Top 11 Sales Trader Certifications

Certifications are important for a sales trader in the job market because they demonstrate knowledge and expertise in the field. They can show potential employers that the sales trader has a good understanding of finance, trading, and other related topics. Additionally, certifications can give sales traders an edge over their competition when applying for jobs. Finally, certifications can help sales traders stay up-to-date on industry developments and best practices.

This article reviews some of the top certifications for Sales Traders and explains how they can enhance a sales trader's career prospects.

What are Sales Trader Certifications?

Sales Trader Certification is a professional designation designed to recognize individuals who have demonstrated knowledge and expertise in the areas of sales trading and brokerage. The certification is offered by the National Association of Securities Dealers (NASD) and is one of the most widely recognized certifications in the securities industry.

The Sales Trader Certification program provides individuals with a comprehensive overview of sales trading, including an understanding of market structure, pricing, order types and execution strategies. The certification also covers topics such as customer service, communication skills, regulatory compliance and risk management. By completing this program, individuals will be better prepared to provide clients with quality service while meeting all regulatory requirements.

By obtaining this certification, individuals demonstrate to employers that they have a solid foundation in sales trading principles and can effectively serve customers in this capacity. In addition, certified sales traders are often able to command higher salaries than their non-certified counterparts due to their increased knowledge base and qualifications. Furthermore, having this certification may open up new career opportunities for those seeking advancement in the securities industry.

Overall, Sales Trader Certification can help individuals increase their knowledge base and credentials within the securities industry which can lead to improved job prospects or career advancement opportunities.

Pro Tip: When selecting a sales trader certification program, look for programs that provide hands-on experience with real-life trading scenarios. This will ensure you are well-prepared to take on the challenges of the trading world. Additionally, look for programs that offer continuing education credits so you can stay up-to-date on the latest strategies and trends in the industry.

Related: What does a Sales Trader do?

Top 11 Sales Trader Certifications

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

1. Chartered Financial Analyst (CFA)

Chartered Financial Analyst (CFA) is a professional designation offered by the CFA Institute that measures and certifies the competence and integrity of financial analysts. It is considered one of the most prestigious credentials in the investment industry.

The CFA Program is a three-level program that typically takes two to four years to complete. The program covers topics such as economics, corporate finance, quantitative methods, financial reporting and analysis, portfolio management, and ethics. To earn the CFA charter, candidates must pass all three levels of exams and have at least four years of qualified work experience in an investment decision-making role.

To get started on the path to becoming a CFA charterholder, you first need to become a member of the CFA Institute. This involves submitting an application form along with a fee of $450 USD. Once your membership has been approved, you can then register for Level I of the CFA Program exam which costs $950 USD. After passing Level I, you can then register for Levels II and III which cost $1,380 USD each.

In addition to exam fees, there are also study materials available from the CFA Institute that can help prepare you for the exams. These materials typically range from $100 - $400 USD depending on which package you choose.

Overall, it will cost approximately $4160 USD to become a CFA charterholder including exam fees and study materials.

2. Chartered Market Technician (CMT)

Chartered Market Technician (CMT) is a professional designation granted by the Chartered Market Technician (CMT) Association to individuals who have successfully completed a rigorous curriculum of study related to technical analysis and trading. The CMT designation is widely recognized as the highest standard of excellence in technical analysis and trading.

The CMT program consists of three levels, each with its own exam. Level I focuses on the basics of technical analysis, while Levels II and III cover more advanced topics such as portfolio management, risk management, quantitative methods, and market psychology. To become a CMT, an individual must pass all three levels of exams within a five-year period.

To get started on the path to becoming a CMT, individuals must first register for the program through the CMT Association website. After registering, they will receive access to online study materials and practice tests that can help them prepare for the exams. Additionally, they may attend in-person classes or webinars offered by various educational institutions around the world.

The cost of becoming a CMT varies depending on which study materials you choose to purchase and how much time you spend studying for each level of exams. Generally speaking, it can cost anywhere from $1,000-$2,500 USD to become a CMT depending on your study plan and preparation strategy.

Overall, becoming a Chartered Market Technician requires dedication and hard work but can be very rewarding for those looking to pursue a career in technical analysis or trading.

3. Certified Financial Planner (CFP)

Certified Financial Planner (CFP) is an internationally recognized professional designation given to financial advisors who have met certain educational and ethical standards. CFPs are qualified to provide comprehensive financial planning services, which may include retirement planning, estate planning, investment advice, tax planning, insurance analysis, and more.

In order to become a CFP, individuals must complete a series of educational and experience requirements set by the Certified Financial Planner Board of Standards (CFP Board). Specifically, individuals must:

1. Complete a bachelor’s degree from an accredited college or university;

2. Pass the CFP Certification Examination;

3. Accumulate three years of full-time financial planning related experience; and

4. Agree to abide by the CFP Board’s Code of Ethics and Professional Responsibility.

The entire process typically takes two to four years to complete depending on how quickly you can meet the requirements. The cost for becoming a CFP varies based on your individual situation but generally includes fees for the exam ($695), education courses ($2,000-$3,000), and other associated costs such as study materials ($500-$1,000).

4. Certified International Investment Analyst (CIIA)

The Certified International Investment Analyst (CIIA) is an internationally recognized professional certification awarded by the Association of Certified International Investment Analysts (ACIIA). It is designed to recognize individuals who have achieved a high level of proficiency in international investment analysis.

It takes approximately six months to complete the CIIA program, depending on your prior experience and knowledge. The program consists of four modules: Fundamentals of International Investment Analysis; Advanced Topics in International Investment Analysis; Portfolio Management and Risk Management; and Global Financial Markets. Each module has its own set of exams, which must be passed with a minimum score before you can receive your certification.

To get the CIIA, you must first apply for admission to the ACIIA. Once accepted, you will be required to pay an application fee and register for the CIIA program. You will then need to complete all four modules within six months, pass each exam with a minimum score, and submit your final portfolio project for review. Upon successful completion of all requirements, you will receive your CIIA certification from ACIIA.

The cost of the CIIA program varies depending on where you take it and whether or not you are taking advantage of any discounts or promotions. Generally speaking, however, it costs around $2,000 USD for the entire program.

5. 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 a General Securities Representative, which allows them to sell securities such as stocks, bonds, mutual funds and other investment products. The exam consists of 250 multiple choice questions and must be completed within six hours.

To get the Series 7 Exam, you must first register with FINRA and pay an application fee. You will then be given instructions on how to schedule your exam at a Prometric testing center. The cost of the exam varies depending on where you take it, but typically ranges from $200-$300.

In order to pass the Series 7 Exam, you must score at least 70% or higher. Once you have passed the exam, you will be issued a license that is valid for four years before it needs to be renewed.

6. Series 63 Exam

The Series 63 Exam, also known as the Uniform Securities Agent State Law Examination, is a North American securities exam administered by the Financial Industry Regulatory Authority (FINRA). It is required for individuals who wish to become registered securities agents in the United States. The exam covers state laws and regulations related to the sale of securities.

The Series 63 Exam consists of 65 multiple-choice questions and must be completed within 75 minutes. To pass the exam, an individual must answer at least 43 questions correctly.

To take the Series 63 Exam, an individual must first register with FINRA and pay a fee of $125. The registration process requires applicants to provide personal information such as name, address, Social Security Number or Tax Identification Number, and other contact information. After registering for the exam, individuals can schedule their test date at any Prometric testing center located throughout the United States.

The cost of taking the Series 63 Exam is $125. This fee includes both registration and examination fees. Additionally, some states may require additional fees for licensing purposes which are separate from the cost of taking the exam itself.

7. Series 65 Exam

The Series 65 Exam, also known as the Uniform Investment Adviser Law Examination, is a test administered by the Financial Industry Regulatory Authority (FINRA) to assess an individual’s knowledge of state and federal securities laws and regulations. The exam covers topics such as portfolio management, ethics, taxation, retirement planning, and other areas related to providing investment advice.

The Series 65 Exam consists of 130 multiple-choice questions that must be completed within three hours. To pass the exam, applicants must score at least a 70%.

In order to take the Series 65 Exam, applicants must first register with FINRA and pay a fee of $245. Once registered, applicants can schedule their exam at any Prometric testing center.

It typically takes about two months for individuals to study for and pass the Series 65 Exam. However, some individuals may require more or less time depending on their knowledge of investments and securities laws.

8. Series 66 Exam

The Series 66 Exam is an exam administered by the Financial Industry Regulatory Authority (FINRA) that tests a person’s knowledge of securities laws and regulations. The exam is also known as the Uniform Combined State Law Examination. It is required for individuals who wish to become investment advisors or securities agents in most states.

The exam consists of 110 multiple-choice questions, and test takers are given two hours and 45 minutes to complete it. The topics covered include state and federal securities regulations, fiduciary responsibilities, portfolio management, taxation, and ethical practices.

To take the Series 66 Exam, applicants must first register with FINRA via their website or by calling their customer service line at (301) 590-6500. Applicants must also be sponsored by a FINRA member firm before they can take the exam.

The cost of taking the Series 66 Exam varies depending on where you take it but generally ranges from $115 - $175 USD.

9. Financial Risk Manager (FRM)

Financial Risk Manager (FRM) is a professional certification offered by the Global Association of Risk Professionals (GARP). It is designed to help professionals in the financial services industry understand and manage financial risk. The FRM designation is recognized as one of the most comprehensive and rigorous certifications available in the field of risk management.

The FRM exam consists of two parts, each lasting four hours. Part I focuses on quantitative analysis, while Part II covers topics such as credit risk, market risk, operational risk, and investment management. To become certified, candidates must pass both parts of the exam with a minimum score of 70%.

The cost to take the FRM exam varies depending on whether you are a member or non-member of GARP. For members, it costs $650 for Part I and $750 for Part II. For non-members, it costs $950 for Part I and $1,050 for Part II.

It typically takes three to six months to prepare for the FRM exam. Candidates should plan to spend at least 200 hours studying before taking either part of the exam. Additionally, GARP offers study materials such as textbooks and practice exams that can help candidates better prepare for the exam.

10. Certified Treasury Professional (CTP)

The Certified Treasury Professional (CTP) designation is a professional certification program offered by the Association for Financial Professionals (AFP). It is designed to recognize individuals who have achieved a high level of knowledge and expertise in the field of treasury management. The CTP designation is widely recognized as an indicator of excellence in the field, and it can help treasury professionals stand out from the competition.

To be eligible for the CTP designation, candidates must meet certain educational, experience, and ethical requirements. Candidates must have at least three years of full-time professional experience in treasury or finance-related positions, or two years if they hold a bachelor's degree in a related field. They must also pass an exam that covers topics such as cash management, risk management, investments, financial analysis, and corporate finance.

It typically takes between six months to one year to complete all of the requirements for the CTP designation. Candidates should plan on studying for several hours each week during this time period.

To get started with the CTP program, candidates should visit AFP's website and review the eligibility criteria and exam content outline. Once they are ready to apply for the program, they should submit their application online along with any supporting documentation required by AFP.

The cost of obtaining a CTP designation varies depending on whether or not you are already an AFP member. For non-members, it costs $995 USD to take the exam; members pay $795 USD instead. Additionally, there is an annual fee of $90 USD to maintain your certification status once you become a CTP holder.

11. Registered Options Principal (ROP).

Registered Options Principal (ROP) is a designation that is granted by the Financial Industry Regulatory Authority (FINRA) to individuals who have met certain qualifications. To become an ROP, an individual must pass a series of exams and meet certain experience requirements.

The exams required to become an ROP include the Series 4, Series 7, Series 24, and Series 57. The Series 4 exam covers options trading strategies and regulations related to options trading. The Series 7 exam covers general securities regulations and sales practices. The Series 24 exam covers supervisory responsibilities for general securities activities. Finally, the Series 57 exam covers equity and debt trading as well as options trading.

In order to qualify for the ROP designation, individuals must have at least two years of relevant work experience in the securities industry or three years of relevant work experience in a financial institution that provides services related to options trading.

It typically takes between 3-6 months to complete all of the necessary exams and obtain the ROP designation once all of the requirements are met.

The cost of obtaining the ROP designation varies depending on which exams are taken and how many times they are taken if necessary. Generally speaking, it can cost anywhere from $1,000-$2,000 for all four exams combined depending on which study materials are purchased and how many times each exam is taken if necessary.

Do You Really Need a Sales Trader Certificate?

No, you do not need a sales trader certificate in order to be successful in the financial industry. While having some knowledge of the stock market and trading is beneficial, it is not essential to have a certificate in order to get started. The most important thing is that you have a basic understanding of how the stock market works and what type of investments are available. Additionally, having some knowledge of the different types of securities and derivatives can also be helpful.

However, if you are looking to become a professional trader or work in a highly specialized area such as algorithmic trading or high-frequency trading then it may be beneficial for you to obtain a sales trader certificate. This type of certification will give you an edge over other applicants as it demonstrates your commitment to learning about the financial markets and provides evidence that you have studied and understand the basics of trading and investment. Furthermore, many employers prefer candidates with this type of certification as it shows that they are serious about their career in finance.

In conclusion, while having a sales trader certificate can be beneficial for certain roles within the financial industry, it is not necessary for everyone who wants to enter this field. Ultimately, having some knowledge and understanding of how the stock market works will provide more benefit than any certificate ever could.

Related: Sales Trader Resume Examples

FAQs About Sales Trader Certifications

1. What are the benefits of a Sales Trader Certification?

Answer: A Sales Trader Certification can provide individuals with an opportunity to gain knowledge and skills related to trading stocks, bonds, options, futures, and other financial instruments. It can also help traders to understand and navigate the complexities of the financial markets. Additionally, certification holders may be able to access exclusive trading opportunities or receive special discounts on fees associated with trading.

2. How long does it take to complete a Sales Trader Certification Program?

Answer: The length of time required to complete a Sales Trader Certification Program will depend on the specific program chosen by the individual. Generally speaking, most programs range from two weeks to six months in duration and require both online and in-person instruction sessions.

3. How much does a Sales Trader Certification cost?

Answer: The cost of a Sales Trader Certification will vary depending on the type of program selected by the individual. Generally speaking, prices range from $500-$5,000 USD for self-study courses and up to $15,000 USD for instructor-led courses.

4. Are there any prerequisites for obtaining a Sales Trader Certification?

Answer: Yes, most programs require applicants to have completed some level of education in finance or economics prior to enrolling in their program. Additionally, many programs also have age requirements that must be met before applying for certification.

5. Is there an exam required for obtaining a Sales Trader Certification?

Answer: Yes, most certification programs require applicants to pass an exam which covers topics related to trading strategies and regulations as well as market conditions and trends before they can be granted certification status.