Laid off in equities? Try FX
Want to work in a section of the Australian finance industry where firms are actually still hiring? Foreign exchange (FX) is emerging as one of the best sectors to land a new job.
FX is still a comparatively profitable and liquid industry. And while hiring has taken a hit, at least it's still happening. "The employment market is tough, but less so than other asset classes. Because there are no short-selling bans in most major FX markets, unlike equities, it remains a good speculative instrument," says Luke Heath, chief executive of Chandler Heath Executive Recruitment.
Most vacancies are at non-bank FX-specialists and the Big 4 Australian banks, rather than the global i-banks.
Al Ritchie, director of Ritchie and Associates Recruitment, reckons good sales-dealers are still in demand, traders less so.
"Most non-bank positions are not about currency speculation: they focus on providing foreign exchange solutions to unlisted medium-sized companies involved in importing and exporting," adds Ritchie.
And it's still possible to get an FX job without a background in the industry. Ritchie explains: "The non-banks are especially good at hiring and developing people with sales and relationship experience to become FX sales-dealers."
The financial crisis has caused a "flood" of equity sales professionals to apply for FX jobs, says Ritchie. "The non-banks will look at them, especially people who have beaten budgets and have good client skills. Banks tend to do less equities hiring for FX positions."
But despite many FX teams having performed well this year, their bonuses could be adversely affected by the general financial downturn, says Heath. They could be 20% to 80% lower than the previous year.
