Why Become a CMT^® Charterholder?

Check out some fast facts regarding the process and benefits of becoming a CMT.

• You can become a CMT charterholder in as few as 18 months (not including prep time for Level I!).
• CMT exam fees can range from $1,550 for CMT Association members to $3,100 for non-members.
• The median income for CMT charterholders is over $200,000.
• CMT charterholders are equipped for a range of roles in investment management and technical analysis.

A Chartered Market Technician (CMT) is a financial analyst who has passed the CMT exam and been awarded the CMT charter by the Chartered Market Technicians Association.They typically manage stock portfolios and provide a deep technical analysis of the financial data and economic trends that can impact an investment program. They may also conduct research, author research reports, and recommend trades from a variety of financial instruments and markets.

With their knowledge and analytical skills, a CMT is ideally suited to work in areas like risk management and investment management. In other words, CMTs are often employed as portfolio managers, hedge funds managers, trading analysts, financial analysts, RIAs, heads of research, and chief investment officers.

Discover how becoming a CMT can set you apart as a technical research analyst and help accelerate your career.

CMT vs. CFA

A Chartered Financial Analyst shares many of the same skillsets as a CMT. Both CFAs and CMTs attain their designation by passing a three-level exam. The CFA^® Program is typically more expensive, costing from $2,550 to $3,450 to register, and requires 48 months or more to complete. The CMT exams cost between $1,535 and $3,100 and can be completed in 18 months if candidates pass each level on the first try.

A CFA develops expertise in several areas, including financial analysis, equity research, and financial modeling. Some of the common job profiles a CFA may pursue include strategic analyst, investment analyst, financial consultant, wealth manager, and portfolio manager.

CMT vs. CMA

In order to become a CMA, you must join the Institute of Management Accountants (IMA) and pass the two-part CMA exam. You will also need two continuous years of full-time experience in financial management or management accounting.

A CMA develops a thorough understanding of financial planning, cost management, and internal controls, which makes them better able to advise strategic business decisions about corporate finance, risk management, and investments. A CMA is skilled at supervising teams and managing projects. Some common job titles for a CMA are financial analyst, management accountant, senior accountant, cost accountant, financial risk manager, corporate controller, or even chief financial officer.

CMT vs. CFT

A Certified Financial Technician (CFT) is tested on technical knowledge as well as an understanding of ethical standards and the overall market. The CFT Program is accredited by the International Federation of Technical Analysts (IFTA), and the CFT exam consists of two levels. CMT candidates who have passed the first two levels of the CMT exam are also eligible for a CFT certification.

You may be asking, “Is the CMT charter worth all the money, time, and effort?” The answer is “Yes!” Becoming a CMT charterholder will give you practical expertise that will open up new high-paying job prospects and career advancement opportunities around the world. The CMT Association has chapters in over 135 countries, and the CMT credential is recognized as an international gold standard in technical market analysis.

Higher Starting Salary

The most tangible benefit of being a CMT charterholder is higher pay. The CMT Association reports the median salary of their charterholders to be more than $200,000 (as of 2018). With their level of knowledge and practical expertise, as well as the required three years of relevant work experience, there’s really no such thing as an “entry-level” role for a CMT—even for newly certified charterholders.

Good Work-Life Balance

With your CMT skillset and expertise in high demand, you will have more employment options. And as a result, you will be in a better position to negotiate not only a higher salary but ancillary benefits like a flexible work schedule and more PTO.

Growing Field – Better Job Prospects

In recent years, the CMT credential has gained popularity. As a CMT charterholder, you will be part of this growing, prestigious field of investment professionals. There are now more than 4,500 members in the CMT Association.

A wide range of businesses, like stock brokerage firms, investment banks, and hedge funds are eager to utilize the insights that your expertise in technical analysis can provide. This gives you greater choice and opens you up to desirable employment opportunities.

The main requirement to become a CMT charterholder is that you must pass all three levels of the CMT^® Program Exam. The CMT exam is administered twice per year—in June and December for all three levels.The exam is rigorous and ensures charterholders possess a deep understanding of the principles, practical applications, and ethics of technical analysis. The CMT Association recommends that you complete 80-120 study hours for the Level I exam, 100-140 hours for Level II, and 120-160 hours for Level III.

CMT Level I Exam

Level I of the CMT exam consists of 132 multiple-choice questions with a two-hour time limit. It focuses on the candidate’s knowledge of the analytical tools and terminology used in technical analysis.

CMT Level II Exam

Level II of the CMT exam covers the application of the concepts and techniques of applied technical analysis. There are 170 multiple-choice questions over a four-hour period.

CMT Level III Exam

Level III of the CMT exam measures the candidate’s ability to integrate the body of knowledge from the first two exams. The exam is organized into groups of questions combining two or more of the topic categories. Each group contains three to seven questions, both multiple-choice and short answer, that require you to state and justify your analysis. The Level III exam is four hours and will cover seven categories.

1. Classic Methods (21%)
2. Risk Management (21%)
3. Asset Relationships (18%)
4. Portfolio Management (18%)
5. Behavioral Finance (10%)
6. Volatility Analysis (7%)
7. Ethics (5%)

As a CMT, you will have the skills to work in a variety of CMT jobs and roles in the finance industry. CMTs typically work for stock brokerage firms, investment banks, mutual fund companies, pension fund management companies, and hedge funds. Some of the common CMT career profiles include:

• Trading Analyst
• Hedge Fund Analyst
• Portfolio Risk Manager
• Investment Manager

If you’re ready to start your journey to become a CMT charterholder, the first step is to enroll in the CMT Program and begin studying for the Level I exam. You can enroll and register on the CMT Association website.Once you are registered for the exam, it’s time to start studying! Enroll in the UWorld CMT^® Exam Review course to get access to The Official CMT^® Curriculum and the study resources you’ll need to prepare for and pass the exam!