The Indian Rupee plummeting to 72.62 against the US Dollar, the US-China trade war, Monetary policy of the Fed, etc.. Well, the Forex Markets Careers is always so happening!!!! Things change at neck break speed here. We all are constantly on our toes to find out what is going to happen in the currency markets next because it has the power to turn the economic situation of an entire nation for better or worse.
If the dynamism and volatility of the currency markets draws you, it could be an exciting as well as a lucrative career option.
Currency markets are open 24 hours a days, for 5 days in a week, which means a job in Forex Markets Careers is fast-paced and involves long working hours. They demand a combination of skill sets which ranges from understanding of global currency movements, financial accounts and knowledge of regulatory mechanisms.
There are various career options that can be pursued in the Forex Markets Careers. Some of the most sought after profiles in the currency markets are:
- Forex Market Analyst
Also known as the currency researcher or currency strategist, a forex market analyst works in a forex brokerage and conducts research and analysis to prepare market commentaries and periodic reports. They also need to keep an eye on the economic and political issues which impact the currency markets. As a forex market analyst, you should be well versed with technical and fundamental analysis for producing your analytical findings. A forex analyst is expected to generate high quality content that it relvant in the fast-paced currency markets. Offering accurate and insightful analytical content is a matter of great responsibility because the retail and institutional investors across the globe will use your advice.
In this age of digital media, a forex analyst can also become an influencer who holds educational webinars or establishes his online presence by offering sound insights about currency trading. By enlightening investors, a forex analyst can build quite a following for himself which will also be beneficial to the company he is associated with.
Coming to educational qualifications, a forex analyst must be well-versed in economics and international finance. He must also have the knack of keeping tab on the global political landscape too. A bachelors or Masters in Finance with some experience in forex trading is good to get you started as a forex analyst. To top this, you must also possess sound communication and presentation skills as well.
- Forex Regulatory role
Forex Regulators hold the primary responsibility of preventing fraud in the currency markets and promote fair practises and transparency in trading. In India, forex trading is legal if the transaction is done through any SEBI regulated players trading in forex instruments. However, in India, the apex foreign exchange regulatory authority is the Reserve Bank of India (RBI) which frames the law for currency transactions and holds the authority for all key approvals.
Forex regulators employ various professionals such legal personnel, economists, trading specialists, CFAs, auditors as well as accounting and management professionals. The auditors ensure compliance of regulatory norms, the Economists would assess the overall impact of the various laws on the economy, while the trading expert would help in investigating fraudulent activities. The roles are not restricted to just these. You can be someone who is end-to end manager of Foreign exchange activities in India. This includes formulation of foreign exchange policies and development of Forex Markets Careers in India.
3. Forex Software Developer
Most brokerages operating in Forex Markets Careers have their proprietary trading platforms which enables investors to view currency price charts, data, tables and indicators to analyse the market situation, as well as to trade in the market. These trading portals require an experienced software developer. A Bachelor or Masters in Computer Science, Software Engineer or someone with the knowledge of programming languages, operating systems, databases and web servers would be ideal for the role.
The uniqueness and quality of the interface is a major distinguishing factor for brokerages. Hence, it is preferable in the Software Developer has a knowledge of financial markets as well, though not mandatory. This will help in knowing the preference of the traders and build the software accordingly.
4. Treasury management
Treasury Management is a profile which entails creation and governance of corporate policies aimed at tackling foreign exchange risks efficiently and ensuring the liquidity of the organisation. It also includes management of corporate trading in bonds, currencies, financial derivatives etc. There are banks which have a dedicated department for treasury management for their corporate clients. In a nutshell, Treasury Management is a culmination of liquidity management, risk management and managing corporate finance. To carve a career in Treasury Management, you need to be equipped with specialised qualifications like CFA, CPA, CIMA or FRM.
The diverse skill sets required to make an impact as a forex professional are:
The foreign exchange market is rapidly changing. You really have to be on your toes if you are working in the Forex Markets Careers. Hence, adaptability is the first quality that a forex professional must possess. Also, the international market is fast evolving and highly competitive. Every forex broker needs to adopt certain strategies that gives an edge to his services. Therefore, as a forex professional, you must know how to acclimatise your working style to changes in the organisation.
(2) Risk taking ability
It is of utmost importance that forex analyst has extraordinary risk taking abilities. The global currency markets is very volatile and hence a trader needs to know when and how much exposure to take. Leverage risks, interest rate risks, transaction risks and counterparty risks are some of the risks that forex exchange traders are exposed to on a regular basis.
(3) Tech Savvy
The Forex Markets Careers has high dominance of technology. Hence, a forex professional must not only be well-versed with technology but also be adaptable to various disruptions like automation, Big data, Analytics etc. A basic familiarity with software, automated trading platforms and algorithms has become a must-have skill from a good to have one.
(4) Soft skills
Not just technical and analytic skills, the forex analyst also must possess the requisite soft skills which include managerial abilities, team-management abilities as well as good interpersonal skills.