Foreign Exchange Jobs Key Terms

Get started with foreign exchange jobs key terms

By Shannon Tani

If you're looking into foreign exchange as a career, there are a number of terms that you need to know if you want to be successful. For instance, you may want to work as a broker or as a quantitative modeler. A broker has to take tests in order to get a license. You'll also have to decide whether to work for a brokerage or to become a Registered Investment Advisor. Once you learn these basic terms, however, you'll feel confident about choosing the right path.

Forex broker

A forex broker takes care of the logistics of trading currencies. He or she may also provide advice to the investor.
Try: Learn more about what a forex broker does by visiting wiseGEEK.

High frequency currency trader

Many brokerages are looking to hire a high frequency currency trader, or high frequency trader, as it's more commonly known. These people always have their eye on the stock ticker, since they are not the type to "buy and hold." Instead, high frequency traders are used to trading several times a day, sometimes a necessity in the forex market.
Try: Visit Rick Bookstaber's blog for more information on high frequency traders and why companies want them.

Quantitative modeler

A quantitative modeler, or analyst, takes available data from the foreign exchange market and attempts to create a model of the system. This helps to make predictions in the market.
Try: KLG Advisors provide quantitative modeling services and describes the process on their site.

NASD Series 7 and Series 63

The NASD Series 7 and Series 63 are the two major licensing exams that you must pass if you want to be a stockbroker.
Try: Visit Preparer.com to see the requirements for taking the NASD Series 7 and Series 63 exams and to see if your state requires them.

Registered Investment Advisor

If you don't want to work for a financial company, you need to become a Registered Investment Advisor through the SEC. This is a good move for those that want to act as consultants on their own.
Try: Registered-Investment-Advisor.com explains the difference between a Registered Investment Advisor and a stock broker.

National Futures Association

The National Futures Association is a professional organization for those in the futures business, including those in the foreign exchange market. It's a good resource for training and networking opportunities.
Try: Learn about the National Futures Association through their website.