But what options do you have if you want to be a professional trader and a successful one for that matter? You might find it challenging to choose the right ones because of all the options available but do not worry about that.
Here are some of the best certifications for you to build a successful career as a professional trader.
If you want to understand how to manage finances better, then you should go get certified in financial planning. This certification will provide you with the knowledge you need on different financial topics, including but not limited to trading and investment.
For example, as a certified financial planner, you will be able to analyze a portfolio and create personalized plans to help you achieve your goals. You can, for instance, look at a portfolio and decide whether it needs a margin loan on stocks or not without any problems.
If this sounds like something you would like to do, you will have to take several courses and then sit for an exam. The exam takes seven hours and is supervised by a CFP board.
Have you ever thought about becoming an accountant or financial analyst? You might be wondering how these two are related to trading. Well, if you have, then getting a CPA certification will be very important in your career.
Do you know what makes CPA certification important? Well, apart from having to spend more than 150 hours on coursework, you must also pass the CPA exam from AICPA (American Institute of CPAs). You will get all the knowledge you need on different financial topics, something that you need for successful trading.
Not every other trader understands everything that they do when trading. You can even start trading without a financial background. However, if you do this, you will need to consult a professional on investment and management of portfolios.
Instead of spending money every time you want advice, why not get certified as a chartered investment counselor? This certification will help you manage any portfolio no matter how big it is. You can even earn money advising traders and helping them make the right decisions with their investments.
However, you will need professional experience – five years – and should be CFA (Chartered Financial Analyst) certified for you to get CIC certification.
As a professional trader, you should make sure that you understand securities and investments better than anyone else. Even though there are many certifications you can take, becoming CFA certified is one of the best decisions you can make.
You will cover different investment topics, such as economics, quantitative methods, portfolio management, financial analysis and reporting, equity investments, derivatives, fixed income, and alternative investments, among others.
After the coursework, you will go through three exam levels. You will only get the certification if you pass the exam. However, you should possess relevant experience – four years – and a bachelor’s degree to be eligible.
As a commodity trading advisor, you will be eligible to advise other people and provide services touching on commodity trading and future contracts. The first step to take if you want to get CTA certified is registering with NFA (National Futures Association).
Registration is not as easy as you might assume because you will have to take and pass National Commodity Futures exams, sometimes referred to as Series 3 exams, administered by FINRA (Financial Industry Regulatory Authority).
You can start by visiting the FINRA website. You will need to pay the exam fee with your application and score at least seventy percent to pass.
If you want to understand how you are supposed to handle trading and conduct technical analysis, then this is the certification for you. With it, you are qualified to work as an investment strategist, investment advisor, and portfolio manager.
Some of the topics you will cover include behavioral finance, market behavior, quantitative finance, and risk management. A deep understanding of these topics will be very crucial in helping you as a professional trader.
You will go through three different levels before getting CMT certification. The first step is signing up and paying the registration fee. You will then get the course material and study on your own. You can take the first-level exams when ready, and the rest of the exams within five years.
If you want to get a deep understanding of trading and related technical analysis, as well as a host of other trading topics, then you need to become a certified financial technician. This program is offered by the IFA (International Federation of Technical Analysts).
If this sounds like a program you would be interested in, you will have to go through two levels. You will cover percentage retracements and market efficiency in the first level and technical analysis in the second level.
You will have to learn everything on your own. Most of the materials that you need are free. However, you will pay for both exams, taken after each of the levels discussed above.
As you can see in this article, there are many certifications for you if you want to become a professional trader. You do not have to take just one, the more certifications you have, the higher the chances of you becoming successful.
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