interdealer broking

[ramo7862]

I'm really keen on a career in this frm what I have heard so far about it, but have very limited info on it. I thought you guys might be able to help....

1) Do interdealer brokerages ever take non-grads? I'm 17 and considering not going to universtiy, but probably will.

2)Why is it that I have heard that IDB's require lower academic credentials than investment banks, for example, yet pay as much. Is it to do with in interdealer broking character is more important than being academically smart?

3) I hear a lot about how this industry is dying, and the salaries of brokers will slowly decrease, and the number of jobs will decrease. Why is this? and are there particular departments in IDB's that are more likely to survive?

4) If having good academics does not neccesarily impress IDB's, then what does? What is the best route into it?

Thanks in advance for answers to any of the q's -any help is much appreciated

 

[bobl boy]

Interdealer Broking

Interdealer broking was probaly best during the 80's 90's but there is still good money to be made.Alot of people have been saying for years that inter dealer broking was finished because of broker discounts and electronic systems but they have fought back with there own electronic broking systems and are still going strong and making alot of money.Alot of this is due to the fact that banks have increased there OTC derivatives volume and the brokers are doing well off the back of all the new products avaliable to broke.You can get in without a degree although you really need to know someone to get in.The job is mainly about sucking up to bank traders to get there business which entails alot of entertaining and drinking.At present I think voice broking volumes are still more than electronic however in the future this may not be the case and I am not sure how many brokers are required to broke electronically but there will still be a role for brokers in the future because banks want to remain annoymous and brokers allow them to do this.I'd say go for it you always here people in the city saying things are not as good as they used to be but you can still earn a good living and it's better than being some retail broker filling 5 lots for the public taking the occassional punt or working inTesco.

 

[ramo7862]

Thanks for that - realy helpful. Funny that you mention "sucking up to bank traders to get there business". because I can't help feeling that the main drawback to being in IDB is that traders always think they are superior to you, is this true? And btw does anyone know what salaries in IDB can range to, in comparison with trading. I read sumwhere that top brokers' salaries are on par with the best traders'?

 

[bobl boy]

Yes this is true they think they are superior but I used to work in a bank and the
FX traders there wished they had become brokers because they earned more money in the past so most people in the city where ever they are always think the grass is greener on the other side.The top brokers earn seven figures, I believe over thirty people at Icap earnt this or more last year.I wouldn't do Fx or anything try to start on a new product and when it goes out of fashion start broking another product but I believe OTC volume is going to continue to grow and they use them for this.Although banks have always hated to pay brokerage but as I said before it's the best way for them to remain annoymous so they still use them.Also remember most Hedge Funds use investment banks to trade who in turn use brokers.It probably wont be a job for life but a good place to earn alot of money in a short space of time if you are well liked and work hard

 

[charliechan]

Thanks for that - realy helpful. Funny that you mention "sucking up to bank traders to get there business". because I can't help feeling that the main drawback to being in IDB is that traders always think they are superior to you, is this true?

the customer is always right!

if they are paying your commission, you want to make them feel as good as can be with doing business with you.

be subservant for a few mil? why not!

yours

jimmy pimp.

 

[NNIT]

does anyone what the graduate starting salary and commission package should i expect from an IDB firm such as ICAP or BGC? Thanks

 

[welco11]

I think you can expect 35-40 basic with 3-5k signing on fee and probably a bonus after a year aswell.Not to bad for a new grad.After 3 years you will probably be earning 6 figures +.

 

[tommac]

I worked as a bank trader for 13 years before being head hunted to join a broker. -hated it. Biggest career mistake. ( for me) Saying that-- Nothing wrong with broking and some of the guys were earning an absolute fortune. Just 2 different games and 2 wildly different characters. Personally I found broking waaaay more stressful-but I earned a lot more money. I believe the interbank broking market is now a lot smaller these days as a lot of my mates have had to leave.

 

[enfuego1018]

I interned at ICAP. It is an extremely socially competitive environment. It helps to know traders and brokers to get you on a desk. You have to set your ego aside completely to make money. If you have an outstanding personality, humility and can stand not using your brain for hours at a time but only to entertain yourself, go for IDB. Good brokers make **** tons of money. A LOT. I've heard upwards of $5 mil for VETERANS. Just starting out can be rough and there is no promise of ever getting a client. People are greedy. There is certainly potential to make a lot of money. However, there is also potential to be a slave to a trader who treats you like crap all day. Or, far worse, there is no growth and you never find a client.

 

[Intro]

Is now any worse to join an interdealer brokers than a bank as a grad?