Become a Trader on one of our trading platform for beginners

How to become a trader from scratch? Trading is an activity that requires real skills that cannot be acquired in a single day. However, you don't have to be a math genius to generate profits. The key to success is learning the fundamentals of trading.

Brokers like Admiral or XTB offer high-level training to their traders. It's a great way to get started in trading safely! By following them seriously, any student will be able to place their first trades in an intelligent and reasoned manner. Therefore, choosing the right broker is essential to becoming a freelance trader.

But then what is the best broker to become a trader? There is no ready-made answer. It depends on the profile of the trader. Here is the selection of 3 excellent brokers:

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What is a trader?

Being a trader maintains an aura and an element of mystery which is largely a fantasy. Traders are sometimes seen as golden boys, mathematical geniuses or shameless characters, yet it is impossible to generalise or draw a typical portrait of the trader.

Whatever his specialty, a trader is above all a trader, able to carry out his transactions at prices allowing him to generate a margin.

Historically, the first traders were farm owners who marketed their current or future crops. Today being a trader has evolved well and there are several profiles of traders.

Overall, there are 2 types of traders:

  • First, there are the traders of simple products: for them the important thing is to be a good salesman and to carry out their tasks quickly.

  • Then there are the traders of complex derivatives: for them it is the analytical skills and mathematical thinking that will be essential.

Become a stock trader

Traders on equities are specialised on shares of companies listed on the stock exchange. Equity traders can be found within investment funds, brokers and banks. These are advised by analysts, both for fundamental analysis (that of the health of a company) and for technical analysis (that of stock prices). Working together with the sellers, they must manage the position of their clients, execute their orders or follow the borrowings in the event of short sales of the securities.

Some equity traders have a role of market maker, also called market-maker, they thus offer a buy and sell price on the securities in order to generate a margin (a spread). This requires the ability to adapt very quickly because volatility in equities can vary enormously in a very short period of time.

As equity trading has been highly automated by software, computer and programming knowledge is a valuable asset. Of course, many individuals also devote more or less time to the practice of trading in stocks, some doing a quasi-professional occupation.

If you want to start trading stocks in a simple form like the protected CFD (up or down), we recommend one of the best eToro brokers which offers a free demo. The social trading feature will allow you to copy the traders with the highest earnings. In addition, the robots trading (machine learning) developed by eToro are showing excellent results.

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67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing money


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Become a rate and forex trader

If we find equity traders everywhere, those in rates and forex are more concentrated in banks and a few very large hedge funds. The interest rate and foreign exchange markets are highly correlated because a central bank's decision to raise its key interest rates will impact both universes. As with equities, there is a whole range of profiles:

  • On the one hand, there are short-term and spot traders who play movements of a few hundredths of a hundredth of a euro (pips) on the price of a currency.

  • On the other hand, there are long-term traders who take more credit risk on their counterparts.

Precisely, on credit, bond traders have the ability to analyse a company's balance sheets and income statements to gauge their solvency. They can then arbitrate the debt of a company or subscribe to derivative products such as credit default swaps to speculate on the bankruptcy or the good health of this company.

Become a structured product trader

Unlike short-term traders known for their reactivity and sales traders with more commercial arguments, structured products traders play on their mathematical abilities and their anticipation of risks. This is because they trade complex derivatives that are complicated to replicate with stocks and standard derivatives. They must therefore both have an engineering profile capable of building original concepts that meet the needs of their clients as well as solid mathematical knowledge to properly assess the risks they take if the market situation turns sour.

What prospects for traders?

trading prospects for beginners

Trading has undoubtedly reached its peak in the 1980s, the era of the golden boys. In banks and investment funds, mergers and acquisitions financed with rotten loans have enriched a whole generation of investment bankers and traders in a climate of cocaine, insider trading and busty blondes. Since then, the hype has calmed down, the bonuses are no longer so huge and salaries, although very comfortable, have fallen considerably.

Become a trader for salary

Trading salaries have the specificity of being driven mainly by a very comfortable fixed part and a disproportionate variable part that cannot be found anywhere else. A novice trader will earn between 60,000 and 80,000 euros per year fixed and a bonus of between six months and one year of salary. The progression is then dazzling since, if he performs well, his remuneration will double on average every three years. Before the subprime financial crisis, the best traders could receive a significant portion of the earnings they generated, taking checks in the millions of dollars.

become a trader on etoro with these steps

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing money


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Now, a larger part of the bonus is spread over time so as not to encourage excessive risk-taking in the short term. However, despite a relative decline in these benefits, salaries and compensation growth in trading remain well above what other industries can offer, with the possible exception of a few Silicon Valley giants for very specific positions in IT.

These figures must be weighed against stressful living conditions and the lack of job security. It is difficult to reconcile a career as a banking trader with a family life, even if some do, because trading involves constant attention and significant emotional leaps.

successful trader climbing up to gold

For example, some funds do not give the right to make mistakes by laying off their employees as soon as the 10% loss occurs. Overall, therefore, a career in trading is very competitive and reserved for strong characters.

Independent traders operating out of their own capital earn most of the income from their activities, but they also bear all of the risks and costs. They can set up a company or exercise in a private capacity depending on the products they deal with, the possible services they can provide to other investors and the most attractive tax system.

Contrary to what certain aggressive advertisements announce, one does not become a trader by spending a few minutes a day to place orders, this trade requires rigor and a significant research work in order to become and to remain profitable.

On the other hand, by spending several hours a week, it is possible to obtain convincing results quite quickly. Of course, you have to train yourself and follow the news seriously. Also, you have to work with a serious and reliable broker, like eToro.

Reconversion: become a trader?

The average lifespan of a trader in a highly exposed position in investment banking is less than ten years. Retraining is therefore an integral part of a trader's career and progression is much less linear than in other industries, fluctuating with economic cycles.

The most frequent route is that of switching to the buy side, that is to say in portfolio management in an investment fund or a private bank. As traders have a very good knowledge of the markets, they adapt quickly to this change thanks to their recognised technical qualities.
Traders have the opportunity to accumulate significant wealth and capital during their early career years, which opens up unique opportunities for them in business creation, for example.

trading platform comparison

We therefore find traders who have bought vineyards in Bordeaux, set up a restaurant on a Thai beach or taken over small local businesses to provide them with their expertise in terms of finance and management.

Even within the banks, the ascents in the hierarchy are minority and very competitive, there are very few golden cupboards for former traders and this can be understood in view of the salary they ask. Consequently, there are more and more conversions to risk analysis and management professions.

Experienced traders are best able to identify the risks engendered by positions in complex structured products. In this case, they will have to make a concession on their remuneration but they will find a balance between their private life and their professional life.

What studies to become a trader?

As mentioned above, there are several types of traders ranging from caricature of the fish seller to the mathematician almost locked in his bubble. There is thus a multitude of profiles according to the specific needs of desks or companies employing traders.

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

What studies to become a trader?

Studies are not enough: to become a trader, it is essential to train yourself. There is no shortage of content and methods. In the age of the Internet, it has never been easier to learn as much as traders without having grown up in their environment or having completed the right studies.

Cryptogram even offers guides to trading and various strategies. From day trading to copy trading to swing trading, aspiring traders can learn the strategy that interests them most. They also have the option of opting for trading robots and let the algorithms do a lot of the work. Whatever the choice of aspiring traders, Cryptogram provides them with quality guides.

One of the first questions that you will be asked in a job interview for a first job will be that of your portfolio. It would seem very odd to another trader if you did not have your own portfolio of securities or derivatives. Build your portfolio methodologically, this will allow you on the one hand to earn money with it, on the other hand to impress your recruiter. The ideal site to start this portfolio is: eToro. In addition, it complies with Islamic trading rules.

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

The final word

Becoming a trader is therefore only a matter of will. It can be rewarding both literally and figuratively, which offers many opportunities for retraining. There are many avenues and gateways for trading, the main thing is to prove yourself to the most experienced traders to benefit from their advice and experience.

trading platform reviews

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing money


trading platform reviews
trading platform reviews
trading platform reviews

I hope you enjoyed our trading platform comparison. We hope we've selected relevant trading platform for beginners with some of our trading platform fee comparison on show.