Traders Needed. We’re Hiring!
You might have read such job posts many times. Who recruits traders? Why recruit traders? How do they hire?
What do they do after recruitment? Are there any specific criteria for trader’s recruitment in forex? What are the pros and cons of trading as a career choice?
If you are looking for the answers to the above questions, this post is for you. Get started with the answer: Why do forex traders recruit?
There are several reasons for a trader’s recruitment in forex. Traders are mostly recruited to run affiliate programs. Brokers also hire traders to trade for them and their publicity. They are also recruited to act a lead trader in copy trading. Traders hire other traders as a mentor.
When particular brokerage wants to train up traders, they hire traders as a mentor. In all scenarios, traders get a commission for bringing referrals and salaries for providing services.
What Does It Mean By Forex Trader Recruit
Forex traders recruit hiring other traders or getting other traders services for promotion of trading business.
When traders recruit others, they give them tasks like affiliate membership programs, education of forex, and promotion of particular brokerage.
There are many traders who other traders employ in forex. Some get salaries, while others get a commission.
With the increasing fame of trading, job opportunities are also increasing in this field. You might have heard prop trading firms hiring traders for remote trading programs.
6 Reasons Why Do Traders Recruit
There are tremendous reasons for recruiting traders in forex. But the most common reason is the promotion of trading programs or affiliate programs. Other reasons include hiring for educating forex and copy trading.
Let’s discuss 7 reasons for trader’s recruitment in forex:
Forex Traders Recruit Other Traders for Affiliate Programs
Trading is a business in which brokers recruit traders for affiliate programs. The main aim of these affiliate programs is the promotion of business. Such programs are not pyramid schemes.
It is a type of third-party marketing in which one trader refers to other traders to use a particular broker. There’s nothing wrong with this.
But the marketing ways are exaggerated mostly. This way, marketers present forex as a fast-money-making scheme. Such programs hide the reality of trading; it’s risky and can’t make you rich in a moment.
Traders Recruit for Promotion of Trading Services
Many service provider tool companies, channels, and signal providers recruit traders to promote trading services.
Such traders are given tasks to educate people about the importance and effectiveness of particular forex-related services.
Most traders are given targets to sell signals or tools to a particular number of other traders. They get a commission on selling services. Such traders have nothing to do with the promotion of trading; their main concerns are selling their services only.
Traders Recruit for Promotion of Brokerage
This type of recruiting is prevalent in forex. In these recruitments, traders promote particular Brokers. Many new brokers do this to establish their reputation.
The main task of recruiters is to promote particular brokerage on social media. They run campaigns in which they invite other traders to join a particular broker.
When they succeed, they get a commission from brokers.
Traders Hire Other Traders to Trade for Them
Forex brokers, prop funding companies, and many other firms hire traders to trade for them. They know when they hire more traders, they can allocate their funds in a much better way. In turn, they can make more profit.
Suppose a trader has a 75% winning ratio with GBPUSD sale, and another trader has the same win rate with the purchase of GBPUSD.
When a fund manager of a certain firm invests in both, he earns more than the trader. That’s why hiring more traders means more profit and more business.
Traders Hire Lead Traders for Copy Trading
Traders or Brokers hire lead traders or expert traders for copy trading platforms. When lead traders trade for a third party and earn a profit, it is distributed among investors, brokers, and lead traders.
In this way, the lead trader earns money, not for himself but also for his investor and broker. But the main problem in this trading type is that it is hard to find expert lead traders.
Brokers Hire Traders for Teaching Forex as Mentor
Brokers hire trades with a successful track record to train beginners to trade. They arrange webinars and offer mentorship programs. Some of these programs are free, while others are paid premium forex education programs.
After training the mentors to arrange competition and finally choose better traders to serve particular brokerage, this type of recruitment aims to bring more and more workforce to the trading field.
Forex Recruitment Criteria
Are there any specific criteria for recruiting traders? Business owners, brokers, or hedge fund owners know it is hard to find consistent traders.
The traders with perfect track records are rare or sometimes impossible to find.
Below are few criteria to enhance your searching possess:
Brokers who are in search of traders for trading desks often look for personality. The recruiting agencies check the confidence and communication skills of traders.
They know the recruited trader must have the ability to satisfy clients. The best parameter here is to evaluate the trader through the risk vs. reward ratio.
Greedy traders will always have a high-risk reward ratio, while consistent traders work under a low-risk reward ratio.
Mathematic or Numeric Test
All traders must know maths, stats, and numbers. Traders with a mathematical educational background are often successful in trading.
They have to deal with processes constantly, so they should have a better command of this game of numbers and data. Computer knowledge is also essential.
For recruitment, all these factors are taken into account.
Many brokers hire local ambassador’s traders for promotions of their trading platform. When hiring such traders, they keep an eye on the cultural awareness factor.
What are the norms, values, beliefs of the particular nation that must be considered before hiring any trader?
They select a socially connected trader to local communities and bring more clients or customers for trading business.
A track record is one thing that almost all recruiting agencies demand. However, a trader can’t have a perfect track record.
Trading is not just like gambling, but every successful trader was once a loser. They prefer those with a track record of more than 50% win trades for more than a year or 2.
Forex Trading Career: Pros & Cons
Forex as a career may be a good choice for some traders, but not for all. The reason is that there are many pros and cons of making a living on forex.
Let’s see what these pros and cons are:
|Pros of Forex Trading Career||Cons of Forex Trading Career|
|Starting cost is low||Less transparent|
|Liquidity is high||High risk with high leverage|
|The fx market is highly volatile||High volatility|
|Number of trading options available||Stressful Profession|
Now we’re at the dead-end of the forex recruitment story. It’s evident from the above post that brokers hire traders for different purposes.
With the increasing fame of fox, the % of traders quitting forex is also increasing. That’s why traders or brokers try to diversify income through participating in affiliation programs and providing services.
A trading career is not for everyone. It is highly stressful sometimes to fight against risk. Would you like to recruit as a trader or not?