Stock Broker Salary Info

If you’d like to learn the details about typical stock broker salary and compensation, education and career data read further below and be sure to check out the recent entries section to the right.

What Is the Typical Stock Broker Salary Level?

 

Here’s a quick look at the stock broker salary data:

Average annual stock broker salary earnings:

• ~$52,000-$68,000

 

Annual total stock broker salary (for high earners):

• ~$145,000

 

More About Stock Broker Salary Figures

Stock brokers conduct transactions for their clients by buying up and selling off stock options and shares, and earning a percentage of the gains as commission. Also known as securities agents, they get paid in myriad different ways that depend on where they work, what they handle and even how they work; for example those who work in traditional brokerage firms get paid on commission basis for transactions performed.

Since they handle different types of products such as annuities, mutual funds and individual stocks -among other things- they are subjected to the vagaries of the securities they handle; each with its own commission rates and schedules. An additional factor is how they work: be they full service brokers, discount brokers or the newer breed known as online brokers.

As it is, most brokerage firms give a percentage of profits garnered on-top of a basic salary.

Whether one is a principal agent who owns the shares outright and performs transactions for themselves thus gaining their profit from the spread or simply an agent who transacts for others the general functionality is the same.

The U.S. Bureau of Labor Statistics (BLS) intimates that there were, as of 2006, a total of 320,000 securities agents nation-wide. The same report shows average stock broker salary earnings of around $68,000, with the lowest percentile earning an average of about $32,000 and the highest at $145,000.

The U.S. National Averages for the year 2011 shows that the base salaries for 90th percentile earns a mean of over $64,000 annually, with the 75th% coming in at $60,000 with the two lower pay scale groups coming in at around $42,000 and $48,000 respectively.

Respectable sources such as Salary.com cite average salaries of about $52,000, with information on the salaries of stock brokers giving figures ranging from about $37,000 to $101,000 depending on factors such as experience.

SimplyHired.com shows that the average for high end securities agents is about $88,000.

PayScale.com gives commission figures for the year 2010 as ranging from $5200 to about $148,000 for American stock brokers.

Commissions & Salaries

As has already been indicated above, a large part of the typical stock broker salary is determined by the commission gained from sales. The commissions earned can vary in many ways: the type of product handled, the firm one works at, the branch of the firm one works at, and the volume and the size of transactions.

Shares such as penny stocks bring in little while growth stocks and income stocks bring in appreciably larger dividends for their clients and thus larger commissions for them. For anyone seeking to venture into a career as a securities agent, one has to be aware of the numerous options out there that are available as well as the risks and gains involved.

Earlier it was mentioned that there were different ways in which brokers worked. Full-service brokers get paid the most as they offer more service to their clients; they prepare charts and do research on various stock options. As a result, they charge considerably more than other types of stock brokers.

One may also become a discount broker. These do not make large amounts on commissions as they simply transact for their clients without offering advice or doing any research for them, though most give their clients a list to research and then wait for them to reach a decision. For those seeking to join this group, knowledge of reliable stocks is a pre-requisite as they deal in volumes.

The final group is online brokers. This group runs their service online and hands over research investment news to clients. Like discount brokers, they may also give recommendations on the best options to take.

As you can see the usual stock broker salary figures can vary widely depending on the firm you work for as well as your performance and the current market conditions. The potential for a highly successful career is certainly there however like nearly anything it is likely to take a considerable amount of effort. You can learn more about other stock broker related topics such as stock broker training and education by following the topic links in the sidebar.

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