Top 11 Equity Trader Certifications

Certifications are important for an equity trader in the job market because they demonstrate that the individual has the necessary knowledge and skills to perform the job. They also show potential employers that the individual is committed to their profession and has taken steps to improve their skills. Furthermore, certifications can provide traders with a competitive edge when applying for positions, as they may be viewed more favorably than those without them. Ultimately, certifications provide assurance to employers that the trader is qualified to handle the tasks associated with equity trading and can be trusted to make sound investment decisions.

This article reviews some of the top certifications for Equity Traders and explains how they can help to enhance an equity trader's career.

What are Equity Trader Certifications?

Equity trader certification is a designation that demonstrates an individual’s knowledge and understanding of the equity markets. It involves completing a series of courses, typically offered by professional organizations or educational institutions, which cover topics such as market structure, trading tools and techniques, order execution, financial analysis and risk management.

Having an equity trader certification can be beneficial to those who are looking for jobs in the financial services industry or who are currently employed in such roles. It provides evidence of the individual’s understanding of the markets and can help them stand out among other job applicants. It also shows employers that they have taken the initiative to further their knowledge and skills in this area. Additionally, having a certification can open up new opportunities for career advancement within the industry.

In addition to demonstrating competency in the field, having a certification can provide access to networking opportunities with other professionals in the industry. This can help individuals build relationships with potential employers or mentors who could provide valuable advice regarding job prospects or career advancement strategies. Finally, having an equity trader certification can add credibility when presenting oneself as an expert in the field when providing advice or consulting services.

Pro Tip: To become an equity trader, it is important to obtain a certification or qualification in the field. This will demonstrate your knowledge and experience to potential employers, as well as give you the necessary credentials to apply for trading roles. It is also beneficial to stay up-to-date with the latest news and developments in the industry through self-education.

Related: What does an Equity Trader do?

Top 11 Equity Trader Certifications

Here’s our list of the best certifications available to Equity Traders today.

1. Chartered Financial Analyst (CFA)

Chartered Financial Analyst (CFA) is a professional designation awarded by the CFA Institute, an international organization that sets and monitors standards for financial analysts. The CFA credential is widely recognized as the highest standard of excellence in the field of investment management and analysis.

The CFA Program consists of three levels of exams: Level I, Level II, and Level III. To become a CFA charterholder, candidates must pass all three levels of exams within a period of four years. Candidates must also have at least four years of qualified professional experience in the investment decision-making process or related area before they can be awarded the charter.

To get started with the CFA Program, candidates must first register with the CFA Institute and pay exam registration fees. The fees vary depending on when a candidate registers for an exam; early registration typically has lower fees than late registration. In addition to registration fees, candidates should also budget for study materials such as textbooks and practice exams.

The cost to pursue the entire CFA Program can range from $2,000 to $4,000 depending on when you register for each exam level and what materials you use to prepare for it.

2. Chartered Market Technician (CMT)

Chartered Market Technician (CMT) is a professional designation awarded by the Chartered Market Technician Association (CMTA). It is a certification program that provides financial market professionals with the knowledge and skills to analyze markets, identify trading opportunities, and manage risk. The CMT program consists of three levels of examinations which cover topics such as technical analysis, charting techniques, portfolio management, and risk management.

It typically takes between two to four years to complete all three levels of the CMT program. Candidates must pass each level of the exam in order to move on to the next level. To qualify for the CMT program, candidates must have at least two years of experience in a related field or have completed an approved course in technical analysis.

The cost of obtaining a CMT designation varies depending on the country where you are located. In the United States, it costs approximately $1,500 for all three levels of the exam. This fee includes registration fees and study materials. Additionally, there may be additional costs associated with taking additional courses or studying for longer periods of time.

To get started with the Chartered Market Technician program, candidates should visit the CMTA website and register for an account. From there they can review study materials and take practice exams before registering for their first official CMT exam.

3. Certified Equity Trader (CET)

Certified Equity Trader (CET) is a certification program offered by the National Association of Securities Dealers (NASD). It is designed to help traders gain the knowledge and skills necessary to trade stocks, options, and other equity instruments in today’s markets. The CET program covers topics such as market analysis, trading strategies, risk management, and compliance.

The CET program consists of two components: an online course and an exam. The online course covers topics such as financial markets, risk management, trading strategies, and compliance. The exam is a multiple-choice test that assesses the student's understanding of the material covered in the course.

It typically takes between six months and one year to complete the CET program. To get started, students must register with NASD and pay a fee of $200. Once registered, students can begin taking the online course at their own pace. After completing the coursework, they must pass an exam in order to earn their certification.

The cost of taking the CET program varies depending on where you take it. Most courses are offered through universities or other educational institutions and may include additional fees for materials or registration. In addition to these costs, students should also budget for any travel expenses associated with attending classes or taking exams in person.

4. Financial Risk Manager (FRM)

Financial Risk Manager (FRM) is an industry-recognized certification for professionals who work in the field of financial risk management. It is designed to demonstrate a professional’s knowledge and expertise in assessing and managing financial risks. The FRM certification is offered by the Global Association of Risk Professionals (GARP).

The FRM program consists of two levels, each requiring the successful completion of an exam. Level I requires passing a four-hour exam consisting of 100 multiple-choice questions, while Level II requires passing a four-hour exam consisting of 80 multiple-choice questions. Both exams are offered twice a year, in May and November.

To be eligible to take the FRM exams, candidates must have at least two years of relevant work experience or have completed a GARP approved course. Candidates must also pay an exam registration fee and purchase the official study materials from GARP prior to taking the exams.

The cost for both levels of the FRM certification is $1,250 for GARP members and $1,500 for non-members. This includes the cost for both exams as well as access to online study materials and practice tests.

5. Certified Investment Management Analyst (CIMA)

Certified Investment Management Analyst (CIMA) is a professional designation offered by the Investments & Wealth Institute (formerly known as IMCA). It is designed to recognize professionals who have demonstrated knowledge and experience in the field of investment management. The CIMA certification is recognized globally as a premier credential for wealth advisors, portfolio managers, and other investment professionals.

To become certified, individuals must pass a comprehensive exam that covers topics such as asset allocation, portfolio construction, risk management, and performance measurement. The exam consists of 200 multiple-choice questions and takes approximately three hours to complete.

In order to be eligible to take the CIMA exam, applicants must have at least three years of professional experience in the investment industry or hold a graduate degree in finance or economics from an accredited institution. Additionally, applicants must also complete an online course on investments and wealth management prior to taking the exam.

The cost of becoming certified varies depending on the country in which you are taking the exam. In the United States, it typically costs around $1,500 USD for all required materials and fees associated with taking the exam.

6. Series 7 Exam

The Series 7 Exam is a securities license exam administered by the Financial Industry Regulatory Authority (FINRA). It is required for individuals who wish to become registered representatives of broker-dealer firms. The exam covers topics such as investment strategies, trading practices, and regulatory requirements. The exam is divided into two parts: the General Securities Representative Qualification Examination (GS) and the Options Representative Qualification Examination (OP).

The exam consists of 260 multiple-choice questions, with a passing score of 72%. The test can take up to 6 hours and 30 minutes to complete.

To get the Series 7 Exam, you must first register with FINRA through their website. You will need to provide personal information such as your name, address, Social Security number, and employment history. Once you have registered, you can select a testing center and schedule an appointment for the exam.

The cost of the Series 7 Exam varies depending on where you take it. Generally speaking, it costs around $245 to take the exam at a Pearson VUE testing center in the United States.

7. Series 3 Exam

The Series 3 Exam is a securities licensing exam administered by the Financial Industry Regulatory Authority (FINRA). It is required for individuals who wish to become registered representatives of futures commission merchants, introducing brokers, commodity trading advisors, and retail foreign exchange dealers.

The exam consists of 125 multiple-choice questions that must be completed within two hours. The cost of the exam varies depending on the jurisdiction in which it is taken, but typically ranges from $125 to $195.

To take the Series 3 Exam, an individual must first register with FINRA and pay the applicable fee. After registering for the exam, applicants will receive a notice of their test date and time. They should plan to arrive at least 30 minutes before their scheduled start time in order to complete any necessary paperwork and check-in procedures.

The Series 3 Exam is designed to assess an individual’s knowledge of commodities regulations and trading practices. It covers topics such as customer accounts, margin requirements, options strategies, futures contracts, pricing models, hedging strategies and risk management techniques.

8. Series 63 Exam

The Series 63 Exam is a North American Securities Administrators Association (NASAA) Uniform Securities Agent State Law Examination. It is designed to test the knowledge of state securities laws and regulations for individuals who wish to become registered representatives of broker-dealers. The exam consists of 65 multiple choice questions, which must be completed in 75 minutes.

In order to take the Series 63 Exam, you must first register with FINRA (Financial Industry Regulatory Authority). You will need to provide information such as your name, address, social security number, and other identifying information. Once you have registered with FINRA, you can then submit an application for the exam on their website.

The cost of taking the Series 63 Exam varies depending on where you take it and if you are a member of FINRA or not. Generally speaking, the cost ranges from $60-$120 USD.

9. Series 55 Exam

Series 55 Exam is an exam administered by the Financial Industry Regulatory Authority (FINRA) that tests a candidate's knowledge of equity securities, trading practices and regulations. The Series 55 exam is required for individuals who wish to become registered as a limited representative in order to trade equity securities on behalf of a broker-dealer.

The Series 55 exam consists of 100 multiple-choice questions and takes approximately two hours to complete. To pass the Series 55, candidates must answer at least 70% of the questions correctly.

To get the Series 55 Exam, candidates must first register with FINRA’s Central Registration Depository (CRD). Once registered, they can then apply for the exam through their CRD account. Candidates should also review FINRA’s content outline for the Series 55 Exam prior to taking it.

The cost of taking the Series 55 Exam varies depending on where you take it and what type of registration you are applying for. Generally, the cost ranges between $125 and $200.

10. FINRA Equity Trader Qualification Examination

The Financial Industry Regulatory Authority (FINRA) Equity Trader Qualification Examination (Series 55) is a professional certification exam that tests the knowledge and skills of an individual who wants to become an equity trader. The exam covers topics such as trading strategies, risk management, market structure, and regulations. It is designed to assess the candidate’s ability to analyze securities markets, evaluate trading opportunities, and execute trades in accordance with FINRA rules and regulations.

The exam consists of 80 multiple-choice questions and takes approximately two hours to complete. To qualify for the Series 55 exam, candidates must have at least two years of experience in a related field such as investment banking or securities analysis. Candidates must also pass the Series 7 General Securities Representative Exam prior to taking the Series 55.

The cost of the Series 55 exam varies depending on where you take it. Generally speaking, it costs around $200-$250 for registration fees plus any additional fees associated with proctoring the exam.

In order to get certified as an equity trader after passing the Series 55 exam, candidates must submit their application materials to FINRA for review and approval. Once approved, they will receive their official certification from FINRA which can be used to demonstrate their expertise in equity trading.

11. Certified Public Accountant (CPA)

A Certified Public Accountant (CPA) is a professional designation given to individuals who have completed the necessary education, experience and licensing requirements to practice public accounting. CPAs are responsible for preparing financial statements, tax returns, and other financial documents that help businesses and organizations make informed decisions about their finances.

In order to become a CPA, individuals must first complete 150 semester hours of college coursework in accounting and related subjects. This typically requires five years of study at an accredited university or college. Once the educational requirements have been met, applicants must pass the Uniform CPA Examination administered by the American Institute of Certified Public Accountants (AICPA). The exam consists of four sections: Auditing & Attestation; Business Environment & Concepts; Financial Accounting & Reporting; Regulation. After passing the exam, applicants must obtain licensure from their state board of accountancy in order to practice as a CPA.

The cost of becoming a CPA varies depending on your state’s requirements and fees associated with taking the exam. Generally speaking, it can cost anywhere from $1,000-$2,000 for tuition fees alone. Additionally, there are costs associated with purchasing study materials such as textbooks and review courses as well as application fees for taking the exam and obtaining licensure.

Do You Really Need a Equity Trader Certificate?

The answer to this question depends on your goals and ambitions. If you are looking to become a professional trader, then an Equity Trader Certificate may be beneficial. This certificate is a way to demonstrate that you have the knowledge and skills necessary to trade in the stock market. It can give you an edge over other applicants when applying for jobs, as employers may see it as evidence of your commitment and dedication to trading.

However, if you are just looking to get started in the stock market or want to practice trading without investing real money, then a certificate may not be necessary. You should consider taking some classes on stock trading or reading up on the subject before investing any money. There are also many online resources available that provide tutorials and advice on how to trade successfully.

Ultimately, whether or not you need an Equity Trader Certificate depends on your individual situation and goals. If you think it could help you achieve what you want, then it might be worth considering obtaining one.

Related: Equity Trader Resume Examples

FAQs About Equity Trader Certifications

Q1. What is an Equity Trader Certification?

A1. Equity Trader Certifications are professional certifications that are designed to demonstrate a trader’s knowledge and understanding of the equity markets. The certifications cover topics such as risk management, trading strategies, market analysis, and more.

Q2. What types of Equity Trader Certifications exist?

A2. There are a variety of Equity Trader Certifications available depending on the trader’s level of experience and desired credentialing. Some common examples include Chartered Market Technician (CMT), Certified Financial Technician (CFTe), Chartered Financial Analyst (CFA), and Certified Global Investment Professional (CGIP).

Q3. How do I become certified as an Equity Trader?

A3. To become certified as an Equity Trader, you must complete the relevant coursework and pass the associated certification exam for your desired credentialing. You may also need to fulfill additional requirements depending on your chosen certification program.

Q4. How long does it take to obtain an Equity Trader Certification?

A4. The amount of time it takes to obtain an Equity Trader Certification will depend on the specific certification program you choose and how quickly you can complete all necessary coursework and exams required for your chosen credentialing program. Generally, it can take anywhere from 6 months to 1 year or more in order to complete all requirements for certification in some programs.

Q5. Are there any prerequisites for obtaining an Equity Trader Certification?

A5. Depending on the specific certification program you choose, there may be certain prerequisites that must be met prior to applying for certification such as having a certain number of years of experience in trading or completing certain coursework related to trading fundamentals or technical analysis skillset development