| One of the questions we get frequently is what are | | | | client book and business. From the firm's perspective, |
| the salary or earning possibilities for a stockbroker? | | | | they are offering you a chance to make an unlimited |
| That can really be 2 different questions. Firms of all | | | | income potential while using the firms resources to |
| types look for stockbroker trainees or licensed | | | | make that happen. They are giving you support, a |
| stockbrokers from other companies. For the new | | | | phone, analysis, coaching and other services to build |
| trainees, smaller companies will look to pay a training | | | | your business. They are not looking to pay a salary as |
| allowance during the training period. This can be | | | | a fixed part of your compensation. The stockbroker |
| anywhere from $250-$750 a week. This "salary" | | | | firms want you to become successful. When you |
| when working for smaller or independent firms may be | | | | make money, they do. |
| temporary. | | | | There are discount or online securities firms that have |
| The people that own or run these stockbroker firms | | | | salary positions, but this is usually just for call center |
| have a mindset that this is a commission business. | | | | reps who can take client information, but are not paid |
| Meaning, the clients you get will ultimately make you | | | | on any sales from what that client does. |
| the money. This is largely true. No Stockbroker got rich | | | | These types of jobs may be decent for people who |
| on salary. They earn their money by selling stock for | | | | are just looking to enter the business or who just need |
| commission. The firm will normally pay out 50% or so | | | | a job. Over time, most people find these jobs |
| the the broker. The more clients you have, the more | | | | unsatisfying. The real joy of this business is being paid |
| money you can/will make. | | | | for YOUR work and what you have sold to your |
| The larger firms will be more particular who they hire, | | | | clients. Yes, there is heartache with working on |
| but will usually offer more guaranteed salary. These | | | | commission as well. |
| firms will take on a new employee and will invest 6 | | | | If you are looking for the best combination of salary, |
| months or a year paying a better guaranteed salary, | | | | training and commission upside - it is probably best to |
| but the commission percentage (if there is any during | | | | look at better known stockbroker firms who have the |
| this time) will be less. | | | | time, money and support to invest in you with an |
| If you want to enter this business and become a | | | | appropriate salary before you earn on your own. |
| successful broker, you need to have a commission | | | | However, if you truly believe in your abilities and want |
| mindset. The salary or draw is really only there to give | | | | to "come out swinging", then going with a smaller firm |
| you a chance to live on something while building your | | | | may be your best bet. |