| Topic Name: |
Sales |
| Message Name: |
Commissions paid on |
| Date Posted: |
04/29/2000 |
| In Reply To: |
You sound like you know what you are talking about, which is rare for this board. I am entering a top 10 MBA program in the fall and am interested in institutional sales. I have a few questions if you don't mind...
1) What type of prior work backgrounds are recruiters looking for when they are hiring in institutional sales? Do you need to have background in sales? I don't have anything in my prior work history related to salesmanship, but I am really in to the markets and I really think I could be good at this job ie. adding value for buy-side clients.
2) From my knowledge of MBA recruiting, it seems that there is a lot more hiring in Investment Banking- Corp Fin, than in Sales & Trading. Is institutional sales much tougher to get into, than IB?
3) Do you perceive a downward pressure on commissions b/c of the internet and the coming of decimalization? I know that the going rate for institutional clients in 6 cents a share, that you cite. Are commissions going to go lower and lower in the most liquid securities such as equities, treasuries, corporates, etc.
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| Message: |
Commissions paid on institutional trades are standard across the board, they are not predetermined by the quote spread structure on Nasdaq. If a firm wants to pay you .06 they'll pay you .06. If they pay you a nicket, etc. When they hit the pain threshold, usually around .03-.04, you can choose to quit working for them.
If you add value in the realtionship and your desk can trade well, institutions don't mind paying you the going rate (5-6 cents currently), especially if your firm is picking up their Bloomberg tabs through soft dollar payments!
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