Average Salary of Investment Brokers
Investment brokers buy and sell investment instruments such as stocks, bonds or mutual funds on securities exchanges. They earn their income primarily from commissions, paid by clients who may be individual investors, institutions, mutual fund companies or pension plans. The job typically requires a bachelor's degree in finance or business, plus an internship or experience at an investment company. Registration with the Financial Industry Regulatory Authority and state licensing are also needed.
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Basics
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According to the Bureau of Labor Statistics, as of May 2009, investment brokers make a median hourly wage of $32.18 or a median annual salary of $66,930. The bottom 10 percent get $14.42 or $29,980, and the top 25 percent make $57.04 or $118,640. The highest 10 percent are paid about $80 an hour or more, or over $166,400.
Industry
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Salary can vary by industry, with mineral wholesalers offering the highest wages at $84.97 or $176,730, followed by office administrative services at $54.53 or $113,420. Those working for other financial investment services earn $54.36 or $113,070, those in wholesale electronic markets earn $54.34 or $113,020 and those in raw material wholesalers for farm products receive $54.07 or $112,470.
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State
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The state in which the job is located determines salary, with Connecticut paying the highest compensation at $77.46 or $161,110, followed by New York at $60.36 or $125,550. Those in Maine receive at $53.01 or $110,270, while those in the Washington, D.C., make $49.14 or $102,210, and those in Kansas get $47.85 or $99,520.
City
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As for cities, the following Connecticut metropolitan areas offer salaries in the top five: Stamford at $82.57 or $171,740, Danbury at $68.91 or $143,340, and Hartford at $64.37 or $133,800. Other top-paying cities include San Francisco, California, offering $67.47 or $140,350, and Bloomington, Illinois, at $65.58 or $136,400.
Employment Levels
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The statistics for the highest wages do not necessarily cover the areas in which the most investment brokers are employed. For example, the industries that employ the most investment brokers are securities and commodities brokerages, which offer $51.63 or $107,000, followed by credit depositories at $28.96 or $60,240. As for states, the ones with the most brokers are New York, followed by Connecticut, both of which also have the highest salaries. For cities, Stamford, Connecticut, leads the way with both the highest employment and pay. However, New York, which pays $59.69 or $124,160, is second in number of jobs, but is not one of the top five in broker compensation.
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