Comparing CFA CAIA CHP and CMT Finance Courses

Probably the best known finance course and qualification is CFA. Becoming a Chartered Finance Analyst is a highly regarded achievement and one which illustrates an in-depth knowledge of the investment industry. Clearly such an achievement merits respect, but there are other financial courses as well!

The other finance course options from which to choose are:

• CAIA, Chartered Alternative Investment Analyst;
• CHP, Certified Hedge Fund Professional;
• CMT, Chartered Market Technician;
• FAS, Financial Analyst Specialist;
• LIFA, Licensed International Financial Analyst

Quick summary of these finance courses

The Chartered Alternative Investment Analyst (CAIA) is a finance qualification that claims to the world’s only globally recognized designation for alternative investment expertise. The CAIA finance course designation proves that you have a skill in being able to interpret alternative investment concepts, tools, and methodologies. Like all finance courses and a common theme is that the course clearly demonstrates your intention and ability to adhere to high standards of professional financial conduct. The Chartered Alternative Investment Analyst explores Hedge Funds, Commodities and Managed Futures, Private Equity, Real Assets Concepts, Credit Derivatives and Structured Products and overall financial Professional Standards and Ethics.

The Certified Hedge Fund Professional (CHP) course offers an in-depth understanding of hedge fund fundamentals, hedge fund investment strategies, fund of hedge funds, financial analytics, due reporting diligence, and current hedge fund trends and commonly used finance terms. Clearly if becoming a Hedge Fund Professional is up your street then this is the financial qualification for you.

The Chartered Market Technician (CMT) designation is a finance course sought by professionals with a career in finance, specifically in securities working as a dealer or a broker. The course is also very suited for market analysts, fund managers, financial planners and advisers. Finance professionals who receive the CMT designation are also required to become members of the Market Technicians Association (MTA) in order to be awarded with the finance CMT qualification and designation. The MTA Membership requires sponsorship by three other MTA members, a pledge to abide by the MTA’s codes and rules, and final approval of the applicant by the MTA governing board of directors. Might seem a bit elitist but it does show your commitment to the industry – especially the sectors mentioned above.

Individuals who aspire to greater expertise in the use of technical analysis can go through the CMT examination program. Those who are using technical analysis in a non-career capacity can join the MTA as affiliates.

The Financial Analyst Specialist (FAS) syllabus concerns itself with: understanding and using Net Present Value, Pricing, Costing, Working Capital, Sensitivity Analysis and other tools and best practices as a financial analyst. This finance course will allow enable you to understand how to use and interpret financial statements including balance sheets, income statements and cash flow).

According to their website, completing their 100% online finance FAS certification program will:

“..allow you to show others on your resume and bio that you are more well-trained and credible than other professionals in the industry. Our recent study also showed that certification programs increased compensation by 5-11% on average, and can boost your income by as much as 30-40% annually. When an employer or potential client is choosing between you and someone with very similar work experience and education, being certified is one more thing that will make you stand out from the crowd….”

Becoming a Licensed International Financial Analyst (LIFA) is similar to being and passing the Financial Analyst Specialist qualification since the syllabus is almost identical. LIFA is widely seen as being the most direct competition to CFA but our feeling is that CFA still rules the roost when it comes to finance qualifications – indicated by its’ growth last year especially in the far east.

In Summary
All finance courses and designations clearly benefit your career. When comparing these qualifications and courses the most important aspect to consider is what you will get out of this. If you have a specialist career such as being involved in hedge funds – then clearly you would benefit, for example, from completing the Certified Hedge Fund Professional course.

However – the CFA financial analysis designation is still the best known and respected which has been around for many decades. This CFA (of which there are three levels expressed in roman numerals I, II, III is a great finance program for those entering the investment industry or for those that wish to gain exposure to a broad financial base. While this program is relatively expensive compared to the others listed above, it is also very popular and well respected.

Have you studied any of the finance courses listed above? Did it help your career? Let us know by posting a comment below.