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Commodity broker vs hedge fund trader

The differences between commodity brokers and hedge fund traders can be seen in a few details. Each job has different responsibilities and duties. Additionally, a hedge fund trader has an average salary of $117,549, which is higher than the $63,317 average annual salary of a commodity broker.

The top three skills for a commodity broker include commodities, market analysis and risk management. The most important skills for a hedge fund trader are hedge funds, macro, and derivative.

Commodity broker vs hedge fund trader overview

Commodity BrokerHedge Fund Trader
Yearly salary$63,317$117,549
Hourly rate$30.44$56.51
Growth rate10%10%
Number of jobs1,93712,689
Job satisfaction--
Most common degreeBachelor's Degree, 77%Bachelor's Degree, 84%
Average age4343
Years of experience--

Commodity broker vs hedge fund trader salary

Commodity brokers and hedge fund traders have different pay scales, as shown below.

Commodity BrokerHedge Fund Trader
Average salary$63,317$117,549
Salary rangeBetween $39,000 And $102,000Between $68,000 And $201,000
Highest paying CityNew York, NY-
Highest paying stateNew York-
Best paying companyICAP-
Best paying industryFinance-

Differences between commodity broker and hedge fund trader education

There are a few differences between a commodity broker and a hedge fund trader in terms of educational background:

Commodity BrokerHedge Fund Trader
Most common degreeBachelor's Degree, 77%Bachelor's Degree, 84%
Most common majorBusinessFinance
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Commodity broker vs hedge fund trader demographics

Here are the differences between commodity brokers' and hedge fund traders' demographics:

Commodity BrokerHedge Fund Trader
Average age4343
Gender ratioMale, 82.6% Female, 17.4%Male, 65.8% Female, 34.2%
Race ratioBlack or African American, 5.7% Unknown, 4.1% Hispanic or Latino, 12.0% Asian, 9.8% White, 68.2% American Indian and Alaska Native, 0.2%Black or African American, 5.4% Unknown, 4.1% Hispanic or Latino, 11.2% Asian, 12.2% White, 66.8% American Indian and Alaska Native, 0.2%
LGBT Percentage6%6%

Differences between commodity broker and hedge fund trader duties and responsibilities

Commodity broker example responsibilities.

  • Manage and execute physical/financial grains book as well as base metal arbitrage portfolio.
  • Trade on the NYFE, CME, and CBOT exchanges.
  • Provide research and analysis of prospective exchange trade funds for listing on the AMEX.
  • Support the firm's compliance director with records verification pertaining to audits, inquiries, and questions concerning NYSE floor operations.
  • Reorganize the UBS NYSE floor structure utilizing state-of-the-art technology and consolidating booth spaces.
  • Solicit profitable freight brokerage business by marketing transportation capability via direct sales calls, telephone and direct mail marketing activity.
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Hedge fund trader example responsibilities.

  • Manage business, sales, marketing, international negotiation and communication for a commodities business.
  • Trade ETF baskets base on NYSE floor position (long/short).
  • Assist with the conversion of all securities to trade directly through the NSCC.
  • Perform critical maintenance of new & existing securities in multiple operational systems by using Bloomberg.
  • Cull derivative data to profit from emerging trends.
  • Backtest various volatility strategies in equities and ETFs.
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Commodity broker vs hedge fund trader skills

Common commodity broker skills
  • Commodities, 17%
  • Market Analysis, 8%
  • Risk Management, 5%
  • Technical Analysis, 4%
  • Client Accounts, 4%
  • NFA, 4%
Common hedge fund trader skills
  • Hedge Funds, 15%
  • Macro, 14%
  • Derivative, 8%
  • Fixed Income, 7%
  • Bloomberg, 7%
  • Inbound Calls, 5%