More than 500 years ago, the Forex market was born in Amsterdam. Now, this global dynamic currency market has reached a capitalization of $795.91 billion and has more than 10 million registered traders who can choose from 170 currencies. It is expected to reach a capitalization of $1023.91 billion by 2028, assuming a compound annual growth rate (CAGR) of 6.5%. To succeed, even an experienced trader needs to overcome huge competition and beat financial giants such as Goldman Sachs, Deutsche Bank, HSBC Holdings plc, Barclays, etc. (they conduct up to 70% of all turnover). (they spend up to 70% of the total market turnover). The work of a trader is quite grueling, taking into account the different time zones, requiring thorough knowledge and compliance with the laws of different countries, constant training, and the ability to quickly diversify investment portfolios.
But, not only in trading currency pairs you can realize your talents and get a good profit, there are other options for building forex trading careers, such as market research, software development for platforms, analytical work, auditing, or participation of the state in the regulation of the system.
What careers can you develop in forex?
Traders have to work with a large amount of data 24/5 to make a qualitative analysis, correctly predict the price, and eventually profit from changes in demand for a certain currency. The volume of trading on this currency market in one day is 53 times higher than the volume of trading on the New York Stock Exchange.
Many people are interested in finance and the market itself, although they are not ready to participate in trading. Forex has become a fast-growing global marketplace that allows you to earn and develop forex careers even without trading currency pairs, such as becoming a data analyst, financial manager/assistant, marketing coordinator, or auditor.
Whichever Forex-related career path is chosen, it is worth considering factors such as:
- Language skills to work in the chosen jurisdiction and understand terminology.
- Being constantly involved in the analytical process to research the market, look for new opportunities and changes in legislation, and follow geopolitical news and their impact on future exchange rates.
- Have adaptability to sudden changes to react quickly and take decisive action.
- Have the ability to calculate risks and possible losses.
- Understand computer program algorithms embedded in a particular system to choose the best one to work on a particular task.
- To have communication and presentation skills, to be able to find a common language with the client.
- Have the necessary qualification degree and be constantly ready to learn.
The largest centers of Forex trading are New York (30% of traders from the USA), London (37% of all trades), Tokyo, Hong Kong and Singapore (40% of all traders from Asia).
What Does a Market Analyst/Researcher do?
One possible branch in building a forex career has been the very popular profession of market analyst/researcher.
Functions include:
- Analyzing the current financial situation, trends, and currency fluctuations and making reports on this basis.
- Studying changes in geopolitics economy and forecasting the possible impact on market movements.
Required criteria:
- Good education in finance, understanding of international political developments (Bachelor’s/Master’s degree).
- Providing accurate technical and fundamental analysis for clients.
- Mandatory trading experience and a good reputation in the market.
The specialty of this line of work is that communication skills are very important. The main part of work is connected with clients and choosing their further direction in investing (creating presentations and webinars).
The average remuneration in the US is $70,000, in Europe, depending on experience, it can reach $96,000 per year.
Investors choose the best countries/markets to invest in based on the data provided by the analyst. Marketing companies use the reports to identify the areas with the most potential customers and the most effective advertising campaigns.
Who is Responsible for Managing Customer Accounts?
An account manager is a professional trader with experience in working with various financial instruments such as options, derivatives, etc. Banks, investment and hedge funds, and multinational corporations are interested in cooperating with such professionals.
Tasks to what does a forex trader do:
- Managing one or more client accounts.
- Reporting on business transactions.
- Providing consulting services in buying/selling.
- Handling high-risk transactions.
Specialist requirements:
- Years of experience in trading and high performance in currency operations in the market.
- Experience with various platforms and investment instruments like commodities, equities, derivatives, etc.
- Bachelor’s/Master’s degree in finance.
The key objective of the account manager is to meet the metrics set by the client in high-risk transactions.
The average salary in the US is $71,000, and in the UK, $85,000.
Why is an Industry Regulator Needed?
To regulate the market, fight fraud, set standards of currency trading for all participants, and protect investors’ capital, regulators of many countries hire lawyers, professional forex traders, accountants, and auditors to help them.
Among the most significant regulators of the market are:
- In the USA – Commodity Futures Trading Commission (CFTC), National Futures Association (NFA).
- The UK – Financial Conduct Authority (FCA).
- Japan – Financial Services Agency (FSA).
- Hong Kong – Securities and Futures Commission (SFC).
- Australia – Australian Securities and Investments Commission (ASIC).
CFTC is a governmental organization that controls futures and commodity markets.
The main request for professionals who will be responsible for supervision in the U.S. is to:
- Have authorization to work in the US.
- Experience in the market for more than two years and active use of various exchange instruments.
- Bachelor’s/Master’s degree in Accounting/Finance/Economics/Jurisprudence.
Functions to be performed:
- Conduct investigations into violations of trading practices to detect fraudulent activities and manipulation.
- Provide recommendations to improve the control of illegal activities in the market.
A rather complex profession as it requires knowledge in several related fields (finance, IT, legislation) to take into account in the work the peculiarities of functioning of various investment markets, not only Forex.
The average salary is $69,000 in the US, from £70,000 in the UK.
What are the Responsibilities of Exchange Operations?
To the question: how much do professional forex traders make per month? It can be answered that it all depends on the experience and qualifications of the expert. A forex trading specialist is a high-level professional who is responsible for:
- Processing client accounts, conducting transfers, processing deposits, and foreign exchange transactions.
- Complete customer due diligence as per jurisdiction requirements.
- Analyzing transactions and exchange instruments.
- Resolving disputes with clients related to their foreign exchange transactions.
Requirements include:
- Experience in exchange operations.
- Bachelor’s/Master’s degree.
- Understanding of international financial markets and how different platforms and systems work.
The salary in the UK and US is, on average – $109,000.
IT specialist
The currency market needs not only forex trading managers but also software developers. Brokerage companies hire them to create trading platforms from scratch, to set up systems for the work of participants, and to develop bots for client requests. For users, the platform should be user-friendly and display currency rates, indicators, and statistics,a whole team of technical specialists such as web developers, system administrators, designers, and PMs can be responsible for such an amount of work.
Criteria to be met by a software specialist :
- Knowledge of programming languages like Javascript, SQL, Python, etc.
- Experience with operating systems like UNIX, Linux, MacOS, Ubuntu, etc.
- Ability to work with databases, web servers, and cloud storage.
- Knowledge of brokerage and understanding of the process of buying/selling currencies by the client will be an added plus.
In addition to software development, responsibilities may also include meeting with clients/brokers to determine the best solution, incorporating necessary features into the application, and identifying other needs to customize the system for online trading.
The average salary in the US is $105,000 and in the UK it is £139,000.
Other Career Options
Anyone who wants to explore the fascinating world of currency trading should consider several other options, such as
- a forex financial advisor who, based on technical analysis, currency fluctuation dynamics, and experience in international transactions, can recommend to clients where to invest their capital. The average salary is $89,000;
- data analysts are responsible for collecting data information and studying established trends. Everything serves to identify which currencies are likely to soar shortly. The average salary is $78,000;
- marketers work with content, strategizing for the client’s needs. Salaries start at $76,000;
- accountants calculate the company’s income and expenses, conduct audits, and generate reports. Monthly remuneration from $64,000.
As in any other business, the full operation of the company is necessary: manager, security service, and other related specialists.
Forex offers great prospects for the development of any specialties, not only those related to traditional forex jobs. Even a job in the support service or an internship in one of the companies will help to better understand the environment itself. Even a beginner can experience the rhythm of trading using a demo account and then decide in which direction to develop further.