earn between $55,000 and $85,000, depending on the size of the company and its industry. Positions in major corporations or financial hubs like Singapore or London tend to offer higher salaries.
Salary Growth with CFA Progression
While passing CFA Level 1 is an important milestone in your finance career, it’s just the beginning. As you progress through the CFA program and move toward becoming a CFA charterholder, your earning potential significantly increases.
Let’s explore how salaries typically grow as you move through the three levels of the CFA program:
CFA Level 1: Establishing a Foundation
- Passing CFA Level 1 helps secure entry-level roles like financial analyst, research analyst, or junior trader.
- While starting salaries range from $50,000 to $80,000 in major markets (e.g., New York, London) and $20,000 to $45,000 in regions like India or South Africa, these roles provide invaluable experience.
Key to Growth:
Focus on gaining practical experience, networking, and preparing for CFA Levels 2 and 3 to move up to more senior positions.
CFA Level 2: Mid-Level Career Growth
- Passing CFA Level 2 signals advanced knowledge in financial analysis and valuation, making you eligible for mid-level roles like senior financial analyst or portfolio manager.
- Salaries increase to $75,000 to $120,000 in major markets and $40,000 to $70,000 in emerging markets.
Key to Growth:
Aim for higher roles in investment analysis and portfolio management while focusing on leadership and decision-making skills.
To know more in detail about CFA level 2 as a course, read- All About CFA Level 2
CFA Level 3: Senior and Leadership Roles
- Passing CFA Level 3 qualifies you for senior roles like portfolio manager, CFO, or hedge fund manager, with salaries ranging from $120,000 to $250,000 in top markets and $80,000 to $150,000 in emerging markets.
- Lucrative bonuses and profit-sharing can significantly increase compensation.
Key to Growth:
Build a strong network, develop leadership skills, and stay updated on market trends to maximize salary potential.
The graph above illustrates the salary growth across different CFA levels, showing a steady increase in average salary from CFA Level 1 to CFA Level 3.
To understand more in detail about CFA level 3 as a course, read- All About CFA Level 3
Long-Term Salary Growth and Career Prospects
- As a CFA charterholder, long-term career benefits include potential for executive roles like CIO or CFO and positions in private equity or hedge funds, with compensation exceeding $500,000 annually.
- Regions like Singapore, UAE, and Switzerland offer particularly high salaries.
Additional Earnings Potential:
Many CFA charterholders expand into consulting, teaching, or advisory roles, further enhancing income and career prospects.rowth opportunities.
Industries That Pay Well for CFA Level 1 Holders
As a CFA Level 1 holder, you have the foundational skills and knowledge to enter a wide range of industries in the finance sector. While salaries can vary based on location, role, and the size of the organization, certain industries tend to offer higher compensation packages and better growth opportunities.
Investment Banking
Investment banking is prestigious and high-paying for CFA Level 1 holders, with roles like investment banking analyst involving financial modeling, M&A, and capital raising.
To understand more about Investment Banking as a course, read- All About Investment Banking
Why It Pays Well:
High revenue from deals like IPOs and LBOs drives competitive salaries and bonuses.
Salary Range:
$70,000 – $100,000 in major hubs like New York, London, and Hong Kong.
To understand more in detail about the Salary perspective of Investment Banking, read- Investment Banker Salaries
Asset Management
Asset management firms oversee client portfolios and mutual funds, offering roles such as junior portfolio manager and financial analyst.
Why It Pays Well:
Firms earn management fees and bonuses as assets under management (AUM) grow, with strong career growth potential.
Salary Range:
$55,000 – $85,000, with higher salaries in cities like Switzerland, London, and Singapore.
Hedge Funds
Hedge funds offer high earning potential, with roles like research analyst and junior trader. The focus is on complex, high-risk investment strategies.
Why It Pays Well:
Compensation is driven by management fees and performance-based incentives.
Salary Range:
$65,000 – $90,000, with significant bonuses linked to fund performance.
Private Equity
Private equity firms invest in private companies, with roles for CFA Level 1 holders as analysts supporting investment evaluations and due diligence.
Why It Pays Well:
High returns from company acquisitions and sales lead to generous salaries and profit-sharing.
Salary Range:
$70,000 – $90,000, with performance-based bonuses.
Consulting Firms (Financial Advisory)
Consulting firms like McKinsey and Deloitte offer advisory services on corporate strategy and M&A.
Why It Pays Well:
High revenues from large projects lead to competitive salaries and bonuses.
Salary Range:
$60,000 – $85,000, depending on project complexity and firm size.
Government and Regulatory Agencies
Roles in government agencies and regulatory bodies offer competitive salaries and job security, with positions like regulatory analyst and economic analyst.
Why It Pays Well:
Benefits like pension plans and healthcare, plus valuable insights into macroeconomic policy and financial regulation.
Salary Range:
$45,000 – $70,000, with excellent benefits compensating for lower bonuses.
Making an Informed Decision: Choosing the Best Country for CFA Level 1 Professionals
When considering relocating or selecting the best region for your career as a CFA Level 1 professional, understanding the real value of salaries across countries is crucial. Here’s how we’ve ranked the countries based on adjusted average salaries:
Process
- Average Salary of CFA Level 1 in Each Country: We calculated the midpoint of the salary range for CFA Level 1 holders in each country.
- Conversion to USD: Salaries were converted to USD using current exchange rates for an easier global comparison.
- PPP Adjustment: To ensure that salaries reflect the actual cost of living, we used the Purchasing Power Parity (PPP) factor for each country (as per World Bank statistics) to calculate the adjusted salary.
Ranking Based on Adjusted Average Salary
- Dubai: $129,268
- Qatar: $92,803
- Switzerland: $85,000
- South Africa: $76,819
- Singapore: $73,034
- Hong Kong: $71,815
- Germany: $80,000
- Canada: $73,529
- United Kingdom: $73,529
- United States: $77,500
- India: $40,179
Beyond Salary – Other Considerations for CFA Level 1 Professionals
While salary is a key factor when choosing the best country for your CFA Level 1 career, other aspects can significantly affect your overall experience and job satisfaction. Here are some important considerations beyond salary:
- Cultural Fit: The local culture plays a major role in your quality of life and work satisfaction. Understanding and adapting to cultural norms can help ease your transition and improve your professional and social interactions.
- Language: Language barriers can impact both your professional and social life. It’s important to assess your comfort with the local language or the prevalence of English in the workplace.
- Work-Life Balance: Work hours and vacation policies vary across countries. Researching the work-life balance in your target country can help you evaluate whether the local work culture aligns with your personal and professional needs.
- Career Growth: Consider the long-term career opportunities in the country, including the prospects for professional development and growth in your chosen finance sector.
- Personal Preferences: Factors like climate, lifestyle, and proximity to family and friends can play a huge role in your overall happiness. Choose a location that fits your personal preferences and lifestyle choices.
- Legal and Immigration Policies: Research the work permit or residency requirements of each country. Understanding the legal and immigration policies can ease your transition and ensure you can work in your desired location.
Conclusion
Passing CFA Level 1 is a critical first step in your finance career, but maximizing your salary potential requires strategic planning and proactive steps. By negotiating confidently, targeting high-paying industries, building practical experience, and acquiring additional skills or certifications, you can significantly increase your earning power.
Networking and progressing through CFA Levels 2 and 3 further unlock higher-paying roles and leadership opportunities. With the right combination of education, experience, and career development, you can set yourself on the path to a successful and rewarding career in finance.
By following these strategies, CFA Level 1 holders can navigate the competitive finance industry and achieve long-term financial success.
Frequently Asked Questions
The average salary for a CFA Level 1 holder ranges from $50,000 to $80,000, depending on location, industry, and job role.
High-paying industries include investment banking, hedge funds, private equity, and asset management, where compensation can be significantly higher than other sectors.
You can increase your salary by negotiating, targeting high-paying industries, gaining practical experience, pursuing additional certifications, and networking.
While passing CFA Level 1 opens doors, completing CFA Levels 2 and 3 is often necessary for securing senior roles and significantly higher salaries.
Yes, internships provide valuable practical experience that can enhance your resume and lead to higher-paying job opportunities.
