I'm looking into starting a career as a trader after high school or college. What kinds of entry-level jobs should I be aiming for? Do you need a specific degree or background to get your foot in the door?
Breaking into the trading industry directly from high school might be a bit challenging as most firms, especially those dealing with sophisticated financial instruments and high-stakes trading, generally look for undergraduate and graduate degree holders, often in fields such as finance, economics, mathematics, or computer science. However, it's not unheard of for individuals to work their way up the ranks starting with internships.
After college, entry-level positions in trading could include roles such as:
1. Junior Trader: Responsible for helping with trade execution and making certain market decisions under the supervision of senior traders.
2. Trading Assistant: Supports a firm's trading activities by reporting trade details, monitoring positions, and supporting daily trading activities.
3. Analyst: Generates financial models and conducts economic & industry analysis, typically on a specific sector or group of companies.
You should also consider internships at trading firms, investment banks, or other finance-related companies to get your foot in the door and gain relevant experience. This is a solid stepping stone towards a role as a trader, as internships often provide a gateway into full-time positions. Goldman Sachs or J.P. Morgan, for example, have well-regarded summer analyst programs in sales and trading.
In terms of qualifications, you would ideally have a degree in finance, economics, or a related field. Some roles might require a deep understanding of mathematical modeling and statistical analysis, particularly if you're looking at quant trading roles. Computer science skills are increasingly in demand in this field too. Furthermore, several successful traders with diverse backgrounds ranging from engineering to physics to philosophy have been noted, demonstrating that enthusiasm, engagement, and logical thinking abilities can be significant components of a successful trading career.
Finally, passing the Financial Industry Regulatory Authority (FINRA) exams, such as the Securities Industry Essentials (SIE) Exam, Series 7, and Series 63, is typically required to become a licensed trader in the U.S. Employers often sponsor new hires to take these exams early in their tenure.
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