Careers in FX

The key function of a career in foreign exchange (FX, Forex) is about predicting the likelihood of a currency falling (depreciating) or rising (appreciating) against another. Small movements in the prices of currencies have a dramatic effect for companies and individuals. There are a variety of roles within a range of different companies. Some jobs are about trying to predict these movements, others are about trying to profit from them and others are about executing the trades.

The main job functions are as follows:

Trader. (Dealer)

An FX trader is at the sharp end of the function actually making deals and trades. Either trading for profit in the FX market or trading FX on client's instructions. An FX trader will buy at one price and sell on taking a margin. FX trading jobs are usually split between "vanilla" trading, where products are simple and trades are easy to execute, and more complex "exotic" derivatives trading (Forward contracts, options). A trader will have an array of screens, will be at his desk all the time and be informed of market trends

Forex Sales.

In order to keep the dealers (traders) busy an FX company needs clients. To get clients they need FX Sales people. They will have full knowledge of FX products and will find new clients or keep in touch with existing ones. Sales jobs in FX are usually divided between different client types, with some sales people specialising in hedge funds, while others might only sell to companies and others to private clients. FX sales people need to be tenacious and expect to use the phone a lot! Once a client is introduced the dealer will complete the trades.

FX structurers assemble complex exotic derivative products for clients

Foreign exchange research.

In order to try and predict the movement of a currency a company will need FX researchers. They produce daily or on demand reports using technical analysis and research. Sound economic qualifications and/or a mathematical background are ideally required as the movements are predicted by economic forecasting or analysis of price movements ( FX charts). The results of FX research is used by dealers, sales and passed onto clients.

Back Office staff.

Once all the deals are complete a written confirmations need to completed along with various other administrative processes. Anti Money laundering compliance needs to be completed for all FX traders. Subsequently there are a host of FX 'back office' functions that need to be undertaken and there are numerous roles available.

Treasurer.

On the other side of the FX coin companies employ people in 'Treasury' departments whom are responsible for currency transactions. The most important function is to minimize FX exposure by employing strategies against currency fluctuations such as forward contracts and options. Depending on the size of the company they will have at least one person responsible for FX and they will use the services of a Forex company

The employers in the FX market are usually:

High Street Banks. High street banks will employ dealers, FX sales and will have lots of FX administration.
Investment Banks. Investment Banks will employ FX dealers, FX Sales and FX back office, selling mainly to large companies and institutions
Forex Trading companies. Companies that offer spread betting, CFD's and Forex trading will employ all manner of people in FX roles
Foreign Exchange and Transfer companies for individuals and companies making overseas payments will have FX dealers, FX sales and FX administrators

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