How much does a broker make? It's enough to make a person wonder how much does a broker make when you consider that he or she acts as a liaison for a buyer and a seller. Working as a broker can be a lucrative profession, although employment numbers and opportunities can be more sensitive to economic fluctuations compared to other relatively stable jobs such as being a police officer.
There are some factors to take into consideration when you want to find out how much does a broker make, such as the particular industry involved. Other factors that can influence a broker's salary include experience and location.
A Broker's Pay Scale Based On Industry Subtype
Brokers' services are required in virtually all businesses in which sale/purchase transactions take place. Brokers for real estate, insurance and stock trading are the most common examples.
Even importers/exporters may need the assistance of a customs broker, who assists in the clearance of goods through customs. Clearance involves preparation and submission of relevant documents, payment of any related taxes, duties, excises as well as facilitation of communication between the business and government authorities. The question of how much does a broker make on average per year can vary greatly based on the industry in which the broker works.
Insurance – $41,108 to $82,248
Real estate – $35,339 to $76,857
Mortgage – $35,648 to $93,555
Stock – $35,769 to $71,758
Customs – $38,045 to $59,581
Futures/options – $36,116 to $67,115
Securities/commodities – $35,164 to $71,979
Business – $36,129 to $81,166
Foreign exchange – $37,500 to $71,250
Broker/floor representative – $34,873 to $54,000
Making Experience and Location Count
Depending on his or her years of experience in a particular industry, the average annual salary a broker can expect to draw falls within the following ranges:
One year or less – $29,008 to $63,725
1-4 years – $33,362 to $53,232
5-9 years – $40,090 to $77,933
10-19 years – $41,798 to $90,754
Twenty or more years – $48,651 to $118,263
California is one of the more lucrative states in which brokers can make a living. In particular, insurance brokers ($42,981 to $97,613), real estate brokers ($39,671 to $100,000), mortgage brokers ($60,505 to $158,709) earn the most in this state, while working in New York is a good source of income for futures/options brokers ($43,549 to $117,322) and stockbrokers ($49,700 to $121,523).
Brokers' Salaries Can Differ Based On the Employer
The average annual salary for a broker can also vary based on the type of employer a broker has. Generally, self-employed brokers can earn more than brokers working for a particular company, as in the case of:
Real estate: self-employed – $38,787 to $116,026 annually; company employed – $34,423 to $71,787
Customs: self-employed – $39,000 to $69,600; company employed – $38,368 to $59,387
Stock trading: self-employed – $76,302 to $137,569; company employed – $35,898 to $62,560
Mortgages: self-employed – $39,663 to $217,817; company employed – $32,853 to $85,721
The ideal broker has to be personable, mature and possess good judgement in order to attract and retain clients. These traits become more important during recessions as they aid the broker in maintaining the volume of work received.