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AccountancyISCO 3311

Foreign exchange broker

A foreign exchange broker is a person who buys and sells foreign currencies on behalf of clients, seeking to make a return on movements in exchange rates.

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Rate 5 of the 13 essential skills of this occupation (European ESCO data). No account needed.

analyse market financial trends

perform financial risk management in international trade

analyse economic trends

trade foreign currencies

advise on financial matters

About foreign exchange broker

Before a trade, the broker carries out technical analysis on economic information, including market liquidity and volatility, in order to form a view on where rates on the currency market may go, and analyses and forecasts economic trends, because the exchange rate depends on the state and prospects of a country's economy.

On that basis, the broker trades foreign currencies, deciding when and in what amount to buy or sell a currency on a client's behalf.

The broker analyses financial risk and manages financial risk in international trade, where a client's exposure may be commercial rather than speculative: an importer who has to pay in another currency at a later date needs the risk removed rather than a position taken. Advising clients on financial matters is part of the role, and the broker makes clear that an exchange rate cannot be predicted reliably. Knowledge of economics and of the financial markets underpins all of it. Licensing and conduct requirements are set by the financial supervisory authority of each country.

European Skills Framework

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

Essential (13)

foreign valutaforeign valutaThe currencies of different countries such as the euro, dollar or yen including their exchange rate and the methods of currency conversion.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.commercial lawcommercial lawThe legal regulations that govern a specific commercial activity.financial jurisdictionfinancial jurisdictionFinancial rules and procedures applicable to a certain location, whose regulatory bodies decide on its jurisdiction.analyse market financial trendsanalyse market financial trendsMonitor and forecast the tendencies of a financial market to move in a particular direction over time.perform financial risk management in international tradeperform financial risk management in international tradeEvaluate and manage the possibility of financial loss and non-payment following international transactions, in the context of foreign exchange market. Apply instruments like letters of credit.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.trade foreign currenciestrade foreign currenciesBuy or sell foreign currencies or valuta on the foreign exchange market on your own account or on behalf of a customer or institution in order to make a profit.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.apply technical communication skillsapply technical communication skillsExplain technical details to non-technical customers, stakeholders, or any other interested parties in a clear and concise manner.analyse financial riskanalyse financial riskIdentify and analyse risks that could impact an organisation or individual financially, such as credit and market risks, and propose solutions to cover against those risks.forecast economic trendsforecast economic trendsGather and analyse economic data in order to predict economic trends and events.
Optional (20) — show
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.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...international commercial transactions rulesinternational commercial transactions rulesPre-defined commercial terms used in international commercial transactions which stipulate clear tasks, costs and risks associated with the delivery of goods and services.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...statisticsstatisticsThe study of statistical theory, methods and practices such as collection, organisation, analysis, interpretation and presentation of data. It deals with all aspects of data including the planning of ...stock marketstock marketThe market in which shares of publicly held companies are issued and traded.actuarial scienceactuarial scienceThe rules of applying mathematical and statistical techniques to determine potential or existing risks in various industries, such as finance or insurance.accountingaccountingThe documentation and processing of data regarding financial activities.trace financial transactionstrace financial transactionsObserve, track and analyse financial transactions made in companies or in banks. Determine the validity of the transaction and check for suspicious or high-risk transactions in order to avoid mismanag...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.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.review investment portfoliosreview investment portfoliosMeet with clients to review or update an investment portfolio and provide financial advice on investments.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.negotiate with stakeholdersnegotiate with stakeholdersNegotiate compromises with stakeholders and strive to reach the most beneficial agreements for the company. May involve building relationships with suppliers and customers, as well as ensuring product...operate financial instrumentsoperate financial instrumentsWork with financial instruments such as stocks, bonds, mutual funds and derivatives.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.build business relationshipsbuild business relationshipsEstablish a positive, long-term relationship between organisations and interested third parties such as suppliers, distributors, shareholders and other stakeholders in order to inform them of the orga...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.

Related Occupations

Occupations that need many of the same essential skills, so the move between them is shortest.

foreign exchange trader11 shared essential skillscommodity broker9 shared essential skillscommodity trader8 shared essential skillsfutures trader8 shared essential skillssecurities broker8 shared essential skillssecurities underwriter7 shared essential skillsstock broker7 shared essential skillscentral bank governor6 shared essential skills

Frequently asked questions

What does a foreign exchange broker do?

Foreign exchange brokers buy and sell foreign currencies on behalf of their clients in order to secure a profit on fluctuations in foreign exchange rates. They undertake technical analysis of economic information such as market liquidity and volatility, to predict the future rates of currencies on the foreign exchange market.

What skills does a foreign exchange broker need?

A foreign exchange broker needs 13 essential skills, including foreign valuta, economics, financial markets, commercial law, financial jurisdiction.

Will AI replace foreign exchange broker jobs?

The AI disruption score for foreign exchange broker is 81/100 (very high risk). Skills most exposed to automation: foreign valuta, accounting, maintain records of financial transactions. Most resilient: negotiate with stakeholders, build business relationships, protect client interests.

AI Replacement Risk

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Quick Facts

SectorAccountancy
ISCO GroupBusiness and administration associate professionals
Essential Skills13

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