CFA vs. FRM

Discussion in 'About FRM' started by mp3bu, Nov 10, 2012.

  1. mp3bu

    mp3bu New Member

    I know this has been discussed extensively, and most would agree that the FRM is harder than the CFA. My question is, why does the FRM require 200 hours of study per level, yet the CFA requires 300 per level? Is the FRM material harder, but less in quantity? Fwiw, ive passed CFA L3 and am considering pursuing the FRM.
    • Agree Agree x 1
  2. -MaNi-

    -MaNi- Member

    From what I've heard, CFA is harder due to the sheer scope of content. FRM goes into alot more detail than the CFA does in selected topics, so I would assume it's harder in that sense as you need to know all the in's and out's rather than just a general understanding.

    Also the recommended hours of study per level for FRM is 300, not sure where you got 200 from?
  3. I basically agree with -MaNi- that, to simplify, CFA is broader but, for some some topics, the CFA does not go as deep (get as difficult) as the FRM. In particular, quantitative methods. For this reason, those with quant background can spend less time, but on the other hand, those without tend to need a lot more time

    Last year, GARP shared this survey on time spent studying for FRM: http://www.bionicturtle.com/forum/t...s-required-to-prepare-study-for-the-frm.4980/
  4. sleepybird

    sleepybird Active Member

    I agree with David and MaNi but I also think it also depends on the person's background.
    I found CFA Level 3 very difficult because it's essay type question and during the course of study, you'll find that there's no black and white answers (e.g., IPS/determining someone's risk tolerance, and the different ways to calculate return requirement) - glad that I got it over with!

    On the other hand, I like things with black and white answers, even if it's quantitatively difficult - you can simply memorize it.
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  5. matthanuf06

    matthanuf06 Member

    If you were just a finance grad, with no advanced training, and just had to sit for CFA 1/2/3 or FRM 1/2 in isolation you'd almost definitely find the FRM exams tougher (although L2 CFA will give them a run for its money). The key thing is they aren't in a vacuum as you do them in order and more importantly most people do the CFA program first. The CFA program prepares you well for the FRM in my opinion. The FRM has less material, but is deeper. The CFA hits much of the material on the FRM, but not as deep. So you aren't starting from ground zero. If you were starting from ground zero, the FRM would be crazy hard. If someone finished the FRM first and then did the CFA, it wouldn't be too hard. L1 would be like a doctoral candidate going into a freshman class.
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    • Agree Agree x 1
  6. Rizwan Ali

    Rizwan Ali New Member

    Hello everyone and David,

    Bionic Turtle is really a great forum. I am really scolding myself that why I didn't come across before. I have read many forums in Bionic Turtle and found difficult if my query has been asked before.

    I have done good reading about CFA and FRM and compared their study material. I am more positive towards CFA but still I lack decision making due to my background.

    My background study is Software Engineering (BCS). But last 8 years I am involve more in Capital Markets software (like Equity Depository, Mutual Funds, Bank Treasury systems). My work is related to implementation of the software where I had good communication with business users. I am not technical guru but more on business analysis side i.e. how to map business requirements in Software. In that interest I had done my MBA-Finance. Now I want to make myself certify in CFA or FRM so that I can stamp myself with more knowledge of business, skills to understand their terms easily and provide best consultancy over system implementation.

    I am working for a MNC having global financial solutions with more then 200 customers world wide. I love my job. I like to have discussion with business users, understand their requirement, map into our system and provide consultancy to improve their working. Currently I have been working in implementation of Treasury solution in a Bank and working as BO Consultant. My target is to shift myself to FO in Equities and FI not only with respect to investment but also for risk management). On other side, Risk Management solution has been introduced by my company in my country. My country head has asked me to start checking out the product so that we can kick off the sale with some basic consultancy. I am bit confuse to work in FRM or CFA for that.

    I also know that I have to show work experience in CFA or FRM. That is answer I am trying to find. FRM do shows job titles in Information Technology like i currently have like Business Analyst. But CFA don't.

    So what you people suggest?

    Your words will be very important for me.
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  7. NewComer

    NewComer Member

    Both

    CFA, pass FRM P2
    • Agree Agree x 1
  8. LL

    LL Member

    From Rizwan Ali 's post above - "I also know that I have to show work experience in CFA or FRM. That is answer I am trying to find. FRM do shows job titles in Information Technology like i currently have like Business Analyst. But CFA don't."
    In the same boat. Would it matter if one clears all three CFA levels but you still don't have the experience that would qualify for the charter ?
    David Harper, CFA, FRM, CIPM Can you please share your views on this ?
    Many thanks.
    LL
  9. Rizwan Ali

    Rizwan Ali New Member

    No. According to my findings you won't be qualify for charter if your experience is not validate by CFA Institute. You can only be CFA III passed. I think CFA institute doesn't provide any certificate of that also
  10. LL

    LL Member

    Rizwan Ali
    Hi Rizwan,
    Yes, that's correct. But any thoughts on what impact not holding a charter can have ?
    Like you, I also completed my MBA and working as business analyst for a custodian.
    From a layman's view, I believe that it's knowledge that matters. :cool:
    I don't know how the industry treats a CFA level 3 without a charter :confused: . Does it really matter ?
  11. Rizwan Ali

    Rizwan Ali New Member

    That is somewhat my concern also. I see two choices here
    1. Just go with CFA, pass it and do the existing job (if CFA Inst don't validate the work experience you still be knowledgeable) (CFA Inst give unlimited time i guess to be charter after passing level III)
    2. Just go with CFA and pass it. Then find any particular job or enhance in existing job to somewhat get valid working experience.

    Time is less and running. But correct answers can't be find. Not sure if remaining 4 months would be enough with job.
    • Agree Agree x 1
  12. jim1.jiang

    jim1.jiang New Member

    In my opinion, CFA level 3 passed without charter would not hinder your chance of finding a job. It would have an effect when it comes to salary negotiation.

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