People say that a career in the financial industry is one of the best high-earning professions. That’s one of the reasons many aspire to be a CPA (Certified Public Accountant), investor, and other careers related to finance. Over the last decade, digital financial services has grown. One of which is the rise of the forex market.
Investopedia says that forex is the world’s largest and most liquid market. Since it became popular, more people are looking into trading and even starting businesses relating to the market. Some are also considering shifting industries and officially beginning a forex career.
Even though the forex market seems to be an industry that could make you wealthy overnight, that’s not how its reality is. Like any job, starting a career in the forex market has challenges. If you plan to enter the market, here are seven challenges you might encounter.
1 – Attending to clients’ queries and issues about the trading platform they’re using
If you’re coming from a different industry or are new to the forex market, it’s likely that you’re unfamiliar with the trading platforms broker companies use. In forex, there are many trading platforms that traders can use. However, there are three major platforms that many professional traders recommend.
Those platforms are MetaTrader 4, MetaTrader 5, and cTrader trading platform. Most, if not all, people working in the forex market are knowledgeable about those trading platforms. After all, a trading platform is the backbone and the heart of forex trading’s operations. It could be challenging to familiarise yourself and navigate them immediately, especially if you’re new. However, you can surely attend to clients’ queries and issues once you learn how to navigate those platforms.
2 – Retaining long-term clients
There are many different job titles that you can explore and start in the forex market. One of which is a position in the sales and marketing department. The ultimate role of Forex Sales Specialists is to find prospective clients and increase the number of a company’s live trading accounts.
Retaining long-term clients is one of the ultimate challenges of forex brokers. Why? Because most people only get into trading due to peer pressure and out of curiosity. Sadly, many people enter the market without proper knowledge about how it works. Also, many people have unrealistic expectations about forex. Once they realise it’s not gambling at all, they immediately quit.
3 – Finding 100% transparency in the market
Today, many forex broker companies operate–regardless of not meeting the regulatory licenses that regulatory organisations require. Since the market is accessible to anyone conveniently, anyone can start a forex business without complying with regulatory requirements. In fact, many broker companies that many traders use operate without compliance.
Investopedia says that the market as a whole may not be under the control of the regulators, but most of the activities that brokers do are. If you’re not confident with that kind of system, it’s best to look for a company that complies with the requirements of the concerned offices. Those include the Financial Industry Regulatory Authority (FINA), National Futures Associate (NFA), and Australian Securities & Investments Commission (ASIC). These offices vary depending on your country and location.
4 – It could demand too much of your time due to its high-volatility nature
One of the things that you should know about forex is it’s a highly volatile market. It’s open 24/5, except on weekends. On top of that, many factors affect the price movements in the market. A single transaction, political event, or government issue in a country could change its currency movement.
If the job you’re seeking is to manage clients’ live accounts, expect that it could demand too much of your time. Remember that trading in the forex market requires strategies, knowledge, and plans to help you make the most of the price changes. So it’s likely a career path that will require too much of your time.
5 – It will require you to adapt constantly to the changes in the market
Another challenge of starting a career in the forex market is it will push you to adapt constantly to the market’s changes. This fifth challenge connects to the previous point I discussed mainly because of the market’s high-volatility rate.
Unlike other jobs with a specific routine, working in the forex market will push you to grow and be flexible. It could be a challenge if you’re uncomfortable with that career path.
6 – Convincing people to see the best side of forex trading despite its myths and misconceptions
Despite its popularity, there are still many misjudgments about the forex market. I mentioned earlier that it’s challenging for forex broker companies to retain long-term clients due to their unrealistic expectations about the market. Sadly, because of that, many myths and negative impressions about the market are prevalent.
If you’re starting a career in the marketing sector of the forex market, this is one of the primary challenges of your responsibilities. Since the scams relating to the forex market are continuously growing, legitimate forex companies must work harder to fight those illegal services.
7 – You’ll rarely get advice, tips, and guides from your colleagues because the market is ever-changing–and doesn’t have a definite manual for trading.
Lastly, you’re on your own in a career in the forex market. Unlike other professions, there will be people to train, guide, and assist you in your job roles. But in the forex market, you’ll rarely get those, especially if you’ll manage client accounts.
By now, you understand that the forex market doesn’t have a straight line to guide you to success. Like every trader, you’ll need to constantly learn and educate yourself about the latest and best strategies that could work on the market’s condition.
It’s challenging, but it can also be rewarding.
Starting a career in the forex market may be more challenging than other professions. However, once you get the hang of it and become knowledgeable about the market, you’ll surely handle those challenges like a pro. You just need to be willing to learn, adapt, and be flexible to changes and the responsibilities that come with working in the largest market in the world.
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