Difference Between CFA and CMT
CFA is the short form for Chartered Financial Analyst and aspirants after qualifying with this course can apply for job options like risk manager, research analyst, portfolio manager, consultant, relationship manager, chief executive, etc whereas the full form for CMT is Chartered Market Technician and aspirants with this degree can apply for jobs in risk management, behavioral finance, inter-market analysis, etc.
CFA vs CMT Infographics
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Let’s understand the difference between these two streams with the help of this CFA vs CMT Infographics.
CFA vs CMT Summary
|Certification Organized by||CFA is offered by Chartered Financial Analysts (CFA) Institute||CMT is organized by Market Technicians Association (MTA)|
|Number of levels||CFA: CFA has 3 exam levels, each of them split into two exam sessions (morning and afternoon sessions)|
CFA Part I: Morning session: 120 multiple choice questions
Afternoon session: 120 multiple choice questions
CFA Part II: Morning session: 10 item set questions
Afternoon session: 10 item set questions
CFA Part III: Morning session: Constructed response (essay) questions (usually between 8-12 questions) with a maximum of 180 points.
Afternoon session: 10 item set questions
|CMT: It has 3 exam levels which test the knowledge and skills of the participants at different levels
CMT Exam levels I and II are machine graded whereas Level III is manually graded by CMT Charterholders
CMT Level I: 120, plus 12 pre-test questions (multiple choice)
CMT Level II: 150, plus 10 pre-test questions (multiple choice)
CMT Level III: Essay questions totaling 240 points
|Mode/duration of examination||Across CFA Part I, II, III levels, there are morning and afternoon sessions of 3 hours each.||CMT Level I: 2 Hours 15 minutes
CMT Level II: 4 Hours 15 minutes
CMT Level III: 4 Hours
|Exam Window||CFA Part I, II & III level exams are conducted on the first Saturday of June every year, Part I exam can also be taken in December||Early Registration Deadline:- March 1, 2017
CMT Level III Registration Closes:- March 27, 2017
CMT Level I and II Registration Closes:- March 31, 2017
CMT Level I & II:- April 27 & 29, 2017
CMT Level III:- April 27, 2017
Cannot Guarantee availability for CMT Level I,II after March 27, 2017
|Subject||CFA content curriculum consists of 10 modules with increasing level of difficulty from CFA Part I exam to Part II & Part III exam respectively.|
These 10 modules consist of:
*Ethics and Professional Standards
*Financial Reporting and Analysis
|CMT Level I is focused on the basic terminology and theory related to technical analysis. The exam tests participants for their knowledge of basic tools of a technical analyst.
CMT Level II is focused on application of theory, concepts and analytical techniques employed as a part of technical analysis.
CMT Level III is focused on the integration of technical analysis including theory as well as their practical applications. Candidates have to display their analytical rigour with case study analysis and making recommendations based on the financial data provided. Ethics is another major focus area of the level II exam as candidates are required to balance practical and ethical considerations while making these recommendations.
|Pass percentage||CFA 2016 you need CFA Level 1 43%, CFA level 2 46% and for CFA level 3 54%.||CMT Passing score for Level I is 79/120 and for Level II it is 106/150
CMT Level III passing score falls in the range of 120-140 points out of a total of 240 points
|Fees||CFA fee is approximately $650 - $1380 including registration and examination.||Early Registration Fees
Level I: $250
Level II: $450
Level III: $450
Standard Registration Fees
Level I: $350
Level II: $550
Level III: $550
|Job Opportunities/Job Titles||CFA stands in a class of its own as a specialized certification program focused on helping develop expertise in a complex area of finance, typically related to financial analysis, portfolio management and equity research among other things. It can help boost career prospects for professionals looking for opportunities in relevant areas. Some of the job roles for which CFA might prepare participants include:|
*Equity Research Analysts
|CMT is focused on developing key skills related to technical analysis and exposes participants to practical application of concepts in real-life scenarios. Achieving a balance between practical aspects and professional ethics is another core area which enhances the value of this certification and lends greater credibility to the profile of a finance professional. Some of the relevant job roles for which this credential might help professionals prepare for can include:
What is CFA?
Chartered Financial Analysts (CFA) Institute offers the CFA Charter, acclaimed as the ‘gold standard’ of financial analysis and investment management. It is an especially rigorous certification program that brings added value to the CFA Charter and helps finance professionals develop expertise in several key areas of finance including financial analysis, equity research, and financial modeling along with other things. CFA offers validation of expert capabilities in finance and enhances career prospects for professionals. Please checkout the CFA Exam Details and Important Dates
What is CMT?
Chartered Market Technician (CMT) is offered by Market Technicians Association (MTA) to help finance professionals develop technical analysis skills while acquiring a detailed understanding of the theoretical part as well as their practical application in varying contexts. There are a number of other certifications that provide exposure to technical analysis but this certification offers a broad-based knowledge of the principles of technical analysis along with the knowledge of professional ethical framework for market technicians. It is a globally recognized certification that can help finance professionals look for the finest work opportunities in different parts of the world.
CFA vs CMT Entry Requirements:
For CFA You Need:
To qualify for CFA, a candidate should have a Bachelors Degree (or they should be in the final year of Bachelors Degree) or 4 years of professional work experience or 4 years of higher education and professional work experience taken together.
For CMT You Need:
One should hold a bachelors degree in finance, economics, business, or other related areas along with 3 years of work experience in an investment management profile.
Why Pursue CFA?
CFA is a highly competitive certification program that is meant to help professionals develop expertise in certain specialized areas of finance including investment management, financial analysis, equity research, and portfolio management. CFA Charter can lend greater credibility to the profile of a finance professional and open up an ocean of opportunities in the global arena. Even investment banks tend to rate CFA next to top MBAs in terms of valued credentials when it comes to hiring fresh talent. In short, it stands out as one of the best credentials in business and finance across the globe.
Why Pursue CMT?
CMT offers international recognition and this certification is developed by finance professionals for professionals which sets it apart from most other technical analysis credentials. Technical analysis widely considered to be nothing more than a methodology of representing financial data in charts and figures and interpreting the same. However, CMT deals with technical analysis on a whole different level where professionals develop a deep-rooted understanding of mathematical fundamentals of technical analysis and learn about the relationship between prices and price patterns. This makes them fit not only for the professional role of a technical analyst but can also help them become good traders.
Other comparisons you may like
CFA is a comparatively much-advanced certification program that helps acquire an in-depth understanding of complex areas in finance including but not limited to equity research, portfolio management, and core financial analysis. On the other hand, CMT has a much more specific focus on technical analysis which makes it the best fit for those interested in entering a work profile closely linked with quantitative finance. Both of them require a good amount of work experience but CFA is on a completely different level and is comparatively broad-based which makes it more relevant for candidates looking to explore opportunities in varied areas of finance. CMT is rather limited in scope but offers a strong foothold within that context and helps validate the capabilities of professionals while opening up work opportunities related to quantitative finance in the global industry.