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The differences between investment analysts and traders can be seen in a few details. Each job has different responsibilities and duties. Additionally, a trader has an average salary of $90,179, which is higher than the $79,056 average annual salary of an investment analyst.
The top three skills for an investment analyst include portfolio management, financial statements and strong analytical. The most important skills for a trader are portfolio, financial markets, and derivative.
| Investment Analyst | Trader | |
| Yearly salary | $79,056 | $90,179 |
| Hourly rate | $38.01 | $43.36 |
| Growth rate | 9% | 10% |
| Number of jobs | 63,003 | 17,351 |
| Job satisfaction | 5 | - |
| Most common degree | Bachelor's Degree, 76% | Bachelor's Degree, 78% |
| Average age | 40 | 43 |
| Years of experience | 4 | - |
An Investment Analyst provides research and information to help traders, fund managers and stock brokers make decisions about investments. They are hired by companies, investment trusts, stock trading and brokerage firms, and insurance providers.
A trader is responsible for buying and selling financial instruments for a firm or an individual, monitoring stock movements, and analyzing price fluctuations. Traders focus on short-term and long-term trades, depending on their customers' demands and best interests. In some cases, traders also act as financial advisors to their clients, providing financial management support, and handling their account investments. A trader must have excellent knowledge of the financial industry and must be highly-analytical, dealing with consistent changes in the stock market and maintain smart decisions to achieve their clients' financial goals.
Investment analysts and traders have different pay scales, as shown below.
| Investment Analyst | Trader | |
| Average salary | $79,056 | $90,179 |
| Salary range | Between $44,000 And $140,000 | Between $56,000 And $144,000 |
| Highest paying City | San Francisco, CA | White Plains, NY |
| Highest paying state | New York | New York |
| Best paying company | The Citadel | The Citadel |
| Best paying industry | Telecommunication | Finance |
There are a few differences between an investment analyst and a trader in terms of educational background:
| Investment Analyst | Trader | |
| Most common degree | Bachelor's Degree, 76% | Bachelor's Degree, 78% |
| Most common major | Finance | Finance |
| Most common college | University of Pennsylvania | University of Pennsylvania |
Here are the differences between investment analysts' and traders' demographics:
| Investment Analyst | Trader | |
| Average age | 40 | 43 |
| Gender ratio | Male, 70.1% Female, 29.9% | Male, 82.1% Female, 17.9% |
| Race ratio | Black or African American, 5.6% Unknown, 4.5% Hispanic or Latino, 7.7% Asian, 14.1% White, 68.0% American Indian and Alaska Native, 0.1% | Black or African American, 5.5% Unknown, 4.1% Hispanic or Latino, 11.5% Asian, 12.4% White, 66.2% American Indian and Alaska Native, 0.2% |
| LGBT Percentage | 7% | 6% |