Can you get a salary of ₹20 lakh without becoming a CA? Find out the differences between FRM, CFA, and CPA..
FRM vs. CFA vs. CPA Comparison: If you aspire to a starting package of ₹20 lakh or more in the world of finance, a simple undergraduate degree won't suffice. Nowadays, major MNCs and investment banks are seeking professionals who hold global certifications. When discussing high-paying finance careers, three courses immediately come to mind: FRM (Financial Risk Manager), CFA (Chartered Financial Analyst), and CPA (Certified Public Accountant).
Most students aspiring to build a career in finance often find themselves at a crossroads after completing their 12th grade or graduation, wondering whether to choose FRM, CFA, or CPA. Everyone wants to know which course takes less time, which is easier to pass, and which offers the quickest route to a lucrative salary package. If you are seeking answers to these questions, here is a guide to help you determine which of these three finance courses is best for you.
What do the FRM, CFA, and CPA courses entail?
First, it is important to understand that the roles associated with these three qualifications differ significantly:
FRM (Financial Risk Manager): This course focuses on financial risk management, market risk, and credit risk. Professionals in this field are in high demand at banks and insurance companies.
CFA (Chartered Financial Analyst): This is considered the ‘gold standard’ in the finance world. Its primary focus areas include portfolio management, the stock market, and investment banking.
CPA (Certified Public Accountant): This is considered the US equivalent of the CA (Chartered Accountant) qualification. It focuses on accounting, auditing, and international tax laws.
Which finance course is the easiest?
When comparing them in terms of time and difficulty, the breakdown is quite interesting:
Time required: FRM and CPA can be completed within 1 to 1.5 years, whereas the CFA takes at least 2 to 3 years to complete, involving three levels of rigorous exams.
Difficulty level: The CFA syllabus is more extensive and in-depth, making it the most challenging of the three. FRM involves significant use of mathematics and statistics; if you have a strong grasp of math, you might find it easier. The CPA has a slightly higher pass rate (approximately 45–50%) compared to the CFA, making it generally considered easier to pass. ...
Salary and Career Scope: Where can you get a package of ₹20 lakh+?
In terms of salary, all three finance courses are highly rewarding, though the specific package depends on your profile.
Course Name | Average Duration | Difficulty Level | Starting Salary
--- | --- | --- | ---
FRM | 1–1.5 years | Moderate (Math-based) | ₹10–18 lakh
CPA | 1–1.5 years | Moderate | ₹9–16 lakh
CFA | 2–3 years | Difficult (Extensive syllabus) | ₹12–22 lakh+
If you aim to enter investment banking or equity research, the CFA offers the highest returns, despite taking longer to complete. However, if you want to obtain a qualification quickly and secure a position at a "Big 4" firm, the CPA or FRM could prove to be the fastest and easiest options.
Which option is the best?
The decision of what to study depends on your interests. If you enjoy working with balance sheets and tax matters, choose the CPA. If you excel at numbers and risk analysis, the FRM is the right choice. If you are passionate about the stock market, stock analysis, and managing large funds, then go ahead and start preparing for the CFA without hesitation.
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