On the difference and help of FRM through CFA level.

CFA and FRM can be called Taishan Beidou in the financial qualification examination, so the candidates made a mistake. Which one should they choose? What kind of exams are they? What do you need to test? How about the cost? What is the difference? If you don't want it, Jincheng CFA Bian Xiao will tell you about these two exams.

1, Introduction

CFA, whose full name is Chartered Financial Analyst, is a strict and valuable qualification certification in the global investment industry. Known as the first financial examination, it sets norms and standards for the global investment industry in terms of ethics, professional standards and knowledge system. Since the opening of 1962, CFA has set a global standard for investment knowledge, norms and ethics, and has been widely recognized and recognized. In 2006, Financial Times magazine compared CFA professional qualification to the "gold standard" of investment professionals.

CFA exam content is divided into three different levels, namely Level 1, Level 2 and Level 3. Examinations are held all over the world, and each candidate must complete three different levels of examinations in turn. CFA qualification examination is conducted in English. Candidates should not only have financial knowledge, but also have good English reading ability.

FRM(FinancialRisk Manager) is an authoritative international qualification certification in the field of global financial risk management, which was established by GARP.

The FRM exam begins at 1997. By the end of 2009, more than 20,000 people around the world had won the title of FRM. At present, about 65,438+0,000 people in China (including Hong Kong and Taiwan) have obtained FRM certificates, which are extremely scarce financial talents.

The FRM exam is divided into two levels (Part I and Part II). Friends who are interested in financial risk management or engaged in related work can improve their risk management knowledge by taking the FRM exam, which also adds a heavy bargaining chip for career development and career development.

2. Examination fee

CFA exam fee

Registration fee: you only need to pay it when you register for CFA exam for the first time, which means you don't need to pay it when you register for Level 2 and Level 3 exams.

Registration fee: you need to pay for each application, and the examination fee varies according to the registration time.

Business tax: the registration exam corresponds to the "new examinee tax", and the candidates who have registered for the exam correspond to the "old examinee tax".

FRM examination fee

The registration fee includes not only the basic registration for taking the FRM exam, but also one year's independent membership fee of GARP (value 150 USD) and one year's risk professional magazine subscription fee (value 150 USD).

3. Examination content

CFA exam content

1. Ethics and professional standards

2. Quantitative method

3. Economics

4. Analysis of financial statements

5. Corporate Finance

6. Securities management

7. Analysis of equity investment

8. Analysis of fixed income securities

9. Analysis and application of derivatives

10. Other types of investment analysis

FRM exam content

FRM Examination Part 1: Financial Market and Financial Product Risk Management Basis Quantitative Analysis Valuation and Risk Construction FRM Examination Part 2: Market Risk Measurement and Management Credit Risk Measurement and Management Operation and Comprehensive Risk Management Investment Risk Management Financial Market Frontier Topic FRM The first part has 100 multiple-choice questions, and the second part has 80. The actual number of questions may vary slightly.

4. Application conditions

CFA application conditions

Bachelor degree or above with equivalent professional level, regardless of major; University years of study and full-time work experience total four years; If the applicant does not have a bachelor's degree, but has a considerable professional level, it can also be accepted as a candidate.

CFA will use work experience to evaluate the applicant's professional level. Generally speaking, four years of work experience is considered as a substitute for a bachelor's degree. These four years of work experience is not necessarily related to investment, as long as it is legal, full-time and professional; College students can sign up for the exam as early as their senior year.

Abide by professional ethics; Complete registration and pay fees; Be able to take the exam in English.

FRM application conditions

There are no restrictions on candidates' academic qualifications and industries in FRM registration. In addition, college students also meet the requirements of FRM registration.

The application qualification of FRM has certain requirements for candidates' English level. Generally speaking, as long as you pass CET-4, you can meet the application qualification requirements of FRM. However, because the exam is written in English, candidates need to have certain English reading ability and master certain professional vocabulary in order to meet the registration qualification of FRM.

5. Qualification criteria

CFA qualification criteria

CFA candidates can obtain the qualification of Chartered Financial Analyst (CFA) as long as they have completed CFA exams for three times, have a bachelor's degree or accumulated at least four years of relevant experience in investment decision-making, and abide by CFA's ethical norms and standards.

FRM qualification criteria

FRM candidates must pass the two-part FRM exam first, and then meet the requirements of two years' work experience in financial risk management or related fields within five years before they can obtain FRM professional qualification.

6. Other matters

Other matters of the Court of Final Appeal

According to the CFA exam subjects introduced before, we can see that CFA has a wide range of knowledge, including almost all financial-related content. From the first-level basic introduction, to the second-level valuation and pricing, and then to the third-level asset allocation management, it has to be said that CFA learning can enable a financial beginner to gradually establish a sound financial knowledge system.

From the data analysis over the years, the passing rate of CFA is relatively low compared with FRM, and CFA covers many knowledge points and a wide range of knowledge. Except for Level 1, you can take the exam twice a year, and Level 2 and Level 3 can only take the exam once a year, so it takes a long time to pass all the exams.

Because CFA covers a wide range of knowledge, including risk management, financial analysis, economics and professional ethics that FRM lacks, more companies prefer CFA holders when looking for jobs.

Other matters of FRM

As a professional certification industry of risk management, FRM is obviously more targeted than CFA. The knowledge system of FRM systematically introduces all kinds of risks in the market, and gives the corresponding quantitative management methods. For CFA, FRM requires higher knowledge of mathematical statistics.

The FRM exam involves more in-depth risk management than CFA, and requires higher quantitative analysis, which is generally equivalent to the difficulty of CFA level 1 to level 2. FRM can take part 1 and part 2 exams on the same day, with shorter time and higher passing rate according to the data.

Quantitative analysis accounts for a large proportion in FRM examination, and students know more about market operation and credit risk. Therefore, after passing the exam, candidates have a more comprehensive understanding of the basic system of risk management, but in practical application, statistical software is often needed.