| Author |
Message |
James Dixon (Omnadren250)
Member
Username: Omnadren250
Post Number: 280
Registered: 7-2001
| | Posted on Tuesday, August 27, 2002 - 12:16 pm: | |
Thanks Fred,
I will also have to ask questions regarding benefits etc.
I am very interested in the industry, so I think I am gonna take it and work hard. The worst that can happen is I waste a year or so of my life and get some good experience/resume builder.
James |
James Dixon (Omnadren250)
Member
Username: Omnadren250
Post Number: 279
Registered: 7-2001
| | Posted on Tuesday, August 27, 2002 - 12:15 pm: | |
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Fred (Iluv4res)
Junior Member
Username: Iluv4res
Post Number: 67
Registered: 8-2002
| | Posted on Tuesday, August 27, 2002 - 11:58 am: | |
Here's the question. Is the firm paying you or is the Broker paying you?
If the firm is paying you, they should have a development program set up for new brokers that includes a salary that you can actually live on. You also should be included for benefits such as health insurance, etc...
My guess is that the funds are coming from the Broker's production/Broker. His incentive is easy. For only 15k/year if you bring in 1 or 2 good accounts and then leave, he's better off. Be careful of him using you. If he's serious, he should pay you more.
When I was a broker, I had college students intern for me. It was great. They worked their asses off for me with little pay. What a no-brainer.
With the hours that will be required, you will not be able to inverview and look for another job effectively.
The other question, which I can alreay guess the answer to, is who do the clients belong to? If you're part of a team for this broker, the clients are his, not yours.
If you want to be a stockbroker, go for it. There's a good education coming your way and you can always jump to another firm if you start at the top firm. However, if you don't want to be a stockbroker as a career, don't do it. |
James Dixon (Omnadren250)
Member
Username: Omnadren250
Post Number: 277
Registered: 7-2001
| | Posted on Monday, August 26, 2002 - 8:34 pm: | |
Paul,
This is a big firm in Canada it's Bank of Montreal/Nesbitt Burns.
I have some other questions I am going to ask the broker tommorow, so I will inquire about how this bonus system works.
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Paul (Pcelenta)
Junior Member
Username: Pcelenta
Post Number: 75
Registered: 7-2002
| | Posted on Monday, August 26, 2002 - 8:17 pm: | |
James, if it is a big enough firm it should have a system in place so that the broker can compensate his assistant with a bonus on either a monthly basis or quarterly basis...(usually a small percentage of the monthly production)...I would be a little turned off if they didn't have this type a program...as I would hate to rely on a broker "boss" to throw a couple of bucks (cash) my way...just my opinion. |
Lewis (Lewis)
New member
Username: Lewis
Post Number: 5
Registered: 8-2002
| | Posted on Monday, August 26, 2002 - 7:56 pm: | |
My advice (advice is usually worth what you pay for it) is that you need to take a step back and think about what it is that you really want to do, having a job for the sake of having a job pays the bills but does not move you to the end game.
Think about what the end game is and then try to get a position which will allow you to move to where you eventually want to be (even if it is a few job changes away)
For instance if someone wants to own a Ferrari dealership, they may need to start repairing Porche's (spelling error intentional to show disrespect), which then allows them to get a job repairing Ferrari's which then allows them to become a head of the repair shop etc, etc
Don't worry about the money now (if you can) becuase $15k 20 years from know doesn't mean shi*, what will matter 20 years from now is the job you have, it is much easier now at your age to take the risks needed to get there; and getting there is the most important thing. |
Ron Dallas (328infoseeker)
Junior Member
Username: 328infoseeker
Post Number: 110
Registered: 5-2001
| | Posted on Monday, August 26, 2002 - 7:43 pm: | |
Getting a job is always easyier to do when you currently have one. Take it and keep looking. |
Christian (Christiank)
Member
Username: Christiank
Post Number: 398
Registered: 1-2001
| | Posted on Monday, August 26, 2002 - 7:17 pm: | |
You can always accept the position and start looking for something else right away. Better than sitting at home anyway. |
James Dixon (Omnadren250)
Member
Username: Omnadren250
Post Number: 276
Registered: 7-2001
| | Posted on Monday, August 26, 2002 - 6:34 pm: | |
Thanks for all the input guys.
I went for the interview today and was basically offered the postition, and everything sounds very good to me, except the salary.
Here, in brief, is what I learned today.
- The broker who wants me has been in the buisness for 22 years and has a "book" worth about 240 million (Canadian Dollars)
- He currently has an assistant who has been with him for 2 years, but she is now ready to go off on her own, which is why he wants another assistant.
- He basically wants to set up a team of brokers which would include him, his current assistant who will be a broker soon and me after I pay my dues as an assistant (approximatly 2 years).
- The thing that is really detering me from taking this job is that the salary is only $24,000/year (Canadian Dollars) which equates to $15,400 US dollars. He said there would also be bonuses, but I can't see them being very much money. However, he did say that his current assistant made just over $40,000 (Canadian) last year, so I guess it all depends on how good of a job you do for him.
- This interview was set up by a friend , so I felt this guy was being very honest and straight up with me. He stated that he would want me to be a full broker as soon as possible and would do everything to help me achive this goal. So he doesn't sound like he is going to use me, and then let the system chew me up and spit me out. I really like the idea of working in this team enviroment. The low salary really bothers me, but there are literally no jobs right now for university grads. I guess I could always take the job and continue looking for something better to come along, as least then I am earning some income/getting experience for the time being.
Any other thoughts on this??
Thanks guys
James Dixon
[email protected]
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Fred (Iluv4res)
Junior Member
Username: Iluv4res
Post Number: 64
Registered: 8-2002
| | Posted on Monday, August 26, 2002 - 2:25 pm: | |
To add a bit more,
You should be able to get a 20-30k base salary with bonus tied to your production. After the first 2 years, you go to 100% commission. By then, you should be doing $150-250k gross in business which you take about 1/3. By the end of your 4th year, you should be doing about $300-600k gross of business. This will equate to $100-200k per year for you. Decent $.
Like Paul mentioned, a lot depends upon who you are working with/for. The bottom line is that it is sales, nothing else. The company wants you to be an asset vaccum cleaner and bring as much $$ to the firm as possible. They don't really believe in the BS they feed the public that they are doing the right thing. Just bring in $$$.
Despite the emotional roller-coaster...It's a great stepping stone & great education. |
Paul (Pcelenta)
Junior Member
Username: Pcelenta
Post Number: 74
Registered: 7-2002
| | Posted on Monday, August 26, 2002 - 1:58 pm: | |
James,
Like Fred, I went the Merrill route and share many ofhis feelings...after 13 years in banking I decided to build my "own" business at Merrill through their PDP training program...working in a big wire house you will learn one thing fast...there are a ton of complete idiots earning big money in these shops (though revenues are down in the last two years) and while they attempt to convince you that YOU are building YOUR business...it's not really about that...it's about how many assets you can bring in to their firm...yesterday...as an assistant you can either hook-up with a really great team that will take care of you (and later help you through the training program) or with a slave-driver who will want you to cold-call for them and build their book...while most of these shops are pushing wealth management and other plan based strategies...the bottom line is that this is flat out sales..it can be very frustrating work...despite all this it can prove to be a great foundation for a financial services career...I have since left Merrill and formed my own independent advisory shop one in which I can embrace a true plan based approach and not have to shove "product" down clients throats and the clients are truly mine. |
Jim Schad (Jim_schad)
Junior Member
Username: Jim_schad
Post Number: 102
Registered: 7-2002
| | Posted on Monday, August 26, 2002 - 10:11 am: | |
Friend of mine did this for somebody? they paid him about $22K for 2 years to build his book and then he was on his own 100% commission.
Other friends worked for Fidelity and they don't work on commission and they get paid $27K+.
Other friend got paid $30K to be assistant trader for small firm for the top producer with intentions of building her book.
The first firm actually divided their "no name" clients in half and recommended to sell to half and to buy to the other. You get commission on both sides and half of your clientele thinks you are a genious and you can hopefully salvage some of the other half. |
James Dixon (Omnadren250)
Member
Username: Omnadren250
Post Number: 275
Registered: 7-2001
| | Posted on Monday, August 26, 2002 - 9:40 am: | |
I appreciate your thoughts Fred.
Jobs are virtually non-existant at the moment, and I got myself this interview through some major networking so I should at least give it a shot.
I guess if I am offered the job I will take it, then at least I will have a first crack at all of the internal job postings by the bank
THanks
James Dixon
[email protected]
|
Fred (Iluv4res)
Junior Member
Username: Iluv4res
Post Number: 63
Registered: 8-2002
| | Posted on Monday, August 26, 2002 - 8:51 am: | |
Hi James,
I did the stockbroker route as a first job out of school. I interned at Merrill Lynch and was one of only a select few that were offered positions.
Personally, I didn't like it. You are really nothing more than a salesperson. With the market gyrations lately, making $ for your clients will be extremely difficult, but the firm will really only care about how much you are making for the firm.
If you have a lot of family & friends with millions to invest with you, you will do fine. If you will need to rely on cold-calling and networking it will be tough. Obviously, when I got out of school, none of my friends had millions then.
The hours are very long. However, anywhere you work will involve long hours. I got to the office at around 7am and left at about 10pm. Saturdays I worked from about 9am to 3pm. When you start out, 90% of your time will be spent trying to gain clients.
There is a tremendous turnover and burnout in that position. No control over clients, the market, etc... Difficult emotionally.
That said, it is an excellent education. There will be a lot of overlap due to your Finance major. It is also a good stepping stone. If possible, my opinion would be to go to the institutional and/or wholesale side of the business instead of the retail side.
The saying goes..."it's the most difficult $40k you will ever make and the easiest $140k you will ever make". In other words, the first few years are hell. It does get easier though once you filter through clients and get a handle on things.
I did very well at it and was selected for management. However, one morning I recognized that my face was the same color grey as my suit. I resigned that day.
I have many friends who are still involved in the business. I'm glad I left. I think I have done better and gone farther than I would have as a broker.
This is just my personal opinion about the job. Obviously, you will need to try it for yourself.
Good luck! |
James Dixon (Omnadren250)
Member
Username: Omnadren250
Post Number: 273
Registered: 7-2001
| | Posted on Saturday, August 24, 2002 - 3:30 pm: | |
I just finished my 4 year University stint and have finished with a business degree with a finance major.
Jobs are pretty scare right now, but I am open to pretty much anything that has a potential for good money earnings.
I have an interview this Monday for a "Stock Brokers Assistant" with a major brokerage house in Canada that is affiliated with one of the major banks here.
The broker who is interviewing me is a top producer, and informed me that he wants somebody he can teach the buisness to with the intent of going on their own one day as a full broker.
Any thoughts on this job?? I heard the pay is terrible, and you have to work very hard for a couple of years, but it pays off in the end when you become a broker on your own.
Any thoughts or suggestions would be appreciated.
THanks
James Dixon
[email protected]
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