Stock broking is a career than many people may feel like they would like to do because it is something that is known to pay well. Obviously the pay will vary depending on where they work and who for. However, as a lot of it is based on commission then this can have a big effect on the salary.
How Does a Broker Charge?
When you are making trades on the stock market it is common to use a broker to do this for you. It is not possible for an individual to make a trade by themselves. A broker will charge you per transaction and so whether you are buying lots of a few stocks you will have to pay a one off fee to cover their time. They may run their own company or work for a company of stock brokers of a financial institution. They may charge different amounts depending on the company that they work for. This is important for those people who want to make trades on the stock exchange because it is important to understand the cost. If you only have a small amount of money to invest then paying a fee for those trades could mean that it is simply not worth making those trades at all. You may decide to perhaps put all your money in one trade rather than splitting it between several, so that the cost is lower. This will mean that you will be taking a higher risk and so you will need to decide whether this is the right sort of investment for you.
How Much Do They Get Paid?
The amount that a stock broker gets paid will vary depending on where they work and who for. Some will work for companies and they may get a salary, perhaps a small one plus commissions on trades or maybe a fixed one. This may very much depend on whether they also work as an investment advisor, which would attract a salary. If they are self-employed then they will only get paid when they charge a customer for a trade. Some may take a flat fee, which could be charges, yearly, quarterly or monthly. These fees would depend on fee agreements, account balances and account activity and some may prefer to pay this way. Whether it is cheaper for the customer will depend on how many trades they are making compared to how much is in their account. It is worth asking the stockbrokers to give a breakdown of charges to allow you to be able to calculate what the fees would be in different situations to allow you to pick the one that would seem the cheapest. It is very important for traders to know how much they are paying for a stock broker as they may be able to offset that charge against any capital gains they make so that they do not have to pay so much tax, but it is worth investigating this first to ensure you do pay the right amount.