If you want to know what a stock broker does all day, you may be surprised to hear that it’s not as exciting, as it is in the movies. Well, it is sometimes. I started my career as a stock broker and it mainly consists of admin and helping clients by and sell stocks all day. Either over the phone or online. To get an idea of what a stock broker does these days, we spoke to one at Spreadex so you can see what a day in the life of a Spreadex financial trader looks like…
Pre-Market
What does a typical day look like as a financial trader? On the equity desk a typical shift involves arriving for 7am to go through the RNS (Regulatory News Service announcements from listed companies) that are released so they can be read, digested and released to the necessary clients who are either in the stock or have shown an interest in the company.
Due to the leveraged nature of spread betting any good or bad news can have a significant impact on a client’s P&L.
Corporate Actions that affect client positions need to be actioned and clients informed of the amendments to their positions. Sizeable orders can arrive from the off so preparedness is of necessity.
The market open is when most of the liquidity and volatility can occur for equities and this is when we will take a large proportion of orders. Clients should be aware though they can call or place orders before the market opens.
- Related guide: Read our expert Spreadex review
The remainder of the day pans out dependent on further micro or macro news. Every day is different and although you can be primed for expected announcements, you need to remain focussed and vigilant to any news that can move the markets or an individual stock you have exposure to.
Trading Day
What markets do you enjoy trading the most? Clients will typically spread bet on equities with the potential for large returns. Steady dividend paying stocks are not what a spread better looks to bet on. I enjoy trading both orders with the larger notional values but also the smaller ones where there is a chance to use our expertise to get the best price for the client.
What’s the best part of being a financial trader? I enjoy the fast-paced nature of the role and that no day can be taken for granted. Every day is different dependent on micro and macro news but as long as you are well researched and prepared then you can offer the clients the best possible service.
What about the worst?
Periods of low volatility can lead to a reduced level of trading. Spread betting by its very nature relies on market swings to produce trade volumes. Quiet market periods though give rise to the opportunity to meet clients and then further develop relationships with them so we are both singing from the same hymn sheet.
Trading Resources
What top three resources would you recommend to get great data and analysis for trading?
Bloomberg and Reuters terminals are still the forefront resources for information and analysis. However, the cost could outweigh the benefits.
In the past few years Twitter and blog sites such as Stocktwits, ADVFN, Share Prophets etc. have allowed traders to share their opinions and trades with others on an open forum. Old school newspaper handles such as the FT still offer themselves as a reliable resource.
Spreadex’s website has an excellent analysis section which provides economic diaries, chart analysis and trading blogs which traders will find of much benefit.
For more information read our Spreadex review.
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as The Sunday Times, BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
You can contact Richard at richard@goodmoneyguide.com
