A brokerage firm has lower costs and usually a less strict recruitment policy so they are able to move faster than an investment bank and usually always ‘open’ to seeing who/what is available in the market. The pros of this are that if you have the right candidate who is interested in a position like this then you can have yourself a deal within a few weeks or 1/2 rounds of interviews. The cons are that you could end up wasting your time a lot as they will interview every candidate you send them but the candidate may not want the position / it could end up just being fact finding mission. Learn more about trade alerts on this site.
To ensure you are not wasting your time make sure you qualify the job as much as you can before you start to work it. Find out what type of clients/geographies the brokerage firm doesn’t cover so you can show them those candidates. Find out what P&L’s the other brokers on the desk are making.
When speaking to candidates really try to grasp whether they will actually go to a brokerage house or if they are just interviewing through you as a backup. Also, you really need to be clear on what P&L they made by selling what exact products to which exact clients. The more information you can arm yourself / the client with the smoother your process will go. If they are willing to tell you that information it will be a good indication of their commitment to your position.
Brokers do not get paid a salary they get paid a ‘draw’ this means they earn a monthly wage however before they can earn any commission they have to generate profit for the business to cover their costs. They might be underpaid but they have done the most reasonable job in trading industry and they can be kept as a good source of personnel for your trading team.