Basic Stock Broker Salary Information:
What do you want to be when you leave high school? It’s very difficult question, isn’t it? And it becomes even more difficult when it is actually time to decide. When your school years are near their end and you have to make a life-changing decision, it becomes harder to choose from the wide array of professions available. Which one to choose? And what happens if one makes the mistake of choosing the wrong profession? It’s a hopeless abyss and requires time and patience to recover from it.
So, how can we make sure that we have chosen the best profession suited to us? Firstly we have to make sure that we understand our personalities well. What kind of personality does one need to have in order to be a successful stock broker? One needs to have a smart financial personality, of course, an innate sense of the financial markets, and sometimes, just sheer luck and guts are you will have to do with. As a stock broker, you will be advising your clients on current as well as prospective investments opportunities, so it is very important to have great communication and interpersonal skills to communicate with them effectively. Having the ability to make important decisions quickly is very vital to the success of this job, as the stock broker will be managing his or her clients’ portfolios and may also go ahead to initiate some basic transactions on behalf of their clients. They need to also have an excellent ability to multi-task, because the stock broker may be handling multiple portfolios for clients, and also have the ability to develop and maintain a good relationship with your clients.
The yearly income of a stock broker varies widely. There are too many factors that affect the final salary of a Stock Broker. One of the man factors is the state in which the stock broker is studying. According to a recently conducted study, the average yearly income of a stock broker in the US is about $70,190. The lowest paying state is Kentucky, standing at $59,060, and the highest is California, with $160,850.
Related posts: How long does it take to become Stock Broker
The table below aims to illustrate the highest paying states in this profession:
Amount per year/USD
The job outlook of stock brokers is expected to increase to 15% by 2020. His is above average and means that a new stock broker will have to spend some time hunting for jobs. Being a stock broker also requires you to have a Bachelors degree in BBA or Finance and then to pass an exam called the General Securities Registered Representatives Examination.
|First year||$61,235 to $71,549|
|1-4 years||$69,248 to $80,659|
|5-9 years||$78,861 to $120,842|
|10-19||$118,531 to $157,628|
The average salary of Stock Broker is often compared to the salary of a Hotel Manager. The salary varies considerably with years of experience because the success of a stock broker is dependent upon his network and client base, and that only comes with age.
Another important thing that you need to keep an eye on is the amount of commission received by a broker. How much does a stock broker make is actually dependent on his commissions instead of his direct salary by the financial firm he works for.
How can stock brokers get more pay?
There is a reason stock brokers are also called financial advisors. They have the capacity to do more than just to execute trades; this gives them the opportunity to earn a higher salary. Stock brokers can act as financial advisors to their own clients, where they will be allowed to carry out other financial service duties even while they are still working with a clients to realize investment goals. Hiring these types of stock brokers or full-time service brokers requires higher fees.
The duties of stock broker, working as a financial advisors are very simple. As a financial advisor, the stock broker needs to be up-to date with the latest strategies for investment. They do so by conducting proper market research and also make the information available to their clients in a more valuable way. Other duties includes estate planning, retirement planning and they also offer tax advice.
As a stock broker or a full-service stock broker, performance is very important if he or she wants to get more referral from a client who is happy; this will invariably increase business as well as lead to a higher stock broker salary.
So, get into this profession and don’t give up!