Advice please : Stockbroking for a career

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sgolfguy

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Hi there

I've been considering going into stockbroking for quite some time now. I'm now 30 my career thus far has been in sales. I'm very numerate, have good people skills, confident etc, and I really think it's an inudstry which could do very well in.

The issues that are giving me second thoughts are the fact that I don't have a degree, and also my age, and not wanting to struggle on 18k a year for the next few years.

Would anyone in my position pursue a career in stockbroking?!

S
 
Well, firstly, are you sure stockbroking is what you want to do? Basically it is a sales job, which would suit your background, although I don't know anyone who recruits non-graduates.

Reason I ask is that a lot of non-finance types use "stockbroker" as a catch-all term for someone who works in markets, wears a rolex, and drives a ferrari. Also, you're asking about it on a trading website - so you'll only really get advice from traders - completely different (i.e. superior!) beast to stockbrokers.

Check out Graduate Jobs in Banking, Finance & IT - Graduate Jobs & Careers to find out about finance jobs - obviously it's targeted at students, but has a rundown of what different people in the city do. Also, this book: Amazon.co.uk: All You Need to Know About the City (All You Need to Know Guides): Amazon.co.uk:: Christopher Stoakes is pretty good for figuring out who does what and why.
 
Hi thanks for your reply. The reason I am interested in becoming a stockbroker as opposed to becoming a trader is because I thought that you did not need a degree to become a stockbroker. As i understand it, sales experience, people skills, and numeracy are the most important for you to do well. I understand you need a mathematics degree to become a trader. I am also interested in perhaps becoming a technical analyst, I think that would be interesting work but again I expect the entry requirements would be to at least have a degree.

I have had a Stockbroking job offer already based on me passing my Securities exam, which I haven't got around to yet as i'm been debating about whether this is the right path for me.

Sorry I realise this is a trader's forum, but I was hoping there would be alot of people here who can give me advice.
 
I've done stockbroking. Selling penny shares and CFDs. If you like sales and really determined to make money, and can talk the talk you will do well. You generally only need a general market knowledge as all the information on the stocks you are selling is provided. The securities exam takes around 100-120 hours of study time to complete, but is well worth having, otherwise you will end up just opening accounts for senior brokers. Only about half the people I knew in this arena had a degree - having the degree is not really a big factor in whether you can charm clients or not and sell. You just need to be confident, sharp, and prepared to 'burn it up' and make hundered of phone calls. If you are already really good at sales you will probably make a lot.

Age isn't that relevent, as long as you have to energy and drive and can close deals.
 
Thanks for the info Wolf, very helpful, I will definately look into these avenues. Not afraid of putting the graft in, as long as the rewards are there.

Can I ask what you're doing now?
 
Sgolfguy,

Agree with Wolf - take the job. You're background is ideal. If you're good, you'll make money.

If you don't try, you'll probable regret not trying in the years to come.

Good luck,

Grant.
 
Thanks Grant

I've been on the verge of forgetting all about it and becoming a plumber recently!, but Ithink I would suck at the that, I'll stick to what i'm good at - sales :)
 
Sgolfguy,

First of all I worked for an AIM share broker, opening accounts (I did not have the exam then but did really well opening accounts). I then moved to a CFD advisory broker once I had the exam, which was more intense (11-12 hour days flat out on the phone) but also an excellent buzz. Very cut throat and ruthless but some sales-traders made a fortune - £150k+ a year. Despite working like a dog I never really got off the ground there and wanted to become more involved in the technical side of the markets - so now I am doing the Sii diploma.

I say, have a go, send me a PM and I will give you some ideas as to some names of firms to look at or approach and some of my experiences. If you are good at sales, and you need to be REALLY good to earn top money, then you will love it.
 
be careful though - there are firms out there who will take anyone on as a broker but there is a good reason for this

a lot of the AIM brokers out there are just spank shops flogging the same cash shells again and again - one recently got closed down and another received a hefty fine as did one of their brokers - basically complete scum bags - I don't see there being a long term future for many people in this area

CFD brokers are not much different - often just white label providers for the bigger CFD brokers out there and basically churn their client's accounts and basically recruit from the same pool as the AIM spank shops

If your personal morals allow you to do this sort of work you might as well move to Spain - at least you'd avoid the daily commute and can enjoy a bit of sunshine.
 
DT is dead right - I've been there (pushing sh*t stock onto gullible investors). Stay away.

Grant.
 
Yes I had an interview about a year ago for a company called 'Square Mile Securites', they offered me a job as long as I got my Regs exam. Saw in the paper the other week they got fined for trying to rip off a pensioner for 60k or something like that!

Definately don't want to be involved in that, like you say DT there are loads of those kind of places operating from Spain or Berlin etc that specialise is releiving the vunerable of their life savings.

So what kind of Stockbroking should I be looking at then?
 
preferably one not flogging AIM cash shells etc..

small spank shops are easy to spot - just do a search on the FSA register and you'll find the brokers who work for them will have been involved in the same firms in the past - I'm not going to name names on here but most of the dodgy ones are very obvious
 
Don't take this the wrong way but I think you really do need to do a bit of research if you're asking questions like that.
 
Sgolf,

AIM is a conduit for listing the securities of companies with little trading history, lesser prospects, negligible earnings, and of indeterminate value.

Essentially, it provides senior management an exit strategy (opportunity to dump their holdings) at inflated prices, the majority of which are held by their underwriters at a heavy discount who then sell these on to bucket shops at slightly under the bid price, who then sell these to their clients at the offer price, take the spread (plus) and charge them a standard commission on top.

Grant.
 
Ok thanks for that.

I'm trying not to get too disheartened!, let's hope there are some reputable companies out there who will give me a chance!.
 
Sgolf,

May sound stupid, but look through the Yellow Pages under "Stockbrokers" and contact the names which are unfamiliar, ie the smaller brokers (may be an idea to visit their web sites first to see their angle).

Grant.
 
Sgolfguy,

No, there are plenty of old-fashioned, traditional stockbrokers around. Everyone's dodgy - it's a question of degree and discretion. Like I said, try to find their web-sites - this should give you a good idea of their measure.

Every man and his dog applies to the big names, and unless you have a PhD in maths from Oxford it's unlikely they'll be interested.

Old fashion stockbrokers are OK. I've been there.

Grant.
 
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