Prime broker vs market maker

The differences between prime brokers and market makers can be seen in a few details. Each job has different responsibilities and duties. Additionally, a market maker has an average salary of $108,335, which is higher than the $55,651 average annual salary of a prime broker.

The top three skills for a prime broker include hedge funds, securities and foreign exchange. The most important skills for a market maker are equity options, portfolio risk, and NASD.

Prime broker vs market maker overview

	Prime Broker	Market Maker
Yearly salary	$55,651	$108,335
Hourly rate	$26.76	$52.08
Growth rate	5%	10%
Number of jobs	1,808	17,618
Job satisfaction	-	-
Most common degree	Bachelor's Degree, 89%	Bachelor's Degree, 87%
Average age	44	43
Years of experience	-	6

Prime broker vs market maker salary

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

	Prime Broker	Market Maker
Average salary	$55,651	$108,335
Salary range	Between $37,000 And $81,000	Between $62,000 And $188,000
Highest paying City	-	-
Highest paying state	-	-
Best paying company	-	-
Best paying industry	-	-

Differences between prime broker and market maker education

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

	Prime Broker	Market Maker
Most common degree	Bachelor's Degree, 89%	Bachelor's Degree, 87%
Most common major	Finance	Finance
Most common college	Massachusetts Institute of Technology	University of Pennsylvania

Prime broker vs market maker demographics

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

	Prime Broker	Market Maker
Average age	44	43
Gender ratio	Male, 67.9% Female, 32.1%	Male, 92.1% Female, 7.9%
Race ratio	Black or African American, 6.4% Unknown, 4.6% Hispanic or Latino, 9.4% Asian, 8.8% White, 70.4% American Indian and Alaska Native, 0.4%	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%
LGBT Percentage	11%	6%

Differences between prime broker and market maker duties and responsibilities

Prime broker example responsibilities.

Execute give-up transactions and manage bank risk through hedging tools - including swaps, futures, and options.
Manage all office relate matters to include accounting, international traffic and logistics.
Monitor settlement of fix income and equity income securities resulting from corporate activity.
Experience with all DTC applications, i.e.
Reduce margin buy-in on trades for greater capital efficiency.
Monitor receipt of variation margin by working with the back office.

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.

Prime broker vs market maker skills

Common prime broker skills

Hedge Funds, 16%
Securities, 14%
Foreign Exchange, 14%
Margin, 12%
DTC, 10%
Fixed Income, 9%

Common market maker skills

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