Stock Broker Interview (journal style)

[Dossage]

Not sure this has been done before, but I want to make a journal type thread to my "career" starting from interview to where ever it goes from there...

I have an interview with a company based in bromely, south london next week. For the life of me I can't remember the name of the company (the details are at my work e-mail address). From what I was told on the phone they are stock borking firm that are involved in the wine industry??? Does anyone recognise or has anyone heard of such a firm that meets that description.

First thing that struck me was that they are not regulated by the FSA, I mean is that even legal.

It's structure seems pretty usual to me, low basic high commission etc. And I generally know what to expect from the job (I actually do love cold calling). Got the usual pitch about how much guys are earning there a month (top guys do around 50K apparantly) so I'm just trying to figure out what questions I should be asking when I go for the interview..

 

[JackSmack]

how do you not remember the name? did they approach you or the other way round?
if they are wine brokers then i doubt they'd need to be regulated by the FSA
i'd have my reservations about a company that requires you to do cold calling but where there is a potential to earn £50k a month? pretty unrealistic in my opinion... they probably want to get you there to open the accounts for a select few top brokers you take everyones commission... otherwise i can;t see how they;d be on £50k a month...but i could be wrong? & if i am i'd be interested in finding out more as i live near Bromley & could live with £50k a month

 

[Dossage]

how do you not remember the name?

I just wasn't thinkin about that during the conversation, when we we're speaking it was more about the job rather than company. The details have been sent to my work so I can't check it out till I get back in the office...

And about the 50K a month thing, I said the same thing you said almost. But I was told he'd be able to show me so we'll see.

 

[JackSmack]

yeah, its obviously worth going for the interview and deciding for yourself...
i went for a few trainee stock broker positions where you would be cold calling private clients, selling small cap/AIM stocks - as a trainee you'd initially be opening accounts & after a certain number you'd start dealing and taking commission... there was definitely potential to make decentish money but £50k a month? more likely £50k a year, also there was something morally wrong about selling risky stocks to middle aged peopple on the promise that they would act as a good retirement fund... the brokers i spoke to & hr say that the clients only hear the high return bit & that they make them fully aware of the risk involved but clearly they don;t or you wouldn;t make any commission...
i also had my doubts about how keen they all seemed to take me on, the interviews weren;t exactly tough - the only reason i can think of is that they are paying such **** basics, you'll leave if you don;t enjoy it & if you are opening accounts its all money in the pot for the senior brokers.

obviously they're not all dodgy, boiler rooms so you might have found one of the decent ones... let me know how it goes

 

[cr6196]

Liv-ex: The Fine Wine Exchange

 

[DT]

From what I was told on the phone they are stock borking firm that are involved in the wine industry??? Does anyone recognise or has anyone heard of such a firm that meets that description.

First thing that struck me was that they are not regulated by the FSA, I mean is that even legal.

so probably a spank shop that sells dodgy wine as an 'investment' in the same way that 'land brokers' cold call muppets and flog green belt land with "development potential"

might be a 1% chance they are legit but more than likely some ex pac con or similar scum bags who are finding it harder to flog AIM garbage now the FSA has cracked the whip a bit.

 

[DT]

Also why are you posting on a trading site if you're interested in being a stock broker? You'd be better off reading a bunch of sales books.

 

[Dossage]

Many a stock broker threads have been made on this site before.


And Jack, had interview today, seems legit. And whether the truly are not one thing they weren't lying about was the amount of money being made... top earner last month £57K

 

[DT]

And Jack, had interview today, seems legit. And whether the truly are not one thing they weren't lying about was the amount of money being made... top earner last month £57K

How on earth can that even remotely seem "legit".

Do you stop to think why they are interested in hiring someone like yourself?

Are you a wine expert? Or are you someone who is young, keen and hungry to earn 'loads o money'?

Do you think they are looking for someone to provide sound advice on buying premium wines or do you think they are looking for someone to bash loads of number into a telephone in the hope that they close enough deals to be promoted and have a bunch of juniors open accounts for them?

How do you think they make so much money? Are these people really providing a quality service to a select bunch of rich clients or do they flog the stuff en mass to naive investors at inflated prices?

Seriously I'd have a proper think about this.

 

[Dossage]

Do you stop to think why they are interested in hiring someone like yourself?

Are you a wine expert? Or are you someone who is young, keen and hungry to earn 'loads o money'?

Please note I'm not niave enough to think it's anything BUT the latter... but I don't see what's wrong with that? It's not as if I'm closing anyone like you said, I'm just providing info while I recieve training on wine and it's market.

How do you think they make so much money? Are these people really providing a quality service to a select bunch of rich clients or do they flog the stuff en mass to naive investors at inflated prices?

They make so much money because they have a pretty good business model. I mean from my understanding (please do correct when and where wrong) the wine market is a very controlled arena. By law only a certain amount of wine is allowed to be produced each year thus supply never outgrowing demand. Yes there pitching to the masses but no one is making any losses, so regardless of whether the price is inflated there still getting there 15% return after year 1 on there 10K purchase.

Do you think they are looking for someone to provide sound advice on buying premium wines or do you think they are looking for someone to bash loads of number into a telephone in the hope that they close enough deals to be promoted and have a bunch of juniors open accounts for them?

The latter but I don't see the problem with that, it's not like your in the door out the door. So yeah while I'm not recievng training (2 hours every day) I'm pretty sure they do expect me to live on the phone while I'm in the office but how else is junior stock broker supposed to work? I thought that was pretty much industry standard set up of a brokerage

 

[DT]

I'm pretty sure they do expect me to live on the phone while I'm in the office but how else is junior stock broker supposed to work? I thought that was pretty much industry standard set up of a brokerage

But you're not a junior stock broker, all it sounds like from what you've posted is that you're potentially going to end up working for a place following a business model similar to the rather dubious AIM brokerages.

If you take the job, and find that your colleagues are a bunch of essex wide boys and the people you're calling are gullible idiots then I'd say it is rather likely you are working for a spank shop.

If you're happy with doing this sort of work then I've got no doubt that you'll get well rewarded and become quite adept at sales however don't go into it under the impression that you're doing anything other than ripping people off.

 

[Pazta]

But you're not a junior stock broker, all it sounds like from what you've posted is that you're potentially going to end up working for a place following a business model similar to the rather dubious AIM brokerages.

If you take the job, and find that your colleagues are a bunch of essex wide boys and the people you're calling are gullible idiots then I'd say it is rather likely you are working for a spank shop.

If you're happy with doing this sort of work then I've got no doubt that you'll get well rewarded and become quite adept at sales however don't go into it under the impression that you're doing anything other than ripping people off.

Hi DT,

You seem very knowlegable and I could really do with you advice...I have been offered a position as a trainee equity dealer for a Company called City Equities..hve u heard of this Company?..I mean I have checked them out on the FSA, they are fully regulated and appear to have been around for 10 years...As this is my first position aftre university I don't want to be in a situation where other companies are not taking me on because I have worked for an AIM broker...Do you think it is worth working at City Equities for some experience or is it just a spank shop?

PLEASE HELP!

Thanks man

 

[sophia78]

Hi Pazta. I wouldn't. Had several friends worked at City Equities and lets say they are not strictly blue chip. Many have had difficulty getting jobs after working there - if you lay with dogs you get fleas !

 

[JRP2891]

Hi Pazta. I wouldn't. Had several friends worked at City Equities and lets say they are not strictly blue chip. Many have had difficulty getting jobs after working there - if you lay with dogs you get fleas !

Were you friends dismissed or did they leave of their own accord?

 

[sophia78]

they left of their own accord. hellish atmosphere. questionable pressure selling.

 

[JRP2891]

they left of their own accord. hellish atmosphere. questionable pressure selling.

I see, but maybe the warnings would be better coming from your friends? The way you're posting on here makes it look like you have a personal vendetta against them.

 

[sophia78]

Perhaps I did once But then maybe your defence of them suggests you have a personal interest in the company? Anyway I do not know how legally far I can go by naming names and incidents so will have to leave it a little vague at the moment.

But nice to meet you anyhow.

 

[JRP2891]

Perhaps I did once But then maybe your defence of them suggests you have a personal interest in the company? Anyway I do not know how legally far I can go by naming names and incidents so will have to leave it a little vague at the moment.

But nice to meet you anyhow.

I'd hardly call an objective standpoint a defence of the boiler room in question. But for the record, i trade for my living.

Say what you've got to say about them, if it's the truth...

 

[sophia78]

I know. I read your profile. But glad you picked up on the boiler room. You have obviously had dealings with them in the past too?

 

[JRP2891]

No I haven't, however these kinds of stories about small cap firms screwing the client, tends to be the norm rather than the exception on these boards.