What does a proprietary trader do?
Proprietary trader responsibilities
Here are examples of responsibilities from real proprietary trader resumes:
- 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.
- Identify arbitrage opportunities between the pit and electronic markets in financial and agricultural contracts.
- Execute institutional equity orders on both an agency and proprietary basis in strict accordance to FINRA regulations and establish company guidelines.
- Coordinate generation asset capacity testing and bidding to ensure NERC and PJM regulatory compliance.
Proprietary trader skills and personality traits
We calculated that 12% of Proprietary Traders are proficient in Technical Analysis, Equity Markets, and Equities. They’re also known for soft skills such as Analytical skills, Customer-service skills, and Detail oriented.
We break down the percentage of Proprietary Traders that have these skills listed on their resume here:
- Technical Analysis, 12%
Developed a strong foundation in technical analysis and screening techniques utilizing a number of charting and order execution platforms.
- Equity Markets, 10%
Raised over $5mm which is under active management, trading exclusively in US equity markets.
- Equities, 9%
Assessed market conditions within the equities market in order to maximize profitability.
- Financial Markets, 8%
Perform independent study of financial markets and trading instruments.
- Portfolio, 8%
Developed and implemented an innovative modeling process providing stock selection criteria that consistently facilitate portfolio growth beyond benchmarks and market returns.
- Fundamental Analysis, 4%
Utilized fundamental analysis of international economic events to develop trade and risk management strategies.
Common skills that a proprietary trader uses to do their job include "technical analysis," "equity markets," and "equities." You can find details on the most important proprietary trader responsibilities below.
Analytical skills. One of the key soft skills for a proprietary trader to have is analytical skills. You can see how this relates to what proprietary traders do because "to judge the profitability of potential deals, securities, commodities, and financial services sales agents must have strong analytical skills." Additionally, a proprietary trader resume shows how proprietary traders use analytical skills: "team leader for a long/short energy focused hedge fund that leveraged fundamental and technical analysis to identify trading opportunities concentrating. "
Customer-service skills. Many proprietary trader duties rely on customer-service skills. "securities, commodities, and financial services sales agents must be persuasive and make clients feel comfortable with the agent’s recommendations.," so a proprietary trader will need this skill often in their role. This resume example is just one of many ways proprietary trader responsibilities rely on customer-service skills: "received and placed customer equity orders for nasdaq and nyse equities. "
Detail oriented. Another skill that relates to the job responsibilities of proprietary traders is detail oriented. This skill is critical to many everyday proprietary trader duties, as "investment bankers must pay close attention to the details of initial public offerings and mergers and acquisitions because small changes can have large consequences." This example from a resume shows how this skill is used: "traded u.s. equities employing a variety of strategies (event driven, arbitrage, momentum oriented, and high frequency). "
Initiative. proprietary trader responsibilities often require "initiative." The duties that rely on this skill are shown by the fact that "securities, commodities, and financial services sales agents must create their own client base by making “cold” sales calls to people to whom they have not been referred and to people not expecting the call." This resume example shows what proprietary traders do with initiative on a typical day: "lead trader in both executing arbitrage opportunities and compliance review cleanup initiatives. "
Math skills. Another common skill required for proprietary trader responsibilities is "math skills." This skill comes up in the duties of proprietary traders all the time, as "securities, commodities, and financial services sales agents need to be familiar with mathematical tools, including investment formulas." An excerpt from a real proprietary trader resume shows how this skill is central to what a proprietary trader does: "identified and initiated short-term equity trades utilizing technical analysis effectively managed risk and tracked performance statistics obtained series 56 license"
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Compare different proprietary traders
Proprietary trader vs. Commodity broker
A Hedge Fund Trader specializes in developing investment strategies through market research and analysis. Although the extent of their duties depends on their company of employment, it typically includes managing and monitoring market portfolios, trading according to policies and regulations, reaching out to potential business partners through calls and correspondence, discussing terms, and keeping an eye on stock prices. A Hedge Fund Trader must maintain an active communication line with staff for an efficient and fruitful workflow.
There are some key differences in the responsibilities of each position. For example, proprietary trader responsibilities require skills like "equity markets," "portfolio," "risk management techniques," and "nyse." Meanwhile a typical commodity broker has skills in areas such as "commodities," "risk management," "client accounts," and "nfa." This difference in skills reveals the differences in what each career does.
Commodity brokers tend to make the most money working in the finance industry, where they earn an average salary of $89,520. In contrast, proprietary traders make the biggest average salary, $109,314, in the finance industry.The education levels that commodity brokers earn slightly differ from proprietary traders. In particular, commodity brokers are 5.6% less likely to graduate with a Master's Degree than a proprietary trader. Additionally, they're 0.5% less likely to earn a Doctoral Degree.Proprietary trader vs. Municipal bond trader
The foreign exchange market is volatile and influenced by numerous factors. A foreign exchange trader considers these factors and utilizes them in their favor. They typically take care to predict misvaluations of currencies accurately. They act on the conclusions reached from their analysis and either buy or sell assets in different markets. This position requires diligence and patience.
Each career also uses different skills, according to real proprietary trader resumes. While proprietary trader responsibilities can utilize skills like "technical analysis," "equity markets," "equities," and "financial markets," municipal bond traders use skills like "fixed income," "bonds," "institutional sales," and "securities."
Municipal bond traders earn lower levels of education than proprietary traders in general. They're 6.1% less likely to graduate with a Master's Degree and 0.5% less likely to earn a Doctoral Degree.Proprietary trader vs. Hedge fund trader
There are many key differences between these two careers, including some of the skills required to perform responsibilities within each role. For example, a proprietary trader is likely to be skilled in "equity markets," "financial markets," "portfolio," and "risk management techniques," while a typical hedge fund trader is skilled in "macro," "fixed income," "inbound calls," and "asset management."
Most hedge fund traders achieve a lower degree level compared to proprietary traders. For example, they're 5.1% less likely to graduate with a Master's Degree, and 1.4% less likely to earn a Doctoral Degree.Proprietary trader vs. Foreign exchange trader
Types of proprietary trader
Updated January 8, 2025
