Companies and individuals rely on stock brokers to maximize their investment returns effectively. Brokers meet with clients, discuss available services and then make recommendations on stocks, bonds and other security investments. They also monitor the growth of clients' investments and make changes to boost their returns. If you want to be a stock broker, you probably need a bachelor's degree before getting accepted into an employer's training program. Your average earnings will be above $8,400 per month.
Income and Benefits
The U.S. Bureau of Labor Statistics, or BLS, includes stock brokers under the category, "Securities, Commodities, and Financial Services Sales Agents." That said, they earned an average annually income of $100,910 as of May 2011, according to BLS, or $8,409 per month. Most of their earnings come from commissions and bonuses, which are based on the number of securities they sell. Like most stock brokers, plan on obtaining a bachelor's degree in business or finance. You will then train for four months and study for your General Securities Registered Representative Examination, according to "The Princeton Review." You must pass this exam before you can get a stock broker license through the Financial Industry Regulatory Authority.
Income by State
A stock broker's monthly income can vary significantly by state. In 2011, they earned the highest annual incomes of $160,850 in Connecticut, according to the BLS, or $13,404 per month. They also earned comparatively high incomes in New York and Massachusetts at $12,358 and $10,835 per month, respectively. If you worked in Illinois, you would earn an income closer to the national average for stock brokers -- $8,430 per month. And your monthly income in Texas or Colorado would be considerably less -- $7,355 or $6,475 per month, respectively.
Gaining experience in the industry is the best way to increase your monthly earnings as a stock broker. You will have better technical and fundamental analysis skills to predict trends for various stocks and mutual funds. Technical analysis includes reading and understanding stock charts displaying current prices and earnings per share. Technical analysis is your ability to understand corporate financial statements, which can help you select stocks that are most likely to earn clients money.
Jobs for securities, commodities and financial services agents, including stock brokers, are expected to increase 15 percent from by 2020, according to the BLS, which is about average for all occupations. The emergence of more online stock trading companies is one reason job growth for stock brokers will be just average. But the advantage of having a stock broker is their ability to select the most profitable portfolios of stocks and mutual funds for clients -- something online stock trading usually can't offer. Therefore, to be a broker, get a bachelor's degree, select a brokerage firm that has a high success rate with investments, and put yourself in the best position to succeed.
- U.S. Bureau of Labor Statistics: Occupational Outlook Handbook: Securities, Commodities, and Financial Services Sales Agents
- U.S. Bureau of Labor Statistics: Occupational Employment Statistics: Securities, Commodities, and Financial Services Sales Agents
- The Princeton Review: Career: Stockbroker
- Edward Jones: Stockbroker
- Indeed: Stock Broker Salary
- Market Technicians Association: Technical Analysis vs. Fundamental Analysis
- Jupiterimages/Creatas/Getty Images