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The differences between investment bankers and investment advisors can be seen in a few details. Each job has different responsibilities and duties. It typically takes 2-4 years to become both an investment banker and an investment advisor. Additionally, an investment banker has an average salary of $162,715, which is higher than the $105,377 average annual salary of an investment advisor.
The top three skills for an investment banker include financial services, discounted cash flow and capital markets. The most important skills for an investment advisor are exceptional client, risk management, and client relationships.
| Investment Banker | Investment Advisor | |
| Yearly salary | $162,715 | $105,377 |
| Hourly rate | $78.23 | $50.66 |
| Growth rate | 10% | 15% |
| Number of jobs | 28,460 | 63,438 |
| Job satisfaction | - | - |
| Most common degree | Bachelor's Degree, 69% | Bachelor's Degree, 76% |
| Average age | 43 | 45 |
| Years of experience | 4 | 4 |
An investment banker is responsible for selling and issuing securities and financial assets to the stock markets to generate money and raise capital for organizations and financial institutions. Investment bankers also work with private clients to advise them of investment options and financial transactions according to the market's condition and clients' interests. They handle the clients' investment portfolios and create propositions for acquisitions and company mergers. An investment banker must have excellent knowledge of the financial and stock industry, as well as having excellent analytical skills to review statistical data and determine the best financial strategies.
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.
Investment bankers and investment advisors have different pay scales, as shown below.
| Investment Banker | Investment Advisor | |
| Average salary | $162,715 | $105,377 |
| Salary range | Between $95,000 And $276,000 | Between $60,000 And $184,000 |
| Highest paying City | Boston, MA | New York, NY |
| Highest paying state | Alaska | New York |
| Best paying company | Citi | McKinsey & Company Inc |
| Best paying industry | Real Estate | Telecommunication |
There are a few differences between an investment banker and an investment advisor in terms of educational background:
| Investment Banker | Investment Advisor | |
| Most common degree | Bachelor's Degree, 69% | Bachelor's Degree, 76% |
| Most common major | Business | Business |
| Most common college | University of Pennsylvania | University of Minnesota - Twin Cities |
Here are the differences between investment bankers' and investment advisors' demographics:
| Investment Banker | Investment Advisor | |
| Average age | 43 | 45 |
| Gender ratio | Male, 76.2% Female, 23.8% | Male, 72.3% Female, 27.7% |
| Race ratio | 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% | 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% |
| LGBT Percentage | 6% | 5% |