CFT vs CMT

Difference Between CFT and CMT

CFT focuses on subjects such as moving averages, methods of charting, candle charts, and candle patterns, terminology of technical, Elliott wave theory, determination of trends pertaining to price, etc whereas CMT emphasizes focus on providing knowledge in aspects like terminology tools that are used in technical analysis, application of various concepts, theory, and techniques, etc.

When you think about a professional Technical Analysis course, you need to be sure before you sign up for the same. With the notes given below, you can be double sure before registering.

CFT-vs-CMT

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Below is the flow of the article –

  1. What is a Certified Financial Technician (CFTe)?
  2. What is the Chartered Market Technician (CMT)?
  3. Infographics
  4. Exam Requirement
  5. Why pursue CFT?
  6. Why pursue CMT?

What is a Certified Financial Technician (CFTe)?

A certified financial technicianCertified Financial TechnicianCFTe is an examination conducted by the IFTA which is a globally recognized body and it focusses on international professional qualification in technical analysis.read more or CFTe is a complete professional course with 2 levels that is the Level I and Level II. For finance professionals who take a test on not just their technical knowledge and skills, they are also tested on their ethical standards and market understanding.

This course is accredited by IFTA (International Federation of Technical Analysts). This non-profit organization has 23 member societies and currently the CFT course is available in six different languages, like English, German, Arabic, Spanish, Chinese and French. The examination is a paper and pencil or a written examination.

What is the Chartered Market Technician (CMT)?

Chartered Market Technician (CMT) is a designation attained globally by completing a 3 level examination and displaying basic and extreme knowledge in investment risksInvestment RisksInvestment risk is the probability or uncertainty of losses rather than expected profit from investment due to a fall in the fair price of securities such as bonds, stocks, real estate. In addition, each type of investment is prone to some degree of investment or default risk.read more, specifically in portfolio management strategies.

The certification is received from the CMT Association, the Market Technician Association, after clearing all three levels of examination and receiving approval from the board of directors and the Admission Committee of MTA. To add to the examination, the candidate should also have three years of relevant experience.

Being a CMT, you become a join a society of investment professionals known as experts and generators of the value of money across the globe. It is an absolute complement to the logical restraints and also your financial designation. This course keeps you on the leading front of the investment industry that is never stable.

CFT vs CMT Infographics

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Exam Requirement

CFTe

To clear this examination, you need to make sure that the following are achieved.

  • The candidate needs to have 3 years of experience in the relevant field to start with.
  • The minimum qualification required is graduation or a bachelor’s degree.
  • He needs to clear 2 levels of examinations; they are divided as Level I consist of 120 questions that cover only the technical knowledge; however, the experience is not used. Level II consists of many questions as well; these questions are based on their experience. The question types are essay bases analysis and answers.
  • The course is designed as a self-study course; however, local bodies do conduct training classes for these courses.
  • Candidates who have cleared their CMT Association certification or CMT level I and II are eligible to get their CFTe certification as well.

CMT

  • The minimum qualification required is a bachelor’s degree in any finance program; to add to the certification, candidates also peruse the MBA before the certification.
  • 3 years of work exp in an investment management profile or professional analytical profile.
  • Candidates should be a master in handling large or huge sums of finance to give estimations, develop portfolio strategies, and make decisions related to trading.
  • Three levels of MTA examination needs to be cleared along with taking 5 years of the initial exam.
  • The three-level examination level I concentrate on the basic knowledge, level II measures the competencies of the candidate. Finally, level III is a test of the candidate’s ability.

CFT vs CMT Comparative Table

SectionCFTCMT
Organizing BodyThe exams are managed and controlled by the International Federation of Technical Analysts (IFTA), USA.The exams are managed and controlled by the Chartered Market Technician (CMT) Association, USA.
PatternThe course is divided into 2 levels
  • CFTe I
  • CFTe II

The course is divided into 3 levels
  • CMT Level I
  • CMT Level II
  • CMT Level III
Duration of CourseAlthough there is no time limit, the candidates are encouraged to complete the course in 24 months.Most candidates take somewhere between 18 to 36 months to complete all three levels successfully.
SyllabusThe syllabus primarily covers the following topics
  • General Principles & Sentiment Indicators
  • Financial Markets & Business Cycle
  • Classical Chart Analysis
  • Time Cycles Analysis
  • Computerized Technical Analysis
  • Trend lines, Channels, Reversal Patterns, Support and Resistance
  • Point and Figure Charts
  • Dow Theory, Elliott Wave Theory & Steidlmayer Theory of Markets
  • Market Cycle model
  • Portfolio Risk Management
  • Concept of Relative Strength
  • Wave Principle
The syllabus primarily covers the following topics
  • Selection & Decision Making
  • Chart & Pattern Analysis
  • Statistical & Trend Analysis
  • Chart Construction
  • Classical Methods
  • Risk Management
  • Assets Relationship
  • Behavioural Finance
  • Portfolio Management







Exam FeesFor members, the cost of the course is $1,950, which includes the exam fees and an enrollment fee of $550. On the other hand, the cost for non-members is $2,550. Also, candidates need to pay $100 extra for CFTe II exams at non-IFTA proctored exam locations.For members, the cost varies in the range of $1,535 to $2,635, which includes the exam fees and an enrollment fee of $250. On the other hand, the same varies in the range of $2,000 to $3,100 for non-members. The exam fees vary depending on the time of registration.
JobsSome of the common profiles include

1. Technical Analyst
2. Banker
3. Portfolio Manager
Some of the common profiles include

1. Trading Analysts
2. Portfolio Risk Manager
3. Investment Manager
4. Hedge Fund Analyst
DifficultyThe difficulty level of the exams is fairly reasonable as reflected from historical pass rates of 60% to 70%.The difficulty level of the exams is fairly reasonable as reflected from historical pass rates of around 70%.
Exam DateThe exams are held twice during a year in the months of April (spring) and October (fall). The upcoming exams for both levels are scheduled for April 22.The upcoming exams of CMT Level I and CMT Level II will take place during June 03-13, 2021, while that for CMT Level III will take place on June 10, 2021.

Why pursue CFT?

Certified Financial Technician is a globally recognized course with its existence in more than 24 countries. It gives you the following benefits…

  1. If you want to pursue or need international recognition and a professional qualification in the financial marketFinancial MarketThe term "financial market" refers to the marketplace where activities such as the creation and trading of various financial assets such as bonds, stocks, commodities, currencies, and derivatives take place. It provides a platform for sellers and buyers to interact and trade at a price determined by market forces.read more, then CFTe is a reward for you.
  2. It is a globally recognized examination conducted in various languages, including English, French, Italian, German, Spanish, and Arabic, and is conducted in major cities across the world.
  3. This course gives you technical skills and knowledge, understanding the market, and improving your ethical understanding.
  4. It teaches you Algorithmic tradingAlgorithmic TradingAlgorithmic trading is an automated buying and selling process with a programmed algorithm to determine the price, volume and timing of order. Algo-trading is a high-frequency trading technology that enables the exchange of stocks and other assets in the financial market.read more and how the technical analysis is impacted by the same.
  5. The subjects covered are interpretations, terminologies, and also basic IQ.

Why pursue CMT?

CMT is a course that is similar to CFTe. However, let us have a look at some of its benefits:

  1. Just like CFTe, CMT is a globally recognized course that is for candidates who want to become International Professional Technical Analysts.
  2. It aims to create professionals in the field of technical analysis.
  3. They are promoting very high ethical and professional standards in the field of financial trading.
  4. You are helping and guiding the candidates in gaining expertise in the professional body of financial knowledge.
  5. This course teaches you and gives you the ability to read various points and figures, lines and candlesticks, price perspective past, present, and future. They also learn and understand the relationships between price and price patterns and the trends, what do the trends mean, and how to understand and draw them.

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