15 Feb 2023
In layman's terms, a stockbroker is a middleman who can buy and sell stocks and securities in a stock exchange on the investor’s behalf. Among the many responsibilities of a stockbroker, their primary responsibility is to advise their clients, help them make informed decisions about their investments, and then eventually carry those out.
Stockbrokers ensure that the exchange process is carried out ethically and legally, thus maintaining the integrity of the financial market. They have the necessary tools and skills to execute trades quickly, making the process efficient. Making a timely decision also helps clients in the long run.
They can work in a firm and also independently. The stock broker salary typically depends on the volume of trades and the commission structure. The stock broker salary in India ranges from 2 LPA to 25 LPA, depending on experience and performance. On average, they earn around 4 LPA. If broken down further, the stock broker salary per month can range from ₹16,000 to over ₹2,00,000, with only a few high performers reaching the top tier of earnings at 25 LPA.
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Factors Affecting Stock Broker Salaries in India-
This massive difference in the lowest and highest salary is mainly due to the skill set one possesses. Other factors include
- Their qualification in the field helps them earn higher pay, better college, better knowledge, and better pay.
- With experience, the fee can increase as their record can show their reliability in the job.
- The company's size and reputation also determine a stockbroker's salary. Well-established firms have higher wages than smaller firms. A person working individually is judged on his capabilities to provide the best advice and services.
- Market conditions impact salaries; during a bullish (rising prices of stocks) market, they get more work, whereas during a bearish (dropping prices of stocks) market, they have less work.
- Stockbrokers in larger cities might earn more than brokers in other cities as they have a larger pool of clients and a higher earning class.
- A higher level of expertise gives the stockbrokers a better reputation and, by far, a better salary.
Average Salary of Stock Brokers in India
The base salaries of stockbrokers range from 2-8LPA and above, that is, commissions and bonuses; this can go up a lot based on the above factors. Since a big part of their income is through commission, stockbrokers are motivated to perform better and satisfy their clients. Promotions, bonuses, and profit sharing are other incentives to look forward to.
Annual Salaries
Annual Salaries
| Cities | Annual Salaries (INR) |
|---|---|
| Delhi | 5L |
| Gurgaon | 4.2L |
| Bengaluru | 3.7L |
| Mohali | 3.4L |
| Noida | 3.2L |
| Pune | 2.7L |
| Kolkata | 2.5L |
Career Progression of a Stock Broker
- A stockbroker with less than 3 years of experience is considered at an entry-level and should expect compensation of 2.5LPA.
- 4-9 years of experience gives 3.5LPA and the title of mid-career.
- A senior stockbroker will have more than 10 years of experience, after which the compensation will increase to 4.6 LPA and can exceed it further depending on other factors.
- If a stockbroker got a diploma in a good stock market classes Indore.
This industry remains densely male-dominated, though many women have taken an interest in it. Stockbrokers take on responsibilities other than advisory and exchange to ensure they belong on the higher end of the salary scale. They mentor junior stockbrokers, manage client portfolios, become branch managers, etc. They also specialize in certain areas of the industry and help high-paying clients in those areas.
Top-Paying Companies for Stock Brokers in India
The highest-paying companies for stock brokers are-
- Sharekhan: Rs.3.4 Lakhs Per Annum.
- Motilal Oswal Financial Services: Rs. 2.2 Lakhs Per Annum.
- Ventura Securities Stock Broker Salary: Rs.2.0 Lakhs Per Annum.
- Angel One Stock Broker Salary: ₹1.7 Lakhs Per Annum.
Conclusion-
We can deduce that the salary for stockbrokers is not high enough in India, even at a later career stage. Very few people have high-end incomes through this profession, and these are primarily individuals who have received professional stock broker training.
If you are also trying to increase your stock broker salary in India or searching for better placements, NIWS- National Institute of Wall Street can help.
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By Umesh Sharma
MBA with 20 years of experience in Banking and Financial markets with expertise in marketing, administration, sales and training. He is working as Director, of marketing operations and wealth management in NIWS. He always innovates new ideas with a positive attitude and long-term vision, making him a key asset to the team NIWS. He is of firm belief that one can achieve goals by ethics, integrity and passion.