Considering a Career In Forex Trading? Here Are 3 Options to Start With
Contrary to popular opinion, Forex trading is an entire universe in and of itself, which does not resume only to the specific act of trading itself. In fact, it’s an ensemble of jobs that together create this fascinating world that so many have come to like and even depend on in their lives. The key takeaway is that these jobs are quite diverse and you need specific know-how in order to master each and everyone of them. Even though the entire industry is fast paced with 24-hour access to all the latest happenings and involves odd working hours, there are some notable differences between these jobs, so let’s take a look at what skills each of them require.
But before we delve any deeper, you should start with the essentials of the forex industry. How does forex work? What are the smaller and larger players in this industry and how do they impact the market? As soon as you get detailed insights on the inner workings of the forex market, all additional information regarding forex career paths will quickly fall into place:
1. Forex Account Manager
In different parts of the world, as a forex account manager you may also be recognized as an institutional trader or a professional trader. This type of career path is especially recommended to those that have personally sorted out the ins and out of forex trading and have managed to become successful in trading by themselves. In short, a forex account manager is responsible for huge amounts of money and the reputations of their employers are at stake.
Some account managers will have individual accounts to look after, while others will have to manage accounts owned by ‘bigger’ players, such as central banks, multinationals or banks. Regardless what type of account a forex account manager is responsible for, it ultimately all comes down to the account manager’s risk tolerance, as well as to their technical knowledge regarding not only forex trading, but also financial instruments, commodities, derivatives and options.
2. Forex Industry Regulator
Fraud in the forex industry can be very common and oftentimes takes many forms, reaching new layers of intricacy with each new coming year. This is why a forex industry regulator plays an extremely important role in maintaining solid ground when it comes to security in the forex industry.
Regulatory bodies operate both in private and public sectors, with some of the best known examples being the Commodity Futures Trading Commission (CFTC), which is the government forex regulator in the US, while the National Futures Association (NFA) operates from the private sector. Another part of the job description of a forex industry regulator is to protect and educate investors, so they can choose wisely their own best-suited broker.
3. Forex Market Analyst
This chosen career path may also come under the title of currency researcher or currency strategist, depending on which part of the world we are exploring the forex industry from. The main job of a forex market analyst is conducting research and analysis for a forex brokerage, so that they can create daily written content regarding the forex market. They also need to carefully look at and comprehend the political and economic issues that impact in any way currency values.
Since the forex market fluctuates at an extremely high pace, a forex market analyst needs to make quick use of all their knowledge of technical, fundamental and quantitative analysis. A forex market analyst may put all their know-how to use by also giving it educational purposes and creating useful webinars for their clients. There is an important marketing element to having this job, considering that a forex market analyst will often also establish some sort of social media presence.
These are only some of the most prominent careers someone can choose in the forex industry. Others include positions as forex exchange operations manager and even forex software developer – they are all very specific in terms of requirements and they each require an individual set of skills. Apart from these more technically-oriented forex jobs, there are also jobs in accounting and human resources within this industry, just like within any other industry out there. It’s your choice and it all depends on what type of responsibilities you’d like to have and what you can bring to the table in terms of skills.