Hollywood has propelled the profession of a stock broker in to the popularity charts with movies like ‘Wall Street’, in which Charlie Sheen plays an enigmatic stock broker. The job profile, in reality, isn’t that glamorous, and brokers have to really stretch themselves to make deals with clients. If you have ever tried to sell anything in your life, you will be well aware of the difficulties faced. A stock broker has a harder job because he has to sell stock over the phone.
To make a mark as a stock broker and earn high wages, individuals need to put in a lot of time studying the market and economic trends. Individuals with an innate ability to sell will do well in this profession. They are also required to have working knowledge of computers and finance software in order to flourish in the industry. Stock brokers with these basic skills will earn good salaries and commission in this industry.
The job mainly constitutes interacting with customers over the phone and selling them stock; the duties, however, may vary a little depending on the organization you work for. The average salary, according to national statistics, ranges between $40,000 to $70,000 per year. This number does not include the performance incentive a stock broker earns.
In most stock trading firms, an inexperienced or less experienced stock broker can expect to earn around $33,000 to $42,000 annually. Like most other professions, the salary also rises as you gain useful work experience. Figures have indicated that brokers with 2-7 years of experience earn median annual wages ranging between $50,000 to $75,000, plus bonus. Individuals with experience that amounts to 10 years or more earn six figure salaries that can range between $110,000 to $185,000 per year.
The job location also plays a major role in the salary structure of the stock broker, people living in economically prosperous regions will earn more than their counterparts working in weaker economic zones. Stock brokers working in places like New York earn anywhere between $95,000 to $110,000 annually. California also shows similar numbers with average salary being reported at $110,000 per year.
The average salary of a stock broker also depends on the employer type and financial strength of the organization. Investment banking firms pay stock brokers salaries that start at $35,000 per year and can go as high as $100,000 per year. Online brokerage firms at times tend to pay a little less with average salaries ranging from $32,000 to $70,000 per year. These figures are just to give you an estimate of what a stock broker earns annually.
Skills and Job Description
Individuals with a college degree in finance related subjects can find employment as a stock broker, however, at times, employers look for a Master’s Degree and MBA certification. People who have excellent communication and interpersonal skills will flourish in this industry. Selling skills are primary for survival in this sector and those who don’t have it will soon look for a career change.
Stock brokers will primarily buy and sell stock for their clients and they mostly do this over the phone and Internet. At times, they will meet clients face to face for transactions and to give investment tips. They will also devise retirement plans for clients and give them tax related advice with the primary aim of increasing their wealth. A stock broker will also have to prepare financial reports and presentations for the management.
If you are looking to make your career in this industry, it is advisable that you enhance your people skills and knowledge of the prevailing market conditions. According to analysts, the job outlook for this profession is good, especially after the markets showing some signs of recovery.