Is a stockbroker's income strictly based on commission or is there a base pay?
Trying to learn more about this field. Would it be wise to get into this field while I try to obtain a finance degree to move up the ladder? Is there even a base pay or its strictly on commission in the beginning?
I do have experience with stocks as a stock trader myself.
- Richard ZLv 51 decade agoFavorite Answer
You might get a base package for training. Commissions are pretty much the same. No matter what, plan low overhead for the first 6 months. Stock trading and stockbrokering are two different skills. Not all stock traders make it, but all good stockbrokers do stay in business because they use another system. You muct be a great prospecter and presenter along with a great track record. Oh, btw, if you are under 30, good luck, the over 50 crowd, the majority of the wealth will have serious reservations giving you business.Source(s): 15 years Certified Financial Planner, started at age 25.
- 1 decade ago
It varies between the various firms, but many do offer a form of draw where you start with a small base salary + low commission, over time the commission % increases and the salary goes down to zero, till you are on full commission. It can be pretty tough initially as you build up a base of clientele so keep that in mind to make sure you can meet all your other expenses on a low starting salary/commission.