Foreign exchange is another word for currencies and the job of a foreign exchange trader is to buy or sell foreign currencies for his clients. A foreign exchange trader basically works like any other trader on the stock exchange; he watches the fluctuations regarding interest rates and exchange rates in the Forex trading and tries to achieve the largest possible profit for his clients. Foreign exchange traders work freelance for their clients, but they can also be employed by a bank. In this position, foreign exchange traders try to generate profits for the bank on the stock exchange and to secure those profits.
Forex trading – Is there any formal training?
There is no formal apprenticeship for foreign exchange traders; anyone interested in the stock market or Forex trading can work as a foreign exchange trader. However, anyone who wants a permanent position at a bank should be a trained bank clerk or have completed studies in business administration or finance. In principle, those who have completed solid banking training or a successful degree can also earn good money as a foreign exchange trader. A foreign exchange trader should be familiar with the securities market, because they must always be able to analyze the market, make recommendations and decide when a purchase is worthwhile or not.
How much can a foreign exchange trader earn?
The earnings of a foreign exchange trader always depend on whether they work independently or are employed. Traders in the Forex market who work independently usually receive a commission, and it is up to the trader how much they earn. If the transactions in Forex trading are successful, the commission is high, but if the trader misjudges, it can happen that they receive nothing at all. Foreign exchange traders who are employed earn between 2700 and 5400 euros depending on age and professional experience, with higher earnings in large cities like Vienna, Graz or Salzburg than in smaller towns.
A profession built on trust
Working as a foreign exchange trader is always a position of trust, because after all it can involve large sums of money. Foreign currencies are often subject to very strong fluctuations. A layperson cannot recognize quickly enough in which direction a price is moving, but a foreign exchange trader knows when to buy and when to sell. They carry out transactions independently for their clients or for the bank and must always follow their principals' instructions, for example regarding financial limits. Today's foreign exchange traders can be found on the internet and they carry out their transactions either by phone or directly on the exchange.
