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 Comprative Table
|Organizing Body||The exams are managed and controlled by the CFA Institute, USA.||The exams are managed and controlled by the Chartered Market Technician (CMT) Association, USA.|
|Pattern||To become CFA qualified, the candidates need to pass three sequential levels
|To become CMT qualified, the candidates need to pass three sequential levels
|Duration of Course||If the candidates are able to pass all levels on their first attempt, then they can complete the course in 48 months.||The candidates usually take 18 to 36 months to successfully clear all three levels.|
|Syllabus||The syllabus primarily covers the following topics
|The syllabus primarily covers the following topics
|Exam Fees||The total cost of the CFA qualification comes to be around $2,550-$3,450. The cost includes enrollment fee and exam fees that varies based on the time of registration.||For members, the cost of the CMT qualification comes to be around $1,535-$2,635, while that for non-members comes to be around $2,000-$3,100. The cost includes enrollment fee and exam fees that varies based on the time of registration.|
|Jobs||Some of the common profiles include
|Some of the common profiles include
|Difficulty||The exams are very difficult and only ~10% of the aspiring candidates who start the course become CFA charterholders. The pass rates of Level-I, Level-II and Level-III exams conducted in June 2019 were 41%, 44% and 56% respectively.||The level of difficulty of the exams is fairly reasonable as indicated by the historical pass rates of around 70%.|
|Exam Date||The upcoming exams for the year 2021 are scheduled to take place as follows
|The upcoming exams of Level I and Level II for the year 2021 are scheduled to take place during June 03-13, while that for Level III is scheduled to take place on June 10, 2021.|
What is CFA?
Chartered Financial Analysts (CFA) Institute offers the CFA Charter, acclaimed as the ‘gold standardGold StandardThe gold standard was a monetary term used when gold exchange was used instead of paper currency.‘ 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 the CMT Association to help finance professionals develop technical analysis skills while acquiring a detailed understanding of the theoretical part and their practical application in varying contexts. Several other certifications provide exposure to technical analysis. Still, this certification offers a broad-based knowledge of the principles of technical analysis and 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 researchEquity ResearchEquity Research refers to the study of a business, i.e., analyzing a company's financials, performing Ratio Analysis, Financial forecasting in Excel (Financial Modeling), & exploring scenarios to make insightful BUY/HOLD/SELL stock investment recommendations. Moreover, the Equity Research Analysts discuss their findings & details in the Equity Research Reports. , 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 MBAsCFA Next To Top MBAsCFA focusses on imparting skills associated with Investment Management including Investment Analysis, Portfolio Strategy, Asset Allocation, and Corporate Finance. MBA focusses on overall Management Skills like Marketing, Operations, Finance, Human Resource Accounting, etc. in terms of valued credentials when 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 finance professionals develop this certification for professionals, which sets it apart from most other technical analysis credentials. Technical analysis is 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. 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.
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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, making 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. Still, 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.