Securities, Commodities, and Financial Services Sales Agents Earnings

The median annual wage-and-salary earnings of securities, commodities, and financial services sales agents were $68,500 in May 2006. The middle half earned between $42,630 and $126,290. The lowest 10 percent earned less than $31,170, and the highest 10 percent made more than $145,600.

Median annual earnings in the industries employing the largest numbers of securities, commodities, and financial services sales agents were:

Because this is a sales occupation, many workers are paid a commission based on the amount of stocks, bonds, mutual funds, insurance, and other products they sell. Earnings from commissions are likely to be high when there is much buying and selling, and low when there is a slump in market activity. Most firms provide sales agents with a steady income by paying a “draw against commission”—a minimum salary based on commissions they can be expected to earn. Trainee brokers usually are paid a salary until they develop a client base. The salary gradually decreases in favor of commissions as the broker gains clients.

Investment bankers in corporate finance and mergers and acquisitions are generally paid a base salary with the opportunity to earn a substantial bonus. At the higher levels, bonuses far exceed base salary. This arrangement works similarly to commissions but gives banks greater flexibility to reward members of the team who were more effective. Since investment bankers in sales and trading departments generally work alone, they generally work on commissions.

Brokers who work for discount brokerage firms that promote the use of telephone and online trading services usually are paid a salary, sometimes boosted by bonuses that reflect the profitability of the office. Financial services sales agents usually are paid a salary also, although bonuses or commissions from sales are starting to account for a larger share of their income.

Benefits in the securities industry are generally very good. They normally include health care, retirement, and life insurance. Securities firms may also give discounts to employees on financial services that they sell to customers. Other benefits may include paid lunches with clients, paid dinners for employees who work late, and often extensive travel opportunities.

Source: Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2008-09 Edition, Securities, Commodities, and Financial Services Sales Agents, on the Internet at http://www.bls.gov/oco/ocos122.htm  (visited March 15, 2009). Used by permission.