The CFA and the FRM share a lot of material: statistics, fixed income, derivatives and portfolio theory all appear in both. The difference is the destination. The CFA prepares you to analyse and choose investments; the FRM prepares you to measure and control the risks in them.
CFA vs FRM side by side
| CFA | FRM | |
|---|---|---|
| Awarding body | CFA Institute | GARP |
| Exams | 3 levels | 2 parts |
| Official fees | $3,520–$4,570 | $1,600–$2,000 including enrolment |
| Study time | About 300 hours per level, ~900 total | About 240 hours per part, ~480 total |
| Exam windows | Level I four times a year; II three; III two | May, August, November |
| Recent pass rates | About 40–50% per level | About 47–58% per part |
| Experience | 4,000 hours | 2 years in risk or related work |
| Typical time to finish | 2–4 years | 1–2 years |
| Best for | Research, portfolio management, investment consulting | Market, credit, operational and liquidity risk |
Which one to choose
- Choose the FRM if your target job title includes "risk": risk analyst, market risk manager, credit risk officer, model validation.
- Choose the CFA if your target job is analyst, portfolio manager, investment consultant or fund manager.
- Choose the FRM first if you want a faster win: two exams can be completed in about a year.
- Hold both if you work in investment risk at an asset manager, where both skill sets are used every day.
The job-ad test
Pass rates and fees are close enough that neither should decide this for you. A more reliable test: open ten job adverts for the role you want next in the city where you want to work, and count how many mention CFA, FRM or both. That count reflects what your future employer actually values, which no general ranking can tell you.
Cost and time compared
The FRM costs roughly half as much in official fees and needs about half the study hours. For a self-funding candidate, that difference is significant. The CFA's extra time buys a broader, more widely known credential, which pays off mainly if you are heading for investment roles.
Compare your own numbers in the CFA cost calculator and the FRM cost calculator, and see typical pay in the CFA salary and FRM salary guides.
Frequently asked questions
Is FRM easier than CFA?
The FRM is shorter, with two exams against three and about half the study hours. Pass rates for each FRM part are broadly similar to those for each CFA level, so each exam is still demanding.
Which pays more, CFA or FRM?
CFA charterholders in portfolio management and senior investment roles tend to earn more at the top end. In risk management, FRM holders earn comparable salaries, and the FRM is often the preferred credential for risk roles.
Should I do CFA or FRM for risk management?
For risk management roles at banks, insurers and regulators, the FRM is usually the more targeted and efficient choice. The CFA is broader and suits investment risk or roles that mix risk and portfolio management.
Can I do CFA and FRM at the same time?
Some candidates do, as the topics overlap in quantitative methods, fixed income and derivatives. It is very demanding alongside a full-time job, so most take one first.
Does CFA give exemptions for FRM?
No. The FRM does not exempt candidates based on the CFA, and vice versa. However, overlapping knowledge can reduce the study time needed for the second credential.