CFA vs FRM: A Comparison of Content, Salary, and Difficulty

Both the Chartered Financial Analyst (CFA) and Financial Risk Manager (FRM) designations are highly respected in the financial industry and can lead to rewarding careers. However, the two certifications have some significant differences in terms of content, focus, and difficulty level that may make one a better fit for you than the other, depending on your goals and background.

Content:

The CFA program is a self-study program that covers a broad range of topics in investment and portfolio management, including ethics, economics, financial reporting, analysis, and portfolio construction. The program consists of three levels, and the exams for each level are offered once a year. The CFA curriculum is focused on investment professionals who work in asset management, research, and portfolio management.

On the other hand, the FRM program is focused on risk management and is administered by the Global Association of Risk Professionals (GARP). The program consists of two levels, and the exams for each level are offered twice a year. The FRM curriculum covers topics such as quantitative analysis, financial markets and products, and operational and integrated risk management.

Salary:

Both the CFA and FRM designations can lead to high-paying jobs, but the median salary for a CFA charter holder is typically higher than that of an FRM holder. According to a 2020 survey by the CFA Institute, the median salary for CFA charter holders was $147,000, while the median salary for FRM holders was $123,000. However, it is important to keep in mind that salary can vary depending on factors such as job title, location, and experience, and having a certification alone does not guarantee a high salary.

Difficulty Level:

Both the CFA and FRM programs are challenging, but the CFA program is generally considered to be more difficult. The CFA program has three levels, and passing all three levels is a requirement to earn the charter. The exams are known to be very difficult and cover a wide range of topics. The passing rate for each level is around 40-50%.

On the other hand, the FRM program has two levels, and passing both levels is a requirement to earn the designation. The exams are also challenging but the passing rate is around 70-80%.

Conclusion:

In conclusion, both the CFA and FRM program designations can lead to rewarding careers in finance, but they have distinct differences in terms of content, focus, and difficulty level. 

It is important to consider your career goals and background when deciding which certification to pursue. If you are interested in investment management, the CFA program may be a better fit for you. On the other hand, if you are interested in risk management, the FRM program may be a better fit. Additionally, it is important to consider how much time you are willing to commit to studying and whether the level of difficulty of the certification matches your learning style before making a decision.

Better late than never, choose your interest and earn your FRM and CFA with Schweser-Miles!