For finance professionals seeking to advance their careers, this is one of the hardest questions to answer—should you pursue a CFA® charter or FRM® designation? Which is better for your career?

No matter which one you choose, actually earning the credential will require huge commitments in time, effort and even money (especially if you have to retake the exams).

In a nutshell, the difference between the CFA and FRM designations comes down to focus and interest. If you’re passionate about and interested in the assessment and management of financial risk, then the FRM designation is tailor-made for you. On the other hand, the CFA charter provides a thorough education on a broad range of financial analysis and investment topics and can lead to a wider range of career prospects, not to mention a higher salary.

Here’s a quick overview of how the two credentials compare:

	FRM®	versus	CFA®
Administered By	GARP		CFA Institute
Year Established	1997		1947
Global Members	32,000		135,000
Exam Components	2 Parts		3 Levels
Minimum Cost*	$1,300		$2,400
Program Materials	Included		Included
Study Hours	150-200 Hours Per Part		300+ Hours Per Level
Exam Pass Rates	Part I: 42% Part II: 62%		Level I: 42% Level II: 46% Level III: 53%
Median Salary	$86,000		$132,000 (w/5 years’ experience)
Focus	Highly Specialized Financial Risk Assessment		Generalist Investment Analysis
Possible Job Roles	Risk Manager Credit Risk Analyst Chief Risk Officer		Portfolio Manager Financial Analyst Financial Strategist
Top Employer Globally	ICBC		JP Morgan Chase

*With on-time registration and passing entire exam on first attempt.

Why Not Both?

Yes, why not both the FRM and the CFA? While it will take quite a bit of time to earn both credentials, it’s clear that they both provide unique value for finance professionals. Together, they can help you to truly stand out versus your peers, especially as the finance space becomes more complicated due to regulations and innovation.

Considering adding the FRM designation to your CFA charter? See how Wiley’s FRM Exam Review can help.