The Average Pay of a Stockbroker

Many stockbrokers work on Wall Street.

The stockbroker's job includes providing advice on various investments and financial matters. He helps individuals understand how the stock market functions and are there to mediate between the buying and selling of securities. Most stockbrokers obtain education in finance or economics.

Considerations

According to PayScale, the average salary of a stockbroker falls between $38,990 and $66,020 as of October 2010. Of course, the salary varies based on numerous factors. Factors that dictate stockbroker salaries include the stockbroker’s employer, years of experience, and location. For example, stockbrokers who work in New York are likely to make more than brokers in Indiana.

Employers

Stockbrokers can work in a variety of financial industries. Some popular industries for stockbrokers include investment banking, brokerage firms, investment services, and online financial services companies. Popular employers of stockbrokers in the United States include ScottTrade, Wachovia Securities, Morgan Stanly, Charles Scwab and The Vanguard Group.

Benefits

In addition to salary, stockbrokers often receive benefits packages and commissions. The most common benefits stockbrokers receive with their salary are medical, dental, and vision. Commission plays a significant role in how much a stockbroker makes. Stockbrokers earn a commission by bringing in new clients and providing profitable investment advice to those they help. Stockbrokers can also make a commission on the sell of financial products. Selling stocks, mutual funds, insurance, bonds, and other investment products all increase the overall salary of the stockbroker. According to PayScale, some stockbrokers make over $200,000 in commission pay annually. The commission component of the stockbroker's salary gives the stockbroker unlimited earning potential.

Stockbroker Registration

According to TotalJobs, individuals cannot work as stockbrokers unless they are registered with the Financial Services Authority. To register, they must pass an examination that certifies they can professionally and competently work in the financial industry. Stockbrokers develop their training on the job, but they also receive additional training to stay current with new regulations and procedures in the financial market.

Qualifications of a Stockbroker

There are certain qualifications that a stockbroker must have in order to be successful. Many stockbrokers have an education in economics or finance. Top degrees for stockbrokers include a bachelor of business administration in finance and a bachelor of science in finance. According to ProSchools, it also helps if the stockbroker is a skilled negotiator, able to work with a wide range of people and computer-savvy. Because stockbrokers have a high-stress position, they must also be able to cope with pressure.

References

• ProSchools: Stockbroker Career Information
• Totaljobs: Stockbroker Job Description