Anyone who has seen the film “Wall Street” knows in broad strokes how a stock trader or broker works. But as is often the case, there are some differences between film and reality: the job of a stock trader is exciting, but by far not as thrilling as in the movie. What tasks does a stock trader have and how much can you earn in this profession? Do you need training and what distinguishes a broker from a securities trader?
What does a stock trader do?
The word broker translates as "agent" and refers to a securities or stock trader. The tasks of a stock trader include executing 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 industries listed on the stock exchange. The profession of a securities trader is always based on trust, because clients sometimes invest very large sums of money based on their recommendations.
How much does a broker earn?
At the Earnings it always depends on the respective industry, the order volume and also on the clients. A broker at CMC Markets, who works for his clients in CFD trading earns differently than a broker who is self-employed. As a rule, securities traders receive a brokerage commission or an intermediary fee. If a client, for example, wants to invest €100,000, the broker looks for a tailor-made solution. He watches the prices, waits for the right price developments and then buys or sells the securities. In stock trading, commission rates are between one and three percent; with an order volume of €100,000 the broker would receive at most €3,000 for his work. Good brokers earn up to €7,000 per month, plus any potential bonus payments. A six-figure annual income is therefore not uncommon for a broker.
Not an apprenticeship occupation
A stockbroker is neither a formal vocational profession nor something you can become simply by completing a degree. What can be very helpful, however, is commercial vocational training or a degree in business administration. Many clients want to know more about the broker who is to act on their behalf, and it always looks good on a CV to be able to demonstrate solid training, for example at a bank. Anyone who wants to become self-employed as a broker must have authorization under the applicable stock exchange law, and those who want to work as brokers for clients not only in Austria but also in other European countries should also have very good English skills.
