Whether pursuing a CFA or FRM certification, you must consider your career goals. For example, you may want to work in a banking, consulting or asset management firm. In this case, FRM may be your best choice. Alternatively, you may be interested in working in a treasury or risk management department. Both certifications are prestigious and have huge earning potential.
The CFA certification is a great option for individuals pursuing a career in corporate finance. It offers knowledge in investment management, portfolio strategy, equity investments, fixed income and financial reporting. It can also help you prepare for upper management positions. The FRM certification is more specialized and is geared toward risk management. It can help you build a career in banking, hedge funds, insurance companies, and treasury and risk management.
Both FRM and CFA are globally recognized designations. If you are considering becoming a CFA, you must complete the CFA program and pass three exams. The CFA Institute advises that a minimum of 300 hours of study should be completed at each level. The exam includes multiple-choice questions and essay questions. You can take the exams in one day. If you need more time, you can take preparation classes. There are also mock exams that can help you to prepare for the exam process.
CFAs work in investment banks, hedge funds and equity research firms. This type of work can be very competitive, and compensation varies greatly depending on the area of specialty. For example, a financial risk manager earns an average salary of US$128,000 annually. The compensation varies by location, as well as seniority. Also, consider pursuing both certifications simultaneously to increase your earning potential.
Although both certifications are specialized, the FRM certification is more difficult than the CFA. This is because of the quantitative nature of the questions. They also require more advanced mathematics. There are also more application-based questions. The curriculum for FRM is more specialized, which means that you may need more time to complete it. It also costs more than the CFA.