Considering taking FRM on May 16th 2015

Hi all,

I recently sat for level I CFA exam in Dec 2014 and I started doing some research on the frm designation. I looked up how the FRM is formatted and it seems there are 2 parts, each 4 hours long. I am planning on obtaining the CFA designation but (If i passed level I) I plan to register for level II in June of 2016. In the meantime I want to keep working on improving my knowledge and I think the FRM would be a good complement to the CFA. My questions are:

  1. How many hours of studying is typically required to pass this exam. Should I register for May 2015 or just register for November 2015? I have enough time on my hands to study 20-25 hours a week and if I start in early Jan that will give me 18 weeks to prepare.

  2. I have done some research on FRM and im trying to gather as much information as I can before signing up. What should I be looking forward to as a candidate for this exam? I noticed Quant is a huge piece of this desgnation. Is there a lot of formulas and calculations involved (relative to CFA). Are the formuas relatively complicated? How much of a math wiz do you need to be to be successful in this exam.

Let’s keep collecting letters brothers

you are like so alpha, bro

Wow, above two responses, really helpful! I guess CFA helped you to become so professional. Keep up the good work.

Is your response any more helpful than ours? Tool…

Set aside FRM etc and sit for the CFA exam in June 2015.

Agree.

Agree. The CFA should be the first priority if you intend to get a designation.

Thanks for the advice, but why should I set aside the FRM? I can’t register for level II yet because idk if i passed level I and im nervous that by the time i get my results I wont have enough time to study for level II also I’m not really sure how to start studying for level II before my results,any advice there?

Because CFA is 20x more-valuable than FRM – even for those working in the field of Financial Risk Management.

Outside of AnalystForum, nobody has ever heard of FRM.

take CFAII before FRM. The reason? Well, CFA II curriculum books (shweser notes, too) are more well organized and easy to follow. So, If you prepare for CFAII, then part 1 of FRM would be very easy. But, part 2 of FRM is a different story because most topics covered in Part 2 of FRM are not related to CFA materials. I passed the FRM after passing CFA II.

Agree with the post except I cannot weigh in on FRM Part 2 because I have not yet seen the material.

Hi Wendy and dwheats, you guys have taken both CFA and FRM exams right? I’m really curious what have made you think that DPBass88 should not take the FRM and just focus on pursuing the CFA designation? It would take at least 4 years to attain the designation and many people have taken FRM exams in between the CFA Exams.

Anyway, I’m also someone who took the Part I Exam after passing CFA Level I. I have always wanted to learn financial risk at university but never took that major. If you are not sure that you can pass CFA Level I, I think FRM would not be a good idea. CFA Level I is considered not that hard, but FRM is a much more difficult exam, actually mostly the last 2 sections Financial Markets & Products and Valuation & Risk Models. For me I think I put in around 20 hours per week for 3 months. I ran through SchweserNotes once and did a lot of practice with Bionic Turtle material. I really focused on quant stuff but ended up using very little on the real exam last November.

Hi Hailey, it depends what your motive is for the exam.

To clarify, I did not say DPB should not pursue FRM. I think it would be wise to pursue CFA first, however.

I think CFA offers a more diverse curriculum and broader knowledge of finance, in general.

On top of that, the L1 and L2 exams offers exemptions in the Canadian regulatory environment when becoming licensed to practice in certain roles

Yes, it is true that you can obtain the designation quicker through FRM, but that is not my goal.

… Well Wendy, I did respect your view points during my exam as some of your suggestions were really valuable. But you started sounding a little gloomy. CFA 20 X more valuable than FRM…??? Don’t quite agree and don’t see the point.

If my bet is correct, there will come a time when FRM will be basic most requirement because BASEL III is round the corner and it won’t be long before it starts harnessing the best risk professionals. Where from they are going to come from?

A person doing FRM is knowledgable enough not compare FRM with CFA… EXCEPT FOR THE QS. PATTERN AND PART I QS. CONTENT OF FRM there is no similarity and no relevance. FRM is what it stands for. Did it ever clam superiority to CFA? On the contrary 4 years of gruesome hard work , sacrifcing everything in life just to earn your CFA… Well let me ask how may of the CFAs are the CFOs, Head Research, or VPs in IB??

If that do not belittle CFA (as we know it doesn’t) so should not FRM, you can get the charter pretty fast and ofcourse the level of qs. is genuinely tougher than CFA. Just becasue the first FRM came out in 1997 doesn’t mean the course is anyway inferior to CFA. I take pride in saying I cleared my FRM exam.

20x more valuable?? C’mon Wendy. Let’s not mislead people asking serious questions when we are in a positon to offer advice, or a well-considered opinion.

DPBass88, I would focus on the CFA Lvl 2 in June first, and unless you are mentally gifted to the point that we would all hate you, that exam should be plenty difficult enough on its own. IF you clear in June, then I would say that you will have already covered a good 50% of FRM pt. 1 content, which should be a nice headstart to schedule a Nov. FRM I test. Keep in mind, however, that while many of the topics are somewhat similar between CFA and FRM (CFA 2 and FRM 1), what you will be expected to know on the FRM will be asked differently, and for different reasons…understand? I can not tell you how many CFA’s have taken the FRM thinking that it would be similar and were consequently, massively disappointed/surprised. Also, and my fellow FRM’ers will attest to this as well I’m sure, the FRM questions are disorienting (best word I can think to use), and not straightforward. While the math is much more complex in the readings, its mostly used to explain the concepts being taught. It’s more to do with your ability to “read mathematics” and understand how the math is describing a relationship, or a concept, rather than needing to integrate probability density functions (but you better know what it is to do it) as part of a problem, although I’ve heard its been done.

With regards to nobody hearing about the FRM?..well, someone is apparently not talking or working with the people that find it VERY valuable. While it is less well known, if you are working in the anything Quantitative, or Risk related in a bank, often in areas dealing with structured finance and credit derivatives, or currency trading/hedging, Treasury, you’ll find people begging for it. In fact, do this…just use efinancial, indeed, or simplehired.com and query “quantitative risk” in New York (in fact I just tested my own theory and found a job from efinancial; risk manager-fixed income, NYC. 140-160k; CFA, or FRM preferred. You’ll find thousands more. Apparently, they value FRM’s). The FRM is less well known to the masses, but very well known to people who need to know.

Anyway, the CFA is balanced, highly respected, dealing with more traditional financial assets for purposes of asset selection (generally). The FRM is targeted, highly respected, dealing primarily with futures and debt derivatives for the purpose of risk mitigation (generally). You’d be well off pursuing both…and no more.

Agree with this. A lot of overlap, though not necessarily tested in the same manner.

To keep it concise, if you want to be a trader - FRM will teach you concepts that are far more relevant in day-to-day job than CFA.

Yours sincerely,

Humble Professional Trader

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