Thanks to popular films like Wall Street, many perceive stock brokerage as a well paying and glamorous profession.
Well, it can be for many people, but it takes hard work, long hours and plenty of experience to get there.
To help us find the real answers, let’s do an analysis of how much money a stock broker makes:
How Much Money Does a Stock Broker Make?
Presented below you’ll find information from the Bureau of Labor Statistics that show the median wages for stockbrokers.
This includes salary (which would normally decrease as stockbrokers build their client base) and fees/commission plus bonuses.
Industry: Securities and commodity contracts intermediation and brokerage
(Hover over graph to see values)
How Much Money Does a Stock Broker Make in Top Paying States:
The state in which a stock broker is employed plays a big role in determining how much s/he will earn.
These are the top paying states:
- New York – $139,140
- Connecticut – $119,370
- Massachusetts – $117,610
- District of Columbia – $93,870
Other states Kansas and Mississippi are also where stockbrokers typically earn higher than average incomes at $83,600 and 80,710 respectively.
The lowest paying states are as follows:
- Wyoming – $38,680
- New Mexico – $38,950
- Nevada – $40,660
- Kentucky – $44,600
Other than focusing on the state, it’s also worth checking the location of your company.
This is based on the fact that stock brokers working in metropolitan areas earn much more than those working in smaller towns.
For instance, stock brokers working in Bridgepoint metropolitan area in Connecticut earn $136,930 per year – higher than the state average for brokers.
Similarly to other professions, a stock broker’s salary is influenced by the experience they bring to the table.
And, as one gets to learn the ropes of their profession, establish strong relationships with clients and bring in more money to the firm, the more they end up getting paid.
This being the case, you’ll find a lot of stock broker trainees not making more than $40,000 per year.
This is because trainees are learning the profession by studying for licensing exams and receiving instruction from more experienced co-workers.
In fact, it cost money for the firm to train stock brokers.
However, once they begin building a client base, then their salary will decrease as they generate commissions which can far exceed their base salary.
How Much Money Does a Stock Broker Make (Employer):
The company you’re working for holds a lot of weight in determining how much you’ll be earning. Find compensation plan updates, benefits packages and related news from the firms listed below:
In addition to all this, you need to remember that a good education comes in handy, so does your aggression – for it can afford you higher commissions.