For many people, the idea of trading in international currencies conjures up images of rich kids jet-setting around the world, making millions of dollars, sipping champagne and driving expensive sports cars. Although this is an accurate description of some traders, you may be surprised that many more are just ordinary people who live in the suburbs and make a good living.
Myths About Currency Trading
There are many misconceptions about what it takes to become a currency trader. First of all, you do not need a degree in economics or finance to become a currency trader. In fact, you do not need a degree at all (although it certainly does not hurt).
Another common myth is that you must live in New York or London and trade on a major stock exchanges. In fact, the largest currency trading center is in Chicago. Currency traders are normal individuals living in cities around the United States and go to work in a regular office. However, you can also become a currency trader from wherever you are.
There are two ways in which you can trade currencies. To begin, there are currencies that are traded on the stock exchange. To trade in these currencies, you require a license to trade. Then, there is a FOREX (Foreign Exchange) trade, which does not require a license. Get a job in either of the two is similar, except for acquiring a license to trade traded in exchange currency, if that is your chosen career.
How to Get Hired to Trade Currencies
i) Understand the Currencies
Familiarize yourself with any major currency you would like to trade. The most popular traded currencies are the US dollar, the euro, the Japanese yen, the Canadian dollar, the Australian dollar. You can also find out about other foreign currencies traded in the market. Most of these information can be found by reading forex articles on the Internet.
ii) Find Companies that are Hiring
The next step is to find companies that are hiring traders. These include companies consolidated brokerage boutique currencies, forex companies and hedge funds. Many of the companies are willing to take on trainees and teach them the business. Search your local newspaper and resources at work and research on the Internet for companies that hire.
iii) Pass the Series 3 Exam
You should also pass the Series 3 exam. If the career you prefer involves publicly traded currencies trading, you need a Series 3 license . The Series 3 test has 120 questions and takes two and a half hours. Currency trading is actually a small part of the test. If you pass the Series 3 test, you can be allowed to trade some commodity futures and options.
iv) Training Programs
Participate in the training program offered by the employer you want to work with. You will not trade much when in training. In fact, you will probably make less than the minimum wage, if you break the training down on an hourly basis. However, hang in there. There will be a lot of money to be made later, if you know what you’re doing.
v) Make Money
Start trading for profit. The more money you make for your business and your customers, the more money you will earn!
The above is an overview of how you can get started with currency trading.