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Market maker vs hedge fund trader

The differences between market makers 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 $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 hedge fund trader are hedge funds, macro, and derivative.

Market maker vs hedge fund trader overview

Market MakerHedge Fund Trader
Yearly salary$108,335$117,549
Hourly rate$52.08$56.51
Growth rate10%10%
Number of jobs17,61812,689
Job satisfaction--
Most common degreeBachelor's Degree, 87%Bachelor's Degree, 84%
Average age4343
Years of experience6-

Market maker vs hedge fund trader salary

Market makers and hedge fund traders have different pay scales, as shown below.

Market MakerHedge Fund Trader
Average salary$108,335$117,549
Salary rangeBetween $62,000 And $188,000Between $68,000 And $201,000
Highest paying City--
Highest paying state--
Best paying company--
Best paying industry--

Differences between market maker and hedge fund trader education

There are a few differences between a market maker and a hedge fund trader in terms of educational background:

Market MakerHedge Fund Trader
Most common degreeBachelor's Degree, 87%Bachelor's Degree, 84%
Most common majorFinanceFinance
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Market maker vs hedge fund trader demographics

Here are the differences between market makers' and hedge fund traders' demographics:

Market MakerHedge Fund Trader
Average age4343
Gender ratioMale, 92.1% Female, 7.9%Male, 65.8% Female, 34.2%
Race ratioBlack 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, 5.4% Unknown, 4.1% Hispanic or Latino, 11.2% Asian, 12.2% White, 66.8% American Indian and Alaska Native, 0.2%
LGBT Percentage6%6%

Differences between market maker and hedge fund trader 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.
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Hedge fund trader example responsibilities.

  • Manage business, sales, marketing, international negotiation and communication for a commodities business.
  • Trade ETF baskets base on NYSE floor position (long/short).
  • Assist with the conversion of all securities to trade directly through the NSCC.
  • Perform critical maintenance of new & existing securities in multiple operational systems by using Bloomberg.
  • Cull derivative data to profit from emerging trends.
  • Backtest various volatility strategies in equities and ETFs.
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Market maker vs hedge fund trader skills

Common market maker skills
  • Equity Options, 11%
  • Portfolio Risk, 9%
  • NASD, 7%
  • Financial Markets, 6%
  • Manage Risk, 6%
  • Equities, 5%
Common hedge fund trader skills
  • Hedge Funds, 15%
  • Macro, 14%
  • Derivative, 8%
  • Fixed Income, 7%
  • Bloomberg, 7%
  • Inbound Calls, 5%