Stockbrokers, formally known as registered representatives or securities sales agents, execute buy and sell orders for securities on behalf of clients.
They manage client investment accounts, provide market research and recommendations, and help clients meet their investment objectives.
Stockbrokers must hold FINRA licenses (typically Series 7 and Series 63/66) and work within strict regulatory frameworks designed to protect investors.
For those considering this career, our guide on how to become a stockbroker covers the licensing process and education path in detail. This guide explains what stockbrokers do daily, how they're compensated, and what the career looks like.
Daily Responsibilities of a Stockbroker
Stockbrokers execute client trade orders for stocks, bonds, mutual funds, and options; research investment opportunities; maintain ongoing client communication; ensure suitability of investment recommendations; comply with FINRA and SEC regulations; maintain accurate client account records; and prospect for new clients.
In a traditional commission model, they earn per transaction.
In fee-based models, they earn a percentage of assets under management.
Experienced brokers who manage large client portfolios often work alongside financial analysts when evaluating more complex investment opportunities or sector recommendations for their clients.
Stockbroker Compensation
According to the U.S. Bureau of Labor Statistics, the median annual wage for securities sales agents is approximately $67,000–$75,000.
However, compensation varies dramatically — new brokers building a client base may earn $40,000–$60,000, while established brokers with large books of business can earn $300,000–$1,000,000+ in total compensation including commissions and fees.
Compensation in this career is far more variable than in salaried roles like financial analyst or credit analyst, making personal financial discipline — including maintaining an appropriately sized emergency fund — especially important during early career years when income is unpredictable.
Regulatory Environment
Stockbrokers are regulated by FINRA and must adhere to suitability standards (ensuring recommendations are appropriate for each client's financial situation).
The SEC's Regulation Best Interest (Reg BI), effective since 2020, requires brokers to act in the best interest of retail customers when making recommendations — a standard that, while meaningful, stops short of the full fiduciary duty that Registered Investment Advisors (RIAs) are held to.
This distinction matters to clients: a fiduciary is legally obligated to prioritize client interests at all times, while a broker's suitability standard allows greater flexibility.
Brokers can be verified via FINRA BrokerCheck.
Frequently Asked Questions
What does a stockbroker do on a typical day?
Stockbrokers execute trade orders, review market developments, communicate with clients about portfolio performance, provide investment recommendations, and prospect for new business.
How much do stockbrokers earn?
Median annual wages are approximately $67,000–$75,000, but top producers at major firms earn $300,000–$1,000,000+ including commissions.
For a broader salary comparison across finance roles, see our financial advisor salary guide, which reflects the career path many experienced brokers eventually pursue.
What licenses do stockbrokers need?
FINRA Series 7 (General Securities Representative) and Series 63 or 66 (state law) are the primary required licenses, plus the SIE exam as a prerequisite.
What is the difference between a stockbroker and a financial advisor?
Stockbrokers primarily execute trades and are regulated as registered representatives under a suitability standard.
Financial advisors — particularly those with RIA status — are held to a fiduciary standard, meaning they must act in clients' best interests at all times.
Many experienced stockbrokers transition to independent RIA status over time for this reason, as well as for greater compensation flexibility.
Are stockbrokers still relevant today?
Yes — while discount brokerages and robo-advisors have commoditized basic trading, stockbrokers remain relevant for complex transactions, institutional trading, and high-net-worth client relationship management.
Clients who hold concentrated equity positions, need access to IPOs, or manage multi-generational wealth often rely on full-service brokers.
Those interested in how their net worth compares by age may benefit from a broker's guidance on portfolio positioning at different life stages.
Sources & References
- FINRA — registered representative licensing and oversight — https://www.finra.org/
- U.S. Bureau of Labor Statistics — Securities Sales Agents wage data — https://www.bls.gov/oes/current/oes413031.htm
- U.S. Securities and Exchange Commission — Regulation Best Interest — https://www.sec.gov/
- FINRA BrokerCheck — verify broker registration and history — https://brokercheck.finra.org/
Last updated: April 27, 2026