Any financial advisors out there?

Discussion in 'Professional Trading' started by Kicking, Feb 16, 2003.

  1. I am going to take the exams to work as a financial advisor in the UK. I have been in the country for 2 months and would be interested in advices from UK or US-based FA's on starting out in that business. Ideally I would want to work as a fee based or fee only advisor, this does not seem to be the way most FA's get paid in the UK. There are not a lot of firms in my area and even fewer providing independent advice. I applied to a couple of them but I am thinking about going it alone take the exams and eventually start my own practice. I still have to get all the details on the regulation of self employed advisors but I 'd like to know how you go about building relationships with investment products distributors and in the case you manage clients accounts how you choose a broker and set up the accounts. IB for ex. offers financial advisors accounts, but are those available for UK advisors as well?
  2. gnome


    You'd have to be more specific. In the SSA (Socialist States of America), the term "financial advisor" is mostly a euphemism for "commission salesman"... stock broker, life insurance agent, variable annuity sales, mutual funds sales.

    Then there are some of us who work strictly on fee. Harder to make a living that way but we don't have many conflicts with our conscience.

    That you are on ET argues against the genuine activities of "fiancial adviser"... as you have already indicated your interest in trading the markets. That's a full time job in itself. :cool:
  3. I think in the US there are many advisors who do not work for a brokerage house but are self employed, like some CPA's or lawyers for ex.who have their own firm . Here it 's different you have tied FA's and Independent FA's (IFA's) both are usually employed by a firm and paid a salary +commissions. The big players in the market are the major retail banks which sell CD's , mutual funds ( trusts) and a variety of high yield "guaranteed" products linked to the UK equity market. It seems most people don't invest directly in equities like in America.
    I am not too interested in selling pensions and life insurance I am more interested in financial planning and later on money management but I was wondering how difficult it is to start as a self employed advisor with no experience and no contacts within the industry.
  4. gnome


    Sounds like we're comparing apples and oranges here. A "tied" FA in the us would be a stock broker for a big taut house. An "independent" would have no source for a salary, so he'd just have to beat the bushes to pick up clients one at a time.

    One good way to put youself in business is to produce a signficiant, audited performance record for managing money in the financial markets. Higher rate of return, lower drawdowns, consistency. Getting clients will then be much easier.

    Don't expect a lot right off the bat. There is always lots of "flash in the pan" performance, so getting people's confidence is not easy. (I'll tell you about such an experience of mine if you want to PM me.) :D