FRAs and swaps are both interest rate derivatives that allow parties to exchange interest rate exposures, but FRAs involve the exchange of fixed rates for a future period while swaps involve the exchange of fixed rates for the life of the contract. FRAs are for a single period in the future, whereas swaps fix rates for the entire term of the loan. While both help parties manage interest rate risk, FRAs settle just once at maturity whereas swaps require periodic interest payments over the life of the contract.