How Much Stock Brokers Make
If you are interested in becoming a stock broker, you must start out early by learning the basics. Getting adequate training and education is also required, as well as securing a license.
The salary and commission will depend on several factors.
The only way to trade stocks or securities is by becoming a licensed stock broker. This is very important especially if you’re in the United States. The orders of clients are placed by their respective brokers. The latter should have a great knowledge about the market, stocks, and willing to work for longer hours. If you’re wondering how much stock brokers make, you’re really going to be surprised. For stock brokers to earn income, they must look for potential clients. Otherwise, they won’t be able to get commissions from the trade.
Salaries and Commissions
Some stock brokers’ posses better skills and knowledge than others. Most brokers receive annual salary but a greater percentage of their income is derived from commissions. Brokers that deal with larger amounts of money are sure to get more money. The position of the stock broker will also determine his salary. A broker can be of two types – discount and full service. The discount brokers simple place the orders and nothing more. On the other hand, the full service brokers can place orders and at the same time, they can also provide financial advice. This type of broker will also take care of current clients even when they already searching for new ones.
On the average, stock brokers receive around $55,300 every year. Whether you’re dealing with new or experienced brokers, the salary will range from $41,000 to over $64,000. Aside from the salary, the commissions that every broker can receive are around $4,000 to over $160,000. As mentioned earlier, brokers that place larger trades will also earn higher commissions. Certain factors affect the salary and commissions of stock brokers. New brokers will usually start at the lower end in terms of salary but as you gain experience, you will also earn higher. The secret to success is to know the basics and the advanced techniques.
Full service brokers will also earn more than the discount ones. You have to decide now which option is the best. Your location will also affect the salary. You must get proper education and training if you want to excel in the market. There is extreme competition in the stock market and since you can already find lots of brokers, you must stand out in the crowd. It would be best if you establish a website where you can attract potential clients that want to trade in stocks. Take your time in learning the profession and secure a license. Determine the licensing requirements in your state and comply accordingly.