“Can I do CFA and FRM together?”
“Is CFA and FRM a good combination?”
If you are in a dilemma of pursuing CFA and FRM together, then you are not alone!
Globally, many candidates aspiring to make a career in finance contemplate if CFA and FRM can be pursued simultaneously.
The answer is yes; you can pursue both the CFA and the FRM simultaneously.
A CFA and FRM combination can be an excellent choice as the competitive finance world demands you to have varied skill sets. However, the challenge of clearing the CFA and FRM exams together remains. Before pursuing this combination, you must have a fair idea about the exams and strategies accordingly.
What You’re Up Against
Pursuing both CFA and FRM together is a challenging but rewarding journey. Both certifications require intense dedication, with CFA covering broad investment-related topics and FRM focusing on risk management. The biggest hurdles you’ll face include:
- Time Commitment: CFA requires around 300 hours of study per level, while FRM demands 200-250 hours per part. Balancing both simultaneously can be overwhelming.
- Overlapping Topics: While there’s a syllabus overlap (55% for FRM Part I and 15% for Part II with CFA), understanding the differences and integrating the knowledge efficiently is crucial.
- Exam Frequency: CFA exams are held multiple times a year, but FRM Part II is offered only twice, requiring careful scheduling.
- Mental and Physical Burnout: Studying for two rigorous exams can lead to fatigue, making time management and self-care essential.
Things To Consider Before Opting For CFA and FRM
There are certain things you must have a clear idea about when you decide to opt for the CFA and FRM combination.
CFA and FRM: Exam Structure
Conducted by the CFA Institute (USA), you must pass three levels of exams to complete the CFA course. The CFA pass percentage for each level (August 2022) is as follows:
- Level I (37%)
- Level II (40%)
- Level III (48%)
Learn How to Become a CFA: A Complete Guide.
On the contrary, you will need to clear two levels of the FRM exam conducted by GARP (the Global Association of Risk Performance). The latest FRM pass rates for the two parts are:
- Part I (51%)
- Part II (57%)
You can take Part I (morning session) and Part II (afternoon session) of the FRM on the same day.
CFA and FRM: Syllabus
To complete the CFA syllabus, you must devote at least 300 hours to each level. The syllabus for CFA is centred around the following topics:
- Economics
- Quantitative Methods
- Financial Reporting and Analysis
- Ethics
- Fixed Income and Derivatives
- Corporate Finance
- Equities and Alternative Investment
- Portfolio Management
Check out our blog on CFA Level 2: Course details.
The FRM syllabus also demands 200-250 hours for each part. The topics in this course include the following:
- Financial Markets and Products
- Foundations of Risk Management
- Credit Risk
- Quantitative Analysis
- Market Risk
- Investment Management
- Operational Risk
- Valuation and Risk Models
- Liquidity and Treasury Risk
CFA and FRM: Fees structure
You must be aware of the fee structure when opting for the CFA and FRM combination to avoid any financial burden.
| Cost | CFA | FRM |
| Enrollment fee | $450 (Rs. 36,581) | $400 (Rs. 32,517) |
| Registration fee (per level) | $700-$1000 (Rs. 56,904- Rs. 81,292) | $550-750 (Rs. 44,710- Rs. 60,969) |
CFA and FRM: Career Opportunities
CFA certification equips you with real-world skills and expertise in the field of investment analysis. Job roles you can land after earning a CFA certification include:
- Portfolio Manager
- Financial Consultant
- Strategic Analyst
- Wealth Manager
- Investment Analyst
Learn more about CFA scope and job opportunities.
Identifying, analyzing, and mitigating risk are skills you will acquire after the FRM course. The job roles in this field include:
- Investment Banker
- Risk Analyst
- Financial Risk Consultant
- Risk Manager
CFA and FRM salary packages are quite lucrative, and pursuing the CFA and FRM combination can open up a pool of job opportunities for you.
CFA and FRM: Syllabus Overlap
Have you made up your mind to chase the CFA and FRM combination?
Then remember, time will be the most crucial element, and the last thing you want is to waste time studying repetitive topics. Thankfully 55% of Part I and 15% of Part II of the FRM syllabus overlap with the three levels of CFA.
Check out the following tables to get an idea about the overlap.
Table 1
| FRM Part I Topics | CFA Level I Overlap | CFA Level II Overlap | CFA Level III Overlap |
| Quantitative Analysis | Common probability distributions, hypothesis testing, sampling, and estimations, probability and statistics | Time series analysis, correlation and regression, multiple regression | N/A |
| Valuation and Risk Models | Duration and convexity, fixed income valuation, option valuation | Option markets and contracts, arbitrage-free valuation, bonds with embedded options | Risk management of option strategies, risk management |
| Foundation of Risk Management | Portfolio risk and return | Portfolio concepts, corporate governance | Evaluating portfolio performance, risk management |
| Financial Markets, and Products | Asset backed securities, Forwards, futures options and swaps, market organization, and structure, derivative markets, fixed income | Commodity investing, FX rates, term structure, and interest rates, Forwards, futures options and swaps | Risk management of forwards, futures options and swaps |
Table 2
| FRM Part II Topics | CFA Level I Overlap | CFA Level II Overlap | CFA Level III Overlap |
| Operation Risk and Resiliency | N/A | N/A | Risk management |
| Market Risk Measurement and Management | N/A | Team structure and interest rates | Risk management |
| Liquid and Treasury Risk Measurement and Management | N/A | N/A | Risk management |
| Credit Risk Measurement and Management | Fundamentals of credit analysis | Credit default swaps, Asset back securities: CDOs | Risk management |
| Risk Management and Investment Management | Alternate investments: hedge funds, Portfolio risk and return | N/A | Evaluating portfolio performance, Risk management |
Suggested Plan of Attack
If your goal is to complete CFA and FRM in the shortest possible time, following a strategic exam order will maximize efficiency:
- Start with CFA Level I – Covers foundational finance concepts, many of which overlap with FRM Part I.
- Move to CFA Level II – Strengthens quantitative and risk analysis skills, which are also useful for FRM.
- Attempt FRM Part I – By this stage, a significant portion of the syllabus will already be covered through CFA.
- Take CFA Level III – Focuses on portfolio management, a key skill for financial professionals.
- Finish with FRM Part II – Since CFA Level III also includes risk management, it will provide a strong base for tackling this part.
This approach ensures that overlapping topics are studied efficiently, reducing redundancy and allowing you to master both exams with a structured study plan. Managing stress, maintaining a healthy lifestyle, and taking breaks will be crucial to sustaining motivation and avoiding burnout.
How to Prepare for CFA and FRM
Now, you must be thinking: How do I approach CFA and FRM together? What should my preparation look like?
This totally depends on which course you want to prioritise. Whether you clear your exams on the first attempt is also a deciding factor when devising a preparation strategy.
But if you aim to get both certifications within the shortest possible time, then you should approach the CFA and FRM exams level in the following order:
- CFA Level I
- CFA Level II
- FRM Part I
- CFA Level III
- FRM Part 2
Taking the exams in this order will help you to get the necessary knowledge you need to pass both the CFA and FRM exams. This order will also help you save time and energy, as many topics overlap between CFA and FRM.
Plus, you will need to adopt a healthy lifestyle to avoid physical and mental burnout.
How to Avoid Burnout and Maintain Motivation
Preparing for the CFA and FRM together can wear you out. But the key to success is resilience and hard work.
Here are some simple ways that will keep you motivated during your preparations:
- Take short study breaks when you feel stressed out.
- Having a positive environment around you is the key to staying motivated. Let your friends and family support you throughout the process.
- Avoid multitasking.
- Get adequate sleep.
- Eat healthily and exercise regularly.
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Conclusion
Before you start preparing for the CFA and FRM combination, you must ask yourself which course you want to prioritise. While CFA provides knowledge of investments, FRM specialises in risk assessment and management. If your aim is to become a CFA with a specialisation in risk management, then opting for the CFA and FRM combination is a wise call.
Thinking of opting for the CFA Level I and Level II before FRM Part I? Check out the CFA course from Zell Education. Curated notes, student mentorship, a personalised study plan, and CFA-qualified faculty will help you get the right guidance for clearing the exams.
FAQs on CFA and FRM
Is FRM and CFA a good combination?
FRM and CFA are globally recognised courses that offer specialisation in key areas of finance. Opting for the CFA and FRM combination can help your career soar high.
Is there an overlap between CFA and FRM?
Yes, there is an overlap between the topics of CFA and FRM. The three levels of CFA have 55% overlap with Part I and 15% with Part II of FRM.
Does CFA include FRM?
CFA and FRM are two separate courses. While CFA focuses on investment, FRM is about assessing and managing risks. You can opt for both courses simultaneously.
What is the salary of CFA+FRM?
The average annual salary of a CFA professional in the USA is $99,000, while that of an FRM professional is $102,000.
