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Q: Stock broker income. ( Answered 4 out of 5 stars,   0 Comments )
Question  
Subject: Stock broker income.
Category: Business and Money
Asked by: clicker5-ga
List Price: $35.00
Posted: 21 Oct 2002 13:46 PDT
Expires: 20 Nov 2002 12:46 PST
Question ID: 86114
What is the income, a broker employee receives at a major (not a
discount broker) stock Brokerage Company.

I realize total income would be based on various conditions of
employment, so I will set some criteria to help with the answer.

The answer only needs to be general and approximate, nothing needs to
be specific.
 
A major brokerage company such as Goldman Sachs or Merrill Lynch. 
An ordinary customer’s man, not a partner or officer
Personal commission, on stock sale or stock purchase. 
Personal commission, on bond sale or bond purchase. 
Do they receive a commission, when funds are parked (placed) into 
their company’s cash sweep “money market fund”. 
Any base pay other than commission or bonus
Answer  
Subject: Re: Stock broker income.
Answered By: techtor-ga on 26 Oct 2002 07:20 PDT
Rated:4 out of 5 stars
 
Hello Click5, 

May I hazard an answer to your question.

I have found figures over the Internet giving averages for all
stockbrokers. The sources I used though give the sense that their
numbers are of stockbrokers working for major brokerages and firms.

Warren Arthur, who heads a stockbroker training program, gives the
2001 salary of the average stockbroker at $175,000 (annual I assume).
This is the national average for all firms in all 50 states, taken
from the Wall Street Journal (unfortunately, this I was unable to
trace).

Broker Facts - A Guide for the aspiring stockbroker by Warren Arthur
http://members.aol.com/BrokerFacts/

If you want a second opinion, an article from Morgan Wilshire
Securities quotes from the Wall Street Journal of July 14, 1999, which
gives the average stockbroker salary in 19998 as $177,000 (if true,
then I guess there’s not much change from over the few years).

Morgan Wilshire Securities, Inc. - Comprehensive Stock Broker Training
http://www.stockbrokertrainees.com/industry.htm

According to an article from the College Journal (taken from Wall
Street Journal), broker salary did have its up and down, though, based
on what I have found in:
“The average industry ‘payout,’ or percentage of commissions and fees
that a broker gets as income, has declined steadily over the past four
years, according to the Securities Industry Association, a Wall Street
trade group. In 1998, payout declined to 37.1%, down from nearly 42%
in 1994, and brokers' median income fell to $116,917, from an all-time
peak of $119,010 in 1997.”
College Journal - “Broker Schools help trainees make it big” by
Rebecca Buckman (I assume this was published in 2000 because of the
filename below)
http://www.collegejournal.com/salarydata/financial/20000830-buckman.html

If you’re looking for info on salaries in other jobs within this
industry as well as the mutual funds market, a report from the
University of North Florida gives this information:

Key Jobs:
Portfolio Manager (Mutual Funds)
$70,000 to $500,000, a handful & 1 million

Registered Rep or Account Executive
$21,000 for beginners; $140,000 standard; in the long run $250,000

Wholesaler 
$75,000; $200,000; $300,000

Analyst or researcher
$50,000 to $100,000

Financial planner
$60,000 to $120,000; select few $250,000

Sales and marketing 
$40,000 to $100,000 excluding bonuses

Customer service 
$40,000 to $65,000

While not entirely related to your question, it may give you some
bonus ideas in case you are interested in related markets. The link
for this information is below:
University of North Florida 
http://www.unf.edu/dept/cdc/services/studentdir/broker.htm

The average stockbroker salary though won’t match that of David
Komansky, Chairman and CEO of Merrll Lynch, who earns $12 million.
Yahoo Finance Information on Merrill Lynch
http://biz.yahoo.com/p/m/mer.html

On your question’s part about stockbroker compensation, I’ll quote the
Morgan Wilshire article to answer it:

“Stockbrokers, who provide personalized service and more guidance over
a client's investments, usually are paid a commission based on the
amount of stocks, bonds, and other products they sell. Sales
representatives who can provide their clients with the most complete
financial services should enjoy the greatest income stability. Trainee
brokers are usually paid a salary until they develop a client base.
This salary will eventually decrease in favor of commissions as the
broker gains the knowledge necessary to properly handle customer
accounts.”

Payscale though gives an average of $55000 for the Investment Banking
and Brokerage industry, based on a range of $37000 to $65000. This
surely covers more job descriptions than just the broker.
Payscale - ProductActivity=Investment Banking / Brokerage
http://www.payscale.com/research/aid-14327/raname-SALARY/rid-104

Search strings used on Google:
average stock broker salary
average stock broker pay
average stock broker salary study
top brokerage firms
merrill broker salary
goldman broker salary

I hope this has provided with some useful answers. Holler if you need
any clarification. Thanks!

Techtor
clicker5-ga rated this answer:4 out of 5 stars
Hello Techtor-ga:
Thank you for the answer.  
You showed me some sites, that I would never have looked at.
Kindest regards:  Clicker5-ga

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