How many retail brokers are there? 
I'm NOT asking about the $$ turnover of retail securities trading, but
rather about the number of agents/brokers/dealers who received the
orders from the investors. It should be the sum of traders working for
Charles Shaub, Meril Lynch and the other retailers in the US or all of
North America or in the entire world.
The answer MUST give me a link to the source of the information which
MUST be from research done from 2002 and onwards.

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Request for Question Clarification by bobbie7-ga on 04 Nov 2003 13:51 PST

Hi Bengurion,

I located the number of brokers in Morgan Stanley and Merrill Lynch 
in a May 2003 business journal article.

Would this information be useful for you?

Thanks,
Bobbie7

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Clarification of Question by bengurion-ga on 04 Nov 2003 13:56 PST

A certain brokerage is helpful, but I need the entire market. (isn't
that info that shouldn't be around somewhere?

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Request for Question Clarification by easterangel-ga on 04 Nov 2003 15:19 PST

Hi! 

I found a list, updated as of October 30, 2003, of registered
broker-dealers. The list is composed of US broker-dealers. I can count
the number of firms for you. The definition of broker-dealers are
available below.

"broker-dealer - Any person, other than a bank, engaged in the
business of buying or selling securities on its own behalf or for
others."

Federal Reserve Bank Minneapolis: Glossary
http://minneapolisfed.org/glossary.cfm#b

Remember the list will only be composed of Broker Dealers in the US.
So would a number of broker dealers registered in the US only be
enough as a legitimate answer?

Thanks!

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Request for Question Clarification by markj-ga on 05 Nov 2003 13:18 PST

bengurion -- 

I can give you a total number of the licensed agents (commonly known
as "brokers") employed by securities dealers in the U.S. to deal with
the public  It comes from an extremely authoritative source but the
actual research on which it was based is not described (but appears to
me to be unnecessary in light of the source).  I have not found a
similar total for the entirely of North America (i.e., essentially
U.S., Canada and Mexico) or for the entire world.

Since we want you to be completely satisfied, I am asking whether this
would be a completely satisfactory answer to your current question. 
Alternatively, you could split the question into two or three parts
and lower the price for the U.S. information accordingly.

markj-ga

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Clarification of Question by bengurion-ga on 05 Nov 2003 15:25 PST

I will explian WHY I need that info: I want to sell software for the
computers of these brokers/dealers. So I want to know how many are
they out there.
 
easterangle - I didn't understand if you are talking about individuals
or companies. If it is registered companies - it is not interesting.
If individuals (remember I want to sell SW to them) - we move to the
next question.
Second, it must be clear if these are active/working, or is this a
list of everybody who ever got his license. The second type is of no
interest.

markj - If this list is up to date (last year) and if it relates to
active employment - it seems like what I need.
About it being only in the US - as I am still working off my
resources, I will take you up on the slitting option. How about 17$
for the US alone - is that fair? If so, do I need to post a new
question?
Good job and thanks (check out my question about Mistakes in entering trades)

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Request for Question Clarification by markj-ga on 05 Nov 2003 16:20 PST

bengurion --

I'm sorry I didn't respond to your latest clarification sooner, but
the question was locked by another researcher.

Based on your clarification, I need one last bit of guidance from you.
 Your question seems to seek only a number -- "the sum" of the brokers
employed by securities dealers.  However, your last clarification
referred to "a list."  I can't provide you with a list, but I can
provide you with the total number, which would give you a handle on
the size of the market you intend to serve.  Am I right that this is
what you want?

If so, you can change the price of the question by going to "My
Account," selecting "My Unanswered Questions", clicking on the
question, and
then clicking on "Change Question Parameters" to modify the pricing.
And your suggestion of $17 for the U.S. information sounds fair to me.

markj-ga

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Clarification of Question by bengurion-ga on 05 Nov 2003 22:08 PST

markj - Done as you suggested.

bengurion --

Thanks for your patient cooperation in making sure that this answer is
fully responsive to your question.

Let me start with a direct answer to your question and then explain
why it is a reliable number that will give you a good idea of the
market you are hoping to serve with your software.

The number you are seeking is 664,000, which comprises virtually all
of the "registered securities representatives" that are currently
"doing business with the U.S. public."

The source for that number is the National Association of Securities
Dealers ("NASD"), which offers the following statement on its Web
site:

"Under federal law, virtually every securities firm doing business
with the US public is a member of NASD. Roughly 5,300 brokerage firms,
over 94,000 branch offices and more than 664,000 registered securities
representatives come under our jurisdiction."
NASD: Corporate Information
http://www.nasd.com/corp_info/corp_ov.asp

What is the NASD and why is it a reliable and authoritative source for
this information?

NASD is not a trade association but an entity whose primary function
is the self-regulation of the securities industry.  Here is a
description of NASD by the Investor Data Exchange:

"The NASD is a self-regulatory organization working as a compliance
arm of the Securities and Exchange Commission (which in itself works
under authorization from the U.S. Congress) . . . Firms that have NASD
authorization are often called Broker/Dealers. These firms can be as
large as Merrill Lynch, or as small as a one man operation."
Investor Data Exchange
http://www.pre-ipo-investing.org/NASD.html

Are "registered securities representatives" the right universe of
professionals for your business plan as you described it?

Apparently, yes.  Here, from Business Week, is the definition of a
"registered representative:"

"A registered representative is a person who services the investment
needs of broker-dealer customers. This individual is generally known
as a broker. These brokers, whose firms are member organizations of a
national exchange, must be certified by passing background
requirements and the Series 7, a test of general securities
knowledge."

Business Week: Glossart: Registered Representative
http://bwnt.businessweek.com/Glossary/definition.asp?DEFCode=R19


Is the 664,000 figure a current total?

The mission and reputation of the NASD is so important to the
securities industry that I think that information so prominently
contained on its Web site can be trusted.

In any case, here are excerpts from the annual reports of the
Securities and Exchange Commission that contain the total number of
registered representatives at the end of 2000 (652,000), 2001(683,000)
and 2002 (675,500):

Securities and Exchange Commission: Regulation of Securities Markets:
2000 (PDF file)
http://www.sec.gov/pdf/annrep00/marketr.pdf

Securities and Exchange Commission: Regulation of Securities Markets:
2001 (PDF file)
http://www.sec.gov/pdf/annrep01/ar01marketr.pdf

Securities and Exchange Commission: Regulation of Securities Markets:
2002 (PDF file)
http://www.sec.gov/pdf/annrep02/ar02marketr.pdf


The SEC's report for 2003 has, of course, not been prepared yet, but
these "official" totals of registered reps for 2000, 2001 and 2002
(which were undoubtedly compiled by NASD) support the conclusion that
the 664,000 figure at the NASD site is an updated total.


Additional Site:

Here is a link to the home page of the NASD.  You may find it very
useful in providing information about the market in which you are
interested.  The organization also invites the public to contact it,
and complete contact information is available at this site:
NASD
http://www.nasd.com/default.asp


Search Strategy:

Based on my personal knowledge of the NASD's function, I first went to
its Web site and discovered the basic information you are seeking. 
Most of my research time was spent verifying the information using a
variety of focused Google searches, including the following:

"total of" "registered reps OR representatives" 
://www.google.com/search?sourceid=navclient&q=+%22total+of%22+%22registered+reps+OR+representatives%22++2002

"registered representative is"
://www.google.com/search?q=%22a+registered+representative++is%22&btnG=Google+Search&num=100&hl=en&lr=&ie=ISO-8859-1

"regulation of securities markets" SEC 2003 [also searched using 2002,
2001 and 2000]
://www.google.com/search?sourceid=navclient&q=%22regulation+of+securities+markets%22+SEC+2003


Based on our clarification "conversation," I am confident that this is
the information you are seeking.  If anything is unclear, please ask
for clarification before rating the answer.

markj-ga