If you’re interested in the finance and investing world, you might consider a job as a financial trader. As a trader working for a firm, you will buy and sell shares, bonds, commodities, currencies, and other assets for investors, such as large banks, hedge funds, and other financial institutions.
Whether you want to be a forex or stock trader, there are certain skills, qualifications, and knowledge you’ll need to have the greatest chance of being selected by potential employers. Let’s have a closer look at what’s required to become a salaried trader working for a financial firm.
Formal education is basically essential
There are many paths to achieving a successful career as a trader, but some of them are more well-worn than others. It’s a highly stressful and competitive field, so most financial firms on the hunt for new traders will be looking at your resume for a degree of some sort.
Depending on the type of trading you’re being employed for (bonds, forex, commodities, cryptocurrencies, stocks, etc.), you’ll need more than just a financial background to have any hope of standing out. Some combination of accounting, economics, maths, sciences, business, politics and engineering could all be enticing to a future employer.
Many firms are also looking for applicants to have fluency in foreign languages too, as the business continues to expand globally.
Your education doesn’t stop after you’ve been hired either, so you’ll want to be highly motivated to learn and develop your skills on the job. Many firms will offer in-house training programs to invest in your continued growth too.
The International Certificate in Wealth and Investment Management is one such entry-level qualification for candidates aspiring to work in asset, risk, and investment management roles. Another is the completion of the Chartered Financial Analyst (CFA) program.
Previous experience is an advantage
How can you populate a ‘previous job experience’ section of your resume without actually having been employed yet? You’ll probably need to apply for an internship, take a summer job, or get a work placement, and then you’ll have something of an edge on your peers.
There are often programs offered by investment firms for up-and-coming traders to learn the ropes, and assess for suitability – sometimes interns are eventually recruited after their placement is completed.
Apply early to avoid disappointment, as even though these placements are often unpaid, this is still a highly competitive space.
Another way to show your experience as a trader would be to provide a track record of your own investments. You could also just use demo trading accounts to get statistics on your performance.
Attitude and personal skills are a non-negotiable
You might get your foot in the door for an interview with all your formal degrees and previous experience, but actually getting a job as a trader might come down to less measurable qualities. Many firms have taken to conducting psychometric testing as a means of evaluating your personality, motivation, character, and personal skills relative to the role you’re suited for.
You’ll need excellent communication skills to liaise with clients and colleagues effectively. The ability to work within a team but also take responsibility for yourself will be important, and a great trader also needs to stay cool, focused, and decisive under the immense pressure of often chaotic and fast-paced environments.