Front office trading involves buying and selling investment products to benefit the company and clients. Traders and support staff work with clients, conduct research, develop new products, and engage in public relations. The job requires a range of skill sets and can be high risk but rewarding.
Front office trading is an activity at an investment bank or similar financial institution that focuses on the buying and selling of investment products to benefit the company and its clients. Traders and support staff are involved in front office trading, aided by operations in the middle and back office. The size of a company determines how many merchants and support staff are needed, and the company may have multiple branches to serve customers in different regions. Working in this area of the financial sector can be high risk, but it can also bring great rewards if a professional is skilled and qualified.
One aspect of front office trading involves meeting with customers to discuss concerns and objectives. This helps traders to develop investment plans that are appropriate for individual clients. They can carry on business on the client’s behalf and can make financial recommendations to help the client make decisions about what to hold, sell and transfer. This job requires good communication skills, as clients need to understand their options and risks. Merchants representing their employers should think about the institution’s long-term needs in their business activities.
Part of front office trading includes research. Traders need to know what is happening in the financial market and they must also be familiar with new financial products. Customers may have questions or request product advice. In some companies, new products are developed internally and the front office commercial team is part of this process. They help design new products and services to meet their customers’ needs while balancing the company’s interests.
As the public face of their employers, front office commercial department employees engage in public relations and outreach to gain and retain customers. They need to be kind and available to answer questions and respond to concerns. Very large clients, such as institutions, may have a specific operator assigned to them, who works primarily with their needs, which can be complex and change as market conditions change.
Working in the front office commercial department requires a range of skill sets. Registered brokers and traders are required, along with computer developers, to work on the software used to support the activities. Financial analysts are helpful, as are public relations specialists. More robust financial analysis, including risk assessments, is performed in the middle office, where staff work with the central office to keep the business running smoothly, identify legal issues and address various business concerns.
Asset Smart.
Protect your devices with Threat Protection by NordVPN
