What do retail stockbrokers do these days?
- Thread starter NTB
- Start date
make up stories like they always have.
make coin. earn 2% on assets plus 1/3-1/2 of hefty commish. zero personal risk.
yeah, it still exists. I was a broker about 5 years ago. A good firm ..not a pump and dump. they try to sell mutual funds and "planning" , bonds to old people as well. It is mostly older clientelle...and yes the commisions are HUGE. the client pays something like $40 per 100 shares...it varies by firm obviously. i remember that i sold a $250k mutual fund and some annuities or something one month...I grossed like $13,000 in commisions..i took home like $8k (keep in mind that the istitutional rate on $1,000,000 in bonds is $100 for the buy side only!). I couldnt believe people whould pay for my "service" i didnt know crap. If i could do it all over again, i would have sold just bonds, and told people to short stock...but shorting was a four-letter-word. I look back in embarrassment. All of my clients lost a lot of money becuse i didnt know crap and the firm just kept saying "buy and hold". I couldnt sleep at night. I still get quezzy thinking about it.
dac - I can 2nd that, having resigned in late July from a major firm. While commissions can be large at times, the knowledge they give reps is minimal.
they do cold calling and try to get people to sign up and have them manage their money for a small fee of 1-2% a year. its all about asset gathering for the fee nowdays.
Instant replay. Great post. Real estate agents same thing.
Anybody who sweats for, say, a month, to make $10,000 and gives it away to a salesman in 5 minutes needs to read this. Warn your friends and relatives.
Penny saved is a penny earned.
join taliban or al-qaeda.
their benefits are outstanding.
their benefits are outstanding.