You must complete a certain level of education and obtain professional certifications to work as a hedge fund trader. Hedge funds use sophisticated investment strategies and trade complex financial products, so math and economics skills are required. You may have to start as a junior trader to break into the industry, but if you succeed, you can advance to more powerful positions.
If you know you want to be a successful hedge fund trader, you should start planning in high school. Choose a finance-related college major, such as economics or accounting, and pursue a master’s degree in business administration (MBA) if possible. Even if starting your own hedge fund is a goal, you can start by trading for another hedge fund firm. It’s possible that where you went to college will matter. A financial reward for an Ivy League education, as well as good grades at any university, is an Ivy League education.
Licensing is an important part of investment management and will be required if you want to work as a hedge fund trader. The specific license required is determined by the type of financial securities you trade, which is linked to the hedge fund’s investment strategy. In order to work as a hedge fund trader in the United States, you may need to register as an investment adviser with a regulatory body.
On the level of regulation that dictates the requirements of a hedge fund, legislation is still evolving. Trading licenses, such as a Series 65 license or a commodities license known as a Series 3, are also required. These licenses allow you to trade financial securities, such as commodities and futures contracts, which are frequently traded on major exchanges by hedge funds. You’ll need securities licenses from multiple regions to become a hedge fund trader who trades stocks, bonds, or options securities on global exchanges.
Taking an investment management training course, which may be geared specifically toward hedge fund management and available on the Internet, may also lead to some level of certification. This is a great way to meet industry professionals and start building a network of contacts that could lead to future employment and help you achieve your goal of becoming a hedge fund trader. Attending a course offered by a financial industry ratings agency is one way to get objective training and learn about the complex securities traded by hedge funds. These companies exist to identify financial risk and may be able to offer a unique perspective on hedge fund trading.