In the financial industry setting we have to today, there are tons of opinions about stockbrokers, traders, and stockbroking. A lot of people believe that those who are engaged in this are millionaires walking around the metropolis wearing fancy suits and working day and night. Allow us to debunk the myth as we talk about what people say about stockbroking.
Stockbroking Is All Guesswork
Those who have never tried stockbroking before would think that everything is just guesswork– that brokers and traders often make random bets based on the direction of the market they’re in. Truth be told, in order to become a stockbroker, you need to have a great deal of experience and knowledge of economics; this includes both domestic and international matter. Through this, you’ll be able to control the financial markets with ease. Furthermore, a lot of professionals believe that everyone can be good in stockbroking– as long as he has the knowledge, experience, and determination.
Brokers Have Bad Reputations
For years, brokers have always had a bad reputation as people think that they’re selectively sharing information that cannot be accessed publicly. However, those who want to trade stocks should accept this; because whether they like it or not, they would have to deal with brokers in order to trade.
Most Stockbrokers Live in New York
A lot of people believe that the hub of the financial industry is located on Wall Street. The truth is, stock trading is done all over the world, and not just in a single country or city. Traders and brokers work from various locations, and they are not limited in Wall Street. That said, there’s a huge possibility that there are some trading offices specializing in stockbroking in your home town.
Stockbrokers Wear Suits
If asked, most people would say that they picture stockbrokers as professionals wearing formal attires most of the time– white shirt, tie, and a fancy suit. It’s far beyond from that, because a lot of traders and brokers are regular Joes working in their offices and spend a lot of time on the phone. Most of the time, these people wear casual clothes, because most stockbroker work from home and they only get in touch with people via phone. Which means, it doesn’t really matter what they’re going to wear.
The Hidden Fees in Stockbroking
Some traders think that Wall Street is good at this; that they have the ability to hide things like this in a language where common people won’t be able to understand. Most of the time, these are the fees related to inactivity, account maintenance, insert on margin, minimum balance, and sales on certain securities like the mutual funds.
Referral Bonuses to Enjoy
There are instances where the mutual funds, brokerages, and other companies want to lure the investors to take part in other forms of investments or buy more funds. To do that, brokerages offer referral fees to sign up new investors, where the funds being offered are usually good deals, but there are cases which they are not. That’s why those who are new in the business, sometimes feel pressured to the point that they’ll buy an underperformer just to get the incentive related to it.
According to CMC Markets, as well as the PayScale stock broker survey, the largest source of wages in stockbroking is the commission. Wherein, just like with other professions, experience and promotions often turn into a negligible component of their compensation– the better the broker, the more commission he can enjoy. Thus, there are cases where a stock broker can enjoy a six-figure salary from his commission sales.
Those who are wondering where this money comes from, it’s from the trade being made– the more you trade, the more you are going to pay.
How to Find Jobs As a Stockbroker
A lot of stockbrokers often start practicing their knowledge with networking. Likewise, there are those who find it easier to make contacts in the industry during their internship in college, as some markets do offer jobs to fresh graduates. Even if this wasn’t the case for you, rest assured that the people you meet along the way can be a good source of information about where you can get a job related to stockbroking.