A stock broker's salary depends on a lot of different factors. Even luck seems to play a role. But here are a few things you can ask yourself to see if you might make a ton of cash as a broker. The longer you are in the business, "hopefully" the more clients you gain over time.
More clients equals earning more money. If you think you'll be working 9 - 5 and just collecting huge checks for making a few phone calls, you need to re-evaluate what you think this job entails. Want to loose a girlfriend or wife fast? Seriously, the stress and hours put a toll on not only you, but your entire family.
If someone tells you it's easy, they're lying to you. When you first start out in your career, you'll most likely begin as a broker trainee.
That means you're bringing into the company leads, not sales. So obviously you're not going to be getting paid a lot of money. During this time you're usually paid a very small salary, and sometimes you're not even paid a dime. Just because it's a big firm doesn't mean your salary will be big too. According to the U. So a stock broker trainee salary is peanuts really. And that also means if just a few guys on Wall Street are making millions, that of course brings up the whole average amount that the US Bureau of Labor statistics is giving.
Not to mention any kind of tax fraud. The rest I believe is less. One of the best ways for a stockbroker to make a lot of money is to put their clients into what's called an IPO. This is when a stock first becomes publicly treated on an exchange. Or when people can buy or sell shares of the stock.
Before the IPO there is no liquidity in the securities, or no way to buy or sell the stock. The rip is the price between the buy price and the sell price of the security. When it's an IPO, sometimes you can get one or two dollars a share when you sell the stock.
One of the things most trainees need to do in order to go on their own and get their own book is to open a certain number of accounts for the broker who sponsored them. So for a brand-new broker and one being sponsored by an established broker, the senior broker will pay my salary, train me, and do everything he can to help me be successful. Because in the end if I'm successful he is successful.
But in order for me to pay back his tutelage, I usually have to open a certain number of new accounts for him. And of course by account I mean give him new clients.
I remember having a job interview with a broker in Oppenheimer and he wanted me to open 50 accounts for him. Plus get my own leads. If you already have your series 7 and series 63, then you can take it a step further and get your financial planner licenses well. Then of course you could always go for a bond licenses too. Or a host of other licenses that can allow you to have more inventory or options for both your existing and new clients.
When you finally become your own licensed stockbroker and have your own book, that's when you obviously be making the most amount of money.
But when you do have your own book and you're working for a firm, you have to remember they need to make money too. The split is usually a split. But of course the more money you're making the company and the bigger your client list or book, the better you can negotiate a better percentage for yourself. But for your first few years, you need to understand that whatever commissions you actually make you are going to be giving half of that to the brokerage firm that you are licensed with.
That's just the way it is. I would exactly count on it, but it is totally possible. There's not too many other jobs that where you can say the same thing. Like I've stated before, being a stockbroker is mostly sales.
And salespeople still make the most amount of money per year than any other career path. So if you think you have what it takes to work on Wall Street , go for it! It's an amazing career choice with a lot of roller coaster rides. And depending if your on an incline or a decline, it can be one of the most rewarding jobs in the world war one of the most stressful and unforgiving jobs in the world.
Truth about becoming a stockbroker When I used to watch movies about A stock broker's salary depends on In order to receive your stock broker license Working as a stockbroker for a traditional Stock Broker Salary — How much money do you really make? Is being a broker the path to riches? Can you stay for the long haul? Stock broker salaries depend a lot on how long you've been a stock broker. How hard are you willing to work? How much time can you put in? Do you have a family?
This is when you're learning the basics of cold calling and conducting yourself on the phone. And mind you, I was working like 12 hours a day six and sometimes even seven days a week! But of course as your career progresses, so should your pay. Stock Broker Salary United States. How to get Stock Broker License In order to receive your stock broker license Working as an Online Stock Broker Working as a stockbroker for a traditionalMore...