What skills does a financial trader need?

A financial trader needs 17 essential skills including financial products, cryptocurrency, economics, financial markets, actuarial science. Core competencies include .

Will AI replace financial trader jobs?

The AI disruption score for financial trader is 74/100 (high risk). Some tasks may be automated but the role will evolve rather than disappear entirely.

AccountancyBusiness and administration associate professionalsISCO 3311

financial trader

Financial traders buy and sell financial products such as assets, shares and bonds for private clients, banks or companies. They monitor the financial markets closely and aim to maximise profit and to minimise risk through their transactions.

European Skills Framework

Skills and knowledge areas required for this occupation based on European classification.

Essential (17)

financial productsfinancial productsThe different types of instruments that apply to the management of cash flow that are available on the market, such as shares, bonds, options or funds.cryptocurrencycryptocurrencyDigital and encrypted currency or medium of exchange with decentralized network grounded on blockchain technology, since the value of the cryptocurrency is not managed or maintained by central authori...economicseconomicsEconomic principles and practices, financial and commodity markets, banking and the analysis of financial data.financial marketsfinancial marketsThe financial infrastructure which permits trading securities offered by companies and individuals govern by regulatory financial frameworks.actuarial scienceactuarial scienceThe rules of applying mathematical and statistical techniques to determine potential or existing risks in various industries, such as finance or insurance.financial jurisdictionfinancial jurisdictionFinancial rules and procedures applicable to a certain location, whose regulatory bodies decide on its jurisdiction.communicate with customerscommunicate with customersRespond to and communicate with customers in the most efficient and appropriate manner to enable them to access the desired products or services, or any other help they may require.protect client interestsprotect client interestsProtect the interests and needs of a client by taking necessary actions, and researching all possibilities, to ensure that the client obtains their favoured outcome.analyse market financial trendsanalyse market financial trendsMonitor and forecast the tendencies of a financial market to move in a particular direction over time.analyse economic trendsanalyse economic trendsAnalyse developments in national or international trade, business relations, banking, and developments in public finance and how these factors interact with one another in a given economic context.maintain records of financial transactionsmaintain records of financial transactionsCollate all the financial transactions done in the daily operations of a business and record them in their respective accounts.obtain financial informationobtain financial informationGather information on securities, market conditions, governmental regulations and the financial situation, goals and needs of clients or companies.advise on financial mattersadvise on financial mattersConsult, advise, and propose solutions with regards to financial management such as acquiring new assets, incurring in investments, and tax efficiency methods.operate financial instrumentsoperate financial instrumentsWork with financial instruments such as stocks, bonds, mutual funds and derivatives.offer financial servicesoffer financial servicesProvide a broad range of financial services to clients such as assistance with financial products, financial planning, insurances, money and investment management.provide financial product informationprovide financial product informationGive the customer or client information about financial products, the financial market, insurances, loans or other types of financial data.handle financial transactionshandle financial transactionsAdminister currencies, financial exchange activities, deposits as well as company and voucher payments. Prepare and manage guest accounts and take payments by cash, credit card and debit card.

Optional (17)

banking activitiesbanking activitiesThe broad and continuously growing banking activities and financial products managed by banks ranging from personal banking, corporate banking, investment banking, private banking, up to insurance, fo...securitiessecuritiesThe financial instruments traded in financial markets representing both the right of property over the owner and at the same time, the obligation of payment over the issuer. The aim of securities whic...fundamental analysisfundamental analysisThe techniques for measuring the intrinsic value of a financial security through the assessment its economic and financial factors. It combines together the analysis of macroeconomic trends and of fin...stock marketstock marketThe market in which shares of publicly held companies are issued and traded.modern portfolio theorymodern portfolio theoryThe theory of finance that attempts to either maximise the profit of an investment equivalent to the risk taken or to reduce the risk for the expected profit of an investment by judiciously choosing t...investment analysisinvestment analysisThe methods and tools for analysis of an investment compared to its potential return. Identification and calculation of profitability ratio and financial indicators in relation to associated risks to ...make investment decisionsmake investment decisionsDetermine whether to buy or sell financial products such as fonds, bonds or stocks in order to enhance profitability and to reach the best performance.perform stock valuationperform stock valuationAnalyse, calculate and appraise the value of the stock of a company. Use mathematic and logarithm in order to determine the value in consideration of different variables.assess risks of clients' assetsassess risks of clients' assetsIdentify, evaluate and determine the actual and potential risks of your clients’ assets, considering confidentiality standards.develop investment portfoliodevelop investment portfolioCreate an investment portfolio for a customer that includes an insurance policy or multiple policies to cover specific risks, such as financial risks, assistance, reinsurance, industrial risks or natu...review investment portfoliosreview investment portfoliosMeet with clients to review or update an investment portfolio and provide financial advice on investments.create a financial plancreate a financial planDevelop a financial plan according to financial and client regulations, including an investor profile, financial advice, and negotiation and transaction plans.advise on investmentadvise on investmentAssess the customer's economic goals and advise on the possible financial investments or capital investments to promote wealth creation or safeguarding.manage financial riskmanage financial riskPredict and manage financial risks, and identify procedures to avoid or minimise their impact.monitor stock marketmonitor stock marketObserve and analyse the stock market and its trends on a daily basis to gather up-to-date information in order to develop investment strategies.trade securitiestrade securitiesBuy or sell tradable financial products such as equity and debt securities on your own account or on behalf of a private customer, corporate customer or credit institution.forecast economic trendsforecast economic trendsGather and analyse economic data in order to predict economic trends and events.