CFA FRM are two of the most prestigious certifications in the finance world. Both CFA and FRM boost your financial knowledge, career opportunities, and earning potential. Many finance students and professionals often ask, “Should I do CFA or FRM?” The answer depends on your career goal. CFA focuses more on investment and portfolio management, while FRM focuses on risk management. If you want to work in asset management, go for the CFA. If you are interested in risk analysis, FRM is the right choice. This article explains every difference between CFA and FRM and helps you decide which fits best.
CFA vs FRM: Which is Right for Your Career?
Both CFA and FRM lead to great finance jobs, but each has a different focus. CFA is best for those who want to work in portfolio management, equity research, investment banking, or corporate finance. On the other hand, FRM suits professionals interested in credit risk, market risk, regulatory risk, or enterprise risk. Your career goal should decide the path.
CFA: Who Should Choose It?
CFA is the best choice for people who want to build a career in the investment world. If you’re going to become a portfolio manager, equity analyst, research analyst, or financial advisor, CFA is the right fit. The CFA certification is known worldwide and helps you work in top financial firms.
The CFA program includes three levels, and each level covers topics like ethics, financial reporting, equity, fixed income, and portfolio management. It takes around 2.5 to 4 years to complete the CFA program. Many CFA holders work in investment firms, banks, and consulting firms.
FRM: Who Should Choose It?
FRM certification is best for those who want to work in risk-related fields. It is ideal for people who wish to become risk managers, credit analysts, or regulatory risk specialists. FRM holders work in banks, hedge funds, asset management companies, and regulatory bodies.
The FRM program has two parts and covers risk models, market risk, operational risk, and financial markets. It is an exception if you love to analyse and build models to control it.
CFA and FRM Exam Structure
Both the CFA and FRM exams are tough. Many students fail in their first attempt. The CFA and FRM exams check your deep understanding of finance topics. These exams require discipline and long study hours.
CFA Exam Structure
The CFA exam has three levels—Level 1, Level 2, and Level 3. Each level has a computer-based format. Levels 1 and 2 have multiple-choice questions and item sets. Level 3 includes essay-type questions along with item sets. Each level takes place twice a year. You need to study around 300–400 hours per level. The CFA syllabus includes topics like quantitative methods, economics, ethics, corporate finance, portfolio management, and derivatives. The exam tests both theory and application.
FRM Exam Structure
The FRM exam has two parts—Part 1 and Part 2. You must clear Part 1 before attempting Part 2. Both parts have 100 multiple-choice questions each. The FRM syllabus includes topics like foundations of risk management, valuation, financial markets, credit risk, operational risk, and current market issues. It focuses more on models and risk control practices.
CFA and FRM: Can You Pursue Both Together?
Finance students often ask if they can pursue CFA and FRM together. Yes, it is possible. But it needs good time management and planning. Both exams require long study hours and a deep understanding.
Why Do Both Together?
Doing CFA and FRM together makes your resume strong. CFA gives you skills in investing, portfolio building, and financial analysis. FRM gives you skills in managing financial risk. With both certifications, you become a top candidate for many jobs. Employers look for people who can manage investments and control risks. You should plan the timing of exams smartly. Many students complete CFA Level 1 and FRM Part 1 in the same year. It saves time and helps you use similar topics in both exams. CFA FRM certification opens many global job roles.
When Should You Not Do Both Together?
If you are working full-time or have other commitments, doing both together might be too much. Focus on one certification first. Once you clear it, start the next. Do not rush. Quality learning is more important than speed. Always understand your capacity and goals.
CFA FRM: Key Differences and Career Outcomes
Both certifications are prestigious in the finance industry but cater to different career paths. CFA focuses on investment management, equity research, and portfolio strategy, while FRM specializes in risk analysis and financial risk management. Understanding your long-term goals can help determine which designation aligns better with your desired finance career. The table below shows how they differ:
| Feature | CFA | FRM |
| Focus | Investment and portfolio management | Risk management |
| Levels | 3 | 2 |
| Duration | 2.5 to 4 years | 1 to 2 years |
| Certification Body | CFA Institute | GARP |
| Job Roles | Portfolio Manager, Analyst | Risk Manager, Credit Analyst |
| Exam Format | MCQs + Essay | MCQs only |
Career Outcomes After CFA
CFA holders work in many top firms. Some top job roles include
- Equity Analyst
- Investment Banker
- Portfolio Manager
- Fund Manager
- Financial Advisor
These professionals work in mutual funds, asset management companies, and investment banks.
Career Outcomes After FRM
FRM holders mostly work in risk departments. Some roles are
- Risk Analyst
- Market Risk Manager
- Credit Risk Officer
- Operational Risk Manager
- Risk Consultant
Banks, insurance companies, and government bodies hire FRM-certified professionals. Both paths offer great job options, but the career fields differ. Choose the one that matches your dream.
Salary and Job Roles After CFA and FRM
Salaries after CFA and FRM differ based on country, experience, and job role. In 2025, salaries have increased due to higher demand in finance.
| Country | CFA Average Salary | FRM Average Salary |
| USA | $100,000 – $150,000 | $90,000 – $140,000 |
| India | ₹10–25 LPA | ₹9–22 LPA |
| UK | £50,000 – £90,000 | £45,000 – £85,000 |
CFA salaries are slightly higher in most countries because they work in front-office roles. FRM holders often work in risk and compliance departments, which are more back-end roles.
High-Paying Job Roles
After CFA:
- Portfolio Manager
- Senior Analyst
- Fund Manager
After FRM:
- Chief Risk Officer
- Credit Risk Manager
- Risk Strategy Head
The job is high in the hierarchy. However, both salaries may differ based on job type.
Eligibility, Fees, and Course Duration Comparison
Before choosing, know the CFA FRM eligibility, fees, and course duration. This helps you plan your career well.
Eligibility
| Program | Eligibility |
| CFA | Final year degree student or 4 years of work experience |
| FRM | No specific education required |
Fees Structure
| Program | Registration Fee (INR) | Exam Fee (INR) |
| CFA | ₹29,050 – ₹37,350 | ₹74,700 – ₹99,600 per level |
| FRM | ₹33,200 | ₹62,250 – ₹78,850 per part |
The total cost of CFA is more than the three levels. FRM is cheaper with only two parts. Still, both give high returns.
Course Duration
The CFA course duration is usually 2.5 to 4 years. You need time to prepare for three levels. The FRM course duration is shorter. Most students finish both parts in 1 to 1.5 years. Both programs offer excellent value. However, the decision depends on time, cost, and goal.
CFA FRM FAQs
1. Should I do CFA or FRM?
Choose CFA if you want to work in investment, equity, or finance roles. Choose FRM if you like risk management and analytics.
2. Is FRM better than CFA?
No one is better. It depends on your interest. CFA fits investment roles, FRM fits risk roles.
3. Can I do CFA and FRM together?
Yes, but it needs planning. Start with CFA Level 1 and FRM Part 1 together if possible.
4. What is the CFA FRM certification?
It helps in landing top finance jobs. CFA gives investment skills. FRM gives risk skills. Both together increase career scope.
5. What is the CFA FRM syllabus and exam format?
CFA has 3 levels with MCQs and essays. FRM has 2 parts with only MCQs. Both need a deep understanding of finance.
