Deciding between CFA vs FRM requires finance aspirants to have information on each of the qualifications to decide what to choose. No doubt, both offer equally rewarding careers with competitive salaries, but serve different purposes, so your choice completely depends on your career goals and personal interests.
In the following sections, let us compare both certifications based on eligibility, syllabus, exam structure, course duration, fees, difficulty level, career opportunities, salary in India, and future scope to help you make an informed decision.
Table of Contents:
CFA vs FRM Course Details
CFA vs FRM course details are important to understand the key differences each certification offers. So, the table below breaks down the details, including structure, exams, salary, etc., to help you decide what 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; Level 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 |
From the tabular chart, it is worth noticing the difference between CFA and FRM. Mainly, the CFA course duration is double that of the FRM course duration. In turn, affecting the FRM course fee, which is comparatively less but demanding almost the same study time in terms of devoting hours of study. Based on the topics covered in each qualification, you can decide what to proceed with further.
CFA vs FRM Career Scope and Salary
CFA is the gold standard credential chosen to build a career in investment banking, equity research, portfolio management, asset management, private equity, or wealth management.
On the other hand, FRM lets you build careers in financial risk management, credit risk, market risk, operational risk, treasury, or regulatory compliance. Without any doubt, both certifications open doors to a rewarding career in finance, but professional goals and industries vary. So, it is suggested to choose any of the CFA or FRM based on your preferences.
CFA vs FRM Scope | ||
|---|---|---|
| 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 |
| Top Recruiters | Goldman Sachs, JP Morgan, Morgan Stanley, BlackRock, Morningstar, KPMG, EY, and Deloitte | HSBC, Citi, Barclays, Deutsche Bank, Wells Fargo, CRISIL, Moody’s and PwC. |
The curriculum in the CFA certification covers investment, financial analysis, work ethics, professionalism, asset evaluation, and portfolio management, making it highly valuable in the job market. You can find jobs in investment management, research, and asset management, including many others across various industries. As a result, CFA salary in India is often higher compared to many other finance roles, reflecting the demand for such specialised skills.
On the other hand, 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. Therefore, both CFA and FRM certifications involve financial analysis, but there are significant differences in the job roles offered to the professionals and their respective salary packages, as the tabular chart below shows.
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 | |
According to the industry reports, the demand for both professionals has increased after the pandemic. The companies need investment experts and financial risk managers to ensure their finances are safe and secure. Moreover, the differences in salaries vary based on factors such as location, company size, individual performance, and economic conditions.
CFA vs FRM Salary Based on Experience | ||
| 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: The figures should be considered as general ranges rather than exact values.
CFA Salary in India
The CFA salary in India varies by industry, but you gain higher packages in investment banking, asset management, credit rating agencies, private equity and venture capital, and consultancy firms.
The average CFA salary in India ranges from ₹10 lakh to ₹30 lakh per annum, varying for freshers and experienced professionals. Freshers earn 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.
It is observed that multinational companies generally offer higher salaries, as compared to smaller firms or startups that may provide other benefits like equity, faster growth trajectories, and hands-on experience.
FRM Salary in India
The FRM salary in India varies depending on the organisation one works for, which ranges between ₹9 lakhs and ₹11.5 lakhs. However, students can work to add to their expertise resulting in raising their compensation by accepting internships in reputable businesses. This monetary compensation increases with additional years of experience.
CFA vs FRM Difficulty?
CFA vs FRM difficulty mainly lies in the curriculum and students generally find the latter one more challenging due to its application-based questions and minimal theory. The further differences may help you decide better for yourself:
- 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.
If you’re asking yourself Is CFA Difficult?, our video guide offers a clear breakdown of what to expect.
Is FRM Worth It After CFA?
Is CFA worth it? Is FRM worth pursuing after CFA? You always get an edge over others with a dual qualification in hand. So, Yes, it is definitely worth earning both certifications, but instead of trying to do them simultaneously, you can also do one at a time.
Focusing on one qualification at a time helps you understand concepts better. Therefore, gaining both qualifications will definitely consume your time and effort, but it will widen your career horizon and increase your earning potential.
Moreover, gaining FRM after CFA qualifies you for senior management and executive roles. Updating each certification to your resume informs your management of your new qualifications, your interest in the job and your potential of doing things better.
CFA vs FRM Skills Comparison Table | |
|---|---|
| CFA Skills | FRM Skills |
| Financial Statement Analysis | Financial Risk Management |
| Equity & Fixed Income Analysis | Market Risk Analysis |
| Portfolio Management | Credit Risk Assessment |
| Company Valuation | Operational Risk Management |
| Investment Research | Liquidity Risk Management |
| Asset Allocation | Basel Regulations & Compliance |
| Ethics & Professional Standards | Risk Governance |
| Wealth Management | Stress Testing & Scenario Analysis |
| Economics & Macroeconomic Analysis | Quantitative Risk Modelling |
| Client Advisory & Investment Strategy | Enterprise Risk Management |
CFA vs FRM: Course Fees
Both the CFA and FRM qualifications are highly demanded by the employers. If you want to proceed further, knowing the fee details will help you manage your budget. So, let us see how much it costs to gain each certification separately.
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.
For example, the CFA course fees include a one-time enrollment fee of $350. It is paid at the time of registration for the Level I exam, and the registration fee for each level is either $900 or $1,200, depending on how early you register.
Therefore, the total estimated CFA course fee ranges from $3,150 to $5,000, including study materials. It is worth noticing that 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?
Stating CFA or FRM, which is better, is a challenging job but the one that suits your career goals and aspirations will be the best for you. Although they address distinct subjects, both CFA or FRM credentials are widely regarded in the industry.
CFA is more concerned with investment management and financial analysis, whereas FRM focuses on risk management. So, make a wise decision considering the aspects that align with your particular professional goals and your area of passion.
Conclusion
Both the 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.
