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Market maker vs investment banker

The differences between market makers and investment bankers can be seen in a few details. Each job has different responsibilities and duties. While it typically takes 4-6 years to become a market maker, becoming an investment banker takes usually requires 2-4 years. Additionally, an investment banker has an average salary of $162,715, 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 an investment banker are financial services, discounted cash flow, and capital markets.

Market maker vs investment banker overview

Market MakerInvestment Banker
Yearly salary$108,335$162,715
Hourly rate$52.08$78.23
Growth rate10%10%
Number of jobs17,61828,460
Job satisfaction--
Most common degreeBachelor's Degree, 87%Bachelor's Degree, 69%
Average age4343
Years of experience64

Market maker vs investment banker salary

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

Market MakerInvestment Banker
Average salary$108,335$162,715
Salary rangeBetween $62,000 And $188,000Between $95,000 And $276,000
Highest paying City-Boston, MA
Highest paying state-Alaska
Best paying company-Citi
Best paying industry-Real Estate

Differences between market maker and investment banker education

There are a few differences between a market maker and an investment banker in terms of educational background:

Market MakerInvestment Banker
Most common degreeBachelor's Degree, 87%Bachelor's Degree, 69%
Most common majorFinanceBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Market maker vs investment banker demographics

Here are the differences between market makers' and investment bankers' demographics:

Market MakerInvestment Banker
Average age4343
Gender ratioMale, 92.1% Female, 7.9%Male, 76.2% Female, 23.8%
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, 5.5% Unknown, 4.1% Hispanic or Latino, 11.5% Asian, 12.4% White, 66.2% American Indian and Alaska Native, 0.2%
LGBT Percentage6%6%

Differences between market maker and investment banker 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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Investment banker example responsibilities.

  • Utilize Bloomberg system and company proprietary research to actively monitor portfolios and manage trading activities to achieve customers' goals.
  • Provide service for existing brokerage accounts, manage accounts, annuities, and securities-base lines of credit.
  • Attain NMLS identification number for mortgage origination.
  • Generate reporting data from Salesforce platform to facilitate growth and manage firm operations.
  • Manage customer portfolios, service relationships, and used profiling analysis tools to identify cross-selling opportunities.
  • Manage a variety of internal initiatives including merchandising, cross-selling, customer retention programs and promotional campaigns.
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Market maker vs investment banker skills

Common market maker skills
  • Equity Options, 11%
  • Portfolio Risk, 9%
  • NASD, 7%
  • Financial Markets, 6%
  • Manage Risk, 6%
  • Equities, 5%
Common investment banker skills
  • Financial Services, 6%
  • Discounted Cash Flow, 6%
  • Capital Markets, 6%
  • Financial Statements, 6%
  • Client Relationships, 4%
  • Securities, 4%