Financial traders facilitate the buying and selling of securities and advise clients on investments. They may specialize in a specific type of investment and are responsible for finding new customers. Licensing and continuing education are required.
A money trader is employed by investment banks, financial planning firms, and brokerage institutions to facilitate the buying and selling of stocks, bonds, and other types of securities investments. The financial trader’s job description includes finding and advising clients who want to make financial transactions and then completing the requested purchases and sales. In most places, a financial trader must be officially licensed by a regional or national financial regulatory institution to start trading.
Part of a financial trader’s job is to advise clients on investments. As this requires a financial trader to be in tune with trends and market status, keeping up with investment research is a constant responsibility of a financial trader. In addition to stocks and bonds, traders also manage mutual funds, derivatives, foreign exchange and commodities for clients. Some financial traders choose to specialize in a specific type of investment, such as a commodity trader who specializes in metals or agricultural futures.
Financial traders are also responsible for finding new customers to place orders through the bank or brokerage. In this area of work, merchants act as sales agents, both for their company’s services and for the trade or financial investment they are offering to a customer. The trader’s job is to convince the customer why trading is a good investment and why the investment should be made with his company and not elsewhere. To help achieve this, some financial traders work to prepare reports to present to clients. A financial trader can work with clients in meetings, over the phone, or via email.
In addition to working with clients and taking orders, there are also financial traders who work directly on the floor of a stock exchange to negotiate deals with other traders. These traders place the order directly and complete the transaction, as communicated to them by other traders working in the same bank or company. Every trader is responsible for ensuring that all transactions comply with local financial regulatory law at all times, such as those of the US Securities and Exchange Commission.
To become a financial trader, an individual must often first be licensed by the regional or national board or regulatory authority. In the United States, the Financial Industry Regulatory Authority oversees licensing and requires a company to sponsor an individual to take and pass a test to receive a financial trading license. In many regions, there are also continuing education requirements that must be met to maintain a license. Most companies require a bachelor’s degree in business, economics or another related field prior to employment.
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