How much does a stock broker make a year

How much does a stock broker make a year

Short description

how much does a stock broker make a year? In short: total annual pay varies widely. Typical compensation combines a base salary, commissions, bonuses, and sometimes profit sharing or AUM fees; published medians tend to sit in the mid-five-figures to low-six-figures, while top producers at major firms can earn six- or seven-figure totals. This guide explains the components, data sources, percentiles, and practical steps to improve pay.

Definition and job overview

A stock broker (also called a securities, commodities, and financial services sales agent) sells securities and related financial products to retail and institutional clients. Typical duties include:

• Building and maintaining client relationships.
• Executing buy and sell orders for equities, bonds, options, and other instruments.
• Recommending investment strategies and products consistent with client goals and compliance rules.
• Opening and maintaining accounts, conducting suitability reviews, and paperwork required by regulators.
• Prospecting for new clients and growing assets under management (AUM).

Common employers include large wirehouses, regional broker-dealers, independent broker-dealers and registered investment advisors (RIAs), and discount or online brokerages. Brokers may also work in wealth management divisions of banks or as independent advisors.

Typical credentialing requirements:

• Bachelor’s degree (often in finance, economics, business, or related fields).
• FINRA registrations such as the SIE (Securities Industry Essentials) and Series 7, plus state registrations like Series 63 or Series 66, depending on role and licensing model.
• Optional advanced credentials (CFP, CFA) can increase credibility and pay.

This guide answers the central question — how much does a stock broker make a year — across experience levels, employer types, and geographies.

Compensation overview — components of pay

A broker’s pay package commonly includes multiple elements. Understanding each helps explain wide reported ranges.

• Base salary: Fixed annual pay paid by employers, more common at large firms and discount brokerages. Base ranges vary widely by firm and role.
• Commissions: Variable pay tied to trades executed or product sales. Traditional commission models pay a percentage per trade or a dollar amount per execution.
• Performance bonuses: Periodic cash awards tied to revenue generation, client acquisition, retention, or meeting sales targets.
• Fee-based AUM income: For advisors operating fee-based models, recurring fees charged as a percentage of assets under management (e.g., 0.5%–2% annually) contribute to revenue and earnings.
• Profit sharing and equity: Some firms offer profit sharing, deferred compensation, or equity stakes that boost long-term total comp for senior producers.
• Benefits and perks: Health insurance, retirement plan contributions, training, desk support, and access to research indirectly affect net pay and job value.

The relative importance of each element depends on firm business model: wirehouses often mix base + split commissions + bonuses; RIAs may emphasize AUM fees and higher retention of revenue; discount brokerages tend to be more salaried with structured bonus plans.

Reported salary ranges and medians (survey & government data)

Short description: Published figures for how much does a stock broker make a year vary by source and methodology. Government data uses broad occupational surveys; aggregator platforms use self-reported totals and job postings. Below are representative source summaries and interpretation notes.

U.S. Bureau of Labor Statistics / Occupational Employment Statistics

As of January 15, 2026, authoritative occupational data remains a key reference when asking how much does a stock broker make a year. The U.S. Bureau of Labor Statistics (BLS) reports occupational wages for "Securities, Commodities, and Financial Services Sales Agents" through its Occupational Employment Statistics (OES) program.

• Methodology: BLS OES compiles payroll and wage data from employers nationwide, reporting mean and median wages and percentile breakouts, typically with a one- to two-year lag.
• Typical BLS numbers (illustrative): the median annual wage for this occupational group has commonly been reported in the mid-five-figures to low-six-figures range. Percentiles show a wide spread, with the lower deciles often in the low five figures and the top decile well into six figures.

Interpretation: BLS data gives a conservative baseline because it covers the broad population of securities sales agents, including entry-level staff, part-time workers, and brokers in lower-cost regions. BLS figures generally exclude non-cash compensation detail and can understate top-producer earnings concentrated in a small share of workers.

Glassdoor

As of January 15, 2026, Glassdoor's aggregated “total pay” estimates for roles labeled stock broker or similar frequently show higher averages than government data because Glassdoor includes self-reported commissions and bonuses.

• Typical Glassdoor pattern: reported mean or median total pay often ranges from the low six-figures for experienced brokers at established firms, with many reports in the $50,000–$120,000 range and some senior or top-producer reports above $250,000.
• Self-reporting bias: Glassdoor captures many employees at higher-paying firms and senior producers who are more likely to share positive compensation figures, which can skew averages upward.

PayScale, Jobted, SmartAsset and other aggregator estimates

Other salary aggregators report varying figures:

• PayScale: Often shows average base salaries in the $40,000–$80,000 range, with total compensation (when commissions/bonuses are included) higher.
• Jobted/ZipRecruiter: These job-posting aggregators can display averages that reflect posted base salaries and estimated commission potential; figures vary by region and job level.
• Consumer finance sites (SmartAsset, Investopedia): Provide analytical articles summarizing median and typical ranges, and often illustrate how top brokers at wirehouses can reach six or seven figures while the median remains much lower.

Why numbers differ: Aggregators use different collection methods (self-reporting, job posts, employer submissions). The use of total pay versus base salary, inclusion of top-producer outliers, and small-sample effects at the high end produce broad reported ranges.

Pay by experience and career stage

how much does a stock broker make a year depends strongly on career stage. Typical progression and compensation bands are:

• Entry-level / Trainee (0–2 years): Base pay tends to be modest. Many trainees receive a small salary or draw against commission while they build a client base. Typical compensation often ranges from $30,000–$60,000 in total during the ramp-up period.

• Early-career (2–5 years): As brokers begin to close deals and gather clients, commissions and bonuses increase. Total pay commonly moves into the $50,000–$100,000 band, depending on region and firm support.

• Mid-career / Established (5–15 years): Brokers with a stable book of clients and recurring revenue streams typically see higher commissions, advisory fees, and bonuses. Typical ranges are $80,000–$250,000 in total comp for many mid-career brokers at traditional firms.

• Senior / Top producers (15+ years or exceptional performers): Brokers who manage substantial AUM or generate strong trading revenue can earn six or even seven figures in total compensation. These outcomes are concentrated: a small share of brokers capture a large share of industry pay.

Numeric bands above are aggregated estimates from public data and industry reporting and illustrate typical progression rather than guarantees. Early-stage pay often includes draws, deferred commissions, or transition arrangements.

Pay by employer type and business model

how much does a stock broker make a year also depends on the employing firm and revenue model.

Large investment banks / wirehouses (e.g., major bank wealth divisions)

• Characteristic model: combination of base salary, commission splits, and performance bonuses. Top producers often receive preferential payout rates and access to high-net-worth clients.
• Pay profile: greater upside for top performers; many senior brokers at large firms earn well into six figures or more. However, cost splits and internal hierarchies mean newer brokers may see lower take-home until they build a book.

Independent broker-dealers / registered investment advisors (RIAs)

• Characteristic model: independent brokers often retain a higher share of revenue (commission or fees) but bear more business expenses (rent, marketing, compliance).
• Pay profile: higher gross revenue retention can lead to higher net pay for successful producers; however, variability and business risk are higher.

Discount / online brokers (e.g., full-service retail platforms)

• Characteristic model: many roles are salaried or tied to structured bonuses; trading commissions are often limited or flat.
• Pay profile: generally lower commission opportunity for trade-based income; compensation is steadier but typically lower on average than full-service roles that rely on personal client relationships.

Pay by geography and industry

how much does a stock broker make a year is strongly influenced by location and the local client base.

• Geographic premiums: financial centers such as New York City, San Francisco, Boston, and London typically pay higher compensation due to client wealth concentration and higher revenue opportunities. Cost-of-living premiums accompany higher pay.
• Industry concentration: brokers working with institutional clients, hedge funds, or high-net-worth private clients typically have higher earning potential than those serving mass-market retail segments.

Note: local licensing and state regulatory regimes can also affect the types of products a broker can sell and thus potential revenue sources.

Percentiles and top earners

A useful way to answer how much does a stock broker make a year is to look at percentiles. Across data sources, a typical distribution looks like:

• 10th percentile: lower five-figure annual totals, often reflective of part-time or early-stage brokers.
• 25th percentile: mid-five-figure totals.
• Median (50th percentile): often in the mid-five-figures to low-six-figures across broad occupational measures.
• 75th percentile: typically into the high five-figures or low six-figures; many successful advisors and senior reps fall here.
• 90th percentile: commonly well into six figures; top producers at major firms and independent advisors with large AUM can reach several hundred thousand dollars or more.

Top earners: The upper tail includes advisors with significant AUM, strong referral networks, or exceptional sales productivity; such brokers can earn six or seven figures, but they are a minority.

Factors that influence earnings

Short description: Several interrelated drivers shape how much does a stock broker make a year. Key factors include:

• Size and quality of client base / AUM: Larger, wealthier client lists generate more fees and commissions.
• Commission splits and payout schedules: Firms differ on how revenue is shared with producers.
• Product mix: Advisory fee income (AUM) is steadier and recurring versus transactional commissions from trades.
• Years of experience and reputation: Tenure and track record typically translate to higher earnings.
• Licenses and certifications: Advanced credentials (CFP, CFA) can unlock advisory roles and higher fees.
• Firm support and infrastructure: Research, marketing, and lead generation support reduce acquisition costs and speed growth.
• Sales and relationship skills: Client retention and cross-selling drive long-term revenue.
• Market cycles: Volatile markets can boost trading revenue but also increase risk of client attrition.

How brokers are paid — common compensation arrangements

how much does a stock broker make a year depends also on the compensation model. Common arrangements include:

• Percentage commission splits: Revenue from commissions is split between broker and firm (e.g., 50/50, 70/30), with top producers negotiating higher splits.
• Fee-based AUM models: Advisors charge a recurring percentage of assets under management (e.g., 0.5%–2% annually), aligning income with AUM growth and retention.
• Salary plus bonus: Especially common at banks and discount brokerages; stable salary with performance bonus opportunities.
• Draw against commission: Brokers receive an upfront draw (advance) against future commissions during a ramp-up period; draws can be recoverable or non-recoverable.
• Retainer or hourly fees: Some advisors charge fixed retainers or hourly consulting fees, common for financial planning services.

Impact of commission-free trading and fee compression: The rise of commission-free retail trading and competitive fee compression has pushed many firms toward fee-based advisory models, restricted product spreads, or monetization through order flow and other services. This structural shift influences how much does a stock broker make a year by changing revenue sources and incentivizing recurring-fee business.

Career progression and pathways to higher pay

how much does a stock broker make a year can increase materially by following common progression steps and strategic moves:

• Typical progression: junior broker/trainee → registered representative → senior broker/private client advisor → portfolio manager or partner.
• Practical steps to increase pay:
  • Build AUM deliberately, focusing on client retention and recurring fees.
  • Develop specialization (e.g., wealth management for business owners, retirement planning) to justify premium fees.
  • Obtain advanced credentials (CFP, CFA) to expand service offerings and client trust.
  • Leverage firm relationships and in-house products for cross-selling.
  • Consider transitioning to an independent RIA or forming a boutique practice once a stable book is established to retain a larger share of revenue.

Each step increases both gross revenue potential and the business complexity an advisor must manage.

Comparison with related professions

how much does a stock broker make a year compares to related roles as follows:

• Financial advisor/planner: Compensation increasingly fee-based; median pay often similar to brokers but with steadier recurring revenue if AUM is developed.
• Investment banker: Generally higher pay for dealmakers at bulge-bracket banks, with large bonuses tied to transactions rather than client servicing.
• Portfolio manager: Compensation tied to fund performance and AUM; top portfolio managers can earn very high bonuses or profit shares.
• Proprietary trader: Pay depends on P&L attribution; may earn high rewards for profitable traders but with higher risk and different employment models.

Each role involves different skill sets and risk profiles; brokers focused on client relationships aim for recurring revenue growth, while bankers and traders are often deal- or performance-driven.

Trends, outlook and risks to compensation

Industry trends shaping how much does a stock broker make a year include:

• Automation and algorithmic trading: Reduces margins on simple trade execution and can diminish transactional commission income.
• Commission-free trading: Continues to pressure transaction-based revenue, accelerating the shift to fee-based advisory models.
• Regulatory change: Enhanced suitability and disclosure requirements can change product economics and compliance costs.
• Consolidation and platform competition: Mergers and platform monetization alter compensation structures and available resources for brokers.
• Growth of fee-based advisory models: Push toward AUM fees and subscription pricing can increase income predictability but requires scale.

Risks: Market downturns, regulatory fines, and client losses can quickly reduce variable compensation. Brokers should plan for income volatility and diversify revenue where possible.

Taxes, reporting and net take-home considerations

Much broker income is variable and taxed as ordinary income. Key points:

• Employment classification matters: W-2 employees pay payroll taxes with employer withholding; independents report self-employment income and pay self-employment tax but can deduct business expenses.
• Timing and deferred compensation: Some bonuses and deferred payouts alter the year of taxability.
• Deductible expenses: For independents, legitimate business expenses (office rent, marketing, compliance costs) reduce taxable income.

Practical advice: Consult a tax professional to structure compensation, retirement contributions, and business deductions appropriately.

Data sources, methodology and interpretation caveats

how much does a stock broker make a year depends on which data source you use. Common caveats:

• Government surveys (BLS/OES): Broad coverage, employer-supplied payroll data, conservative on top-end outliers.
• Self-reported platforms (Glassdoor, PayScale): Capture total pay but are subject to selection and upward-reporting bias.
• Job postings and aggregator data: Reflect employer-stated base salaries and do not always capture realized commissions or bonuses.
• Industry articles and firm disclosures: Useful for understanding top-producer outcomes but often highlight exceptional cases.

When interpreting figures, consider whether numbers represent base salary only or total compensation, the sample makeup, and regional differences.

How to evaluate compensation offers

When comparing offers, consider both near-term stability and long-term earning potential. Key items to evaluate:

• Base pay: Amount and whether it covers living costs during a ramp-up period.
• Commission split: Percentage of revenues you retain and any tiered improvements.
• Payout schedule and clawback terms: Timing of commission payouts and whether transfers or departures trigger clawbacks.
• Draw arrangements: Recoverable vs. non-recoverable draws affect risk.
• Benefits: Health, retirement, paid time off, and training resources.
• Support services: Leads, compliance, research, and back-office support reduce business expenses.
• Non-compete and transition clauses: Restrictions on moving clients can materially affect your ability to retain clients if you change firms.

A structured comparison matrix helps quantify short- and long-term outcomes when evaluating offers.

See also

• Financial advisor
• Series 7 license
• Registered Investment Advisor (RIA)
• Assets under management (AUM)
• Commission-free brokerage
• Investment banking

References

As of January 15, 2026, authoritative sources commonly cited in compensation summaries include the U.S. Bureau of Labor Statistics Occupational Employment Statistics, Glassdoor employer reports, PayScale and ZipRecruiter aggregated data, SmartAsset and Investopedia career guides, and industry reporting.

• U.S. Bureau of Labor Statistics (Occupational Employment Statistics) — national wage data for securities, commodities, and financial services sales agents.
• Glassdoor — self-reported total pay and company-level compensation insights.
• PayScale — base salary and compensation breakdowns.
• ZipRecruiter / Jobted — job posting aggregates and market salary estimates.
• SmartAsset / Investopedia — consumer-facing analyses on advisor pay and career paths.
• Industry commentary and firm disclosures — articles profiling top producers and compensation trends.