Post job

Proprietary trader vs hedge fund trader

The differences between proprietary traders 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 $100,019 average annual salary of a proprietary trader.

The top three skills for a proprietary trader include technical analysis, equity markets and equities. The most important skills for a hedge fund trader are hedge funds, macro, and derivative.

Proprietary trader vs hedge fund trader overview

Proprietary TraderHedge Fund Trader
Yearly salary$100,019$117,549
Hourly rate$48.09$56.51
Growth rate10%10%
Number of jobs54112,689
Job satisfaction--
Most common degreeBachelor's Degree, 81%Bachelor's Degree, 84%
Average age4343
Years of experience--

Proprietary trader vs hedge fund trader salary

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

Proprietary TraderHedge Fund Trader
Average salary$100,019$117,549
Salary rangeBetween $60,000 And $165,000Between $68,000 And $201,000
Highest paying CityNew York, NY-
Highest paying stateNew York-
Best paying companyD. E. Shaw group-
Best paying industryFinance-

Differences between proprietary trader and hedge fund trader education

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

Proprietary TraderHedge Fund Trader
Most common degreeBachelor's Degree, 81%Bachelor's Degree, 84%
Most common majorFinanceFinance
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Proprietary trader vs hedge fund trader demographics

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

Proprietary TraderHedge Fund Trader
Average age4343
Gender ratioMale, 95.7% Female, 4.3%Male, 65.8% Female, 34.2%
Race ratioBlack or African American, 5.5% Unknown, 4.1% Hispanic or Latino, 11.6% Asian, 12.5% White, 66.1% 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 proprietary trader and hedge fund trader duties and responsibilities

Proprietary trader example responsibilities.

  • Manage business, sales, marketing, international negotiation and communication for a commodities business.
  • Perform qualitative research on potential risk arbitrage positions and subjectively choose equities for inclusion in a risk arbitrage portfolio.
  • Research market strategies and trends using Bloomberg.
  • Develop quantitative driven proprietary models by Bloomberg BLP / API and VBA programming.
  • Research and develop convertible bond pricing application for convertible arbitrage trades.
  • Assess market conditions within the equities market in order to maximize profitability.
  • Show more

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.
  • Show more

Proprietary trader vs hedge fund trader skills

Common proprietary trader skills
  • Technical Analysis, 12%
  • Equity Markets, 10%
  • Equities, 9%
  • Financial Markets, 8%
  • Portfolio, 8%
  • Fundamental Analysis, 4%
Common hedge fund trader skills
  • Hedge Funds, 15%
  • Macro, 14%
  • Derivative, 8%
  • Fixed Income, 7%
  • Bloomberg, 7%
  • Inbound Calls, 5%