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Hedge fund trader vs forex trader

The differences between hedge fund traders and forex 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 $115,092 average annual salary of a forex trader.

The top three skills for a hedge fund trader include hedge funds, macro and derivative. The most important skills for a forex trader are technical analysis, foreign exchange market, and technical indicators.

Hedge fund trader vs forex trader overview

Hedge Fund TraderForex Trader
Yearly salary$117,549$115,092
Hourly rate$56.51$55.33
Growth rate10%10%
Number of jobs12,68917,582
Job satisfaction--
Most common degreeBachelor's Degree, 84%Bachelor's Degree, 61%
Average age4343
Years of experience--

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.

What does a forex trader do?

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.

Hedge fund trader vs forex trader salary

Hedge fund traders and forex traders have different pay scales, as shown below.

Hedge Fund TraderForex Trader
Average salary$117,549$115,092
Salary rangeBetween $68,000 And $201,000Between $67,000 And $197,000
Highest paying City--
Highest paying state--
Best paying company--
Best paying industry--

Differences between hedge fund trader and forex trader education

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

Hedge Fund TraderForex Trader
Most common degreeBachelor's Degree, 84%Bachelor's Degree, 61%
Most common majorFinanceFinance
Most common collegeUniversity of Pennsylvania-

Hedge fund trader vs forex trader demographics

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

Hedge Fund TraderForex Trader
Average age4343
Gender ratioMale, 65.8% Female, 34.2%Male, 91.5% Female, 8.5%
Race ratioBlack 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%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 Percentage6%6%

Differences between hedge fund trader and forex trader duties and responsibilities

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.
  • Show more

Forex trader example responsibilities.

  • Communicate with brokers to ensure accurate allocations for futures, foreign exchange, and equities between separately manage accounts.
  • Execute institutional equity orders on both an agency and proprietary basis in strict accordance to FINRA regulations and establish company guidelines.
  • Execute institutional equity orders on both an agency and proprietary basis in strict accordance to FINRA regulations and establish company guidelines.

Hedge fund trader vs forex trader skills

Common hedge fund trader skills
  • Hedge Funds, 15%
  • Macro, 14%
  • Derivative, 8%
  • Fixed Income, 7%
  • Bloomberg, 7%
  • Inbound Calls, 5%
Common forex trader skills
  • Technical Analysis, 25%
  • Foreign Exchange Market, 17%
  • Technical Indicators, 11%
  • Fundamental Analysis, 11%
  • Manage Risk, 9%
  • Market Trends, 5%