Stock Trading and Other Things

Why do the stock brokers,traders get big bonus at the end of the year even if the market lost big that year?

Does their bonus come from my money that I lost in my 401K?

Public Comments

1. Where are you getting your information from?

Generally they only get a bonus if their fund does well, or if they outperform the market.

If you're going to complain, ditch your broker or mututal fund manager and take control of your own investments.

2. Not all do - you are talking about the big investment banks.

3. Stock brokers make money whether the market goes up or down. They get commissions on every stock bought and sold and also make money off the spread of the stock (the difference between the bid and ask price of a stock). So the more they buy and sell, the more money they make whether the market goes up or down. And hence a larger bonus. Their gains do not come out of your losses.