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Commodity trader vs foreign exchange trader

The differences between commodity traders and foreign exchange traders can be seen in a few details. Each job has different responsibilities and duties. Additionally, a foreign exchange trader has an average salary of $115,133, which is higher than the $93,220 average annual salary of a commodity trader.

The top three skills for a commodity trader include commodities, commodity trading and logistics. The most important skills for a foreign exchange trader are manage risk, equities, and foreign exchange products.

Commodity trader vs foreign exchange trader overview

Commodity TraderForeign Exchange Trader
Yearly salary$93,220$115,133
Hourly rate$44.82$55.35
Growth rate10%10%
Number of jobs10,90617,829
Job satisfaction-5
Most common degreeBachelor's Degree, 77%Bachelor's Degree, 77%
Average age4343
Years of experience--

What does a commodity trader do?

Commodity traders can be businesses or individuals that mainly focus on investing in oils, gold, or agricultural products. They keep up with the news on commodities to ensure that they know the different forces that determine their prices and use their technical analysis skills to decide to enter or exit trading decisions based on the current trend. These traders often use a futures contract to buy or sell commodities from any category at a predetermined price and time in the future.

What does a foreign exchange trader do?

The foreign exchange market is volatile and influenced by numerous factors. A foreign exchange trader considers these factors and utilizes them in their favor. They typically take care to predict misvaluations of currencies accurately. They act on the conclusions reached from their analysis and either buy or sell assets in different markets. This position requires diligence and patience.

Commodity trader vs foreign exchange trader salary

Commodity traders and foreign exchange traders have different pay scales, as shown below.

Commodity TraderForeign Exchange Trader
Average salary$93,220$115,133
Salary rangeBetween $55,000 And $156,000Between $66,000 And $199,000
Highest paying CityStamford, CTNew York, NY
Highest paying stateNew HampshireNew York
Best paying companyThe CitadelPaul Hastings
Best paying industryFinanceFinance

Differences between commodity trader and foreign exchange trader education

There are a few differences between a commodity trader and a foreign exchange trader in terms of educational background:

Commodity TraderForeign Exchange Trader
Most common degreeBachelor's Degree, 77%Bachelor's Degree, 77%
Most common majorFinanceBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Commodity trader vs foreign exchange trader demographics

Here are the differences between commodity traders' and foreign exchange traders' demographics:

Commodity TraderForeign Exchange Trader
Average age4343
Gender ratioMale, 87.3% Female, 12.7%Male, 79.6% Female, 20.4%
Race ratioBlack or African American, 5.5% Unknown, 4.1% Hispanic or Latino, 11.3% Asian, 12.2% White, 66.7% American Indian and Alaska Native, 0.2%Black or African American, 5.5% Unknown, 4.1% Hispanic or Latino, 11.4% Asian, 12.3% White, 66.4% American Indian and Alaska Native, 0.2%
LGBT Percentage6%6%

Differences between commodity trader and foreign exchange trader duties and responsibilities

Commodity trader example responsibilities.

  • Trade, build, manage, and modele interest rate derivative positions via exchange floor
  • Manage and execute physical/financial grains book as well as base metal arbitrage portfolio.
  • Manage procurement and sales of bulk grains and agricultural commodities for redistribution into local dairy operations in Idaho.
  • Trade a variety of investment vehicles including commodity futures, FOREX and equities.
  • Develop automated and discretionary trading systems for currency, commodity futures, and equities markets.
  • Assist in audits from FINRA at corporate and branch levels.
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Foreign exchange trader example responsibilities.

  • Manage overall risk for FX online dealer during Asia shift.
  • Communicate with brokers to ensure accurate allocations for futures, foreign exchange, and equities between separately manage accounts.
  • Experience using Bloomberg, Reuters, and FX trading platforms.
  • Display subject matter expertise in Reuters, Bloomberg, EBS, and various foreign exchange platforms.
  • Use of Reuters, CQG and Knight-Ridder computer services.
  • Validate transaction and trading details with international banks and multiple ECN trading platforms.
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Commodity trader vs foreign exchange trader skills

Common commodity trader skills
  • Commodities, 14%
  • Commodity Trading, 11%
  • Logistics, 11%
  • Market Trends, 9%
  • Derivative, 6%
  • Financial Markets, 5%
Common foreign exchange trader skills
  • Manage Risk, 35%
  • Equities, 17%
  • Foreign Exchange Products, 12%
  • Foreign Currency Transactions, 8%
  • Technical Analysis, 3%
  • Fundamental Analysis, 2%