There are two well-known certifications on technical analysis. One, is the Certified Financial Technician (CFTe) and the other is the Chartered Market Technician (CMT). It is not uncommon to see these designations beside the names of some traders, remisiers, financial consultants, as well as stock analysts and portfolio managers.
Whether you are a self-employed individual such as remisiers, financial advisors or even trading course providers or looking to increase your employment opportunities in the financial industry, such credentials signal dedication and competency to be a professional technical analyst. You will also gain the trust of your clients or your employers.
So, what do the CFTe and CMT programmes entail, and which course should you choose?
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#1 What Is The CFTe?
CFTe or Certified Financial Technician (CFTe) is an internationally-recognised qualification by the International Federation of Technical Analysts (IFTA). It is a two-level course, with the first test consisting 120 multiple choice questions and the second test requiring essay-based analysis.
Candidates who pass both tests are awarded the “CFTe” designation. This certifies that you have demostrated a thorough knowledge in the field and are able to understand and apply advanced technical analysis concepts and tools.
#2 What Is The CMT
CMT or Chartered Market Technician (CMT) is a preeminent, global designation for practitioners of technical analysis. The qualification is accredited by the CMT Association, a global credentialling body with more than 50 years of service in the financial industry.
The “CMT” designation is awarded to candidates who pass the three-level exams demonstrating mastery of a core body of knowledge of investment risk in a portfolio management setting and hold a Professional membership in the Association.
#3 Which Course Should I pursue – CFTe Or CMT?
There are four main factors we can based our decision criteria on.
i. Are the CFTe and CMT programs reputable and recognised?
The CMT Association has over 50 years of service to the financial industry, having been founded in 1970. It has grown to become a global association with over 4,500 members in over 137 countries. Additionally, the CMT Program has regulatory recognition from FINRA, a US government-authorised not-for-profit organisation that oversees U.S broker-dealers. It accepts the CMT level 1 and 2 exams as an alternative to the Series 86 exam which is required of analytical analysts.
The International Federation of Technical Analysts (IFTA) that oversees the CFTe exams, was incorporated in 1986 as a global organisation of market analysis societies and associations. It has members in 22 countries.
Both programs are well recognised internationally with thousands of candidates taking the exams from both programs annually. The CMT program has a more extensive syllabus and is preferred by industry professionals due to its accreditation with other professional bodies, such as the Chartered Financial Analyst (CFA) Charter.
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ii. How much does it cost to complete CFTe and CMT?
To complete the CFTe program on a discounted rate, a candidate needs to join as a member of one of IFTA’s member societies. For those in Singapore, they can join Technical Analysts Society (TASS) and can expect to pay an initial joining fee of $145 and subsequent annual renewal fees are charged at $100. Thereafter, the total cost of taking the two tests is US$1,400 for members.
Non-members can also take the tests at a cost of US$2,000.
To complete the CMT programme on a discounted rate, a candidate needs to join the CMT association. Depending on the type of membership a candidate joins, it can range between US$100 for students to US$325 for an affiliate or professional membership. Thereafter, the total exam fees that a member candidate has to pay, is: US$1,285 (for early registration), US$1,585 (for standard registration), US$2,385 (for late registration).
For a non-member candidate, the total exam fees for the three exams will total US$1,810 (for early registration), US$2,110 (for standard registration), US$2,910 (for late registration). In addition to the exam fees, candidates also need to pay a one-time registration fee of US$250 and US$225+ per curriculum for the course notes.
When comparing both programs, it may seem the CMT program is slightly cheaper than the CFTe program, based on the early registration fees when taken as a member candidate. However, if we include the membership fees and the other additional fees, then the CFTe program will cost less than the CMT program.
iii. How long will it take to complete CFTe and CMT?
The CFTe has two levels, with level I exams held throughout the year. The level II exams are held twice in a year around April and October. Though a candidate can take both exams successively, it is recommended that candidates spend around 3 months to study for the level I exam and another 6 months to study for the level II exam.
Each of the three exams under the CMT program are offered twice in a year, usually in June and December. As the courses have to be completed consecutively, the minimum time to complete the program is around 18 months. However, most might take up to three years to complete the full program.
The CFTe programme has more flexibility and can be cleared in a shorter time period than the CMT program.
iv. Why do I need the CFTe or CMT programme?
The syllabus covered under both the programs differ, with the CFTe focusing more on chart reading whereas, the CMT program is more than just analysing the chart as it delves on market behaviour, understanding the gap between intrinsic value and market price, behaviour finance, quantitative systems design and risk management.
For the investors and traders seeking to learn technical analysis under a formal setting, the CFTe programme offers the better choice to learn and understand about the widely used technical concepts. Moreover, other individuals especially trading representatives, brokers or trading course providers may also look to get their accreditation from the CFTe program as they can complete it in a shorter timeframe and it adequately recognises their ability in the field.
However, for career driven individuals looking for employment with any financial institutions as a fund manager or investment advisor, then the CMT may be the preferred choice as it favoured by institutions.
Comparing The CFTe vs CMT Qualifications
| Parameters | CFTe | CMT |
| Eligibility | – Course is open to all – Candidates that complete both levels I and II are awarded with the “CFTe” designation | – Course is open to all – If intend to use CMT designation, need: 3 years of approved professional work experience Work must be full-time, with compensation received for services Three sponsors who have member status with the association |
| Regulating Body | International Federation of Technical Analysts (IFTA) is an international non-profit organization with members in 22 countries. | The CMT Association is the global credentialing body with a member presence in 137 countries |
| Membership Fees | Initial joining fee of SGD$145, and annual renewal at SGD$100. *Singapore Membership body is represented by Technical Analysts Society (Singapore) | Fees range from US$100 – 325 |
| Exam Format | – Self-study format – CFTe I: 2.5hrs, 120 Multiple Choice Questions – CFTe II: 3.5hrs, essay-based analysis and answers | – Self-study format – level 1: 2hrs, 132 Multiple Choice Questions – level 2: 4hrs, 170 Multiple Choice Questions – level 3: 4hrs, Short Answers and Vignettes |
| Syllabus | – Foundation – Chart Types – Point and Figure Charts – Candle Charts – Dow Theory and Market Breadth – Moving Averages – Momentum Indicators and Oscillators – Cycles – The Elliot Wave Principle – Basic Elements of Gann Theory – Market Profile – Ichimoku Charts – Market Psychology, the Trading Plan and Money Management – Managing Risk and constructing a quantitative Trading System – Behavioural Finance | – Code of Ethics and Standards of Professional Conduct – Theory and History – Markets – Market Indicators – Chart Construction – Trend Analysis – Chart and Pattern Analysis – Confirmation – Cycles – Selection and Decision-making – System Testing – Statistical Analysis – Risk Management – Asset Relationships – Portfolio Management – Behavioural Finance – Volatility Analysis – Classical Methods |
| Exam Fees | Members: US$550 (CFTe I) US$850 (CFTe II) Non-Members: US$850 (CFTe I) US$1,150 (CFTe II) | Members: US$295 – 595 (level 1) US$495 – 895 (level 2) US$495 – 895 (level 3) Non-Members: US$470 – 770 (level 1) US$670 – 1,070 (level 2) US$670 – 1,070 (level 3) *Additional cost includes a one-time enrollment fee of US$250*Additional cost of US$225+ fees per curriculum |
| Testing Window | Exams for CFTe I are held year-round. Whereas, exams for CFTe II are held twice annually, in April and October. | Exams are carried out twice in a year, in June and December. |
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