What is Advisory Stock Broking?
Stock brokers, who specialize in advisory services, give investment recommendations to private investors.
If you work for an Investment Institution, you are referred to as an advisory fund manager. If you work in an Investment Banks you are known as a wealth manager. When you work for a broking house you will be known as an advisory stock broker. It differs from discretionary stock broking as you will only provide ideas for the private individual rather than execute trades/investments on the clients account.
As an Advisory Stock Broker, you perform the equivalent role as a wealth manager does in an Investment Institution or Investment Bank. In general, your clients will not have the same net worth as wealth managers clients.
If I work in Advisory Stock Broking what will I be doing?
As an advisor, you do not have prior authority to buy and sell investments without having to consult your client on every occasion (Discretionary Broking). Alternatively, you present your client with a range of options and provide advice on the relative advantages and disadvantages (Advisory Broking).
You will have to study and keep up-to-date with general business trends, the financial affairs of individual companies and the overall state of the financial markets. You will usually base your advice on information from the financial press, computerised information databases and from the opinions and forecasts of investment analysts. You will use on-line systems to gain access to the latest share prices and other essential financial information. You will negotiations for the sale and purchase of investments with market makers by telephone.
You will regularly review your client’s portfolios to check results and recommend changes as appropriate.
In larger firms, you may specialise in a particular sector of the market, for example in engineering and technology, finance or retail. Alternatively, you may develop a specific expertise in a particular geographical market, such as Europe, the USA or the Far East.
How do I get a graduate scheme / internship / entry level job or career in Advisory Stock Broking?
Obtaining a graduate scheme, internship or entry level role in advisory stock broking can be very challenging and competitive – though very achievable by getting your application, CV, interview and general approach right. You can guarantee that ninety percent of applicants for advisory stock broking roles will not know how to apply, so getting your application in the top ten percent makes things a lot more achievable.
Approaching the company in the right way will make all the difference. Combining the right approach with a strong interview (and in some cases assessment centre) writ a strong focused tailored CV will go a long way. Make sure you have gone through the free videos on this sight by entering your name and email address in the top right of this screen underneath the video. Once you have filled this in you will have instant access to everything you need to secure your career in advisory stock broking.
