Prior to accepting , or start applying for a job in a trading firm there are a couple of attributes regarding what the positions involves you should fully understand. Appart from the working environment , the culture, the people being employeed, the company owners, the company reputation, financial stability and how long the company has been around which are general job attributes there some attributes which are more particular in trading and a more carefull attention is required. So What to look for and what to avoid is explaining below.
Training: Make sure you understand and you are happy with the type and quality of training offered. Investigate how long the duration is, what aspects of trading are covered (eg technical analysis, algoritmic trading, fundamental, strategy creation, etc) if the trainers posses sufficient qualifications and experience as well as the mentoring included after the training period. Ask yourself how well you will be equiped as a trader once this training is over.
Licensing/Qualifications and sponsorship: Some trading postions may require you to complete some exams prior to be allowed to start trading. Make sure you are aware whether you require to poses such a license. In case you require such a license and you are not a holder check if the company will be sponsoring you for both trainning and the cost of the exams.
Payment Scheme: Ensure you fully understand the method of your renumeneration and you are happy with it. You may have a fixed salary, receive a percentage of your trading gains or a combination of both. Most of the times renumeration is highly linked to your trading performance. Be carefull not to end up in a situation where a company will require some form of compensation in case you had an unsuccessfull trading period and may have cost some a significant amount of the company’s funds.
Fees: A lot of companys may require from you to cover your training fees or any amount you may have potentially lost when trading.
Probation Period: Some companies may provide you trainig and a given amount of funds. After observing your trading performance in a given period of time, they may then offer you a position. Make sure you are aware if they will require any compensation from you should you are not successfull in the probation period.
Trading Activities : Find in what type of trading activities is the company involved. Is it primarly technical analysis,high frequency trading, market making,algorithmic, etc ?
Technology: What type of electronic devices and equipment does the company have and how up to date its systems are.
Regulation: Whether the firm is fully licensed with its competent authorities.
Thnigs to be carefull about and avoid
A lot of the times you will see job advertisments stating.
” Have you ever considered a career as a foreign exchange/ stock trader”
“Earn 100K – 2 million in first year”
” No experience needed”
” Work on your own time and place”
Most of the time these adds will involve you attending some seminars teaching you how to be a trader. Those seminars at such point will require from you a form of payment.
There is nothing wrong about paying to attend a seminar , but it is best that this is stated exactly from the begining and involve full transparency.
Similar occassion would state that after a (paid) training course is completed you will be offered an amount by the company to trade with and if you are sucessfull you would be offered a position.
You should be very cautious from such examples as most of the time they try to somehow get money from you by exploiting your desire to become a trader and make “easy money”