January 2nd, 2013
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How Much Can a Trader Earn?
If you are thinking of embarking on a career as a trader or stock broker, you will undoubtedly be thinking about the potential earnings you could be making. So let’s look into this topic now in order to find out how much you could make in the future, once you have completed all the required training.
How are you paid as a stock broker?
Typically speaking you are not paid a salary. Instead you earn commission on the trades you make. This means it is virtually impossible to put a figure on the amount you will earn once you start as a stock broker.
However while this might sound depressing it actually means there is no real ceiling on your income either. The best stock brokers – the ones who are really good at their jobs – will earn many thousands of rand more than the ones who are merely good without being anything special.
Do you generally earn more if you are more dedicated to your job?
Definitely – and this applies across the world and not just in South Africa. The more dedicated you are to making successful trades, the more commission you will earn as a result. Clearly the better the trades are, the higher the profits are going to be.
Put simply, you are the person who has control over how high the ceiling is on your income. Once you understand this you can see the huge potential there is to earn a sizeable income in this profession.
Would it be true to say that those with more experience under their belts will earn more than newcomers to the world of trading?
Yes, the more experience you get the better you will become and the more money you can potentially make. If you have an off day you will not earn any money, but if you work hard and make successful trades you could make a very large amount.
However you should remember too that you are likely to work long hours. You will start before the markets open and finish long after they close. South African traders often work incredibly long days much like their counterparts in other parts of the world do, so bear this in mind.
Indeed, some stock brokers spend several years building a successful career and making as much money as they can before retiring early. It is probably fair to say most stock brokers would be unable to continue working very long days and even weekends on a continuous basis. So the idea is often to work for several years and build up a nice amount of savings so you can retire or move on to another job.
Many people are drawn to consider this career because of the money it offers. However it is wise to think about the skills you will need to be truly successful. It is not the type of job that everyone can do, so you need to think about whether it would suit you.