Confused between CFA vs FRM? Let’s clear up your confusion. Many certification courses are continued by finance students along with their conventional course of studies. Out of all, Chartered Financial Analyst (CFA) and Financial Risk Manager (FRM) are among the most sought-after certifications. Deciding between CFA or FRM can be challenging, as both CFA and FRM are highly respected in the finance industry, for offering deep knowledge and expertise in their respective areas.
CFA focuses on investment management and financial analysis, and the FRM specializes in risk management, making them complementary certifications. Choosing between CFA and FRM completely depends on your career goals, but pursuing either can significantly enhance your skills and employability in the financial sector.
Table of Contents:
- CFA vs FRM: Course Details And Future Scope
- CFA vs FRM Career Benefits and Compensation
- CFA vs FRM Difficulty?
- Is FRM Worth It After CFA?
- CFA vs FRM: Salary Differences in India
- CFA Salary in India
- FRM Salary in India
- CFA vs FRM: Course Fees
- CFA Course Fee
- FRM Course Fee
- CFA or FRM Which is Better?
- Conclusion
- Frequently Asked Questions
CFA vs FRM: Course Details And Future Scope
To decide between CFA vs FRM, it is important to understand the key differences including the course structure, key topics covered in the course curriculum, career paths, and salaries that each certification offers. Whether you’re considering CFA or FRM, below, we break down the details of each certification including CFA course duration, structure, exams, salary etc. vs FRM course duration, structure, exams, salary etc. to help you make an informed decision that suits your career aspirations.
CFA vs FRM | ||
Aspect | Chartered Financial Analyst (CFA) | Financial Risk Manager (FRM) |
Course Structure | Three levels: Level I (Knowledge and Tools) Level II (Application) and Level III (Portfolio Management) | Two parts: Part I (Foundations of Risk Mgt.) Part II (Market, Credit, and Operational Risk) |
Exam Frequency | Level I in February, May, August, and November; Levels II in May, August and November and Level III in May, and August | Exams are held twice a year, in May and November |
Duration | Typically 2-4 years | Typically 1-2 years |
Study Time Required | Approx. 300 hours per level | Approx. 200-300 hours per part |
Key Topics Covered | Investment Analysis, Portfolio Management, Ethics, Economics, Quantitative Methods | Risk Management, Quantitative Analysis, Financial Markets, Regulations |
Certification Focus | Investment Management, Financial Analysis | Risk Management, Financial Risk Assessment |
Career Opportunities | Investment Analyst Portfolio Manager, Research Analyst, Financial Advisor | Risk Manager, Credit Risk Analyst, Market Risk Analyst, Operational Risk Analyst |
Industry Demand | High in investment management, equity research, and portfolio management | High in financial institutions, corporate finance, and consulting firms |
Average Salary | Generally higher, with senior roles such as Portfolio Managers or Analysts commanding higher salaries | Competitive, with salaries growing with experience in risk management roles |
Without any doubt, both the certifications CFA and FRM open doors to rewarding careers in finance, but professional goals and industries vary. It is worth noticing that CFA course duration is double than the FRM course duration in turn affecting the FRM course fee, comparatively less but demanding almost same study time in terms of devoting hours of study.
CFA vs FRM Career Benefits and Compensation
CFA certification focuses on investment, financial analysis, work ethics, professionalism, asset evaluation, and portfolio management, while FRM certification focuses on risk management of factors associated with assets and businesses, such as credit risk, volatility, foreign exchange, liquidation, inflation, and other financial challenges.
CFA opens doors to traditional finance roles like investment management, research, and asset management. While both CFA and FRM certifications involve financial analysis, there are significant differences in the job roles offered to the professionals and their respective salary packages.
| CFA vs FRM Salary | ||
| Certification | Job Role | Estimated Salary Range (Annual) |
CFA | Investment Analyst | $70,000 – $100,000 |
Portfolio Manager | $90,000 – $150,000+ | |
Equity Research Analyst | $80,000 – $120,000 | |
Financial Advisor | $60,000 – $110,000 | |
Corporate Financial Analyst | $70,000 – $110,000 | |
| Chief Investment Officer (CIO) | $200,000+ | |
FRM | Risk Manager | $80,000 – $120,000 |
Credit Risk Analyst | $70,000 – $100,000 | |
| Market Risk Analyst | $80,000 – $130,000 | |
| Operational Risk Manager | $90,000 – $140,000 | |
Chief Risk Officer (CRO) | $150,000+ | |
| Regulatory Risk Consultant | $85,000 – $130,000 | |
The demand for both professionals has increased post-pandemic, with companies needing investment experts and FRM managers to ensure their finances are safe and secure.
CFA vs FRM Difficulty?
Students who have experience in both CFA and FRM certifications generally find FRM more challenging due to its application-based questions and minimal theory.
CFA or FRM can be easier depending on your background; CFA is easier for investment-based students due to its focus on investment and market fundamentals, while FRM is easier for quantitative students due to its foundation-level statistical and mathematical topics.
CFA just has a longer course structure and takes a longer preparation time. The most common reason candidates say that FRM is more difficult is due to the use of advanced mathematics which is not required in CFA.
Therefore, if you excel in mathematics and are interested in a future related to it, FRM is a better choice, otherwise, go for CFA certification.
Is FRM Worth It After CFA?
Yes, it is definitely worth earning both certifications, but instead of trying to do them simultaneously, you can do one at a time. Doing one at a time can help you understand the material in each course. It will consume your time and effort to get both certifications but it will not only increase your available job opportunities but also your earning potential.
Doing FRM after CFA makes you more qualified for senior management and executive roles. Get both if you want to demonstrate your commitment to and interest in every facet of finance. Moreover, after obtaining either certification, remember to update your resume or inform your management of your new qualifications.
CFA vs FRM: Salary Differences in India
The differences in salaries vary based on factors such as location, company size, individual performance, and economic conditions.
CFA vs FRM Salary | ||
| Experience Level | CFA Salary (INR per annum) | FRM Salary (INR per annum) |
Entry-level (0-2 years) | 7 lakh – 12 lakh | 6 lakh – 9 lakh |
Mid-level (3-7 years) | 13 lakh – 25 lakh | 10 lakh – 15 lakh |
Senior-level (8+ years) | 26 lakh – 50 lakh+ | 20 lakh – 30 lakh+ |
*Note: These figures should be considered as general ranges rather than exact values.
CFA Salary in India
The CFA salary in India vary by industry, with investment banking, asset management, credit rating agencies, private equity and venture capital, and consultancy firms offering higher salaries.
The average CFA salary in India ranges from ₹10 lakh to ₹30 lakh per annum. As the Entry-level salaries range from ₹7 lakh to ₹12 lakh, while mid-level CFA salary in India range from ₹13 lakh to ₹25 lakh and Senior-level salaries range from ₹26 lakh to ₹50 lakh+ per annum.
Multinational companies and smaller firms often offer higher salaries, while smaller firms or startups may provide other benefits like equity, faster growth trajectories, and hands-on experience, understanding the average CFA salary in India can help you gauge your earning potential across different types of employers.
FRM Salary in India
The FRM salary in India varies depending on the organization one works for, however it often falls between ₹9 lakhs and ₹11.5 lakhs. However, as it would add to their expertise, FRM graduates can work to raise their compensation by accepting internships in reputable businesses.
The FRM salary in India changes with years of experience, and companies typically consider compensation rates and the number of relevant applicants before determining a person’s wage.
CFA vs FRM: Course Fees
Let us see how much it costs to possess each certification.
Program | Enrollment Fee | Exam Fee (Early) | Estimated Total Cost |
| CFA Course Fee | $350 | $900 | $3,150 – $5,000 |
| FRM Course Fee | $400 | $600 | $1,600 – $2,000 |
CFA Course Fee
The fees charged by the CFA Institute are based on the timing of your registration and the level of the exam:
The one-time enrollment fee is $350, which is paid when you register for the Level I exam and the registration fee for each level is either $900 or $1,200 depending on the registration time.
Therefore, the total estimated CFA course fee ranges from $3,150 to $5,000, including study materials. This amount can vary based on your registration timing and any additional study aids you choose to purchase. If you decide to enroll in a CFA tutoring institute, additional fees will apply. For those seeking CFA coaching in Delhi, edZeb offers expert guidance to help you excel in these areas and achieve your certification goals.
*Note: The CFA program has three levels, so the total exam fees depend on whether you register early or late for each level.
FRM Course Fee
The GARP charges fees for the FRM exam $400 as the one-time enrollment fee which is paid when you register for Part I. The exam fee for early registration of the FRM exam per part will either cost $600 or $800 depending on the timing of your registration and the level of the exam.
Therefore, the total estimated FRM course fee ranges from $1,600 – $2,000 (including study materials, depending on registration timing and additional study aids you might purchase). If you decide to enroll in a FRM coaching institute, additional fees will apply.
*Note: The FRM program has two parts, so the total exam fees depend on whether you register early or standard.
CFA or FRM Which is Better?
Although they address distinct subjects both CFA or FRM credentials are widely regarded in the banking business. FRM focuses on risk management, whereas CFA is more concerned with investment management and financial analysis. Your decision should be in line with your particular professional goals and your area of passion.
Conclusion
CFA vs FRM certifications offer unique and valuable opportunities in the finance industry, each catering to different career paths and skill sets. While CFA is ideal for those looking to excel in investment management and financial analysis, FRM is perfect for professionals interested in mastering risk management. So, your choice between the two should align with your long-term career goals and areas of interest. Even if you pursue one or both certifications, they will undoubtedly enhance your expertise, increase your employability, and open doors to rewarding roles in the ever-evolving financial sector.
FAQs
Which is harder, the CFA or FRM?
CFA is easier for investment-based students, focusing on investment and market fundamentals, while FRM course is easier for quantitative students, focusing on statistical and mathematical topics. Therefore, the level of CFA vs FRM difficulty depends upon personal choice of candidates.
Can FRM be done after the 12th?
Although it is not possible to become a certified FRM immediately after passing 12th grade, it is possible to begin preparing for it.
Is FRM worth it in India?
The FRM course is a specialized risk management course offered by the Global Association of Risk Professionals (GARP). It is a highly sought-after certification in the finance world, with a positive scope in India.
