Whether you thought of enrolling in the Chartered Market Technician program or saw your associate’s name card with the acronym “CMT”, you must have wondered about the value of the Chartered Market Technician designation.
[This article has been updated on 26 September 2018.]
The Chartered Market Technician is a professional designation for practitioners of technical analysis.
To get the Chartered Market Technician designation, you have to:
- Pass three levels of assessment;
- Have three years of relevant experience; and
- Have a current CMT as your sponsor.
The value of the Chartered Market Technician has two aspects.
The first is its intrinsic value for developing your technical analysis skills.
The second is its professional value that will help you to prove yourself in the industry.
Intrinsic Value of the Chartered Market Technician
Syllabus of the Charter Market Technician Program
The clear advantage of enrolling in the Charter Market Technician program is having a structured approach to learning technical analysis.
The three levels of assessment cover definition, application, and integration of technical analysis concepts.
According to the CMT Association’s website, the content areas of the assessment include:
- Quantitative Financial Research and Trading
- Risk Management
- Applied Behavioural Finance
- Portfolio Management
The content areas are comprehensive and cover topics that a self-taught technical analyst might have overlooked.
The CMT Association has carefully selected study materials for the three levels. Even if you are not a member of the association, the list of reading assignments and prescribed books is a useful guide to the vast array of technical analysis books out there.
Market Technician Association Membership
To join the Chartered Market Technician program, you must first join the CMT Association as an affiliate member.
As a member, you will receive weekly technical analysis webcasts, access to a repository of technical information, and monthly publications on technical analysis. These are resources to keep you updated on the latest developments in the field of technical analysis.
From the structured and comprehensive approach, it is clear that CMT Association treats the field of technical analysis as a rigorous discipline. This attitude towards technical analysis is lacking in most academic institutions. Hence, the intrinsic learning value of the Chartered Market Technician program is clear.
Professional Value of the Chartered Market Technician
Professional recognition of the CMT designation
The Chartered Market Technician program achieved a milestone regarding its professional value when FINRA approved the exemption of Series 86 examination for applicants who have passed Levels 1 and 2 of the Chartered Market Technician program.
Series 86 forms part of the Research Analyst Qualification Examination, and anyone working as a research analyst for FINRA members must pass it.
Hence, being exempted from Series 86 is valuable for aspiring research analysts and puts Chartered Market Technicians on par with Chartered Financial Analysts (who are also eligible for Series 86 exemptions).
Career opportunities for Chartered Market Technicians
Another indicator of the professional value of the Chartered Market Technician is the number and profile of jobs that need a Chartered Market Technician. We searched for jobs in the USA that require or prefer a Chartered Market Technician on Indeed.com and found only two positions.
- Senior Investment Research Operations Analyst at Fidelity Investments
- Assistant Research Analyst at Randstad (taken off from the website)
The fact that the Chartered Market Technician is on the radar of one of the largest mutual fund companies in the world and a European MNC is encouraging.
However, the lack of opportunities is hardly motivating for job applicants looking to leverage their Chartered Market Technician designation.
(Update on 2 Feb 2014: We researched for jobs that prefer CMTs again and found three vacancies, including one offered by BlackRock, a multi-national fund manager with around 4 trillion AUM.)
Next, the profile of current Chartered Market Technicians will also give us a sense of the professional value of the Chartered Market Technician. Although CMT Association’s website listed the names and country of current Chartered Market Technicians, there is no information on their careers.
Hence, we surveyed the Linkedin profiles of 30 Chartered Market Technicians selected at random. (Random means the 5th result from each page of Google search results.)
Our key findings:
- Slightly less than half of the CMTs work for established MNCs. The others work for smaller boutique firms or national companies. A couple of them trade for themselves and offer freelance analysis services.
- Slightly more than half of the CMTs are in the USA. A significant minority is from India.
- 6 CMTs have other financial designations. The most common designation is the Chartered Financial Analyst (CFA).
- CMTs hold positions including trader, analyst, trainer, and salesperson.
Chartered Market Technicians are diverse and international. Despite being a relatively small group, it is a focused network of technical analysis professionals which includes senior members of their organization.
Cost of the Chartered Market Technician Program
Our discussion of the value of the Chartered Market Technician is not complete without taking into account how much it costs.
This table shows a breakdown of the program costs.
| Item | Cost (US$) |
|---|---|
| Membership For Two Years* | 650 |
| CMT Program Registration Fee | 250 |
| CMT Level 1 Examination Fee | 375 |
| CMT Level 2 Examination Fee | 575 |
| CMT Level 3 Examination Fee | 575 |
| Total | 2,425 |
*The annual dues is $325. Given that the examinations are held twice a year, a candidate needs at least two years of membership to cover three examination dates.
The total program cost of $2,425 excludes the recurring annual dues of $325 if you want to hold the charter. The cost of study materials is also not included.
Conclusion – Why do you want to be a Chartered Market Technician?
The program cost is reasonable if you intend to extract its professional value, which means that CMT is relevant to your career. The recurring fee of $325 is a small fee for updating yourself with the latest development in your field.
However, if you intend to use the Chartered Market Technician program as a way to structure your learning, then paying for the program might not be necessary. Anyone can purchase the study materials and use them to guide your learning journey.
If you are enrolled in or enrolling in the Chartered Market Technician program, you should definitely take a look at our Book List for Chartered Market Technician.
Good article. In my endeavour to get a CMT certificate, i researched high and low. The biggest obstacle is that they ask for professional references and expertise. In other words, one must already be employed in the financial services niche to even sit for the exam. This basically cuts out anyone else. Besides MTA there is also STA in UK. A bit flexible but very expensive.
Thanks for your comment. MTA asked for professional references when you registered for the exam? I thought that’s only for the getting the charter. I took the first two levels without having to present any reference. I did not proceed with the last level as I felt that I did not need the designation for my personal trading.
Is there any use of just having completed 3 levels but not getting a charter?
It’s useful if you want a structured curriculum with proper assessment to guide your self-learning of technical analysis. But if you want it to be have value within a professional context, you’ll definitely need the charter.
Has there been any systematic research on the track records of the CMTs, i.e., how profitable their recommendations have been to their clients? I personally track a CMT on Kitco’s website whom I use as a contrarian indicator.
I don’t know of any research on their performance. However, CMT, like all other financial professional designations including CFA and CAIA, only ensures that they’ve been through an education program and have a certain amount of industry experience. There is no reason to expect that they will then be profitable.
Hi, can any on tell me from where i can get books for cmt levels. I am interested in this course but i am planning to read first and then register for it if i feel it is necessary. Please advise me on this.
MTA has published their own compilation of the required books and readings. You can check the first book out here.
Hii sir the article is very knowledgeful ,but a quiery is i am from India and a student and my age is 19yrs ,am elegible for CMT course
and can i give it from india
Hi Kunal, there should be no restrictions against taking the CMT for your age and nationality. I took it when I was a student too and enjoyed paying a lower student membership for MTA. But this was a long time ago, so you should email MTA/CMT Association to find out more.
Hi. This is Avyay Kapoor from India, based out in Delhi. Currently i am working with KPMG in Mergers and Acquisition – Taxation profile. Have few questions before i move forward with this course.
1. What does three year relevant experience means. Will my experience in field of Mergers and Acquisition Taxation count in three years relevant experience.
2. I Understand a sponsor is required. Is is compulsory to have a CMT as sponsor or any senior person in field of finance can also sponsor me
3. Further is this sponsor required at the beginning or after clearing all three levels.
4. Is there any center in Delhi where i can go and meet relevant people and discuss about this course
Hi Avyay, it has been a while since I took the CMT exams so my knowledge is dated. You might find it more helpful to to consult the CMT website and contact them directly via email if there’s any doubt.
Hi, I am a graduate and I am interested in going CMT. I just have a few questions. Do I need to go to a college/institute to do this course or can I from it from home. I mean to say can I just get the study material.. study on my own and just go give the exam? Because I am planning to work part time/full time while doing the course.
P.S I am currently working as a stock broker in Indai
Hi Azeem, you can definitely get the study materials and study on your own. All the best!
Hi! I am a Banker but want to earn CMT certification. As I don’t have trading experience, I wish to know if I will be allowed to appear for all 3. Exams of CMT.
Hi Vishant, there’s no working experience requirement for taking all three levels of the exams. But to use the CMT charter you will need a Professional Membership which requires approve working experience. You can find the details on this page.
Do we get study material by registration for membership program. Or cost is included in membership program.
Hi Prashant, from what I understand, the study material is not included in the registration cost for the program.
Hi,
You have written very useful content. Thank you for that.
I have a few questions:-
How do we get sponsors?
I suppose, they have removed the compulsory MTA membership and anyone can register and give exams. Also you don’t need to have 3 years of experience, you can also apply even if you are in the final year of your bachelor’s degree.
Please correct me if i am wrong.
Hi Kunthu, glad that you find this article helpful.
You can find a sponsor from among charterholders in your network. If I’m not wrong, members also get access to a list of charterholders they can contact for help.
You don’t need 3 years of experience to take the exams. That is a requirement for obtaining the charter.
The requirements are always changing so it’s best that you refer to their official website for the most updated info.
I work in a bank as a Relationship Manager selling banking products and third party products as in mutual funds and insurance. Will CMT program help me to upgrade my job from a bank to a financial sector.
Please guide as I am not sure about it. My age is 37.
Hi Abhay, since you’re looking at the CMT, I’m presuming you want to upgrading your job to become a financial market analyst. The job market demand for technical analysts is considerably lower compared to analysts performing fundamental analysis. Unless you have a specific position you’re gunning for (that requires technical analysis expertise), you might want to check out the CFA as well.
sir/ mam i want to know that CMT is recognised in India and i don’t have any work experience am I eligible for CMT and i am a graduate
Hi Priyanka, I’m not sure about the job market in CMT and cannot advise you on this. But you can certainly start studying for CMT first and try to gain the relevant experience later.
Hi i am a day trader and would like to enhance CMT for my skills.What do you suggest should i sit for exams or should i buy books and do self study? My purpose is to only enhance skills and not to upgrade my profile as my profession is completely different.Kindly guide
Hi Akash, if you’re not interested to use it in your career search, I suggest following the syllabus for self-study. That will allow you more freedom to dive deeper or steer away from the syllabus if some topics are more helpful for your trading approach.
Hi
My name is Michael Somseb, and I am interested in doing technical analysis.
I have trading experience but have been on and off because I want to understand what i am dealing with..
Trading is a passion even when on demo i sell high buy low,but i want to know if i am able to do that and be a independent trader. And what requirements do I need as I am a process controller who works with trends of machines?
Being an independent trader is challenging. There is no guaranteed and fixed pathway here. The requirements depend on your trading approach.
For technical analysis, the CMT syllabus presents a good outline for you to structure your learning, even if you do not take the certification. For example, you can find the Level One syllabus here.