If you’re a search of how to make money as a money broker, then your search has come to an end. Let me tell you, it isn’t that hard, and am going to show you how in this post.
A money broker is an intermediary between two parties who are interested in making a transaction. They serve as the link between these parties, helping to negotiate, analyze and complete the transaction.
Traditionally, money brokers have been paid by commission. This means that they earn a percentage based on the size of the transaction. Therefore, the more deal a broker can sell, the more money he or she can earn.
However, it’s vital for you to realize that there’s more to being a money broker than just getting a commission. In this post, I have highlighted some of the best ways to make money as a money broker.
1. Be an advisor
As a money broker, you can work and make money as a special personal finance advisor, who is hired to assist his/her client with financial decisions and transactions. Working as a financial advisor, you match your client’s saving with investment opportunities. In return, you are compensated for saving clients time and effort by investing in their best interest.
Your job is to guide your clients to make informed decisions about how to invest their money, provide regular guidance on optimizing their purchase decisions, and communicate clearly with your clients throughout the process.
By working with good investors who are long-term thinkers, you can create an optimized model for mutual financial security and drive portfolio growth.
2. Become An Educator and Teach Courses
Do you enjoy teaching others and sharing your personal experience and insights? Becoming an educator and teaching courses as a money broker is a great way to combine your passion for teaching with your financial experience.
There are a lot of people having trouble making sense of all the financial lingo out there. You can offer them a crash course on how to understand and manage their assets. You can even offer to teach a course at their workplace.
Another option is creating online courses. This is a new way to make money as a money broker. It doesn’t mean you have to devote all your time to this business – it can be a side-hustle as well.
It is easier than you think. There are many online teaching platforms on the market, including Udemy, Coursera, Lynda, Skillshare, and more you can use.
3. Buy and Sell Currencies (Forex Trading)
Today you can buy and sell currencies using the power of the internet. Whether you are an individual wanting to make extra cash or a company that wants to maximize your revenue, this is one way to do business.
This requires you to be constantly aware of the current market rate to make a profit if you opt for a currency that appreciates against the one you purchased. In addition, to trade in foreign currencies, you will need to open a Forex Currency trading account with one of the reliable forex broking firms.
The FX Broker will accept your deposits in the foreign currencies you have acquired, and then sell them for you at a profit. They will also buy the currencies you wish to transact in and deposit those into your account at a profit.
4. Work for Banks
Banks are always looking for financial brokers to link their policyholders to insurance companies. It is not the kind of form-filling job, banks are always on the lookout for these agents so it pays well.
If a person wants a loan, you’ll be the one to arrange it for them. You can also offer support if clients have any questions or problems. If you find yourself in this high-flying position, make sure to keep track of customers’ own assets, how much they owe and whether or not they make repayments.
Some banks are willing to train you, but no matter what you do, you will definitely need to know how to talk well. Because that’s one thing that they are definitely looking for in this line of work.
5. Become a Private Money Broker
Being a private money broker is an excellent way to make a very large income. While it might seem like just another aspect of Wall Street, private money lending is not actually part of the regular stock exchange.
Money brokers buy and sell promissory notes that allow them to act as intermediaries between lenders and borrowers who need financing for various projects or personal situations. Strictly speaking, you don’t even have to be involved in finance to play this role.
The main purpose of private money brokering is matching private funders (Investors) with borrowers (Individuals or companies that need financial help).
If you want to become a private money broker you need to be well informed as an investor yourself. This will provide you with the confidence to decide between good and bad investments and help you assess if a business or property has the potential to increase in value.
6. Start a Blog About Money Brokerage and Monetize It
There is a demand for money broker advice on the Internet. If you have some experience as a money broker or have some knowledge about money brokering, you can start a blog on any of the popular blogging platforms.
People need information on how to make money with money brokering. Your blog is going to be a good source for this kind of information, and it’s going to grow in popularity as you add more and more content. The trick is to come up with a nice idea that people will want to read about.
Make use of your unique idea, writing skills, education, and knowledge to turn your passion into money by monetizing your blog. Reliable ways you can make money from your blog include affiliate marketing and Google Adsense. The potential income you can earn from the blog is huge.
7. Write a Book for Money for Brokers
Are you a money broker who wants to increase revenue? If the answer is “yes” then writing a book will help you reach your goal by leveraging into your biggest asset – your expertise. Think about it. If you have had success as a broker then people are going to want to know how they can also do the same.
Presenting your ideas in a form that people will enjoy reading makes it easier to sell books on the subject of being a broker. Anyone can write a book to make an extra income. Just follow these simple steps.
- Get some ideas for your book
- Decide what you are good at
- Think about what people would buy or are looking for
- Do some research online or go to the library to find out what you need to include in your books
- Write down your ideas for chapters and the information you will include in them
- Write your book using a computer program or even paper and pencil if that is all you have available.
- Edit, proofread, and rewrite your book again and again until it is perfect
A book for money brokers is a book people would want to pay for. By writing a book about how to make money as a money broker you have a product people will want. You can sell your book on eCommerce stores like Amazon.
8. Offer Consultancy Services
One of the best ways to make money as a money broker is to use your expertise in exchange rates and investing to offer consultation services. While this is a simple way to earn a living, you can make a great deal of money if you are skilled enough at making investments.
As an expert in the money market, you must be conversant with the present scenario of the money market, its trends, and future development. Your knowledge in this field will make you a vital resource for investors who are starting out. This will enable you to give them consultancy on basic finance topics in return for a fee.
You can gear your consultancy services toward wealthy families and individuals wishing to make investments in different locations. In this case, you will act as agents for these families or individuals, matching them with appropriate investment opportunities in the destination of their choice.
9. Invest in Small Business
You can make money as a money broker by making loans to small business owners who are seeking funds to start or grow their businesses. The Small Business Administration offers similar services to help small business owners with loans.
However, while this is a good option, there are risks involved with loaning out your own money and you should fully understand and think through the risks and rewards before getting into this line of work.
You may invest in oil and water, mining and agriculture, and other sectors for high returns. As a private money dealer, you can serve as an individual or institution’s fund advisor and develop a long-term strategy on how the fund is to be invested.
You can earn a good ROI using a principal investment or a profit-sharing model.
10. Purchase Real Estates
If you already have some money to invest, a real-estate investment is a great way to immediately see a return on that investment. So one of the ways you can make money as a money broker is by purchasing one or more pieces of real estate.
If you know your way around the real estate market, then there is money to be made as a money broker through real estate. Simply buy properties at cheap prices and earn money by selling them at high market value.
If you already have the knowledge on how to manage rental properties, this can be an ideal way to make some profit right away. Instead of selling, you can rent out your property over time, receiving guaranteed income payments month after month (or week).
Are you looking for an opportunity to fill idle cash, pursue your interest in the markets, or ride the waves of financial boom and bust? If yes, then perhaps it’s time for you to invest in shares.
Shares are a type of security that allows you to own an actual share of a company’s stock. You can buy shares on your own or through a broker, but make sure to do your research first—share prices fluctuate greatly
Banks and stockbrokers charge hefty fees to buy and sell stocks. But you can make money as a money broker by investing your own capital in the shares of public companies and earning a profit from dividends and price appreciation.
How Much Can You Make as a Money Broker?
On average you can expect to earn $5,923/month or $71,078 a year. So if you’re good at it, there’s money to be made in money brokering.
What Kind of License Do You Need as a Money Broker?
To start working as a money broker, you will need licenses to sell investment products. In addition to that, you will need to become a member of the Financial Industry Regulatory Authority (FINRA) and Securities Investor Protection Corporation (SIPC).
FAQs
What do you need to start as a money broker?
To register as a money broker, you will need the following:
- Form BD
- SRO Membership
- SIPC Membership
- State Requirements
- Associated Persons
- Successor Broker-Dealer Registration
- Withdrawal from Registration; Cancellation of Registration
Conclusion
Traditionally, money brokers make money in two ways. One way is to charge a fee for their services, usually, a percentage of the money they manage or invest. The other way money brokers make money is by getting a commission, usually a percentage of the price of the investment.
However, in this post, I had shown you other reliable methods you can make even more money as a money broker.
If you don’t have much experience in the industry, I will encourage you to start by working for a bank to gain first-hand experience. But if you have some money sitting in the bank, investing in real estate or buying shares may be the perfect option.
Another thing is, you don’t have to use your own money to make these investments. You can make them with your client’s money while you earn a percentage of the profit made.
Finally, to better explore and leverage your financial skills, you may want to read the post I wrote on how to make money as a business broker.
I hope you found this post helpful. Thank you for reading.
