Securities traders work in a demanding and dynamic environment that offers high returns. The UK has around 8,500 registered stockbrokers who move millions of pounds worth of assets every day. The London Stock Exchange alone has a daily trading volume of over £5.2 billion. On international trading floors, the daily turnover even exceeds the £6 trillion mark. Demand for new securities traders remains steady, and attractive opportunities for getting in on the ground floor are still available.
Trading opportunities in London and international trade
The London Stock Exchange is a major trading centre with numerous investment opportunities and a high daily volume. In particular, equities, fixed-income securities and commodities such as oil and gold are traded here on a large scale. While the London Stock Exchange is active during standard trading hours, global markets allow for uninterrupted trading. The forex market model offers access every day and almost every hour, as currency markets worldwide operate in stages and in different time zones.
Markets never sleep: trading around the clock
Forex trading is a unique model for investors because it remains accessible almost continuously across multiple trading venues. Trading hours are staggered so that there is always a large market open. Trading begins in Sydney on Sundays at 9pm UTC and closes on Fridays at 9pm UTC in New York. This constant availability is made possible by the overlapping trading hours of the markets in Sydney, Tokyo, London and New York, especially during overlaps such as between London and New York, when the market is at its most liquid.
Requirements for entry as a securities dealer
Entry into the securities business requires in-depth knowledge and formal requirements. A fundamental step for exchange trading is registration and authorisation by the relevant financial authorities in the UK. Every securities’ dealer offering securities or derivatives in the UK requires an official LEI number (Legal Entity Identifier) to trade transparently and in compliance with the law. The LEI number identifies and validates the initiator and the beneficiary of a transaction.. An LEI number is therefore not only legally required, but also strengthens the trustworthiness of the trader.
LEI number: security feature for traders
In addition to this identification, prospective traders should have a strong understanding of the financial markets and specific training in securities trading. Numerous universities and financial institutions offer specialised courses that provide a comprehensive insight into trading strategies, market analysis and financial knowledge. In addition to formal training, analytical skills and quick judgement are required. Many newcomers start out as analysts or junior traders in large trading companies and gain experience step by step before trading independently.
Specialisation as a trading professional
Successful securities traders often specialise in certain types of investments or financial instruments in order to stand out in the market. Specialisation enables deeper market knowledge and more precise strategies. The most popular areas of specialisation include stocks, bonds, commodities and currencies. Each of these areas requires specific knowledge and presents its own challenges and opportunities.
Stocks and commodities: two important markets
The stock market offers traders the opportunity to make a profit from rapid price movements. In-depth knowledge of company analysis, market trends and economic developments is essential. By contrast, commodities such as oil, gold or agricultural products require in-depth knowledge of geopolitical developments and global demand cycles. Trading commodities requires a particularly fast response, as prices can be heavily influenced by short-term events.
Benefits of specialising in domestic securities
There are several advantages to specialising in UK companies (such as Unilever, BP and Shell). Securities traders can benefit from extensive knowledge of local economic and regulatory developments. They gain faster access to market information and can better align their trading strategies with national economic trends. The energy, UK financial institutions and consumer goods sectors are very liquid markets and therefore offer stable trading opportunities. Political events, such as decisions by the Bank of England or changes in national economic policy, also have a strong impact on the prices of UK companies.
Earning potential in securities trading
The earning potential for securities traders varies depending on their experience, specialisation and market position. In Great Britain, the average annual income for securities traders is around £100,000, with experienced traders in leading positions able to command significantly higher salaries. By way of comparison, the average income in the UK is around £31,000, which illustrates the lucrative aspect of stock market trading. Some of the top traders earn well over £500,000 a year, often depending on the size of their trading profits and bonuses.
Experience and specialisation increase income
The income gap in exchange trading shows that experienced professionals and specialised traders have clear advantages. Many traders work on a commission basis, where income depends directly on the volume of trading and the profits generated. Specialising in certain derivatives or market segments can also have a positive impact on earning potential. Specialists can generate high profits, particularly in commodities trading or with more complex derivatives.
