Did you know becoming a Stockbroker is one of the highest annual earners in the US, a Stock broker salary is very rewarding? Although some say that this is a very risky job and requires a lot of preparation, however, the salary of a broker and commission earned can go into 7 figures, even higher. Contrary to people’s expectation that an average Stock broker in Wall Street is receiving millions just for a basic pay, it is definitely lesser than that amount. An average Stock broker salary is very rewarding, it increases on average by 20% each year for many brokers.
This might be disappointing for those especially that the hard work starts from getting a degree, getting a license, applying to a firm and then getting a job as a licensed Stockbroker. In short, the stress is ongoing even after you land a job, so let us take a look at an average stock brokers salary is and how you can increase your salary as a broker every year. There are different types of Stock brokers, if you are not sure of the types, be sure to visit our what does a stock broker do? The article, in short, each individual broker deals with invest stocks and bonds, but each one has a specific job description.
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Table of Contents
- 1 What is the Average Stock Broker Salary?
- 2 Factors affecting a Stock brokers Income
- 3 How to Increase your Income as Stockbroker
What is the Average Stock Broker Salary?
There’s some that are engaged in trading, in short buying and selling of stocks and other financial instruments, the other acts as financial advisors and these job description matters in gauging the average Stock broker income. These things being considered let us see how much to expect as earnings once you are already practising your chosen career route.
According to a survey conducted by Bureau of Labour Statistics, during the course of May 2011, the average salary raked by a financial services agent covering commodities and securities stood at $98,810 on an annual basis which roughly comes out to be $47.50 per hour.
The overall range of salary started from $41,940 to $132,040 stabilizing the median salary at $72,060. It was estimated and analysed that those who emphasized more on mineral, as well as metal wholesalers, raked the highest salary with some of them earning upwards of $182,020 annually.
Consulting services also became a taboo in the marketing with streams such as scientific, finance and management consulting firms raking hefty revenue. The average salary of a Stock broker belonging to these domains was roughly $149,180 per year. Agents involved in a few other activities related to financial investments earned around $128,910 annually. A Junior Stock broker salary starts of somewhere within the $50,000 to $60,000 salary range, a huge amount just for starters.
How Much Does a Stock broker Make a Year?
The average Stock broker salary in the US in the state of Connecticut, for the fiscal year of 2011 was calculated to be around $159,950 making it the highest paying state. Following a close second was New York where financial agents were earning close to $135,700 per year. The subsequent positions were taken up by South Dakota, District of Columbia and Massachusetts. So if you are looking for a high broker salary then we would recommend you start off at Connecticut, as even a junior Stock broker would get a decent yearly salary to begin off with.
Factors affecting a Stock brokers Income
State-wise Highest Broker salaries in US
The position of a Stockbroker in a market, especially Wall Street is crucial since the only an experienced and capable financial consultant will be able to comprehend the changing trends of the markets and suggest lucrative investment plans to their respective clients.
If you want us to be specific about the exact areas which happen to be hubs of financial service agents in Connecticut, then Bridgeport-Stamford-Norwalk area is the booming with agents specializing in financial services, commodity and fund security. With a high average salary that is more than major cities like New York, District of Columbia, South Dakota and Massachusetts, Connecticut certainly is the best place for stockbrokers in terms of their salary. You will come across different types of financial consultants in Connecticut. Some of them might be specializing in one particular service and they are known for that whereas there are others who are capable of providing lucrative assistance in some other field of finance.
Same as other jobs a Stock broker salary depends on the person’s position. Of course, a junior Stock broker’s salary, or they call it Stock broker, varies from the Senior broker’s salary. The basic salary depends in the broker’s experience and the field of business they are in. For example, the portfolio manager’s basic earning is weigh higher than that of a senior broker. As per the research, the average junior broker position will have an annual basic salary amounting to $20,000 to $30,000 and increases as your rank in the corporation moves up. It is typical or any organization to have the difference. Anywhere you go, a higher position in the same industry will always provide you with a higher pay package, bonuses and other perks.
This is one of the major advantages for those Stock brokers who are employed in a centre of the biggest trading location, Wall Street in New York. If we compare the pay of an average broker in the stock market industry from other far away and smaller markets, the answer is obvious. For example, a senior Stock broker who earns around $130,000 annually in New York will have higher pay compared to the Stock broker from Kentucky with an annual pay of $60,000 even if the Stock broker job description is the same.
The trick is to move your way to the biggest possible market and establish your position and the same goes with your earnings. Getting a job to a place which has at least one stock market or if possible to the Wall Street gives you extra points to your resume if you decide to move to another market or gain a higher position.
The largest firms such as JP Morgan Chase, Goldman Sachs, Edward Jones, Scottrade and others have the ability to pay higher than the smaller once and have better training packages and so an average Stock broker salary varies on companies. These packages are essential in the career growth for brokers. Aside from these monetary benefits, this training package will help the broker to increase their value and can even land with higher positions in other firms. These normally are an offer from smaller firms to pirate individuals that have experience from other bigger houses.
As an aspiring Stock broker what you need to focus on is your academics first, do good, since these are qualifications to get the best firm possible in the future. Once you have a degree and outstanding educational background, get the best firm to apply to and you can start moving up to the corporate ladder. In the business industry, planning and strategy is a must. Some Stock brokers start with smaller firms and move their way up.
How to Increase your Income as Stockbroker
Meet Your Quota to Get a Commission
We have discussed a Stock broker’s average salary and how it may vary from one position to another, however, they can earn even more! There are several ways to earn aside from the regular pay and these are normally lesser than the expected millions. One way to learn more, take note that this is normally higher than their regular salary, is getting paid in commissions. This starts early, even junior Stock brokers can earn commission, they are given a target in the form quota and if they reach the amount of stocks that should be sold they get a hefty commission.
As soon as the broker hits the target, they automatically receive bonuses in form of either a monetary or financial securities, depending on the nature of the agreement. In the real world, according to researchers, an individual stock broker earns more than twice his regular salary and this is not even in the maximum level of achieving his quota. This is the reason why brokers are very keen in making sure they hit their targets every month.
One other option that will give you the networking and referrals you need is through the financial adviser job. They pay you are getting is the regular salary plus commission once you meet or exceed your quota, but you have a personal interaction with your clients and it is very important. Not all Stock brokers have this opportunity to create a bond with the clients through the stages of advice and consultation. Once you have a good outcome from client’s decision based on your financial advice, then you have added an excellent job to your portfolio, received a commission and increased your possibility of getting referrals.
Dividends from Stocks
Once your performance as a Stock broker increases then you will get more referrals and you are starting to build your networking strategy, thus have the potential to increase your Stock broker salary. This is very important in gaining your client’s confidence, which would be your key to getting your dream promotion and would mean an increased pay for you. The most common pay the Stockbroker is receiving is the commission, aside from the basic pay of course. One way of getting extra income though is in the form of stocks or stock options., this will increase your basic Stock broker income.
For some successful brokers, they are offered business partnership and in exchange for the excellent job they are given shares of stocks. In this way, the broker has an option, depending on the agreement, to either keep the stocks and get annual dividends as revenue, or to sell their shares. The dividends could also be in the form of quarterly share. The amount received by the stock broker depends on the number of shares. The amount allocated by the partnership or corporation is therefore divided by the total stock.
Become a Qualified Stock broker earn more
As you can see the average Stock broker salary can vary. These are the ways a typical stock broker receives an extra income and it is up to you to do good in meeting your quota and perform well to gain your client’s trust. At the end of the day, your career growth opportunities depend on your excellent work. As mentioned earlier, the salary of a Stock broker depends on the type of the brokers work, the best way to earn in larger amounts is in trading. The trading stock broker is involved in the buying and selling of financial securities, it includes a large amount of money and requires good financial analysis from the broker. It is a bit risky since your reputation is at stake but provided you work hard plus the luck on your side it will provide you bigger commissions.