What is a day in the life of a stockbroker?
The trading environment is a fast-paced, high-intensity workplace and brokers may make more than 100 trades per day, depending on their approach. During trading hours, stockbrokers continually monitor the market and make assessments on trades, whether buying or selling, to maximise profit for their clients.
A stock broker's day is all about trading. They start off the day researching and contacting their network of clients to discuss their portfolios before making any moves. They make plans for what to buy and sell.
Brokers make a decent salary, working through the day ensuring smooth transactions between their clients and the exchanges. Brokers can physically present trades but more often than not, brokers monitor trades from their computers and are only needed to intervene in the case of an exceptionally large or unique trade.
After the closing bell, stockbrokers need to spend time marketing themselves, networking, and building their client base. Some stock brokers work 12-hour days, while others work regular business hours, starting early in the day.
A Typical Day for a Stockbroker
A broker gets to work early to read financial news and begin researching trades. The day typically starts at around 6:30 or 7:00 with market research and responses to client emails. When the stock exchange opens at 9:30, the broker begins buying and selling stocks for clients.
The brokerage industry can be rewarding, but also demanding and stressful. You may face long hours, tight deadlines, high expectations, and intense competition.
After the closing bell, stock brokers need to spend time marketing themselves, networking, and building their client base. Some stock brokers work 12-hour days, while others work regular business hours, starting early in the day.
Myth #1: All Stockbrokers Make Millions
The average stockbroker doesn't make anything near the millions that we tend to imagine. In fact, some lose a lot of money through their trading activities. The majority of companies pay their employees a base salary plus commission on the trades they make.
Brokers often work more than the usual 40 hours a week. They may put in nights and weekends contacting prospective customers or conducting investment seminars to generate leads for new securities clients.
Stock brokers work in very fast-paced offices, monitoring changes to the stock market diligently to make informed decisions on behalf of their clients. Since stock brokers do not buy and sell for themselves, they have to consult with their clients and advise them.
What do stock brokers do on weekends?
It's not uncommon for new brokers to spend four to six hours on Saturdays doing some kind of marketing as well. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts.
How Does a Brokerage Firm Make Money? Generally, brokerages make money by charging various fees and commissions on transactions they facilitate and services they provide. The online broker who offers free stock trades receives fees for other services, plus fees from the exchanges.
Traders generally work for larger firms and buy and sell securities on behalf of those firms. Unlike traders, brokers can also serve as sales agents on their own behalf. Brokers must manage a slate of regular individual customers and they have direct contact with clients.
If you're quick on your feet and enjoy a fast-paced work environment, you may enjoy a career as a stockbroker. Stockbrokerage is more than just market analysis—in fact, it can be a fairly social and exciting job. Most firms require applicants to have a bachelor's degree and pass a few qualification exams.
There are over 43,185 brokers currently employed in the United States. 36.2% of all brokers are women, while 63.8% are men. The average broker age is 49 years old.
Stock Broker age breakdown
The average age of stock brokers is 40+ years years old, representing 58% of the stock broker population.
- Must be able to handle rejection and stress.
- Competitive work environment.
- May require excessively long work hours.
- May have a hard time building a client base due to the rise of online trading.
| Job Title | Annual Salary | Monthly Pay |
|---|---|---|
| Vice President Stock Broker | $157,532 | $13,127 |
| Inter Dealer Broker | $127,249 | $10,604 |
| Principal Broker | $109,393 | $9,116 |
| Financial Advisor Broker | $102,134 | $8,511 |
Compensation structure
Stockbrokers typically receive a base salary plus commissions and fees. Brokers who sell more financial products or work with larger clients are likely to earn higher commissions and fees, resulting in higher salaries.
It takes at least four years to earn a bachelor's degree to become a stockbroker. Some stockbrokers may choose to earn their master's in business administration to enhance their credentials.
Do you get 3 day trades per broker?
Essentially, if you have a $5,000 account, you can only make three-day trades in any rolling five-day period. Once your account value is above $25,000, the restriction no longer applies to you. You usually don't have to worry about violating this rule by mistake because your broker will notify you.
Is being a stockbroker a good career? Stockbrokers can earn high salaries throughout their careers and achieve. One of the major benefits of this job is that you earn commissions and bonuses that can significantly enhance your base salary.
Ideally, a prospective stock broker will earn a bachelor's degree in business or a finance-related discipline such as accounting, economics, finance, business administration, marketing, management, or a similar degree.
| Annual Salary | Monthly Pay | |
|---|---|---|
| Top Earners | $192,500 | $16,041 |
| 75th Percentile | $181,000 | $15,083 |
| Average | $101,533 | $8,461 |
| 25th Percentile | $57,500 | $4,791 |
Commission-free brokers typically receive payment (in the form of rebates) from market makers, who pay for the privilege of buying what you sell and selling what you buy. Market makers profit from the bid-ask spread (when you buy from a market maker, it's at the “ask” price, and when you sell, it's at the “bid” price).
