CFA Vs FRM – Which one is best course to be investment professional
The difference between CFA and FRM is the subjects they cover. CFA covers a broad range of subjects in finance like corporate finance, portfolio management, accounting, fixed income, derivatives, etc. But FRM focuses more on Financial Risk management.
At the same time, FRM is a specialized exam for obtaining certification in risk management. But CFA prepares you well for careers in Investment Banking, portfolio management, and financial research.
At the same time, FRM is best suited for those who want to make a career in risk management in banks, treasury departments, or risk assessments.
If you have to choose between the two – CFA or FRM, which one will you take?
Which one to choose CFA or FRM or both?
CFA Focuses more on Investment analysis, strategy and reporting. But in the case of FRM, they focus more on Risk management and Modelling.
These are the most frequently asked questions by aspirants who want to pursue their careers in investment banking. So we like to list down the important points for the students to consider before deciding.
CFA vs FRM – Comparative Table
| Section | CFA | FRM |
| Organizing Body | The CFA Institute (USA) is the organizing body for the CFA exams. | The Global Association of Risk Professionals (USA) is the organizing body for the FRM exams. |
| Pattern | The candidates need to undergo three sequential exams to complete Level I, Level II & Level III courses. | The candidates must undergo two sequential exams to complete Part I & Part II. |
| Duration of Course | On average, the candidates may take 3-4 years to complete the course. | The candidates must clear the Part II exam within four years of passing the Part I exam. |
| Syllabus | The syllabus primarily covers the following topics: – Economics Ethics & Professional Standards Corporate Finance Portfolio Management Equity & Alternative Investment Quantitative Methods Fixed Income & Derivatives Financial Reporting & Analysis | The syllabus focuses on the following topics: – Quantitative Analysis Risk Models Financial Markets & Products Valuation Credit Risk, Market Risk & Operational Risk Investment Management Treasury & Liquidity Risk Management |
| Exam Fees | The overall cost includes exam fees that vary in the range of $700-$1,000 based on the time of registration and the one-time registration fee of $450. The overall cost of the course falls in the range of $2,550 to $3,450 if the student can clear all the exams on the 1st attempt. | The overall cost of the course includes the enrollment fee and the exam fees, which may vary based on the time of registration. The overall cost falls between $1,175 and $1,775 if the student can clear all the exams on the 1st attempt. |
| Jobs | Some of the common profiles include: – Strategic Analyst Wealth Manager Portfolio Manager Investment Analyst Financial Consultant | Some of the common profiles include: – Risk Manager Investment Banker Risk Analyst Financial Risk Consultant |
| Difficulty | The qualification exam for CFA is one of the toughest exams. The Average pass rates for the exams conducted in June 2019 were: Level I: 41% Level II: 44% Level III: 56%[Source: CFA Institute] | The qualification exam for FRM is very difficult. The pass rates for the exams conducted in 2019 were: – Part I: 45.9% Part II: 58.6% [Source: GARP] |
| Exam Date | The schedule of the upcoming exams for the year 2022 is as follows: – Level I: Feb May , Aug & Nov Level II: Feb , Aug , Sep & Nov Level III: May & Aug – Sep | The schedule of the upcoming exams for the year 2022 is as follows: Part I: May & Nov Part II: May & Nov |
If you are interested in clearing CFA and FRM exams, you can contact Nesto Institute, a premier CFA and FRM Coaching Center in Chennai that helps students crack these exams.