some stockbroker literally screw their (client . like me ) buy high sell slow Dont really know what they r doing especially in 2000 made me buy at every dip nadaq 5000 4000 buy buy good buy 3000 buy buy a good dip to buy 2000 buy more it will go back to 5000 nadq YEA RIGHT
I got my series 1 in 1965 (They call it a series 7 now) - was a broker b4 mayday changed commissions from fixed to variable. Got "promoted" to manager of Options trading in 1973 (our firm was the first firm to buy a CBOE seat). Starting in 1975 I also headed OTC market making for a strong Regional firm. Stayed in that position till 1983. In that position I got to really see how brokers operate. In those days all orders went through the trading desk and OTC 'mark-ups' (read commissions) were usually set by the broker - not the firm, even though the firm 'made the market'.. Believe me, I can tell you everything you want to know about brokers. I can also tell you - you don't want to be one. Sure, there are a lot of honest, smart guys and gals in the buisiness, but, there are a lot that do not belong in the business. Unless you are really well 'connected' (read - know a lot of poeple with a lot of money), you will fail. In todays world, most brokers are glorified "asset gatherers". They spend all their time dialing and smiling, generally do not know very much about markets, stocks, interest rates, economy etc. I do not know the success rate but I would bet 20-1 that 75% do not make it past year 3. Good luck on whatever you decide, Wayne
A stockbroker spends his day talking and lying to as many strangers he can get to listen to him(he targets people with little knowledge about the markets and industry). He tries to convince these naive strangers that he actually trades in and is knowledgable about the markets, even though he is not. Along with telling them that eveyone else in the industry will try and screw them over and lie to them, and that he is the only honest person in the industry that they can trust(bullshit, he will actually screw them worse than the other guys). He also tries to spin and convince them that a pile of dog $hit on the ground is really a pot of gold, and that they will make a ton of money if they go with him. If you want and example of someone who does this day in and day out and exactly how they go about doing it, do a search on this website for "Don Bright", and read his posts. If you are skilled at lying and overpromising about something you know nothing about, and don't mind other people in the industry having the lowest opinion of you, then being a stockbroker is the job for you.
btw, you need amasters or equiv to be a broker at goldman. these days the preferred euphamism is FA or Financial Advisor
No one will say that the first few years are easy, unless one inherits their business from their retiring daddy or uncle John has a spare $15M to throw at a neophyte that is a few years past puberty. Those brokers that eventually gather a large amount of assets, however, can enjoy a very cushy job if they choose. Instead of pounding the phones and seminar circuit or knocking on doors (Edward Jones), they can go home at 5 pm and focus on referrals. All the while, they might be earning excellent income. Most brokers a few years in the game never cold call again. I heard from a ML branch manager that cold calling does not even work for newbies anymore. Being a broker/fa/fc/(insert job title) is viewed as a respectable career choice by most people, Wall Street and grad schools. Being a "trader" at most places today is not. Very few jobs offer the possibility of a seven figure annual income within a twenty year career. The shit and poverty involved with being a broker is all front end. Starting the business within an established team of brokers improves one's odds of success. The business may attract liars, but one does not have to lie to be successful. Some brokers, for instance, have niches in the church market or were ex- police chiefs before entering the field.
Stockbroker= salesmen. Very few (I would say less than 2% know much about the markets or how they work). They are after one thing.... a commission. Who in their right mind pays the commissions that the likes of merrill, ed jones, ubs, or any other full service outfit is beyond me. I have never used a full service broker and never will. To anyone contemplating doing so... I would offer this advice.... get yourself a discount broker.... ie IB, ameritrade, scottrade etc. Go to your local library and look for Value Line Investment Survey... has world class research on stocks and costs only your time to study it. No one will watch and take care of your money like you yourself will.
I think model has moved mainly to fee based wrap account business. Basically broker gets client, has assets managed by one of the thousands of money managers out there, manager gets a fee and broker gets a fee. If you want to be a succesful broker I think you need some kind of niche. For example, I know one retired airline pilot that has all pilot clients, a lot of them. Hundreds of millions under management.
Yes the trend is towards wrap accounts and fee-based services, and fund of funds that outsource the portfolio design and management to various outside managers. A good business is a team of 2-3 advisors, one who is a CA or CPA and tax expert, maybe one who specializes in insurance, and the other one as sales. This way it's a one stop shop for the client: they can offer value-added services like estate and tax planning, insurance, and investments. Otherwise, why should clients go to you - anyone can sell them a mutual fund and then walk away.
Hey I was wondering how much money under management a broker would need for him to earn lets say 100K a year and not have to go around cold calling anymore. I in another post had talked about being a bit older and having a lot of contacts. I was thinking about becoming a broker, but I hate salesman and I am not cold calling people all day long.