Stock Market Dealer/Trader

Stock market dealers and traders buy and sell shares, bonds and other assets on behalf of investors. They may trade in different products, including:

• shares in companies listed on the Stock Exchange
• fixed-interest bonds
• futures and options
• foreign currencies
• gilts.

A trader's working day is likely to include:

• making decisions on the products to buy and sell, using his or her judgement on how the markets are likely to move
• carrying out trades, either by phone or online
• checking share prices on screen
• analysing data about market trends.

Traders must be constantly alert to sudden events that may result in large sums of money being made or lost in minutes. They have to be prepared to make quick, well-informed decisions in this pressurised environment.

A trader's working day starts early, allowing time catch up with overnight developments and prepare for the 8am opening of the London Stock Exchange. Working hours may be from 7am to 5pm, and longer hours may sometimes be required.

Traders generally work indoors, in a dealing room. They sit by a monitor, which they use to check the markets. A great deal of trading is done by phone.

Salaries range from around £30,000 to more than £200,000 a year. In addition, many traders receive large bonuses that can be up to 100 per cent of their salaries.

Traders and dealers need to:

• be self-confident, self-motivated, ambitious and competitive
• work effectively under constant pressure
• have a strong understanding of the financial markets
• have strong analytical, numerical and literacy skills
• have good communication skills
• have an eye for opportunities and be able to make informed decisions quickly
• have a genuine enthusiasm for the financial world.

Stock market dealers and traders are employed by investment banks, fund managers, stockbrokers, commodity broking firms and the stock exchanges.

The majority of work is based in central London. There are smaller dealing desks in other financial centres, such as Edinburgh, Glasgow, Birmingham, Leeds and Manchester. Recession can lead to fewer positions and increased competition for jobs.

Most traders have a degree. Many employers require at least a 2:1 classification. All subjects are acceptable, although a degree that involves numeracy skills is helpful - examples include economics, business studies, accountancy, maths, science and engineering. The major investment banks recruit graduate trainees and offer internships. It may be possible to start off in an administrative role and progress to becoming a dealer or trader by gaining experience and making contacts.

Before carrying out any business, traders must gain a qualification listed on the 'recommended' or 'appropriate' database found on the Financial Services Skills Council (FSSC) website. When a trader passes the qualification, his or her employer can apply for approval from the Financial Services Authority (FSA).

After gaining qualifications and experience, traders who perform well may be promoted to analyst level. It is possible for traders to move up to associate, senior associate and director.

Further details