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 theres 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 youre 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 wont 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 questions part about stockbroker compensation, Ill 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:
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I hope this has provided with some useful answers. Holler if you need
any clarification. Thanks!
Techtor |