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Foreign exchange trader vs hedge fund trader

The differences between foreign exchange traders 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 $115,133 average annual salary of a foreign exchange trader.

The top three skills for a foreign exchange trader include manage risk, equities and foreign exchange products. The most important skills for a hedge fund trader are hedge funds, macro, and derivative.

Foreign exchange trader vs hedge fund trader overview

Foreign Exchange TraderHedge Fund Trader
Yearly salary$115,133$117,549
Hourly rate$55.35$56.51
Growth rate10%10%
Number of jobs17,82912,689
Job satisfaction5-
Most common degreeBachelor's Degree, 77%Bachelor's Degree, 84%
Average age4343
Years of experience--

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.

What does a hedge fund trader do?

A Hedge Fund Trader specializes in developing investment strategies through market research and analysis. Although the extent of their duties depends on their company of employment, it typically includes managing and monitoring market portfolios, trading according to policies and regulations, reaching out to potential business partners through calls and correspondence, discussing terms, and keeping an eye on stock prices. A Hedge Fund Trader must maintain an active communication line with staff for an efficient and fruitful workflow.

Foreign exchange trader vs hedge fund trader salary

Foreign exchange traders and hedge fund traders have different pay scales, as shown below.

Foreign Exchange TraderHedge Fund Trader
Average salary$115,133$117,549
Salary rangeBetween $66,000 And $199,000Between $68,000 And $201,000
Highest paying CityNew York, NY-
Highest paying stateNew York-
Best paying companyPaul Hastings-
Best paying industryFinance-

Differences between foreign exchange trader and hedge fund trader education

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

Foreign Exchange TraderHedge Fund Trader
Most common degreeBachelor's Degree, 77%Bachelor's Degree, 84%
Most common majorBusinessFinance
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Foreign exchange trader vs hedge fund trader demographics

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

Foreign Exchange TraderHedge Fund Trader
Average age4343
Gender ratioMale, 79.6% Female, 20.4%Male, 65.8% Female, 34.2%
Race ratioBlack 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%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 foreign exchange trader and hedge fund trader duties and responsibilities

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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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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Foreign exchange trader vs hedge fund trader skills

Common foreign exchange trader skills
  • Manage Risk, 35%
  • Equities, 17%
  • Foreign Exchange Products, 12%
  • Foreign Currency Transactions, 8%
  • Technical Analysis, 3%
  • Fundamental Analysis, 2%
Common hedge fund trader skills
  • Hedge Funds, 15%
  • Macro, 14%
  • Derivative, 8%
  • Fixed Income, 7%
  • Bloomberg, 7%
  • Inbound Calls, 5%