2006-08-20 12:17:16 · 10 answers · asked by beer234 3 in Business & Finance ➔ Investing
As Muncie Birder pointed out, a stock broker is paid differently dependant upon the type of company he/she works for. At traditional brokerage firms a broker will get paid according to the commission schedule for whatever product he/she sells. Stock brokers sell more than just stocks. Some sell Mutual funds, individual stocks, options, annuities, life insurance, and disability insurance. Each of these products have dramatically different commission schedules. With a company that I worked for, if you sold a customer $100,000 of a mutual fund, the commission was about $250. If you sold $100,000 of a variable annuity, the commission was about $2000. Like you might expect, we sold a heck of a lot more variable annuities than mutual funds. Life insurance also has an extremely high commission relative to mutual funds and individual stocks. This dramatic difference in commissions clearly led to conflicts of interest in my opinion. It is also the main reason that I left that company. The company that I currently work for pays their brokers a straight salary based upon the number of hours worked. The pay of the broker is not related in any way to products that are sold or recommended to clients. As you might suspect, we sell much less annuities and insurance. I hope this was helpful. Good luck.
2006-08-20 19:04:31 · answer #1 · answered by Gator714 3 · 0⤊ 0⤋
1
2016-12-23 19:56:57 · answer #2 · answered by Anonymous · 0⤊ 0⤋
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How does a stock broker get paid?
2015-08-08 23:54:33 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The same way an insurance broker gets paid. They receive a commission off of the stocks they sell for whatever company they are a broker for. You buy stocks through a broker and he gets a commission off the number of stocks you buy.
2006-08-20 12:24:09 · answer #4 · answered by swomedicineman 4 · 0⤊ 0⤋
Hello,
A stock broker gets paid by a commission everytime you take your time to acquire the share of a company or everytime you make a trade.
That is why most stock brokers cheer hard at the end of the day when the stock market closes albeit the market is nose-diving because either way they make money.
To your success!
2006-08-20 13:24:53 · answer #5 · answered by Ting Ping 1 · 1⤊ 0⤋
A stock broker for a traditional brokerage firm works for commissions on his sales. Brokers for discount brokerage firms normally are salary based.
2006-08-20 12:29:56 · answer #6 · answered by Anonymous · 0⤊ 0⤋
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2016-01-17 18:02:00 · answer #7 · answered by Sunshine 3 · 0⤊ 0⤋
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2016-03-19 07:37:09 · answer #8 · answered by Anonymous · 0⤊ 0⤋
How Do Stockbrokers Make Money
2017-01-05 15:54:24 · answer #9 · answered by cassone 4 · 0⤊ 0⤋
How come all the answers below refer to "he," "his," or "him"??
Aren't women allowed to be stock brokers in the US?
2014-03-22 17:32:24 · answer #10 · answered by ? 1 · 0⤊ 0⤋