CMT Certification – The Starting Place For Professional Traders

The CMT certificate is considered one of the prestigious certifications in the financial market, and some people see the CMT financial certificate as a goal to achieve in order to become a professional trader. Besides the CMT certificate, there are other certificates such as the CFA certificate or the CFT certificate. Today’s article will help you understand what the CMT certificate is, where you can study for the CMT certificate, experience in taking the CMT exam, and a comparison between CFA and CMT to see which financial certificate suits you better.

1. WHAT IS THE CMT CERTIFICATE?

CMT stands for Chartered Market Technician, which is the name of a market technical analysis certification. Therefore, this explains both the question of what the CMT certificate is and what Chartered Market Technician means. The CMT certificate serves as proof that a person working in the financial sector possesses comprehensive knowledge as well as skills in market analysis.

The CMT financial certificate is issued by the CMT Association in the United States and is globally recognized, with thousands of members. Therefore, if we consider just the U.S. market, the CMT is regarded as a highly valued and very popular technical certification. The CMT program focuses on technical analysis knowledge, including topics familiar to technical analysts such as:

• Identification and analysis of chart patterns

• Technical indicators

• Elliott Wave theory

• Gann Angles method

• Candlestick charts

Additionally, there are other subjects such as risk management, portfolio management, trading systems, behavioral finance, and more. The knowledge provided by the CMT program is truly worth the effort and money you invest.

2. CAREER OPPORTUNITIES AFTER OBTAINING THE CMT FINANCIAL CERTIFICATE

After passing the CMT exam and obtaining this financial certificate, you can become a portfolio manager, fund trader, investment advisor, and more. It can be said that your career opportunities will be extremely broad, and this is not an exaggeration when the Financial Industry Regulatory Authority (FINRA) has accepted those who complete the first two levels of the CMT exam, Level 1 and Level 2, in place of taking the Analysis Series 86 (*) exam for technical analysts. However, they will still need to take the Series 87 regulatory exam, but the exemption from the Analysis Series 86 alone shows how highly the CMT certificate is regarded.

With the CMT certificate, your starting salary will be significantly higher. The CMT Association conducted a survey in 2018 showing that the average annual salary of professionals holding the CMT financial certificate is around more than $200,000. The CMT certificate is increasingly recognized by many organizations worldwide. However, high benefits do not mean that the process of studying for and passing the CMT exams is easy, especially when completing all three levels. Besides, you also need to spend a considerable amount on CMT study materials and exam fees.

(*) Analysis Series 86: An entrance competency exam required to work in funds or financial securities organizations.

3. EXPERIENCE IN TAKING THE CMT EXAM: WHERE TO STUDY FOR THE CMT CERTIFICATE?

The CMT Association encourages candidates to dedicate at least 100 hours of study for the CMT Level 1 exam, a minimum of 140 hours for Level 2, and finally 160 hours for Level 3. This means it will take a minimum of approximately 400 hours to learn the knowledge for all three CMT certificate levels. However, the question remains: where to study CMT or where to find reputable CMT courses?

Currently, in Vietnam, there are some providers offering CMT courses priced around 10 million VND. An advantage of CMT courses in Vietnam is that you can study and read CMT materials in Vietnamese, and you can ask questions in Vietnamese if you don’t understand something. However, a common risk not only with CMT courses in Vietnam but also with other courses is scams due to trustfulness. Therefore, if your foreign language skills are good, it is advisable to find English CMT study materials to self-study.

Some well-known experts and technical analysts around the world have also earned the CMT certificate, and you may already be familiar with names such as John Bollinger – the father of the Bollinger Bands indicator, or Ralph Acampora – author of “The Fourth Mega-Market, Now Through 2011: How Three Earlier Bull Markets Explain the Present and Predict the Future.” Billionaire John Bollinger not only obtained the CMT certificate but also earned the CFA certificate, becoming the first person on Wall Street to hold both of these prestigious qualifications.

4. THINGS TO KNOW ABOUT THE CMT EXAM

The CMT exam is typically held twice a year – in the spring and fall sessions. The specific CMT exam dates are updated on the CMT Association’s website. The CMT exam is usually administered at Prometric testing centers; however, in Vietnam, candidates take the CMT exam via computer with remote proctoring.

For some financial certifications, you are required to have a bachelor’s degree or be in the final year of a major related to economics, finance, or other relevant fields. The CMT certification does not require this, but having a foundational background will make it easier to study for the CMT.
However, in order to register for the CMT exam, you must first join the CMT Association as an affiliate member, and then enroll in the CMT program.

4.1. CMT Exam Fees

CMT exam fees can be divided into two categories:

• Required fees: For those who take the CMT for the first time, you will need to pay a $250 enrollment fee (Program enrollment fee). In addition, as a member of the CMT Association, you will have to pay a $325 annual membership fee, and $100 for college students (Annual membership dues). And a CMT exam registration fee will vary depending on when you register (will be discussed in detail below).
• Optional fees: The CMT exam fee will not require you to pay these fees including: Wiley’s curriculum of about $225 and $95 to access Wiley’s sample test bank. If you buy both together, the total cost will be calculated as $295, saving about $25.

As for the CMT exam registration fee, it will vary depending on when you register. For details, please see the CMT exam fee table below:

	Level 1	Level 2	Level 3
Early Reg	$295	$495	$495
Standard	$395	$595	$595
Late Reg	$595	$895	$895

Early registrants who register on time may request to cancel their registration and will receive a refund within 2 business weeks. Late registrants will need confirmation from the test center within two days of payment and the refund will be equal to the original payment minus the center fee.

CFA holders are exempt from the CMT Level 1 exam, however, if they are taking the CMT exam for the first time, they will still be required to pay the mandatory $250 fee.

4.2. CMT Exam Structure

For those planning to take the CMT exam or interested in this certification, the exam structure is a key concern. Each level has a different format, as detailed below:

4.2.1. Level 1 – 132 Multiple-Choice Questions

The CMT Level 1 exam focuses on understanding and definitions. This is the most basic level of the CMT certification and measures basic entry-level technical analysis skills and understanding. Candidates who pass the CMT Level 1 financial certification must have a working knowledge of the basic tools of technical analysis. Candidates will have 2 hours to complete the exam.

4.2.2. Level 2 – 170 Multiple-Choice Questions

At Level 2, candidates taking the CMT certification exam will have 4 hours to complete the exam. This level requires candidates to demonstrate their ability to analyze and apply technical analysis tools at a more in-depth level. Through this, candidates are expected to demonstrate their ability to apply more advanced analytical techniques and master the theory of such analytical knowledge.

4.2.3. Level 3 – Essay + Multiple Choice, total 240 points

At the final level of the CMT certification exam, candidates must demonstrate synthesis skills, as Level 3 assesses how candidates develop coherent and generalized research, portfolio management strategies, and trading decisions based on technical chart and data analysis. In addition to case studies, candidates are expected to provide recommendations and explain the rationale behind those recommendations based on the provided data.

After successfully passing all three levels of the CMT certification, you will need to provide three references who can verify your skills, knowledge, and technical analysis capabilities. This supports the certification process and approval of your membership in the CMT Association.

4.3. Free CMT Study Materials

Successfully preparing for each CMT exam requires thorough review and preparation. There is no limit on the number of times a candidate can take the CMT exams, but considering the exam fees, no one wants to go in unprepared and have to retake them. The most trusted study material used by candidates and CMT training centers is the Wiley CMT curriculum. You can order directly from Wiley’s official website HERE.

Additionally, Finance Solutes offers you free access to Wiley’s 2017 CMT study materials for reference (linked at the end of the article). If you’re serious about pursuing the CMT certification, be sure to study methodically using the original curriculum available for purchase online.

5. COMPARING THE CMT CERTIFICATION WITH OTHER FINANCIAL CERTIFICATIONS

However, not everyone has clearly decided to pursue the CMT certification. Many are still debating between CMT, CFA, or another option like CFTe. So let’s compare the differences between these financial certifications and the CFT to determine which one suits you best.

5.1. Technical Analysis – Should You Choose CFTe or CMT?

Both CFTe and CMT are certifications focused on technical analysis. The differences between CFT and CMT are analyzed in the table below:

5.2. Comparing CFA and CMT – Which Financial Certification is Right for You

The biggest difference between CFA and CMT is that CFA focuses on fundamental analysis knowledge, ethical and professional standards, financial reporting and analysis, quantitative methods, corporate finance, etc. Like CMT, the CFA also consists of 3 levels, but CFA exams are held 3 times a year, while CMT exams are held only twice a year.

However, the CFA exams are very difficult, and it is estimated that only about ~10% of candidates are able to complete all 3 Levels of the CFA certification. Additionally, to be eligible for the CFA exam, candidates must hold a bachelor’s degree (or be in the final year of their bachelor’s program).

6. CONCLUSION

The reason why the CMT certification is often considered a first major step for traders to become professional market participants is because it requires a significant investment of time, effort, and money. However, once obtained, the CMT certification provides international recognition of your skills and knowledge. We hope that with today’s article on what the CMT certification is, traders now have a clearer understanding of this financial credential, and whether they are better suited for the CFA, the CMT, or even capable of achieving both. If you are serious about obtaining the CMT financial certification, start preparing now.

Wishing you success!