Commodities broker, but what now?

Commodities broker, but what now?

Hi guys,

Ive read a few of the qualifications threads, but I would like peoples advice for my particular set of circumstances. So if you could spare a few moments to read my situation and offer any advice that would be great.

I work for a broking house on one of their commodities broking desks (Exchange traded derivatives, not OTC). The company is FSA registered and is a registered FCM with the NFA in the US. In my current job we dont deal with retail clients, all clients are institutional.

Just a little background. I have passed the following (in order).

I graduated about 6 years ago. I have a 1st class degree (Computing and Business ) Not from a Red Brick unfortunately.

SII Level 3 Certificate in Administration (IAQ)

SII Certificate in Derivatives. ( Unit 1, and Unit 3), and registered with the FSA under my company as an Approved Person

Series 32 (NFA) Only needed to do one bridging exam here because of the SII Cert being recognised by the NFA. So under my companys name I am registered with the NFA as an Associated Person. We dont even have any US based clients, but I asked to do the exam anyway and the company agreed.

Now, I have been working on the desk for about 3 years (having no previous experience of broking). All is going well and I cant complain money wise for my age (28). However I’m almost 30 and my fear is that when all is said and done other than gaining some experience my above qualifications werent hard, and dont really amount to anything. For example, my friends are becoming chartered accountants, dentists etc etc, and I really dont have anything substantial that I would call a professional qualification. I worry if I lose my job my c.v. doesn’t really amount to that much.

With the increase in DMA, whilst the broking houses themselves can grow and profit through a business model based on DMA for clients, I worry that broking is becoming harder and harder for the phone broker, requiring one to find more and more ways of providing added value, for essentially lower and lower commissions. I could be very wrong, but I fear I have missed the boat when it comes to making very decent money in the broking game ( from the stories I hear the real money was made back in the days of pit trading).

Im really lost for where to direct my career. Ive always said that ideally Id like to make the transition over to the other side of the phone and become a trader for one of the clients, on their commodity trading desks, but Im not sure how likely that would be, or maybe sales.

So a few questions if I may.

1) If you were me what would you look to do? (Please no funny comments like be thankful you have a job I am acutely aware of the current climate and am thankful I have a good job as it is, but Im ambitious and want to better myself).

2) Would you recommend doing the CFA? Are there any more specific commodities based professional exams, as that is the realm of finance I find most interesting.

3) Would you stick where I am maybe ask my company to put me through the CFA (though I not sure how that would benefit them — and I’ve never heard of anyone else at the firm taking it), try applying for sales trader roles in banks, get friendly with clients and see if theyd take me on? etc etc

Thanks for any input or advice you might have.

A rather lost feeling Papa.

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A stupid man’s report of what a clever man says can never be accurate, because he unconsciously translates what he hears into something he can understand Bertrand Russell.

Last edited by Papa Lazarou; Jul 26, 2010 at 7:30pm .