Securities Brokerage Revenue Benchmarks
The average securities brokerage business in the United States generates $31.8M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 6,034 securities brokerage businesses in the U.S., employing 253,465 workers with an average profit margin of 15.0%.
What Does a Securities Brokerage Business Actually Do?
Businesses executing trades in stocks, bonds, options, and other securities. Modern retail brokers (Robinhood, Fidelity, Schwab) largely eliminated commissions and earn on payment-for-order-flow and margin lending.
Who buys: Retail investors, active traders, institutions.
Average Revenue
$31.8M
per year
Profit Margin
15.0%
industry average
Revenue / Employee
$758K
per year
Total Businesses
6,034
in the US
Est. Owner Income
$4.8M
small business avg
Labor Cost
30.0%
of revenue
Avg Employee Wage
N/A
per year (BLS)
Market Saturation
1.8
firms per 100K people
How Much Do Securities Brokerage Charge?
Modern brokerages earn on trading fees (largely eliminated), payment for order flow, and margin lending.
| Service | Typical range |
|---|---|
Retail commission per trade | $0 (most brokers) up to $6.95 |
Options contract fee | $0.50–1.50 per contract |
Payment for order flow | $0.001–0.02 per share |
Margin interest rate | 8–13% APR |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete securities brokerage business plan
A 12-section data-backed business plan for a securities brokerage business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the securities brokerage industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Claims & interest paid | $8 | $2.6M | Insurance claim payouts, interest paid to depositors, or securities transaction costs. |
Wages & benefits | $30 | $9.5M | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $11 | $3.5M | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $8 | $2.6M | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $27 | $8.8M | Compliance, technology, professional liability, licensing fees. |
Net profit | $15 | $4.8M | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
6.95%
openings/year
Closure Rate
11.38%
closings/year
Net Job Growth
+2.02%
annual
Businesses Closed
719
in 2023
Firm Count Trend
Should You Start a Securities Brokerage Business?
Startup Cost
$50K – $250K
Break-Even
0 months
5-Year Survival Rate
50.0%
Related Industries
Frequently Asked Questions
- What does a securities brokerage business do?
- Businesses executing trades in stocks, bonds, options, and other securities. Modern retail brokers (Robinhood, Fidelity, Schwab) largely eliminated commissions and earn on payment-for-order-flow and margin lending. Retail investors, active traders, institutions.
- How much do securities brokerage charge?
- Modern brokerages earn on trading fees (largely eliminated), payment for order flow, and margin lending. See the pricing table above for typical rates by service type.
- How much does the average securities brokerage make per year?
- The average securities brokerage business generates $31.8M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $4.8M per year at a 15.0% profit margin.
- How many securities brokerage businesses are there in the US?
- There are 6,034 securities brokerage businesses operating in the United States, employing a total of 253,465 workers.
- How much does it cost to start a securities brokerage business?
- Startup costs for a securities brokerage business typically range from $50K to $250K, with a 5-year survival rate of 50.0%.
Industry Growth & Survival
The securities brokerage industry is actively growing — adding jobs at a net rate of 2.0% per year. New establishments are opening faster than existing ones close (7.0% entry vs 11.4% exit), indicating healthy demand.
Approximately 55% of securities brokerage businesses survive their first 5 years. This is near the national average (~50%), with typical business risk. In 2023, 719 firms in this industry closed permanently.
Industry Trend (2000–2023)
The securities brokerage industry has declined 32% since 2000 (from 11,660 to 7,890 firms).
See full historical statistics →Compare Securities Brokerage revenue with other industries: