Anyone who has seen the film "Wall Street" knows in broad terms how a stock trader or broker works. But as so often, there are some differences between film and reality: the profession of a stock trader is certainly exciting, but by far not as thrilling as in the movie. What tasks does a stock trader have and how much can one earn in this profession? Do you need vocational training and what distinguishes a broker from a securities trader?
What does a stock trader do?
The word broker literally means intermediary and refers to a securities or stock trader. The tasks of a stock trader are to execute transactions in stocks and other securities for banks, companies or private individuals. The broker buys and sells securities on the stock exchange for their clients, but they also prepare analyses and write reports about companies and sectors that are listed. The profession of a securities trader is always based on trust, because clients sometimes invest very large amounts of money based on their recommendations.
How much does a broker earn?
When Earnings it always depends on the respective industry, the order volume and also on the clients. A broker at CMC Markets, who is active in CFD trading for their clients, earns differently than a broker who works on a self-employed basis. As a rule, securities traders receive a commission or a brokerage fee. If a client, for example, wants to invest €100,000, the broker looks for a tailor-made solution. They monitor the prices, wait for the right market developments and then buy or sell the securities. In stock trading, commission rates range between one and three percent; with an order volume of €100,000 the broker would receive a maximum of €3,000 for their work. Good brokers earn up to €7,000 per month, plus possible bonus payments. A six-figure annual income is therefore not uncommon for a broker.
Not a vocational training occupation
Being a stock trader is neither a vocational training occupation nor can one become a broker through university studies. What can be very helpful, however, is a commercial apprenticeship or a degree in business administration. Many clients want to know more about the broker who will work for them, and it always looks good on a CV to be able to demonstrate solid training, for example at a bank. Anyone who wants to set up as a self-employed broker must have a licence under current stock exchange law, and anyone who wants to work as a broker for clients not only in Austria but also in other European countries should also have very good English skills.
