This world is full of complexities, and doing business... doing successful business in the same, is no less than a nightmare. Cut-throat competition, intricate strategies, and incredible masterminds in the market, make it difficult for a beginner to survive in the world of commodity trading. So how about you getting the necessary education and training, becoming a commodity trading advisor, and making heaps of money by means of your intellect and your abilities to read the existing market trends?
If you trust your instincts enough to advise your clients to trade, and see yourself working in a reputable trading firm a few years down the line, the job of a commodity trading advisor is totally yours! To become one, you need to get registered with the Commodity Futures Trading Commission through the National Futures Association, and begin applying. However, it's not as simple as it sounds.
Not only does this career field demand rich-scale educational requirements, it also calls for rigorous initial training and recognition. If all goes well, who knows, you might end up working for one of the top-most trading firms in the world, in just a few years! To help you realize your dream, here's all the required information for you to get a big break in the field of commodity trading.
Steps to Become a Commodity Trading Advisor
A major chunk of the entire process involves obtaining the necessary education and training, followed by a few years of internship or assistance, since many firms demand prior experience in the field of finance. Following are the steps to become a CTA:
Obtain a Bachelor's Degree
Those interested in building up a career in finance are expected to be good at statistics, business trade, and finance, from the very beginning. Hence, not only should the aspirant have a good background in finance, they need to have a bachelor's degree in finance too, to start with. The degree needs to be obtained from an accredited college or university, and the aspirant should have a high grade point average with a thorough knowledge of the commodity price index. A master's program is always an added advantage for the aspirant's portfolio, and therefore, along with the bachelor's degree, one could enroll for a master's degree in finance too.
Register Yourself at the CFTC
As discussed in the beginning, any aspirant interested in commodity trading needs to register themselves in the US Commodity Futures Trading Commission under the Federal Commodity Exchanges Act passed in 1936. Post registration, the aspirant is required to pass the National Commodity Futures Examination, which will gauge their understanding of the trade market. Passing this examination will fetch the aspirant an NFA membership, in order to conduct futures business with public. This membership requires them to pay a yearly fee of approximately $850.
Apply in Commodity Trading Firms or Set Up Your Own Business
The most important step is to begin applying in the right commodity trading firms, which not only value your achievements, but also pay you the remuneration you deserve. Commodity trading advisors can also work individually by introducing their own business and operations, and start soliciting clients. For this purpose, the NFA and CFTC will require you to draft a disclosure document that has information about you and your trading prospects, to submit to all potential clients, and seek for response. The CFTC will help you solicit clients this way, post your document's approval by the NFA. Note that your disclosure document should be carefully drafted by an experienced attorney, in order to get approved.
Jobs in commodity trading have seen phenomenal development in the last few years, especially post recession, for the reason that today, every investor and trader fears investment in the wrong place, and wants every investment and trading to be a success. Therefore, such jobs are all the more in demand in today's world. Now, when you have a clear idea with regards to the various requirements, frame a strategy in your mind, begin with the hard work this field demands, and kick-start your flourishing career.