What Is a Chartered Market Technician (CMT)?
The Chartered Market Technician (CMT) credential recognizes a financial professional’s advanced knowledge and proficiency in investment, portfolio, and risk management. The prestigious and growing CMT certification is technically a charter, just like the CFA. CMT charterholders evaluate market data, apply behavioral economic theories, and create forecasts to execute informed investment decisions. The CMT Association sets all requirements to attain the CMT charter.
Benefits of CMT Certification
By becoming a CMT charterholder, you signal to organizations around the world that you are an expert in technical analysis and can appropriately measure risk in portfolio management settings. As a charterholder, you’re positioned to:
- Outearn Your Peers: The median salary for charterholders exceeds $250,000 (CMT Association 2018 salary survey, adjusted for inflation as of 2024).
- Enhance Your Credibility: The CMT designation is a globally recognized indicator of market expertise.
- Expand Your Professional Network: As a member of the CMT Association, you gain mentorship, collaboration, and career development opportunities with highly qualified investment professionals.
- Experience Greater Career Mobility: Careers related to technical analysis are growing, leading to a number of unique career paths.
- Improve Practical Skills: The process of attaining your charter requires a deep understanding of investment strategies, risk management practices, and overall market analysis.
What Does a Chartered Market Technician Do?
CMT charterholders use their specialized investment knowledge to perform technical analysis of financial markets and make predictions about future performance. To put it simply, they identify a trend, when to enter or exit a position, and when to close a position due to an incorrect analysis.
CMT Charterholder Responsibilities
Becoming a CMT charterholder is an ideal career option for financial professionals interested in market behavior, quantitative systems design, risk management, the gap between intrinsic value and market price, and behavioral finance. Primary responsibilities include:
- Technical Analysis: Analyzing market trends and price movements through charts, technical indicators, and patterns to forecast future market behavior
- Market Research: Conducting in-depth research on financial instruments such as stocks, bonds, and commodities to uncover potential investment opportunities
- Investment Strategies: Designing and recommending tailored trading and investment strategies that align with specific financial objectives based on thorough analysis
- Portfolio Management: Overseeing investment portfolios and making informed decisions on buying, holding, or selling assets to maximize returns
- Risk Management: Evaluating and managing the risks associated with various investments and trading strategies to minimize potential losses
- Reporting: Compiling and presenting detailed research reports and analysis to clients or stakeholders, offering insights on market conditions and investment performance
- Advisory Roles: Offering advisory services to guide clients or firms on investment decisions and market strategies
Typical Job Roles for CMT Charterholders
The overall market knowledge and analytical skills required of CMT charterholders are transferable to a number of financial positions. However, according to the CMT Association, the credential is best suited for:
- Portfolio Managers
- Investment Strategists
- Hedge Fund Managers
- RIAs
- Heads of Market Research
- Investment Advisors
- Chief Investment Officers
These roles require varying levels of experience, making the CMT credential a great option for professionals of any level.
Steps to Become a Chartered Market Technician (CMT)
To become a CMT charterholder, you must join the CMT Association and meet several educational and professional requirements. This includes the completion of a 3-level exam over the course of 1.5 to 3 years. The total cost of attaining your credential will be at least $2,500.
1. Understand Your Eligibility Requirements
To take the CMT exams, there are no formal eligibility requirements. However, the CMT Association recommends that you first complete a university degree and gain work experience in the financial markets using technical analysis.
To become a Professional Member of the CMT Association, you must complete 3 years of approved professional work experience and name 3 sponsors who meet the Association’s requirements. You may not become a Professional Member of the CMT Association until you pass Level III. However, you may become an Affiliate Member before sitting for the Level III exam to expedite the charterholder process and get direct access to a list of participating, approved sponsors.
To become a charterholder, you must complete a 4-year bachelor’s degree, pass all 3 CMT exams, and be a Professional Member of the Association.
To maintain your credential, you must remain a CMT Association Member in good standing and abide by the CFA Institute Code of Ethics and Standards of Professional Conduct. The CMT Association works closely with CFA Institute to promote excellence in the finance industry, including the adoption of CFAI ethical standards. Candidates of both the CFA and CMT exams will recognize some overlap in exam content and membership requirements from these organizations.
2. Study for Your Exams
The CMT exam is a 3-level, self-study exam that must be completed in order. Each level is offered twice per year, but you can only register for 1 exam at a time. The CMT Association’s recommended hours of study time for each exam are listed below:
- Level I: 80 to 120 hours
- Level II: 100 to 140 hours
- Level III: 120 to 160 hours
3. Register for and Pass Your Exams
Exams are administered in June and December every year, with dates provided on each exam’s individual test page. While you do not need to be a member to take the exam, registration pricing is less for members.
Testing takes place globally at Prometric testing centers. You have unlimited attempts to pass each exam, and there is no time limit to complete all 3 exams. However, the CMT Program’s curriculum changes annually, meaning it is to your benefit to complete your exams in consecutive administrations.
4. Apply for Your CMT Charter
Once you meet all eligibility requirements, pass your exams, and become a CMT Association member, you can apply for your CMT designation. Upon approval, you will be mailed your certificate of completion within 4 to 6 weeks. While there are no continuing education requirements to maintain your credential, the CMT Association encourages you to participate in opportunities available to members.
Elevate Your Career with CMT Certification
By attaining your CMT designation, you’ll join an exclusive group of over 4,500 finance professionals across 135 countries. This growing network is recognized by some of the world’s largest and most reputable financial institutions, including:
- Morgan Stanley
- Wells Fargo
- Bank of America
- Charles Schwab
- Fidelity
- RBC (CM & DS)
- Wellington Management
- Bloomberg, LP
- UBS
- CIBC
- Credit Suisse
- TD Ameritrade
- BMO Nesbitt Burns
- NDR
- Barclays
If you’re still undecided about whether CMT certification is worth it for you, check out these real-world testimonials offered by CMT Association members.
