Investment Banking & Investment Management

Inter-Dealer Broking: Graduate Area of Work

The intermediaries who help clients buy and sell financial instruments.
The gradsingapore Team
The gradsingapore Team
Banking and Financial Services_Inter-dealer broking

Inter-dealer broking provides a go- between where clients – usually corporate entities and financial institutions like banks – can trade with one another using financial instruments like bonds, stocks, loans, equities and foreign exchanges.

Those who work in this field serve as a neutral intermediary for clients who wish to trade under the condition of anonymity, maximising investments in an exchange where disclosure of identity could negatively affect the quotation of prices. As such, inter-dealer brokers advise on the best prices in the market, and can help customise negotiations for a client’s benefit.

Most inter-dealer brokers typically specialise in a particular product, and communicating with clients – whether electronically or over the phone – is at the heart of their work. While those specialising in telephone work usually deal with more complicated products where detailed explanations are crucial, electronic dealers typically handle simpler products, using specialised terminals to identify clients’ needs and make quick deals.

General overview

Most successful candidates start out as junior brokers in a team, and are usually mentored by a senior member before moving on to become a full-fledged broker. Managerial roles begin at the level of desk manager, and progress on to either director or head of a division.

A benefit of inter-dealer broking is that the volatility of the financial marketplace is unlikely to affect earnings as they come from a percentage of the deal between two parties, regardless of whether prices rise or fall. In fact, inter-dealer brokers may earn even more during unstable periods in the market, as people tend to trade in greater volumes then.

Required skills

A keen interest in financial markets is fundamental, alongside good communication skills and a sociable disposition; meetings and rapport building activities with clients are essential. Interpersonal skills and credibility are also necessary to build a reputation among clients. Patience is another important trait, along with the energy and durability to succeed in a fast- paced environment.

As a result, the best inter-dealer brokers are professional, composed, decisive, adaptable and able to perform well under pressure.

Pros & cons

Keeping up with instant market changes is exciting, and working hours are relatively stable as they are dependent on the opening and closing hours of the market index an inter-dealer broker oversees.

But be aware that one of the toughest aspects about working in the area is the fast-paced and high- pressure environment. Moreover, it’s an inter-dealer broker’s responsibility to guide difficult clients who insist on making unfeasible transactions towards a recommended deal as diplomatically as possible.

However, the accomplishment that comes with completing a large trade successfully, along with the excitement and social aspects of this profession, are the enjoyable aspects of this line of work.