FOREX Broker Training
Swapping Chinese yuan for American dollars and then immediately converting them into Norwegian kroners to make a quick profit is the job of a Forex broker. However, her job is much more complex than simply placing a few orders. The training required to become a broker on this cutthroat, fast-paced trading floor is extensive.
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Schooling
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The Bureau of Labor Statistics reports that the commodities industry has among the most educated workers in the nation -- two out of three possess at least a bachelor's degree. In addition to receiving a degree, ideally in the field of finance, statistics, economics or math, many hopeful Forex brokers should seek internships at top financial firms for the best chance of getting hired. This education and internship experience provides brokers with training in the areas of business functions, quantitative reasoning, calculus, financial equations and other pertinent skills necessary to survive on the Forex trading floor.
Exams
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Training leads to gaining licensing by the Financial Industry Regulatory Authority. Passing this exam is mandated for anyone desiring to buy or sell commodities such as foreign currency. Most brokers take the Series 7 exam; Forex brokers can take the Series 3 exam, which specifically tests commodity futures. Either exam is acceptable. The FINRA website states that upon passage, the candidate receives eligibility for registration from the National Futures Association. The Series 3 exam consists of 120 multiple-choice questions and takes two hours and 30 minutes to complete. Some states require additional certification and continued education courses to maintain a license.
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On-The-Job Training
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Investment firms, central banks and other financial institutions hire brokers to work with clients and purchase commodities. In fact, because a broker can't take the multiple exams without sponsorship from a firm, the training step of working as an employee within a business is necessary. Some brokers who have built up a strong client base might later leave the company to start their own, but Forex brokers invariably start training within an established organization. Part of the on-the-job training includes taking company coursework with other new recruits, being mentored by older staff members and shadowing veteran Forex brokers on the trading floor.
Considerations
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Enduring training requires stamina, an ability to work in a fast-paced environment and a high tolerance for stress. Furthermore, Forex workers must keep abreast of changes, including the economic conditions in foreign countries, new legislation, announcements by the Fed and other financial and economic announcements that affect foreign currency rates. Training also typically involves performing ancillary jobs for the company, including client relations, inputting orders and working late hours when foreign markets open.
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References
- Photo Credit currency image by peter Hires Images from Fotolia.com
