The people that own or run these stockbroker firms have a mindset that this is a commission business. Meaning, the clients you get will ultimately make you the money. This is largely true. No Stockbroker got rich on salary. They earn their money by selling stock for commission. The firm will normally pay out 50% or so the the broker. The more clients you have, the more money you can/will make.
A stock firm does not pay much in salary. $250-$500 weekly during training is the average. So, if a firm hires someone at $350 a week, the upside to the firm is high. You have to consider the initial loss of income when entering this business. If you are 20 years old, you might not consider that pay in the beginning as that low. Older workers with more personal and financial responsibilities have to consider it a little more.
To put it simply, stockbrokers look at the previous trends of companies and attempt to predict what their future trends will be given their history and current variables. The stockbroker’s job is to sell stocks. Most make a commission on every stock they sell. Why, then would they bother to do any research on your behalf? Well, some stockbrokers do not bother with research. They are only interested in the commission they can make off of you right now, so they pitch the newest company on their firm’s radar and hard sell to get you to buy in. Other stockbrokers represent the best of the industry; these model stockbrokers want to keep you as their customer. If their research pays off, you might choose to invest more money with their brokerage firm, which means more money for Mr. Stockbroker.
When Wall Street began losing jobs in late 2000 and for several years after, many brokers and advisors began careers as mortgage processors or mortgage brokers. The mortgage finance industry was booming. With interest rates low and the economy slower, homeowners were looking to take advantage of the equity in their homes or looking to refinance. People who were in these jobs at mortgage companies made a lot of money. People had needs and the environment was ripe for big business.
The aftermath of capitalization in the banking industry in Nigeria is that banks bought into many stock broking firms and some established investments/stock broking subsidiaries. Consequently many stock broking firms are either subsidiaries or affiliates of banks. This is also because banks now have huge amount of money at their disposal and are under intense pressure from the shareholders to deploy the money to generate returns for shareholders. Remember that money, whether in form of equity or debt is always at a cost.
Regular brokers are further divided into two kinds: the full-service brokers and the discount brokers. If you want a more extensive array of services which includes financial advice, research and analysis, retirement planning, and investment tips, then a full-service broker is the one for you. These services will cost you a lot though; full-service firms charge higher commissions and fees than discount brokers. If you have the time and resources to do your own research on the stock market and you feel that you are fully capable of making intelligent investment decisions, then a discount broker should be enough to work for you. They simply execute your trades with no added frills and charge less than a full service brokerage.
A large number of graduates of Accountancy and Actuarial find themselves taking jobs in public accounting firms. These jobs are paid internships that give the employees a great chance of gaining good experiences by working with different local agencies and companies. After gaining as much experience as they can in the field, helping out clients prepare their taxes and file their tax refunds, most of these employees make their way to advance into higher or principal positions. In order to do that, however, they must acquire a Certified Public Accountant (CPA) license. However, the best accounting graduate job is still to become your own boss. A lot of Accounting graduates and CPA’s all over the world put up their own accounting firms after years of public service.
You need to register for the free online trading platform which does most of the work for you. It shows pricing trends and shows you charts which help you understand price fluctuations. The keys to successful trading is to stay focused and not get greedy. Most people who start trading always make the mistake to trying to go for the killer payout and lose the opportunity to take a profit. You need to set a target and stick with it. Another important point, don’t invest more than you can afford to loose.
A third consideration on entry-level finance jobs is the nature of the job that a graduate accepts. Indeed, the chances of rising through the ranks decrease if a professional doesn’t enjoy their job and bring the same level of effort day in and day out. A professional who wants to help people directly may wish to work as a financial planner or advisor and rise to departmental management after years of commitment to client success. Another professional that thinks of finance in terms of larger companies, or even governments, may desire to make their way as a stockbroker or corporate financial professional, rising through the ranks by networking with prominent clients. All these considerations are important when thinking of the best entry-level finance job for a particular graduate.
If you have the desire to be a stockbroker, your task is to advise your customers so they know when to buy and sell stocks; you must, in each and every transaction, achieve the highest profitable transaction.