The Average Monthly Income of a Stock Broker
Sales agents who deal in investment securities are typically called stock brokers. According to the U.S. Department of Labor's Bureau of Labor Statistics (BLS), stock brokers advise individual and corporate investors regarding appropriate investment securities based on a number of criteria including the investor's needs, assets, objectives and aversion to risk.
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Types
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A stock broker's total income may be a combination of a number of different types of compensation, according to the State of California's Employment Development Department. Stock brokers, particularly during their training phase, may receive a base salary. They typically earn a commission based on the type and amount of security they sell. Some stock brokers are also compensated based on the performance of the assets they have under management.
Salary
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A stock broker in the United States may expect to earn a median annual salary of approximately $54,634 as of November 2009, according to Salary.com. The median monthly salary for a stock broker would equal approximately $4550.
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Commission
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Some stock brokers work on a straight commission basis. These brokers rely on a constant stream of transactions from new and existing clients in order to produce income. Other brokers may be paid a base salary in addition to commissions on sales. The level of income produced from commissions can vary widely. According to PayScale.com The average annual commission earned by stock brokers in the United States as of May 2010 ranged from $5139 to $147,395. The monthly commission range would be approximately $428 to $12,282.
Total compensation
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The BLS notes that most stock brokers work a 40 hour work week, although some brokers at firms that offer 24-hour service may work evening, night or weekend shifts. The BLS estimates the median annual income for stock brokers from all sources as of May 2008 was $68,680. Total monthly compensation for a stock broker would equal approximately $5723.
Considerations
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Competition for a job as a stock broker is expected to be keen between 2008 and 2018, according to the BLS. Growth in this employment sector is expected to mirror the general economy. The BLS notes that stock brokers typically are not required to travel as much as sales representatives in other fields, but that their job involves an extreme amount of stress.
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