Skip to: Navigation, Content
  1. Eligibility To Work
  2. Before You Leave Home
  3. Setting Up A Bank Account
  4. Inland Revenue Requirements
  5. Contract or Permanent
  6. Contract Process And Etiquette
  7. Commerce vs Banking
  8. Cost Of Living
  9. Useful Information
  10. Free Starter Pack

Commerce vs Banking

Destination: UK

Buildings

Commerce

The commerce sector is extremely diverse and offers a broad choice of company types, sizes and roles. Eighty percent of the companies in the FTSE 100 fall into the commerce industry meaning there are an enormous number of job opportunities across London and the UK.

Choosing one industry in the commerce sector over another really comes down to personal interest. Once you’ve determined the industry in which you want to work, you need to consider the factors which shape a company’s working environment. Understanding the following details should help you make an informed choice:

  • The size of the company or department.

  • Whether it offers a steep or flat hierarchy.

  • If there is a clear career path.

  • How entrepreneurial the company is (- typically the smaller the environment the greater the opportunity to change things).

  • Opportunities for travel.

Banking

The banking sector is an innovative one with banks and financial service institutions being crucial to the growth of the UK. London is the world's leading centre for international banks while Edinburgh and Dublin are also quickly expanding in size in this sector.

Working in the banking sector is challenging and constantly evolving; every day new financial products, ways of protecting against risk and technology are created. Companies in the banking sector – banks and financial services institutions – look to employ top quality candidates and offer competitive salaries, including generous bonuses.

Banking Terminology

AIM: The ‘Alternative Investment Market’ – a stock market in London for small, new companies.

Analyst: Often an entry position for graduates in investment banks. This involves the study of companies and markets and making recommendations.

Back Office: Where the accounting is done and the settlements made for stock trading firms.

Bond: A certificate issued by a borrower as a receipt for a loan longer than 12 months, indicating rate of interest and repayment date.

Broker: An intermediary who buys or sells securities, foreign exchange or other financial instruments.

Capital Markets: The markets for long and medium term securities.

CHAPS: The UK institution for the settlement of GBP payments.

Commodities: Goods such as oil, petrol and metal traded on commodity markets.

Corporate Finance: The department of an Investment Bank that deals with take-overs, mergers and specialist advice to clients.

Derivatives: Financial products whose price is derived from another product.

Equity: The generic word used for stocks and shares. Can also be used as a substitute word for 'total shareholders funds'.

Fixed Income: Securities that will only pay a fixed rate of interest. Due to the element of certainty, they will never yield the high returns of shares that do well.

Front Office: The 'dealing' room system involved in buying/selling of securities.

FSA: Financial Services Authority. The regliatory body in the UK will eventually assume responsibility for control of all markets in the UK - FX, MM, insurance etc.

Fund Management: Advising on investments and managing money for corporate and private clients.

Futures: The contract which fixes a price and date in the future for two parties to buy/sell a commodity or security.

Hedge Fund: A high risk investment managed to obtain maximum returns.

Investment Banking: The term used to describe a range of activities including trading, corporate finance, fund management, private equity and mergers & acquisitions.

Margin: The deposit required from a broker by a Clearing House that determines the amount of business that the broker can conduct.

MiFD: Markets in Financial Instruments Directive is a European Union law which provides a harmonised regliatory regime for investment services across the 30 member states of the European Economic Area

Options: The right but not the obligation to sell or buy equities, bonds, foreign exchange or interest rate contracts at a future date but at a price to be agreed now.

Private Equity: Investment in shares in new companies. This is high risk yet can offer high returns.

Risk Management: The analysis of factors that could cause loss to a company and how to avoid or minimise them.

Securities: A generic term for equities, bonds and gilts.

SOx: Sarbanes-Oxley Act The legislation establishes new or enhanced standards for all U.S. public company boards, management, and public accounting firms. Introduced in response to the Enron scandal.

Stock: A fixed interest security traded on the Stock Exchange.

Trader: Buys and sells bonds, shares and other financial products.