Hi Guys, I am new to this forum and wants to see if anybody can advice me. I am basically debating between FRM or CFA, but I want to finish as much as I can before I look for a job in HK next year. I read somewhere that FRM can get quite challenging without knowing information from CFA lvl 1 and lvl 2. Is it because the 2 levels cover the investment fundamentals/vehicles that FRM doesn’t cover but have course materials about them? How deep of math/statistic is required before even thinking about FRM? I have only taken 1 stats class and calculus, so I am sure that there are a lot that I need to review. Also, if I take the FRM and lucky enough to pass the 2 levels, it would certainly be better than just going to HK with CFA lvl 1 right? I only have 1 year before I go and I must go, but eventually I would be taking the CFA as well… Please help, thank you all in advance!!!
In my opinion (and every other CFA charterholder I know that has also written the FRM exams), each of the two FRM levels are much more difficult that any one level of the CFA exams on both a quant/qual level. Having said that, my suggestion to you would be to get the CFA under your belt or at least pass one level and then study in-between dates concurrently for the CFA and FRM. Undoubtedly the CFA designation is the gold standard. The FRM is a nice supplement. As for material comparison, levels 1/2 of the CFA exams and part I of the FRM have some overlap and part II of the FRM exam is predominantly mutually exclusive of any exam in the CFA series. Being a CFA charterholder and holding the FRM designation, I cannot stress enough how much more rigorous the FRM exams are in comparison to the CFA exams. Alll the best.
Thanks for your advice Supacharja! While I understand that having the background knowledge of CFA could be important for FRM, do you think that it’s possible for me to take CFA lvl 1 in June and then the 2 exams for FRM in November? I am wondering if there is sufficient time for me to study both. How would the study timeline looked for those who have done CFA lvl 1 and FRM within the same year? Thanks everyone!!!
CFA in June and FRM full in November? Better focus on FRM level 1 only. After CFA you will be broken, and FRM requires like 150-200 hours for level 1 alone.
Unless you are some sort of savant, I would say no. If you don’t have the CFA under your belt (levels 1-3) and/or you don’t have the requisite risk management experience, I would suggest taking one FRM part at a time and plan on doubling up, at a minimum, on the suggested study time. Like I said before, the FRM is no joke. And unfortunately, no absolute amount of study time will ensure a passing score. There are many curve balls thrown on the exam which I didn’t see in the study material, which places an emphasis on quick problem solving skills. And, many questions require more time than is allotted on a per question basis, so you can’t afford to fall behind. From where I am sitting, for you I wouldn’t overextend myself financially and time wise. Focus on one level or part at a time and make that your absolute priority. You don’t want to have to take any level or part again. The way both exam systems work, retaking tests doesn’t necessarily correlate with a better chance of passing. You can do this, but do it smart by given yourself the highest probability of passing the first go around.
I can understand Bluetick’s position, and his thinking is valid. Here’s one way to look at it: starting from today, it would take his at least 2 years to finish the CFA, and more realistically it will take 3-4 years. However, the CFA is about 10 times “better known” than the FRM. Many hiring managers have never heard about FRM. The FRM exams, on the other hand, could very realistically be knocked off by December. But here’s another question to consider: If you could pass FRM2 in November, do you have the relevant years of work experience that they would actually award you the FRM designation at that point? If so, then FRM could be the way to go. In terms of volume of material, in my experience FRM-1 alone is equal to about 2/3rds of a CFA Level. So preparing to write both FRM1 and FRM2 in the same sitting is going to require more effort than preparing for a single level of the CFA. Regarding the difficulty of the FRM exams: Yes, the FRM-1 exam is very scary looking and requires a ton of calculations. On the other hand, FRM-1 is not that difficult to pass; I suspect that the passing score is nowhere near the ~70% score that has historically thought to mean a pass on the CFA exams.
Honestly, if you’re mildly quantitative you should be able to tackle the exam with adequate study per level - probably 200hrs. Just because CFA charterholders get scared when they see terms like ‘Taylor Series’ or ‘Ito’s Lemma’ doesn’t mean you need to be a quant savant. It’s not like you are deriving equations from first principles!!!