Trader Training: Is it necessary in order to become a trader in South Africa?

The world of trading seems to be a very mysterious one to begin with. And yet trader training is absolutely necessary if you want to succeed in this career path. The main thing to focus on is the one exam you must pass before you can start work as a trader.

What is this exam?

It is called the Registered Persons Examination and it is provided by the Johannesburg Stock Exchange. This is often abbreviated to the JSE. You must obtain a pass mark in this exam to be able to register as a trader. In a sense, this is the most important part of your trader training – if you don’t pass this exam you cannot legally become a trader.

Do you need a degree in order to become a trader?

It certainly helps to have one, yes; you’ll find you may struggle to get ahead in this profession if you don’t have one. The best course of action is to consider the area of trading you want to go into. This will help you choose the most appropriate degree for your needs.

For example, let’s say you want to trade in agricultural futures. In this case it would pay dividends to gain a degree that focuses on agriculture, as it will help you understand what is involved. In other cases a more general degree would suffice, such as a BCom. This is a Bachelor of Commerce degree, and indeed you will often see this referred to when you look at job vacancies in the trading arena.

What about learning on the job – is this possible?

You can find junior positions in various areas of the stock market that are offered by various companies. Indeed this can be a good way to gain entry into the trading profession.

Even here though, you cannot simply step into the role without having prior trader training of some kind. In many cases this will mean gaining a Bachelor of Commerce degree, as well as passing the JSE Registered Persons Examinations. You cannot take on even a junior position without first having passed these exams, so it is prudent to find out more about them as soon as you can.

Junior positions are a good way to learn more about the job itself, once you have the right qualifications. You will be paid to learn and it is a good way to begin trading while under the tutelage of a particular company. Once you have more practical experience in this way, you can move on to other trader positions with other companies if you wish.

As you can see there is a lot to keep in mind if you want to get trader training to embark on this career. With so many different areas to trade in, you may find you are interested more in one area over another. If this should occur you can plot a path through trader training to get you to where you want to be – once you have passed the JSE exams, of course.