Many people are attracted to trading as a profession. The earning potential and the flexibility of work, all with the goal of becoming financially independent are very appealing to many. As a trader, you can skip long commute hours and a small cubicle and work from anywhere as long as you have a power outlet, a computer, and a working internet connection.
However, you cannot become rich by trading if you live in a country that requires you to pay heavy income taxes or has an expensive standard of living. Read on to learn more about what makes a country “trader friendly” and which ones are the best to settle down in as a trader.
What are the criteria for a country to become a favorable trading destination?
Here are some criteria that are considered important for qualifying as a trader-friendly country.
- The country should have a sound technological backbone to supplement the placement of servers and systems for an enhanced trading experience.
- The country should have relaxed, or no restrictions on trading activities.
- The country should have easy diplomatic and physical access to major trading hubs.
- The country should have a well-developed telecommunication system in place to support high-speed internet.
- The cost of living should be affordable.
What are the best countries to start a trading career?
Here are some exotic countries that can be your work haven when you start your trading career.
The Bahamas is an exotic Caribbean tourist destination that doubles up as a trader’s paradise owing to its zero personal income tax policy. You can also get an amazing standard of life and enjoy other perks such as natural beauty, friendly locals and delicious cuisines. Moreover, the country’s reliance on tourists can make it easy for foreigners to acquire a work visa.
If you don’t mind the cold, Russia could be the country to start your trading career. Russia offers various advantages such as a steady rate of income tax, a high standard of living and reasonable cost of living. In a bid to attract more qualified people, the Russian immigration laws have made it easier for you to get a visa if you have the necessary qualifications.
If you have always wanted to achieve financial independence and retire early to a tropical paradise, you should consider moving to Panama as a trader. Panama is one of the few countries where no taxes are imposed on foreign income. This can help you retain your hard-earned money and spend it to visit some of the many tourist attractions in this Central American country.
Costa Rica is definitely one of the best countries for traders to earn their living in peace and contentment owing to its relaxed visa regulations, affordable cost of living, and an absence of tax on any foreign income. In addition, it has also been rated as the happiest place on the planet by a survey conducted by the New Economics Foundation in 2012.
Apart from these countries, several nations in Asia and Europe are becoming popular as career destinations for traders owing to their relaxed tax legislature and other facilities.
Irrespective of the country you settle in, the best way to start your trading career is by investing in an excellent trading course from a reputed university or institute which can prepare you to handle the complexities of this profession. You can choose from plenty of trading courses in London, Singapore or any other country of your choice. Choose a course that provides a work project or internship as a part of the curriculum.
Scope for Trading
The traders buy and sell shares, bonds, and assets in the finance market. They may trade for themselves, on the behalf of an organization or an individual. They act as an intermediary between client and market makers while creating prices and executing trades and trying to maximize assets or reducing financial risk.
Types of Traders
Sales traders – They work as intermediaries between clients and market makers. Sales trades take direct instructions of clients, placing orders and advising them on new developments taking place in the market and new financial progress.
Flow traders – They sell and buy the product for the bank’s clients. The products could be securities and other assets such as options, futures, and commodities. The traders can be specialized in a particular product such as shares, foreign exchange markets, and fixed-interest bonds.
However, the work of flow and proprietary traders and those working in sales have many similarities but serve significantly different roles. The major difference between both of them is risk. Flow traders take risks to get rewarded while sales traders don’t take any risks.
Day to day activities of a flow trader:
- Making instance decisions
- Pricing their relevant products
- Carrying out trades by phone or electronically
- Communicating with clients on market movements
- Predicting market scenarios for buying and selling
- Brief the related parties about the relevant trades of the day
- Gathering detailed data analysis and valuation.
Sales trading is mostly focused on the relationship with clients. Sales traders analyze the market mood and sell new financial offers that look attractive to their clients.
How does a sales trader work?
- Analyzing market and collecting information
- Detailed data analysis and evaluation
- Come up with detailed market reports
- Building client relationships
- Presenting ideas to clients
- Securing deals and executing trades
- Making new clients
- The basic salary of a trainee trader starts from £26,000 to £32,000 and commission is additional
- The salaries for experienced traders’ start from £45,000 yearly to goes up to £160,000.
- Additional benefits for traders include mortgage subsidies and non-contributory pension schemes are common.
Though trading jobs are open for graduates with a degree in finance such as accounting, business, economics, finance, maths, politics, and sciences. To enter this field, they usually require a minimum of 2:1 equivalent degree and the selection process is pretty hard.
The entrance tests are generally tough and may include interviews and psychometric tests. Knowledge of foreign languages is an added benefit as the banking sector is expanding worldwide. There are many business schools and universities offering trading courses at interesting prices.
Entry without a degree or HND is difficult, although it may be possible to enter the industry in administrative roles, make contacts, and eventually move into trader positions. The field of trading is great for career growth. You can explore trading courses to get a degree in trading and become uber-successful in your career.
For more great career tips, check out the other blogs on Career Geek.