The Financial Risk Manager (FRM) designation is one of the most highly regarded designations for finance and risk managers across the globe, offered by the Global Association of Risk Professionals (GARP). It is a sign of prowess in risk analysis, credit, market risk and investment management — and a tremendous career enhancer.
But one of the most common queries that candidates often have in their mind before beginning FRM is – How much does FRM really cost?
When you first land there, you’ll see the official registration and exam fees posted on GARP’s site. But there’s another side to the story. Many candidates also overlook hidden costs — including study materials, additional exam attempts and more. Luckily, with some savvy planning, you can save thousands along the way of studying FRM.
This post provides a full analysis on the FRM fees, hidden costs and cost effective strategies to help you save money without compromising your readiness.
Table of Contents
1. Understanding the FRM Fee Structure
The FRM exam is part of a two-part test:
- FRM Part 1 – Covered the fundamentals of risk management process, fundamental risk and return concepts, financial markets, and products.
- FRM Part II – Concentrated more on credit, market, operational, and integrated risk.
Each part has its own examination fee, and candidates are also required to pay a one-time enrolment fee. Let’s break it down:
A. Enrolment Fee
- One-time fee: USD 400
- You make payment when you register for the FRM (prior to taking your first exam).
- Non-refundable and non-transferable.
B. Examination Registration Fee (Per Part)
There are fees that are based on when you register for the exam. GARP follows a three-tier system:
- Early Registration: USD 600
- Standard Registration: USD 800
- Late Registration: USD 1,000
For instance: If you sign up early to pass both parts, the total amount you’ll pay in exam fees will be 1,200 USD, plus an enrolment fee of 400 USD, so it’s 1,600 USD.
C. Total Official Fees
- Minimum (Early Registration full parts): $ 1,600
- Maximum (Late Registration combined sections): $2400
That is the official range, but the true cost is inevitably higher, because of hidden expenses.
2. Hidden Expenses in FRM
Here are the big hidden costs:
A. Study Materials
- GARP eBooks: ~$250 per part.
- Printed parts (Optional): ~350 USD each part.
- 3rd Party Providers (Schweser, Wiley, etc.): Packages range from $400 to $1,200 depending on what you get (study notes, question bank, mock exams, videos).
B. Preparation Courses
A few candidates also join online or classroom coaching to have an expert advise them.
- Online Course: $300 – $700
- Live classes: USD 1,000+
C. Exam Re-Take Costs
If not, you will need to get registered again. Re-take fee is equal to new registration (600-1000 USD depending on window).
D. Travel and Accommodation
FRM exams are offered at select locations around the world. You may have to travel if your city doesn’t have a test center.
Charges cover air/train fares, accommodation, meals and travel locally. This can be USD 100 – 500 extra depending on where you are.
E. Membership Fees (Optional)
Membership costs $195 annually for GARP. Although not required for exam, many professionals belong to be sure to access resources, networking and continuing education.
F. Currency And Bank Charges
Due to the fact that fees are paid in dollars you may sustain conversion costs, taxes or commissions from your bank or credit card company.
3. Total Estimated Cost of FRM
So, if we add all those costs together for your run-of-the-mill average candidate:
- Enrolment Fee: USD 400
- Examination Fees (Application received before the early deadline to take both parts): USD 1,200
- GARP Materials (eBooks – Both Parts): $500
- Third-Party Provider (Optional): USD 600
- Travel/Other Costs: USD 200
Average Total Price: $2500 – 3000
For students that don’t pass one exam or are using high-end study packages, costs can easily escalate to more than $4,000.
Get More Details Of FRM Coaching Classes
4. Smart Savings: Cutting FRM Costs
The good news? Superior planning can help you cut your costs and not your readiness. Here’s how:
A. Register Early
That’s the simplest way to save. By taking advantage of the early registration for both tests, you save $400 versus the late registration.
B. Self-Study with Free Resources
- Download and learn from GARP’s learning objectives, as well as using their practice exams (candidates receive this at no additional cost).
- Check out free YouTube lectures, finance blogs and forums like AnalystForum or Reddit.
- Start your notes instead of exclusively working with costly third-party solutions.
C. Purchase Used or Shared Study Material
Numerous candidates sell older Schweser, or Wiley, the review packages for substantially less.
If you’re in a study group, split the cost of third-party packages.
D. Avoid Exam Re-Takes
- Falling short involves paying that same registration fee again. To avoid this:
- Create a study schedule (200-250 hours per part).
- Take multiple mock tests.
- Systematically revise during the final 4–6 weeks.
E. Limit Travel Costs
Select the closest test site to reduce travel and accommodation expenses. But if you do have to travel, it pays to book tickets and accommodation as early as possible, Zandi said, when prices tend to be cheaper.
F. Skip Unnecessary Add-Ons
You don’t need to invest in pricey, live classes or a premium package for every candidate. Assess your learning style first. If you’re self-restrained, you don’t need anything more than the GARP eBooks and a mid-tier third-party provider.
G. Employer Sponsorship
And certain institutions will cover employees’ FRM costs in full or in part as an aspect of professional development. Always inquire with your employer first before paying for something out-of-pocket.
H. Scholarships
GARP does provide scholarship to only full-time students and faculty. This can eliminate the cost of exams, which can run into the hundreds of dollars.
Final Thoughts
FRM (Financial Risk Manager) The FRM designation is the most widely recognized credential for risk management. The official fees (about USD 1,600-2,400 USD) may appear clear-cut, but the additional fees can drive the total cost up to closer to 3,000 USD or more.
Registering early, passing FRM by avoiding re-takes, training materials, and employer sponsorship can make FRM a much more affordable affair.
Don’t forget, the trick is smart planning – not only in your finances, but also how you plan to study. Used wisely, FRM is and will continue to be a high-yield investment that’s worth it in terms of knowledge, skills, and career development.
