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Investment analyst vs trader

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 vs trader overview

Investment AnalystTrader
Yearly salary$79,056$90,179
Hourly rate$38.01$43.36
Growth rate9%10%
Number of jobs63,00317,351
Job satisfaction5-
Most common degreeBachelor's Degree, 76%Bachelor's Degree, 78%
Average age4043
Years of experience4-

What does an investment analyst do?

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.

What does a trader do?

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 analyst vs trader salary

Investment analysts and traders have different pay scales, as shown below.

Investment AnalystTrader
Average salary$79,056$90,179
Salary rangeBetween $44,000 And $140,000Between $56,000 And $144,000
Highest paying CitySan Francisco, CAWhite Plains, NY
Highest paying stateNew YorkNew York
Best paying companyThe CitadelThe Citadel
Best paying industryTelecommunicationFinance

Differences between investment analyst and trader education

There are a few differences between an investment analyst and a trader in terms of educational background:

Investment AnalystTrader
Most common degreeBachelor's Degree, 76%Bachelor's Degree, 78%
Most common majorFinanceFinance
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Investment analyst vs trader demographics

Here are the differences between investment analysts' and traders' demographics:

Investment AnalystTrader
Average age4043
Gender ratioMale, 70.1% Female, 29.9%Male, 82.1% Female, 17.9%
Race ratioBlack 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 Percentage7%6%

Differences between investment analyst and trader duties and responsibilities

Investment analyst example responsibilities.

  • Update weekly liquidity stress report and utilize VBA and SQL to automate the process
  • Manage and update early engagement processes daily through SharePoint.
  • Manage trade executions and broker relationships for all portfolio positions across several banks, prime brokerage accounts and electronic commodities exchanges.
  • Perform financial analyses including discount cash flow, leverage buyout, public market comparable trading and precedent transaction-base valuations
  • Participate in the asset management valuation committee and provide management oversight to accounting, legal, and operations personnel.
  • Used JAVA to develop trading spread calculator.
  • Show more

Trader example responsibilities.

  • Manage Smithtown branch office ensuring compliance with NASD regulations.
  • Manage and hedge generation within PJM, MISO, and ERCOT.
  • Manage options trading to ensure a positive ROI within a volatile market.
  • Initiate and manage financial, physical and virtual trades resulting in a positive PnL.
  • Manage products with the supply chain warehouses and interface with both corporate logistics and common carriers.
  • Coordinate MBS and whole loan delivers to ensure settlements are achieve to minimize extension and pair off fees.
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Investment analyst vs trader skills

Common investment analyst skills
  • Portfolio Management, 7%
  • Financial Statements, 6%
  • Strong Analytical, 6%
  • PowerPoint, 5%
  • Real Estate, 5%
  • Risk Management, 3%
Common trader skills
  • Portfolio, 13%
  • Financial Markets, 6%
  • Derivative, 5%
  • Fixed Income, 5%
  • Equities, 4%
  • Securities, 4%

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