I think the big thing to consider is do you fit into big organisations. CFA, MBA is for people following that path. If you don't get I Bank politics then it won't make that much difference whether you have it or not a few years in. CFA at least appears on you business card and is respected by the buy side allocators so if you are a maverick who might one day be running a fund it is a better deal maybe than MBA, but many fail to understand that your pedigree is a big help in raising funds as are connections. Most funds seem to be raised by people with client contact backgrounds at tier 1 I banks with as much thought given to filling a niche or requirement via market positioning (as in marketing) as to performance. Generating performance from the spare room is more likely to endear you to HNWI individuals than institutions. To answer the original question, it may help, but it won't get you that big interview of it's own, it's basically just a license to practice now, although it does demonstrate genuine committment to your chosen career pathway.
What, ultimately, do you want to do? Trade like a daytrader, or manage a fund at a long-only house or hedge fund? If you want to work as a fund manager or buy-side analyst, a CFA is very useful to have. For a sell-side analyst I don't think it adds much, if anything - good analysts are good analysts irrespective of whether they have a CFA or not. Most sell-side analysts that have taken the CFA do so as insurance, as it eases the transition to the buy-side if they decide to move over. Many US buy-side shops, who tend to be keen on bits of paper, want either a CFA or an MBA and a CFA is far more relevant for fund management. However, if you are a trader who uses his own systems to make money, then a CFA is an ornament with very little practical use. A CFA gives the candidate a thorough grounding in modern finance, so it guarantees to a prospective employer that you are not ignorant. It does absolutely nothing to persuade your prospective employer that you can make money trading. Remember, this is three years (Levels 1, 2 and 3) of hard work that will take time away from your professional and social life, family or hobbies. I know many people who have taken it and they are all bright people who were already earning lots of money. Many of them fail one or other of the levels first time round. It is designed not to be easy. Suss
Churn4Fun, I have completed all three levels of the CFA program, and I'm getting the designation next month. I also work at a pretty successful proprietary trading firm (not your average "prop" shop, mind you). I can tell you for a fact that the best credential for actual trading is a degree in computer science, computer engineering, financial engineering, or perhaps physics. I'm currently working on a degree in computer science, taking my own advice. While I wish I had done this a few years ago instead of the CFA, I can say that the designation helped me get hired, simply because it proved that I'm fairly smart and willing to work hard. However, none of what I learned to get the designation is of any practical use to me on the job.
So far I have yet to see CAIA specified by any big name fund or I bank. That may change, but it appears not to be recognised yet to the extent that the CFA/MBA is.
CFA can help connect you to institutions if you don't already have those connections. My local CFA society is constantly holding events and it's very easy to meet others who work at local firms...you also get access to local job adverts that you might not see if you were trolling monster. Would only help your trading from a longer term position perspective...
If you want to manage other peoples money forget the CFA and get CPA (Certified Public Accountant). Why? Because it eliminates the cowboy trader image and its a different way to sell yourself to potential clients or employers. They respect you and see honesty. I did it and worked for Citigroup's prop division in Sydney. Me and my mates at work have looked at the study books for CFA and all came to the same conclusion: 3-4 years of hard work and less time to get laid. Get on with making money because life goes quick.
CAIA is for alternative investments so when you talk to internal hedge fund groups at I-banks, Fund of Funds and overall Alternative Investments departments they will know about CAIA, average joe shmo in operations and HR is more likely to know about the CFA for sure since they have been around for much longer. "Founded in 2002, the CAIA Association began offering exams in February 2003 and has since logged more than 4000 exam registrations for candidates from over 50 different countries, representing more than 700 institutions. " AIG Fonds de Compensation AVS Abu Dhabi Investment Authority Lehman Brothers Allianz Dresdner Asset Management LGT Capital Management Arrow Hedge Partners Lombard Odier Darier Hentsch & Cie Bank of America Louisiana State Employees' Retirement System Barclays Lux SVB Blumont Capital Man Investments BNP Paribas McMillan Binch LLP Bridgewater Merrill Lynch Calyon Morgan Stanley Campbell & Co. National Bank of Dubai Cargill Investor Services New England Pension Consultants Citco Fund Services Northwater Capital Citigroup Pacific Alternative Asset Management Co. Commonfund Pequot Capital Management CSFB PricewaterhouseCoopers DBS Asset Management RMB Asset Management Deutsche Bank RMF Investment Management Efficient Capital Management Royal Bank of Canada Ernst & Young Russell Investment Group Fimat Rydex Capital Partners GAM Schroders Hermes Pensions Management Ltd. Search Investment Group GFIA pte. Securities and Exchange Commission GLG Partners Societe Generale GlobeOp Financial Services SSARIS Advisors Goldman Sachs Sumitomo Life Government of Singapore Investment Company Sun Life Handelsbanken Swiss National Bank Harcourt Partners Temasek Holdings Hatteras Investment Partners The Rockefeller Foundation HSBC UBS ING Unigestion Ivy Asset Management Van Hedge Fund Advisors John W. Henry & Co. Vontobel Asset Management JP Morgan World Bank The true value gained from having CAIA over CFA can easily be seen by going to networking meetings for both organizations. CFA might help you get a job as a crunching numbers Analyst, but if you know what you are doing already and looking to make good connections CAIA is better hands down.
Wow, according to what I just read on Investopedia, only 34% of level one test takers in June '05 passed the test. I knew it was hard, but that's lower than most bar exam results. http://www.investopedia.com/professionals/FAQs/CFA/cfaarchive.asp