What is meant by an "execution only dealer" role?

[tommog]

Hi all,

I have just applied for what i believe is an excellent opportunity as a trainee derivatives dealer, but they make a point of highlighting this role as an execution only role. I was hoping somebody that has worked within the industry could give me an insight into how the role of a dealer differs to that of a trader and what the tasks i would be performing likely to be?

Thanks for your time

Tom

 

[ewilcox]

I suspect it mean you are only executing trades on behalf of clients of the firm not taking positions yourself for the firm.

 

[charliechan]

yes - thats right.

trader phones you up and barks an order. you bash it into the pc and get a fill and report back. probably low pay

dont let that discourage you though - basically its like being a clerk on the floor (pre screen days) - could lead to better things. its a foot in the door.

if a trader treats you badly - ignore his strategy/ dont follow his trades as he will be a loser.
if a trader treats you with respect and is friendly - hes probably a winner so follow his moves.

good luck

 

[maximm]

I have a mate who got a job as an execution only trader. He was tired of working in middle office and getting nowhere so he took a pay cut and went for this role. He reckons he was the best thing he ever did as even though he was junior he was still an important part of the desk and he learnt loads quickly. He also said the role earned him respect as despite its pretty unglamorous nature he knuckled down and did the job regardless. Now he a proper trader on the same desk.

I would snap it up asap. Its a lot better way to get your foot in the door than languishing in some back office role hoping you get a break..

good luck

 

[tommog]

thanks everyone for your replies,

i really want to get into trading, i'm 22 years old, i have worked as a junior broker in the veg oil markets, and i have traded forex from my own private account, i'm hoping this is demonstrates enough enthusiasm and knowledge to get me on the first rung of the trading ladder unfortunately i fear the fact i dont have a degree (left an economics degree in year2 when i took the brokers position) is working against me, so i was pretty excited when i saw this role advertised not specifying graduates only. Its good to know it will get me on the road to trading, thanks again,

Tom

 

[LongandWrong]

I would snap it up asap. Its a lot better way to get your foot in the door than languishing in some back office role hoping you get a break..

I'd echo this - it worked for me! Got a job doing execution-only at a US Investment Bank and have never looked back.

Also, the older traders who have been doing this kind of role for some years still get SERIOUS respect from other traders on the floor. When they speak about opening calls on the FTSE, analysing market flow, etc, the prop guys listen.

 

[maximm]

I wouldn't get to stressed abou the lack of degree.

I do have a degree from a pretty good uni but I got one good piece of advice from a family friend who has over 30 yrs experience in the city.

I was moaning that I wasnt getting a front office role straight out of uni (you know how arrogant new grads can be!) and my friend said "I interview tens of people every year...most have phds, mscs or at least a degree. But the thing I look for most is a bit of fire and passion to do the job. A lot of people want to get into the markets as they think its exciting or just because they did finance at Uni. But its very few who show a real desire and interest in the job" basically he told me to get any job in a bank and use the time to learn as much as I could about how the place works from front to back office and use the time to learn as much abou the products as I could. Then after a couple of years try again. At 20 yrs old you dont want to hear that as you want everything now but I listened and it has paid off now that I finally landed a trading role.

If this execution role doesn't pay off keep your head up and keep applying for other roles. If its meant to happen it will in time..

good luck