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The differences between commodity traders and forex traders can be seen in a few details. Each job has different responsibilities and duties. Additionally, a forex trader has an average salary of $115,092, 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 forex trader are technical analysis, foreign exchange market, and technical indicators.
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.
Focusing on the foreign exchange market, a forex trader specializes in selling and buying foreign currencies. It is their responsibility to conduct extensive research and analysis before making decisions, identify profitable opportunities, monitor market conditions, and carry out transactions while maintaining records. They may work at hedge funds, banks, and even trade independently. There are also times when they must carry out trades upon a client's request, helping them understand the risks and extent of procedures.
Commodity traders and forex traders have different pay scales, as shown below.
| Commodity Trader | Forex Trader | |
| Average salary | $93,220 | $115,092 |
| Salary range | Between $55,000 And $156,000 | Between $67,000 And $197,000 |
| Highest paying City | Stamford, CT | - |
| Highest paying state | New Hampshire | - |
| Best paying company | The Citadel | - |
| Best paying industry | Finance | - |
There are a few differences between a commodity trader and a forex trader in terms of educational background:
| Commodity Trader | Forex Trader | |
| Most common degree | Bachelor's Degree, 77% | Bachelor's Degree, 61% |
| Most common major | Finance | Finance |
| Most common college | University of Pennsylvania | - |
Here are the differences between commodity traders' and forex traders' demographics:
| Commodity Trader | Forex Trader | |
| Average age | 43 | 43 |
| Gender ratio | Male, 87.3% Female, 12.7% | Male, 91.5% Female, 8.5% |
| Race ratio | Black 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, 5.4% Unknown, 4.1% Hispanic or Latino, 11.1% Asian, 12.1% White, 67.1% American Indian and Alaska Native, 0.2% |
| LGBT Percentage | 6% | 6% |