The profession of stockbroker is a high-risk, high-reward career. Its history is marked by boom-and-bust economic cycles. The Great Crash of 1929 wiped out many investors who were too impatient to wait for their money to grow. However, the industry has evolved since then. Today, many brokers earn a high salary. They can advance through bigger accounts, management positions, or even partnership in their own firms. They may also choose to retire after a number of years in the business.
The first step in becoming a stockbroker is obtaining a bachelor’s degree in business administration or finance. Many stockbrokers also have a Master of Business Administration (MBA) degree, which can take two to three years to earn. According to the Bureau of Labor Statistics, stockbrokers earn a median yearly wage of $71,720. The lowest ten percent of stockbrokers earn less than $32,030 a year, while the top ten percent earn more than $187,200 a year.
Depending on the type of investor you are, you may wish to choose a full-service or discount broker. Full-service brokers usually provide investment portfolio management and have human advisors to help you make wise decisions. Full-service brokers also provide research and education resources, whether in-house or from third parties. Many discount brokers offer educational resources, including webinars on advanced products and tools. These two types of brokers have distinct advantages and disadvantages.
A stock broker works in a fast-paced environment where stocks are changing every day. They have the expertise to analyze and interpret changes in stock values, helping their clients to gain profit from their investments. These professionals must also know how to attract new clients and stay current on financial information for their clients. In addition to this, they must understand how to market themselves, and how to generate word-of-mouth referrals.
When choosing a broker, remember that he or she may require a social security number as part of your identity verification. This number is required for year-end tax forms and will help you report any gains and losses from your accounts. A driver’s license or other government-issued identification is also necessary to verify your identity.
If you are new to the stock market or don’t have the time to spend with a full-time broker, an online broker may be the best option for you. These brokers offer mobile access to the stock market, financial advice, and retirement planning, and are perfect for those with limited time and/or funds.
A stock broker typically needs a bachelor’s degree in business or finance. Moreover, they need to have extensive knowledge of finance, accounting methods, economics, and financial planning. A stockbroker may also earn a master’s degree if they are interested in pursuing a more advanced career. Depending on their education level, experience, and firm, a stockbroker can earn an average of $129,890 a year.