any stock brokers here?

[bloodhound248]

hey guys, im in the middle of my third year of college pursuing a degree in business and wanna start looking into jobs that i can get afterwards. recently i've been looking into becoming a stock broker and wanted to see if anybody on here is in the field. the average salary i found while doing research was around $17,500 for the first year. if anybody here is a stock broker could you tell me your experiences with the job so far and roughly how much you were able to pull in after passing all of your series examinations?

 

[boosted306]

I am looking into becoming an advisor/broker. Your pay rate depends on what area you go into. I have had several in the field tell me to stay in "fee only" practices. 18k has been the lowest salary I have heard of yet. Morgan Stanler offers first year employee's 30k. So your information seems to be a little off. I have researched this for several weeks and talked to many advisors. Your best option is going to be googling your question. The average rate of pay is 118k if that makes you feel better. If you need any point of contacts to help you answer some questions shoot me a pm.

 

[bloodhound248]

thanks for the info i appreciate it

 

[Quadcammer]

you will be a salesman with a fancy title. The pay is not terribly impressive, and for the first 5-10 years, you will be on the phone, practically begging for money from complete strangers, almost constantly. You are just there to push stock, not be knowledgeable about securities (at most retail shops). Most brokers know very little about asset allocation or pricing. You will get bitched at when the portfolios fall, and you won't hear a ton of praise if they increase modestly either. You are also under some very strict rules.

Basically its a really crappy and cutthroat job. You have to look out for yourself because nobody else will, and the other salesmen in your office will lock you in a coat closet to get a customer's business.

If you are getting a degree from a good b-school, aim higher....much higher.

 

[Quadcammer]

I am looking into becoming an advisor/broker. Your pay rate depends on what area you go into. I have had several in the field tell me to stay in "fee only" practices. 18k has been the lowest salary I have heard of yet. Morgan Stanler offers first year employee's 30k. So your information seems to be a little off. I have researched this for several weeks and talked to many advisors. Your best option is going to be googling your question. The average rate of pay is 118k if that makes you feel better. If you need any point of contacts to help you answer some questions shoot me a pm.

the reason that the average pay rate is so high is because those not doing well (which make like zero money) just quit. That leaves the more successful brokers.

 

[bloodhound248]

you will be a salesman with a fancy title. The pay is not terribly impressive, and for the first 5-10 years, you will be on the phone, practically begging for money from complete strangers, almost constantly. You are just there to push stock, not be knowledgeable about securities (at most retail shops). Most brokers know very little about asset allocation or pricing. You will get bitched at when the portfolios fall, and you won't hear a ton of praise if they increase modestly either. You are also under some very strict rules.

Basically its a really crappy and cutthroat job. You have to look out for yourself because nobody else will, and the other salesmen in your office will lock you in a coat closet to get a customer's business.

If you are getting a degree from a good b-school, aim higher....much higher.

i appreciate the input, any specific jobs you would recommend that i should also keep my eyes open for?

 

[Quadcammer]

well, I don't know your background, school, or GPA, but I would look for some junior portfolio manager jobs, possibly some trader positions (at smaller firms), or maybe equity research.

However, to get into a good firm for the above, you will need a top notch GPA, solid work experience (internships are HUGE), and have went to a very good school.

Financial services is a tough business, but the money can be amazing if you're good.

 

[FordSVTFan]

you will be a salesman with a fancy title. The pay is not terribly impressive, and for the first 5-10 years, you will be on the phone, practically begging for money from complete strangers, almost constantly. You are just there to push stock, not be knowledgeable about securities (at most retail shops). Most brokers know very little about asset allocation or pricing. You will get bitched at when the portfolios fall, and you won't hear a ton of praise if they increase modestly either. You are also under some very strict rules.

Basically its a really crappy and cutthroat job. You have to look out for yourself because nobody else will, and the other salesmen in your office will lock you in a coat closet to get a customer's business.

If you are getting a degree from a good b-school, aim higher....much higher.

I couldnt agree more. Plus with the infiltration and ease of online trading there is a significant drop in the use of stock brokers for private accounts.

 

[Smokey1226]

I couldnt agree more. Plus with the infiltration and ease of online trading there is a significant drop in the use of stock brokers for private accounts.

+1 Im 19 and have been tradeing for a little while now and i will never use a broker. My uncle who has been doing this for many many years shows me what to look for and if he gets a word on something he lets me now. Its so easy with online tradeing.

 

[Quadcammer]

Agreed!

Brokers add very little value. In fact, if I were to ever use one (I won't), id want someone with a CFP and be registered as an investment advisor (fiduciary responsibility present).

 

[boosted306]

Here is a site that will help you with some questions. http://www.consumerismcommentary.com/2006/04/12/be-a-financial-advisor/
The most helpful information is going to be people's response to this guy's post. 99% of brokers/adviser's absolutely love their job. My advisor has been at it for 7 years and told me he wouldn't ever change. He left a high end accounting firm to pursue advising. He also said that the first year is your toughest but after that it steadily goes up hill. The strongest thing that I or anyone could recommend is if you don't know people with money DO NOT go into this field. "Cold Calling" does not turn business. Many firms will require that you do this. How many clients are you going to get when you ring their phone in the middle of a meal wanting to talk about their portfolio, not many. Several brokers have told me that getting a membership at your nearest country club will help you with business. Don't try to sell yourself, just become friends with as many from the club as possible. When they "befriend" you they will know what you do and may seek you for their investments. I would just do your research and get as well informed as I could. I took down 66 numbers of local firms and called them the other day just to ask questions and see if I really wanted to get into the field. I still do. Every one I spoke with was very positive and informative on what it would take to become successful as a broker/advisor. As for whoever said that the internet was the way to trade, Scottrade one of the largest most likely has an office near you. The man behind the keyboard types in what he wants and somebody has to make that happen. So the market for brokers has increased with this form of trading. I just set up an account with them and thirty minutes after I finished a broker called. He just explained how it works and where the fee's went to etc. (prior to this I had no clue) I hope some of this helps. Good luck with your decision.

 

[bloodhound248]

as of right now my cumulative gpa is a 3.8. the school i go to has a pretty good program, obviously there are a ton of other colleges out there with top notch programs..problem is i don't have the kind of money to attend them. i appreciate all the responses guys, its always good to hear some feedback on the subject

 

[Bens4vcobra]

wow being a broker sounds like being an insurance agent. you start out making no money, no advertising and cold calling is a must. its not for everyone.

 

[Quadcammer]

Here is a site that will help you with some questions. http://www.consumerismcommentary.com/2006/04/12/be-a-financial-advisor/
The most helpful information is going to be people's response to this guy's post. 99% of brokers/adviser's absolutely love their job. My advisor has been at it for 7 years and told me he wouldn't ever change. He left a high end accounting firm to pursue advising. He also said that the first year is your toughest but after that it steadily goes up hill. The strongest thing that I or anyone could recommend is if you don't know people with money DO NOT go into this field. "Cold Calling" does not turn business. Many firms will require that you do this. How many clients are you going to get when you ring their phone in the middle of a meal wanting to talk about their portfolio, not many. Several brokers have told me that getting a membership at your nearest country club will help you with business. Don't try to sell yourself, just become friends with as many from the club as possible. When they "befriend" you they will know what you do and may seek you for their investments. I would just do your research and get as well informed as I could. I took down 66 numbers of local firms and called them the other day just to ask questions and see if I really wanted to get into the field. I still do. Every one I spoke with was very positive and informative on what it would take to become successful as a broker/advisor. As for whoever said that the internet was the way to trade, Scottrade one of the largest most likely has an office near you. The man behind the keyboard types in what he wants and somebody has to make that happen. So the market for brokers has increased with this form of trading. I just set up an account with them and thirty minutes after I finished a broker called. He just explained how it works and where the fee's went to etc. (prior to this I had no clue) I hope some of this helps. Good luck with your decision.

1. the 99% thing is a load of shit. Just because you know a couple, doesn't mean most of them like anything.

2. this kid straight out of college is gonna join a high end country club? yeah right.

3. The only way this kid is gonna get a start in the business is cold calling.

4. as for your scottrade example, that guy is merely one of the few "brokers". When you enter a trade, it gets routed either to nasdaq or the NYSE for a floor broker to execute. All the guy at the branch does is help some people who want full service, and assist new accounts to clarify stuff. Really nothing more than customer service.

5. The reason cold calling works is because you are contacting about 200 people a day. You are only supposed to expect maybe 5 who are interested, and 1 or 2 that come in, and possibly open an account. First couple of years, you do this, do some investment seminars, and pray that some retiring broker likes you and dumps a few accounts on you.



Here is the key, APPLY FOR INTERNSHIPS NOW!!! All the big banks, UBS, citigroup, Goldman, Lehman, Bear Stearns, J.P. Morgan, Merrill Lynch, Barclays, Credit Suisse, etc all hire interns around now (actually, you're probably about 2 months late). If you get an internship, and are a good employee, they will offer you a full time position. Thats about $60k in the city, not $17k on LI.

 

[boosted306]

5. The reason cold calling works is because you are contacting about 200 people a day. You are only supposed to expect maybe 5 who are interested, and 1 or 2 that come in, and possibly open an account. First couple of years, you do this, do some investment seminars, and pray that some retiring broker likes you and dumps a few accounts on you.


How many of those 200 have money? We are in a world that lives on credit. I haven't started in the business yet so I am not sure if "cold calling" turns any business from experience. All I can go by are many hours of research and talking with investors. I hope your right because I talked with an advisor today that said that is your first year. After that you market yourself any some other things like the country club I mentioned.
Anyway, thanks for all the information, are you a broker?

P.S. for all who are interested CNN money rakes Financial Advisor/Broker 9th in an overall survey of "best" job

 

[BlackSabbath]

Are you a finance major? Look for a job on the research side of the business and then study for your CFA exam.

 

[BlueVenom281]

I work in JP Morgan's investment bank, if you have any questions I'd be happy to help answer some. I was in your shoes only a few years ago as a college senior looking for a job.

 

[boosted306]

I work in JP Morgan's investment bank, if you have any questions I'd be happy to help answer some. I was in your shoes only a few years ago as a college senior looking for a job.

What section of the field are you in?

 

[darkcrayz]

if you want to get into finance you need to get into financial advising, not being a stock broker. as stated before, with the ease of online trading brokering is sliding down except for wealth management/sma. those are bigger clients. your best bet is join a smaller firm or financial advising firm, lpl, ameriprise financial, prudential, etc.

its all sales, eventually you learn the rest of it, but its all sales. until you have some client under your best with revolving fees, assets under management you dont make money. after that if you are decent/good you can make money.

 

[Evan5469]

I've been an intern with a financial advisor for almost a year now and to be honest I haven't been doing too terribly much yet. Pretty much every single day I go in and I do research on particular stocks for him throughout the day when he asks me to. I still have one more semester to go this coming spring but after I graduate I'm hoping to be officially employed where I am and hope to make it throw the first couple of years.