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The differences between investment advisors 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 $105,377 average annual salary of an investment advisor.
The top three skills for an investment advisor include exceptional client, risk management and client relationships. The most important skills for a hedge fund trader are hedge funds, macro, and derivative.
| Investment Advisor | Hedge Fund Trader | |
| Yearly salary | $105,377 | $117,549 |
| Hourly rate | $50.66 | $56.51 |
| Growth rate | 15% | 10% |
| Number of jobs | 63,438 | 12,689 |
| Job satisfaction | - | - |
| Most common degree | Bachelor's Degree, 76% | Bachelor's Degree, 84% |
| Average age | 45 | 43 |
| Years of experience | 4 | - |
An investment advisor is responsible for managing the clients' financial portfolios, advising them of investment options according to their financial goals and objectives, and their ability to handle risks. Investment advisors should have excellent knowledge of the investment policies, providing the clients with the best financial strategies according to their interests. They also determine their expenses, income, and credit scores to identify a comprehensive financial plan. An investment advisor helps the clients with cash management techniques, as well as conducting data analysis on financial market projections.
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.
Investment advisors and hedge fund traders have different pay scales, as shown below.
| Investment Advisor | Hedge Fund Trader | |
| Average salary | $105,377 | $117,549 |
| Salary range | Between $60,000 And $184,000 | Between $68,000 And $201,000 |
| Highest paying City | New York, NY | - |
| Highest paying state | New York | - |
| Best paying company | McKinsey & Company Inc | - |
| Best paying industry | Telecommunication | - |
There are a few differences between an investment advisor and a hedge fund trader in terms of educational background:
| Investment Advisor | Hedge Fund Trader | |
| Most common degree | Bachelor's Degree, 76% | Bachelor's Degree, 84% |
| Most common major | Business | Finance |
| Most common college | University of Minnesota - Twin Cities | University of Pennsylvania |
Here are the differences between investment advisors' and hedge fund traders' demographics:
| Investment Advisor | Hedge Fund Trader | |
| Average age | 45 | 43 |
| Gender ratio | Male, 72.3% Female, 27.7% | Male, 65.8% Female, 34.2% |
| Race ratio | Black or African American, 5.6% Unknown, 4.4% Hispanic or Latino, 9.4% Asian, 8.2% White, 72.3% American Indian and Alaska Native, 0.1% | 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 Percentage | 5% | 6% |