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Stock Broker Salary

A stock broker is often depicted as well compensated workers, but is this really the case? The job is primarily concerned with making investments for clients, deciding which stocks to buy and sell with the intent of making money. Stock brokers handle the money of other people, wheeling and dealing in a high-paced market, which can be quite stressful. In this article, you’ll find out exactly how much a stock broker makes with this.

Basic Stock Broker Salary

The average range of stock broker salary is in the vicinity of $71,000 every year. Note however that this is the ‘median’ salary which means that the amount can increase or decrease, depending on circumstances. The highest annual salary for stock brokers is estimated at $166,000 while others earn around $31,000 per year.

Like most jobs, the income of a stock broker depends on a variety of factors. This includes location, the number of clients one has, the company a person is affiliated with, the type of industry they’re in, and even the commissions provided with each trade.

Profit Sharing

There are also additional payments to the broker called ‘profit sharing’. This is essentially a share of the profits from the trade, independent of that of commissions. Just like the latter however, profit sharing is all about percentages. Hence, if a stock broker gains big on a particular trade, then their share of the profits is also extensive.

Stock Trading Salary and Commissions

Stock brokers are often provided commissions every time they successfully profit from a trade. This is the majority of where their income comes from and may increase or decrease, depending on the client base. On average, commissions can amount to $20,000 with bonuses around $10,000 annually. Note though that this again varies from one company to another.

For some stockbrokers, the commission starts to matter more than the actual salary. In fact, there are instances when the salary decreases as the commission increases, essentially boosting the payday of the broker compared to other professions. This is one of the reasons why stock brokers invest time and effort into building a decent client portfolio, therefore allowing them to significantly increase their salary.

Bearing this in mind, there is really no limit to the amount of money a stock broker may take home at the end of the month. A good stock broker could earn a 6-digit salary easily or even take home upwards of 1 million dollars, depending on experience and various other factors.

All in all, the most realistic stock broker salary for an entry-level stock broker or those with 5 years or less experience is around $55,000 to $60,000 subject to various factors. Those between the 10 to 20 experience bracket bring home around $75,000 while individuals with more than 20 years of experience have a median range of $120,000.

There are currently online calculators that should help determine how much you should be paid based on personal factors. According to Statistics, stock brokers in New York get the most decent salary for the position. However, those located in Denver take home the smallest paychecks as stock brokers.

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