What do stockbrokers earn

Learning about the primary responsibilities for a stockbroker as well as the educational requirements is a good place to start as you're evaluating whether a career as a stockbroker is right for you. In this article, we explore what a stockbroker does, the steps you should take to pursue this career and the most frequently asked questions about a career as a stockbroker.

A stockbroker is a licensed professional who has the authority to buy and sell stocks and other securities on behalf of clients, either individuals or institutions. They receive their payment through a commission in the form of a flat fee or percentage of the value of the transaction. Stockbrokers must be well-versed in the markets and can offer advice on when is the right time to buy and sell.

They're responsible for finding their clients the best prices on stocks. Their primary duties include:. Many stockbrokers earn a commission based on the value of the products they sell, and most firms pay them a minimum salary in addition to their commissions. New stockbrokers usually earn a salary until they develop a base of clients, and then the salary gradually decreases and they earn more from commissions.

Here are the basic steps you can follow to become a stockbroker:. Most employers require a bachelor's degree to qualify for entry-level positions in securities, commodities or financial services. There is no specific degree required, although a four-year degree in business, economics, finance or accounting is preferred.

Some of the coursework that will be most useful for this career includes statistics, mathematics and quantitative analysis. To gain a competitive advantage over other candidates, you may also want to pursue a Master of Business Administration.

Employers often reward candidates who have obtained their MBA with more advanced positions, better compensation and larger signing bonuses. As you are pursuing your degree, look for internship opportunities. Simplified Financial Newsletter Stay up-to-date with our trading guides, articles and broker reviews! Author Stefano Treviso. Popular Guides.

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Table of Contents Expand. Becoming a Broker or Trader. Myth 1: Making Millions. Myth 2: Wearing Formal Attire.

Myth 3: Beating the Market. Myth 4: Working in New York City. Myth 5: Rich and Happy. Myth 6: Rich Families. Key Takeaways There are many misconceptions about securities traders and the people employed by banks and hedge funds on Wall Street. Other common misconceptions about stockbrokers are that they all live in New York City, all come from rich families, and all make random Las Vegas-style bets when trading stocks.

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