Market maker vs broker

The differences between market makers and brokers can be seen in a few details. Each job has different responsibilities and duties. Additionally, a broker has an average salary of $124,861, which is higher than the $108,335 average annual salary of a market maker.

The top three skills for a market maker include equity options, portfolio risk and NASD. The most important skills for a broker are brokerage, financial services, and insurance products.

Market maker vs broker overview

	Market Maker	Broker
Yearly salary	$108,335	$124,861
Hourly rate	$52.08	$60.03
Growth rate	10%	5%
Number of jobs	17,618	2,770
Job satisfaction	-	-
Most common degree	Bachelor's Degree, 87%	Bachelor's Degree, 66%
Average age	43	49
Years of experience	6	-

Market maker vs broker salary

Market makers and brokers have different pay scales, as shown below.

	Market Maker	Broker
Average salary	$108,335	$124,861
Salary range	Between $62,000 And $188,000	Between $68,000 And $227,000
Highest paying City	-	New York, NY
Highest paying state	-	New York
Best paying company	-	Child Guidance & Family Solutions
Best paying industry	-	Insurance

Differences between market maker and broker education

There are a few differences between a market maker and a broker in terms of educational background:

	Market Maker	Broker
Most common degree	Bachelor's Degree, 87%	Bachelor's Degree, 66%
Most common major	Finance	Business
Most common college	University of Pennsylvania	University of Southern California

Market maker vs broker demographics

Here are the differences between market makers' and brokers' demographics:

	Market Maker	Broker
Average age	43	49
Gender ratio	Male, 92.1% Female, 7.9%	Male, 63.8% Female, 36.2%
Race ratio	Black or African American, 5.7% Unknown, 4.1% Hispanic or Latino, 12.1% Asian, 9.9% White, 67.9% American Indian and Alaska Native, 0.2%	Black or African American, 5.3% Unknown, 4.3% Hispanic or Latino, 13.2% Asian, 6.9% White, 70.1% American Indian and Alaska Native, 0.3%
LGBT Percentage	6%	13%

Differences between market maker and broker duties and responsibilities

Market maker example responsibilities.

Manage and critiqu all trades execute on NYMEX trading floor via computer system.
Trade several equities and options names, managing all risk, capital and executing trades using electronic screen base software/technology.
Dissect and manage complex derivative position risks, manage risks and interpret complex financial documents.
Price and risk manage multiple positions in corporate derivatives, including accelerate share buyback programs and long-date convertible bond/call spread overlays.
Merge business operations to expand service offering to include etf's, options, and foreign adr's.
Analyze market conditions and make decisions to buy/sell equities using fundamental and technical analysis.

Broker example responsibilities.

Manage, lease and sell office condominiums on site.
Retail trader, fix income securities; manage client account activity; properly allocate client funds to appropriate investment options
Manage indexes, options, foreign equities, and short-selling positions that are compatible with clients' long-term investment goals.
Expand and maintain professional relationships with trading accounts including banks, hedge funds and portfolio managers.
Specialize in finding undervalue and/or overbought commodities by using fundamental and technical analysis that exist throughout the markets.
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Market maker vs broker skills

Common market maker skills

Equity Options, 11%
Portfolio Risk, 9%
NASD, 7%
Financial Markets, 6%
Manage Risk, 6%
Equities, 5%

Common broker skills

Brokerage, 17%
Financial Services, 9%
Insurance Products, 7%
Risk Management, 6%
Client Relationships, 6%
Real Estate Transactions, 5%