Stock broker question...?

Question

I have been in the futures industry for more than 15 years and have just become licensed for securities business. One of my customers will do close to 50,000,000 shares of stock this year. The company I work for will make 1 cent per share, or $500,000. Doe anyone with experience know what % I should make of this total?

Answer 1

You have not provided enough information to respond to your question with anything really definitive.

Commission pay outs are based on a per trade basis, the amount of stock you do is in a year is meaningless and has no bearing on rep payouts.   Payouts are based on the commissions/mark-ups generated,

Different markets cause brokers to have different payout schedules, types of orders have a bearing on the payout,

There is a also a differential in payouts based on where and how the stocks clear.

Is your firm self clearing or does it clear through some one else. This is a big factor in determing payouts

Is the company making ,01 a share or are they making .01 a share, there is a very big difference.

Depending on your firm and your payout schedule. Not all firms have the same schedule.

One thing a rep should NEVER do is to bring into the payout equation is what the firm makes, it's irrelevant.  I have (and I know others also have) fired reps who tried to push the envelope on this.

My equity reps were paid (although a sliding scale) 50% of gross have deducting the clearing fees.  Fixed income was paid 50% of the market up, in-house traders 40% of net department P&L; floor traders  (equties, optins & commodites) 40% of their net P&L, market makers (equities & options) 50% of their net P&L, specialist - 50% of their unit's P&L

You have to take from here, this is the best one can do given the information