November 12th, 2012
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Discover How Much a Stockbroker Can Earn
For those who wish to earn a lucrative salary, becoming a stockbroker can be an effective way to do so. Stockbrokers connect sellers and buyers of stocks and other investment securities. This process ensures that those who need capital get it while those who wish to use capital to earn money can achieve that goals as well. How much you can earn in this field, though, is not as easy to determine since most who work in the field do so on a salary plus commissions. That means they earn the bulk of their money from the successes of the trades they helped to make.
Salary or Commission?
One of the biggest considerations when determining how much an individual can earn from working as a stockbroker is determining how the pay is made. In most cases, entry level of trainee stockbrokers will earn a salary from the bank or other investment company they are working with for a few years. During this time, the individual is expected to seek out new clients and to grow his or her own client base. In doing so, the company will move the individual towards a commission-based salary. Many companies also pay bonuses to both commission and non-commissioned individuals if they achieve specific goals.
How Much Can You Earn?
There is a large range of earning potential in this field. According to some resources, individuals working as a stockbroker may earn between R195,000 up to R545,400. This is always determined on skill and success within the market though. Bonuses can range from being nothing to being as high as salaries or higher. However, most companies will provide specific information to the individual about what he or she can earn before entering the job. This will be a contract-based type of employment in most situations.
Is There Money to Be Made?
The South African stock market is the 10th largest in the world. As such, it promises half of a million transactions annually, sometimes more and sometimes less. Each one of these transactions can afford the processing stockbroker some type of profit depending on his or her action in the situation. In other words, stock market trading is a growing, in-demand industry in South African and around the world.
Individuals can work through their own business or work with investment companies. This also affects how much money can be earned. In many situations, individuals who are able to build a strong customer base will be able to earn significantly higher than the above listed median range. In other cases, these individuals will earn less when their investments do not work out as thought. Even in a reduced economy, skilled stockbrokers and traders are able to make wise investment decisions that can trigger profits for their investors.
Those who are able to work the markets well and who have ample experience in the field, will earn the highest amount in this field. South African earnings are on par with earnings from other stock market investing throughout the world.