Are you confused between FRM vs CFA? You’re not by yourself. This problem affects thousands of aspiring finance students each year. Both certifications are esteemed, provide access to the world, and require a significant amount of work. However, the best option for you will depend on your study habits, financial situation, and career objectives.
We compare CFA vs FRM in-depth in this guide, including salary, curriculum, exam format, level of difficulty, and even India and worldwide prospects. By the time it’s all over, you’ll know exactly which career path—FRM, CFA, or even both—best suits your goals.
Overview of CFA vs FRM
What is CFA
The Chartered Financial Analyst (CFA) is a globally recognized certification awarded by the CFA Institute. It covers a broad range of finance topics, including investment banking, portfolio management, equity research, and corporate finance. CFA professionals analyze client performance, build investment strategies, and manage portfolios. To earn the title, candidates must clear three exam levels and complete 3–4 years of relevant work experience.
What is FRM
GARP offers a specialized risk management certification called the Financial Risk Manager (FRM). In addition to detecting and mitigating risks, FRM specialists develop and validate risk models. Obtaining the credential requires passing two tests and having two years of relevant experience. It’s highly valued in the banking, consulting, insurance, and regulatory sectors.
CFA vs FRM: Key Differences
A comparative overview of the main distinctions between the CFA and FRM certifications across exam structure, focus, career paths, and other key factors.
| Comparison Factor | CFA | FRM |
|---|---|---|
| Exam Structure | 3 Levels | 2 Parts |
| Total Duration | 18–24 months | 12–18 months |
| Study Hours Required | 900+ hours total | 400–500 hours total |
| Exam Frequency | 2–3 times per year | 2 times per year |
| Primary Focus | Investment Analysis & Portfolio Management | Risk Management & Mitigation |
| Career Industries | Asset Management, Investment Banking, Equity Research | Banking, Risk Advisory, Credit Analysis |
| Global Recognition | Extremely High | High (growing rapidly) |
| Average Pass Rate | 35–40% overall | 45–50% overall |
| Total Cost | $2,850 – $4,150 | $1,200 – $2,300 |
| Work Experience Required | 4 years (post-completion) | 2 years (any time) |
CFA vs FRM Fees
| Criteria | CFA | FRM |
|---|---|---|
| Enrollment Fees | Around ₹37,000 ($450) | Around ₹33,000 ($400) |
| Exam Registration | Early: ~₹58,000 ($700) Standard: ~₹83,000 ($1,000) Late: ~₹1.20 lakh ($1,450) |
Early: ~₹54,000 ($650) Standard: ~₹70,000 ($850) |
| Study Materials | ₹25,000 – ₹1.2 lakh (depending on provider) | ₹20,000 – ₹60,000 (depending on provider) |
| Total Cost (All Levels/Parts) | Around ₹2–4 lakh (excluding study materials) | Around ₹1–1.5 lakh (excluding study materials) |
| Returns on Investment | High potential in asset management, equity research, investment banking, and wealth management, with salaries ranging from ₹6–40+ LPA |
Strong demand in risk management, credit analysis, and banking, with salaries ranging from ₹7–35 LPA |
CFA vs FRM: Exam Structure
Both CFA and FRM have rigorous exam structures, but they differ in levels, format, and focus. Here’s a simplified comparison:
| Aspect | CFA Exam Structure | FRM Exam Structure |
|---|---|---|
| Exam Levels/Parts | 3 Levels → Level I, II, III | 2 Parts → Part I and Part II |
| Format & Questions | • Level I → Multiple-choice • Level II → Item-set (case + MCQs) • Level III → Essays + Item-set |
• Part I → 100 MCQs (concepts, basics) • Part II → 80 MCQs (application, case-based) |
| Grading System | Passing score not disclosed (graded on a curve) | Passing score not disclosed (benchmark set relative to top-performing candidates) |
| Re-exam Policy | Can retake if failed | Can retake if failed |
| Pass Rates (Approx.) | • Level I → 40–45% • Level II → 45% • Level III → 50–55% |
• Part I → 40–50% • Part II → 50–60% |
| Completion Time | 3–4 years (on average) | 1.5–2 years (on average) |
CFA vs FRM: Difficulty
Both CFA and FRM are challenging, but their difficulty lies in different areas—CFA in breadth and commitment, FRM in depth and quantitative focus.
Pass Rate Comparison
- CFA:
- Overall completion rate is just 20–25%, as candidates must clear all three levels.
- Level I acts as the toughest filter with the lowest pass rates.
- Level III has slightly higher success rates but adds complexity with essay-style questions.
- FRM:
- Completion rate is higher at 35–40%.
- Part I tests core risk concepts and is more theoretical.
- Part II emphasizes practical, real-world application of risk management tools.
- Study Hours Required
- CFA: Around 1,000+ hours total (300–400 hours per level).
- FRM: Around 400–500 hours total (200–250 hours per part).
- Learning Style Suitability
- CFA Best Suited For:
- Broad analytical thinkers who prefer covering all areas of finance.
- Candidates comfortable with memorization and theory-heavy content.
- Professionals with strong writing skills (important at Level III).
- Those ready for a long-term 3–4 year commitment.
- FRM Best Suited For:
- Individuals strong in quantitative and mathematical problem-solving.
- Candidates who enjoy practical, application-driven learning.
- Professionals seeking a faster 1.5–2 year certification path.
- CFA Best Suited For:
CFA vs FRM Career Opportunities
| Career Opportunity Area | CFA Career Paths | FRM Career Opportunities |
|---|---|---|
| Investment Banking / Risk | Mergers & acquisitions, corporate finance, capital markets; strong financial analysis skills | Chief Risk Officers, risk analysts, risk managers; implement risk frameworks |
| Asset & Portfolio Management | Portfolio managers, research analysts, fund managers; optimize investment returns | Treasury & risk advisory; corporate treasurers and risk consultants managing financial risks |
| Equity & Credit Research | Equity research analysts evaluating companies, industries, market trends; investment recommendations | Credit risk managers and loan officers assessing creditworthiness and minimizing default risk |
| Wealth Management / Banking Services | Private wealth managers and advisors building trust with high-net-worth individuals | Regulatory compliance officers, operational risk managers, and financial controllers in banking sector |
CFA vs FRM Salary Comparison (Global & India)
| Career Level | CFA Salary (per annum) | FRM Salary (per annum) |
|---|---|---|
| Entry-level | ₹6–10 lakhs | ₹7–12 lakhs |
| Mid-level (3–7 years) | ₹15–25 lakhs | ₹15–22 lakhs |
| Senior-level (8+ years) | ₹30–50 lakhs | ₹25–40 lakhs |
| C-suite / Chief Risk Officer | ₹1+ crore | ₹80 lakhs – 1.5 crore |
| Country | CFA Average Annual Salary | FRM Average Annual Salary |
|---|---|---|
| United States | $95,000 – $200,000+ | $85,000 – $180,000+ |
| United Kingdom | £60,000 – £150,000+ | £55,000 – £130,000+ |
| Singapore | S$80,000 – S$200,000+ | S$75,000 – S$170,000+ |
Industry-Specific Differences
Investment Banking: CFA holders typically earn 15-20% more than FRM holders Commercial Banking: FRM holders often match or exceed CFA salaries Asset Management: CFA commands premium salaries Risk Management: FRM holders lead in specialized risk roles
| CFA Employers | FRM Employers |
|---|---|
| Goldman Sachs | Citigroup |
| J.P. Morgan Chase | HSBC |
| Morgan Stanley | Wells Fargo |
| BlackRock | Credit Suisse |
| Deutsche Bank | Standard Chartered |
| HDFC Bank | SBI Bank |
| ICICI Bank | Kotak Mahindra Bank |
| Mirae Asset Management | KPMG Risk Advisory |
| Morningstar | EY Risk Services |
| PwC Consulting | Deloitte Risk & Financial Advisory |
CFA vs FRM in India vs Abroad
- India: CFA is more recognized among recruiters, especially in investment roles. FRM demand is rising fast in banking and compliance.
- Abroad: FRM holds an edge in global financial hubs for risk-focused jobs. CFA dominates in asset management and consulting.
| CFA Global Scope | FRM International Demand |
|---|---|
| Wall Street investment firms | European banking regulations |
| London asset managers | Basel III compliance requirements |
| Singapore wealth management | Asian risk management growth |
| Dubai financial centers | Middle East financial expansion |
| Hong Kong equity research | North American risk advisory |
Skill Set Requirements
| For CFA Professionals | For FRM Professionals |
|---|---|
| Strong analytical skills to interpret financial data and guide investment decisions. | High proficiency in quantitative analysis and financial modeling to assess risk variables. |
| Commitment to ethical standards, as integrity is the foundation of financial credibility. | Ability to evaluate and manage risks across market, credit, and operational domains. |
| Solid understanding of quantitative methods for analyzing financial models and evaluating risks. | Familiarity with risk measurement tools such as Value at Risk (VaR), scenario analysis, and stress testing. |
| In-depth knowledge of investment strategies, asset classes, and global markets. | Clear understanding of complex financial instruments and the risks they carry. |
| Expertise in portfolio design, optimization, and management to meet client objectives. | Specialized knowledge in enterprise-wide risk frameworks and regulatory compliance. |
Why Pursue Both?
- Comprehensive Expertise – Earning both credentials makes you proficient in investments and risk. You not only know how to generate returns but also how to safeguard them, a rare skill set that often commands higher packages.
- Career Mobility – With CFA and FRM, you can shift between asset management, banking, and risk advisory depending on market demand and personal interest.
- Leadership Advantage – Senior leaders in finance need both perspectives—growth and risk control. Holding both certifications signals readiness for C-suite opportunities.
- Both Together – Fast-tracks your journey in about 2–2.5 years. Overlapping content reduces study load, but it demands excellent time management. Ideal for ambitious professionals who want maximum career flexibility early on.
When is the Best Time?
- Early Career (0–3 years): Start with one, then add the second once you’ve gained some workplace context.
- Mid-Career (4–8 years): Dual certification boosts promotions, credibility, and salary negotiations.
- Senior Level (8+ years): Having both CFA and FRM strengthens candidature for executive, leadership, or consulting roles.
Which is Better: CFA or FRM?
There’s no one-size-fits-all answer. The right choice depends on your career goals, learning style, and timing. Here’s a decision framework to guide you:
| Go for CFA if you: | Go for FRM if you: |
|---|---|
|
|
| India | Global Market Trends |
|---|---|
|
|
| Career Stage | Best Choice & Rationale |
|---|---|
| Fresh Graduates | Either CFA or FRM can launch your finance career. Choose CFA if you lean toward investments, FRM if you lean toward risk/banking. |
| Career Switchers | FRM provides a faster entry into finance, while CFA offers a broader foundation to pivot into multiple areas. |
| Experienced Finance Professionals | Pick the certification that complements your current skill set—CFA adds investment depth, FRM strengthens risk expertise. |
| Career Stage | Best Choice & Rationale |
|---|---|
| Fresh Graduates | Either CFA or FRM can launch your finance career. Choose CFA if you lean toward investments, FRM if you lean toward risk/banking. |
| Career Switchers | FRM provides a faster entry into finance, while CFA offers a broader foundation to pivot into multiple areas. |
| Experienced Finance Professionals | Pick the certification that complements your current skill set—CFA adds investment depth, FRM strengthens risk expertise. |
| Focus Area | CFA | FRM |
|---|---|---|
| Investment Analysis | Comprehensive coverage | Basic to intermediate understanding |
| Corporate Finance | Detailed understanding | Peripheral coverage |
| Ethics | Deep dive into investment ethics | Focus on risk-related ethical scenarios |
| Risk Management | Basic to intermediate understanding | Extensive, specialized coverage |
| Quantitative Analysis | Essential tools for investment analysis | Advanced tools for risk measurement |
Conclusion
Deciding between CFA and FRM is less about which is “better” and more about where you see yourself in finance.
- CFA suits those aiming for investment roles, portfolio management, and a broad grasp of global markets.
- FRM fits professionals passionate about risk analysis, financial stability, and safeguarding institutions.
Both are globally respected and can transform your career. For some, combining both can unlock leadership opportunities by blending investment expertise with risk mastery.
Whichever path you choose, the journey itself—learning, networking, and professional growth—will shape you into a stronger finance professional.
FAQ’s
Which is better: CFA or FRM?
Better depends on career focus. CFA for investments, FRM for risk.
Can I do CFA and FRM together?
Yes. Many top professionals pursue both for broader scope.
Is CFA harder than FRM?
CFA is longer and breadth-heavy. FRM is shorter but more quantitative in risk.
What is the average CFA salary in India?
₹10–12 LPA at mid-level, rising to ₹40+ LPA at senior roles.
What is the FRM salary in the US?
$80,000–$100,000 on average
Can CFA professionals earn ₹1 crore per year?
Yes, at senior levels in investment banking or portfolio management.
Also Read
https://fintelligents.com/how-indian-cfa-and-frm-holders-are-shaping-global-banking-hubs/
https://fintelligents.com/cfa-coaching-classes-in-mumbai/?srsltid=AfmBOororeviy-raDc2YjW5VQ5EEqhk3H3x7dWSKtWqh6EeSEXaoo_Ys
https://fintelligents.com/what-is-frm-and-its-eligibility/?srsltid=AfmBOopCKCRPvD8RlS_wKQLC5v4EmkjA0Bjac33Z8Q9Pe3m9nqD58hh7
https://fintelligents.com/what-is-frm-course
https://fintelligents.com/how-india-is-becoming-a-global-hub-for-risk-finance-talent-the-rise-of-cfa-frm-scr-professionals/