Private Vs Institutional Trading

Filed under: Learn Forex Trading |

Screen shot 2013-08-19 at 10.57.10If you are interested in forex trading (or indeed any other kind of financial trading), then you might well have looked into getting a job with a trading firm. However, getting such a job is notoriously difficult, as there are a limited number of jobs and a lot of competition. The Internet has made trading a very popular vocation, and it seems that everyone wants a piece of the action these days. There are also a number of stipulations that you will have to satisfy before you can even get a reply from an trading firm. For example, they generally recruit people under the age of thirty; no matter how well qualified you are – so if you are over thirty, then you might well have to concede that private trading is the only way to go.

 

With institutional trading (i.e. having a job and a paid salary in a forex trading role), you have much more job security, and you do not have to trade well in order to pay the rent. However, as a private trader, things get much more tricky. To begin with, you really need to be well funded. If you are not sufficiently funded to both trade and pay all of your bills, then you might need to think about trading part time and keeping your day job until you are.

 

As a private trader, you will also be at a disadvantage with regards to spreads and possibly equipment, and you will not have the support of any colleagues, which can be quite isolating and lonely. However, the upside is that if you are successful, then you will be able to keep all of the profits for yourself, and perhaps even build your own trading firm in which you can employ and train traders to ultimately do the work for you.

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