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Registered representative vs broker

The differences between registered representatives and brokers can be seen in a few details. Each job has different responsibilities and duties. Additionally, a broker has an average salary of $124,861, which is higher than the $54,074 average annual salary of a registered representative.

The top three skills for a registered representative include financial services, financial products and securities. The most important skills for a broker are brokerage, financial services, and insurance products.

Registered representative vs broker overview

Registered RepresentativeBroker
Yearly salary$54,074$124,861
Hourly rate$26.00$60.03
Growth rate10%5%
Number of jobs17,6222,770
Job satisfaction--
Most common degreeBachelor's Degree, 80%Bachelor's Degree, 66%
Average age4349
Years of experience6-

What does a registered representative do?

A registered representative's job involves researching market conditions, liaising with potential clients, implementing advertising campaigns, cultivating personal contacts, and creating investment plans. Their duties and responsibilities include soliciting business from potential clients and selling financial products and services to clients for investment purposes.

What does a broker do?

Brokers can either be a firm or an individual acting as an intermediary between a securities exchange and an investor. They often provide services to individual investors and traders who cannot engage directly with security exchanges, which only accept orders from their members. They provide investors and traders with an investment plan, market intelligence, and research. They may cross-sell some financial services and products offered by their brokerage firms. They are also typically classified as discount or full-service brokers.

Registered representative vs broker salary

Registered representatives and brokers have different pay scales, as shown below.

Registered RepresentativeBroker
Average salary$54,074$124,861
Salary rangeBetween $33,000 And $88,000Between $68,000 And $227,000
Highest paying CityNew York, NYNew York, NY
Highest paying stateNew YorkNew York
Best paying companyNew York Life InsuranceChild Guidance & Family Solutions
Best paying industryFinanceInsurance

Differences between registered representative and broker education

There are a few differences between a registered representative and a broker in terms of educational background:

Registered RepresentativeBroker
Most common degreeBachelor's Degree, 80%Bachelor's Degree, 66%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Southern California

Registered representative vs broker demographics

Here are the differences between registered representatives' and brokers' demographics:

Registered RepresentativeBroker
Average age4349
Gender ratioMale, 77.4% Female, 22.6%Male, 63.8% Female, 36.2%
Race ratioBlack or African American, 5.8% Unknown, 4.2% Hispanic or Latino, 12.3% Asian, 10.3% White, 67.2% American Indian and Alaska Native, 0.2%Black or African American, 5.3% Unknown, 4.3% Hispanic or Latino, 13.2% Asian, 6.9% White, 70.1% American Indian and Alaska Native, 0.3%
LGBT Percentage6%13%

Differences between registered representative and broker duties and responsibilities

Registered representative example responsibilities.

  • Manage variable and fix immediate and defer annuities for wealth accumulation.
  • Develop knowledge of complex financial instruments and successfully communicate strategies for utilizing various securities in achieving client financial objectives.
  • Manage and strengthen customer relationships through cross-selling and up-selling to maximize retention and income generation by contacting existing and prospective customers.
  • Intern at the NYSE with the M/S floor trader.
  • Provide due diligence for IPO of small cap.
  • Assist companies with development and sale of initial public offering (IPO).
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Broker example responsibilities.

  • Manage, lease and sell office condominiums on site.
  • Retail trader, fix income securities; manage client account activity; properly allocate client funds to appropriate investment options
  • Manage indexes, options, foreign equities, and short-selling positions that are compatible with clients' long-term investment goals.
  • Expand and maintain professional relationships with trading accounts including banks, hedge funds and portfolio managers.
  • Specialize in finding undervalue and/or overbought commodities by using fundamental and technical analysis that exist throughout the markets.
  • Install the oracle client for windows.
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Registered representative vs broker skills

Common registered representative skills
  • Financial Services, 25%
  • Financial Products, 14%
  • Securities, 6%
  • Annuities, 4%
  • Long-Term Care, 4%
  • Health Insurance, 3%
Common broker skills
  • Brokerage, 17%
  • Financial Services, 9%
  • Insurance Products, 7%
  • Risk Management, 6%
  • Client Relationships, 6%
  • Real Estate Transactions, 5%