2 answers

how much do you make being a stockbroker

Asked San Francisco, California

I am asking because I want to become a stockbroker #business #stocks

2 answers

Tony’s Answer

Updated New York, New York

It appears that stock brokers can make between $34,000 to $152,000. It seems like it's very dependent on where you are working and there will naturally be some that make much more. Link http://www.payscale.com/research/US/Job=Stock_Broker/Salary

What will the role of the "Stock broker" be in 10 years, especially with technology replacing individuals?

One thing you should ask yourself is what is it that you like doing? Do you like finding people to work with (i.e. prospecting for new clients)? Do you like trying to solve logic and financial issues? Do you like watching world events and predicting their impact on the markets and stocks? Do you want to help people improve their lives through their financial planning?

There are many careers that may be similar to the one you are consider such as financial planning, insurance, and banking. How much you make in any of these roles will be dependent on your education (which opens doors and gives you an appeal to authority), your work ethic and your ability to work with others, etc.

Best of luck -

Adam’s Answer

Updated

Davante,


This is hard to answer, because stockbrokers are generally paid in commissions. Generally, that means the broker will be paid a commission when they (a) buy or (b) sell stocks (or other investments). Therefore, your income is generally dependent on the amount of trades and the dollar amount of each trade. This means that there's a huge variety in how much stockbrokers make, from what might be considered an "average" salary to hundreds of thousands of dollars a year.


Also, being a stockbroker generally involves a lot of relationship management. It's more than just "buy or sell" and looking at stock charts. A good amount of your day will be spend either prospecting for new clients or working with existing clients.


From what I've experienced, the position of "stockbroker" is slowly fading away. You'll often see terms like financial consultant, wealth manager, investment specialist, etc. that might be similar. This is (in my opinion) mostly due to a change in the way that investments are managed:

  • Many investment managers have switched to a fee-based model; instead of paying per trade, clients pay an annual fee (usually as a percentage of their total assets). This reduces the need for brokers to facilitate individual trades
  • Back in the day, brokers quite literally "brokered" the trade between buyer and seller. They took orders and facilitated the trade's execution. Computers have made this process largely obsolete.
  • Stockbrokers don't have the best reputation. Some of it is deserved, and some is fueled by pop culture, but it's prevalent.
  • Last, but not least, the financial services model is switching from buying and selling stocks to a focus on providing more comprehensive services like retirement planning, saving for college, etc. In other words, the stockbroker is less relevant in how financial services are provided.


Adam recommends the following next steps:

  • Check out different jobs. Do you want to do research? Consider being an analyst. Sales? Consider product wholesaling. Complex trading strategies? Work for a hedge fund. There's so many options available.
  • Investing is way, way less exciting than in the movies. But it's also way, way more rewarding in the long term. Don't get too caught up in the lifestyle.