Inter-Dealer Broking: Graduate Area of Work

Inter-dealer brokers are intermediaries who help clients to buy and sell financial instruments.
The gradsingapore Team

Inter-dealer broking provides a venue where clients – usually corporate entities and financial institutions such as banks – can trade with one another using financial instruments (e.g. bonds, stocks, loans, equities and foreign exchanges).

Those who work in this field are usually hired as a neutral go-between so that clients can trade with anonymity. This helps maximise the client’s investments in an exchange where disclosure of identity could negatively affect the quotation of prices.

Inter-dealer brokers will usually be able to advise their clients on the best prices in the market, and can help customise negotiations to work in the favour of their clients.

Most inter-dealer brokers will usually specialise in a particular product, and communicating with clients – whether electronically or over the phone – is the heart of their work. Those specialising in telephone work will often be working with more complicated products, where it is essential that they can explain these to their clients.

Electronic dealers tend to deal in simpler products, and can use specialised terminals to identify the needs of their clients and make deals quickly where less explanation is necessary.

Career overview

Most graduates start out as a junior broker in a team, usually mentored by a senior member, before they progress to become a full-fledged broker. Following that, they may be promoted into a managerial position, starting with the position of a desk manager, a director, and subsequently the head of a division.

Working life as an inter-dealer broker is generally fast-paced and exciting as everything happens in real-time, and you will need to keep up with market changes instantly. You do, however, get relatively stable working hours, which will bedependent on the opening and closing hours of the market index that you are in charge of.

Keeping in touch with your clients regularly is absolutely essential, which also means that you may have to entertain them every now and then. Travelling to meet your clients is also part of your job scope, and may help in building rapport with your clients.

One of the benefits of working in inter-dealer broking is that you are less likely to be affected by the volatility of the financial marketplace. This is because your earnings 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 as that is the core of your profession, but good communication skills are equally important. You need to be outgoing and sociable as you will constantly be meeting clients. People skills and credibility are necessary in order to build your reputation among your clients.

Patience is also another trait that you need to cultivate, along with the energy and durability to succeed in a fast-paced working atmosphere. You will also need to learn to be professional, composed, and able to perform well under pressure, as well as decisive and adaptable.

Ups and downs

One of the toughest aspects about working in inter-dealer broking is the high amount of working pressure, due to the fast-paced nature of the job. Occasionally, you will also come across difficult clients who insist on making unfeasible transactions, so it is necessary for you to know how to guide them towards a recommended deal as diplomatically as possible.

If you do manage to complete a large trade successfully, on the other hand, the sense of accomplishment and satisfaction is usually tremendous. The excitement and the social aspectsof this profession are other traits that those in this line of work tend to enjoy.