Is the CMT Charter Worth It?

Is the CMT designation worth the time and financial investment it will take to achieve certification? If you are interested in a career path filled with investment strategies, forecasting, and market trends, the CMT charter will certainly help accelerate your career.

• CMT charterholders have far greater earning potential than non-chartered counterparts.
• Compared to other financial designations, the CMT exam has relatively high pass rates.
• Earning your CMT offers greater work-life balance than remaining non-chartered.
• The CMT designation requires financial and time commitment.

Earning the CMT charter could advance your career in technical analysis. From higher pay to better work-life balance, there are many pros to explore when it comes to pursuing your CMT.

Larger Networking Opportunities

To become a CMT, you must be a member of the CMT Association upon passing all three levels of the exam. As a member, you will have access to a plethora of networking opportunities, including webinars, summits, and symposiums.

Higher Starting Salary

The average salary for a market technician is $65,000., though the average salary for a Chartered Market Technician is over $200,000 (according to a 2018 CMT Association survey). While earning your CMT charter won’t automatically double your salary, it does significantly increase your earning potential and create more demand for your unique skillset and specialization in the job market.

Note that the above figures are averages, meaning salaries and expectations vary depending on your employer, tenure in the field, and location.

Better Work-Life Balance

Working in investment management and technical analysis typically means long hours as the market never stops. However, through earning your CMT charter, you demonstrate specialized skills and knowledge fit for a more advanced position, potentially giving you access to a team of entry-level direct reports capable of monitoring activity after hours.

Becoming a charterholder, in theory, could help reduce your hours on the job to fit the more traditional US 40-hour model thanks to the fact that you’re qualified to lead a team.

Separately—as the skillset of a CMT is in high demand across the industry, you could also increase your competitiveness in the job market and attract employers who value flexibility and offer top-notch benefits—which can be life-changing!

Recognition from Regulatory Committees

By completing Level I and Level II of the CMT exam, individuals can request a Series 86 exception. A Series 86 exam is required for financial analysts. If you are working towards your CMT designation and have yet to take the Series 86 exam, you may apply for the exception.

As you consider whether pursuing the CMT charter is right for you, it’s important to acknowledge the time and money you’ll have to invest into the certification process and the sort of job opportunities that await you once you become a charterholder.

Lack of Job Opportunities

Unlike other financial sector designations, like a CMA or CFP, which can be utilized in more diverse fashions, a CMT can be rather limiting. By earning a CMT charter, you are specializing your skillset in technical analysis.

Cost

To become a CMT charterholder, you must enroll in the CMT Program. This is a one-time fee of $250. Upon enrolling you will be prompted to register for the first of the three CMT exams. Each exam has a fee contingent upon CMT Association membership and when you register. Early registrations are cheaper, while late registrants are forced to pay higher prices.

In addition to the exam cost, you are encouraged to invest in studying materials to appropriately prepare for each level of the exam, ranging from $250-$845 USD per level.

Once you have passed all three exams, you must apply for professional membership with the CMT Association. Finally, once your membership is approved, you will need to keep it current by paying annual dues.

Learn more about CMT registration fees for CMT Members and non-members.

Time Commitment

To earn a CMT designation, you must have a bachelor’s degree and three years of relevant paid work experience. You also have to pass all three levels of exams and apply for CMT Association membership.

The tests themselves are only offered twice per year—in June and December. Given there are three tests, the fastest you can complete the testing portion of CMT certification is one year (ie: the CMT Level I exam taken in June, Level II in December, and Level III the following June).

This does not include the time you must allocate for sufficient test preparation.

After reviewing both the pros and cons of the CMT charter, you can determine whether this designation is right for you by asking yourself two questions.

What Are Your Career Goals?

Given the time and financial commitment required to earn a CMT designation, you should consider what your long-term career goals are before you start. Unlike other financial designations, the CMT is a rather niche credential. If your career path is leading you towards investment management, hedge funds, or portfolio management, then the CMT charter makes sense for you.

Are You Looking for a Career Change?

You can also migrate from other realms of the financial sector into the field of technical analysis. Please be mindful though, that to become CMT certified, you will need to have three years of technical analysis work experience.

If you are passionate about market analysis and behavioral finance, earning a CMT charter may be in your best interest. It does take a commitment to earn the designation, but if the field of technical analysis is your long-term career choice, you will not only have a better work-life balance, but also have far greater earning potential than without certification.