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Sales trader vs broker

The differences between sales traders and brokers can be seen in a few details. Each job has different responsibilities and duties. Additionally, a broker has an average salary of $124,861, which is higher than the $108,427 average annual salary of a sales trader.

The top three skills for a sales trader include equities, derivative and institutional clients. The most important skills for a broker are brokerage, financial services, and insurance products.

Sales trader vs broker overview

Sales TraderBroker
Yearly salary$108,427$124,861
Hourly rate$52.13$60.03
Growth rate10%5%
Number of jobs19,7362,770
Job satisfaction--
Most common degreeBachelor's Degree, 85%Bachelor's Degree, 66%
Average age4349
Years of experience6-

What does a sales trader do?

A sales trader is responsible for evaluating and monitoring the stock market performance to advise the clients on which financial instruments are best to buy or sell. Sales traders review the clients' account portfolios and determine their risk appetite to choose the best investment options for their financial goals and objectives. They also research stock prediction and conduct statistical analysis to maintain consistent cash flow for the accounts. A sales trader must have excellent communication and analytical skills, especially in generating financial and investment reports for clients' discussion and reference.

What does a broker do?

Brokers can either be a firm or an individual acting as an intermediary between a securities exchange and an investor. They often provide services to individual investors and traders who cannot engage directly with security exchanges, which only accept orders from their members. They provide investors and traders with an investment plan, market intelligence, and research. They may cross-sell some financial services and products offered by their brokerage firms. They are also typically classified as discount or full-service brokers.

Sales trader vs broker salary

Sales traders and brokers have different pay scales, as shown below.

Sales TraderBroker
Average salary$108,427$124,861
Salary rangeBetween $63,000 And $185,000Between $68,000 And $227,000
Highest paying CityNew York, NYNew York, NY
Highest paying stateNew YorkNew York
Best paying companyMerrill LynchChild Guidance & Family Solutions
Best paying industryFinanceInsurance

Differences between sales trader and broker education

There are a few differences between a sales trader and a broker in terms of educational background:

Sales TraderBroker
Most common degreeBachelor's Degree, 85%Bachelor's Degree, 66%
Most common majorFinanceBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Southern California

Sales trader vs broker demographics

Here are the differences between sales traders' and brokers' demographics:

Sales TraderBroker
Average age4349
Gender ratioMale, 82.4% Female, 17.6%Male, 63.8% Female, 36.2%
Race ratioBlack 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%Black or African American, 5.3% Unknown, 4.3% Hispanic or Latino, 13.2% Asian, 6.9% White, 70.1% American Indian and Alaska Native, 0.3%
LGBT Percentage6%13%

Differences between sales trader and broker duties and responsibilities

Sales trader example responsibilities.

  • Price, trade and risk manage equity derivatives including OTC single stock options and list options.
  • Manage business, sales, marketing, international negotiation and communication for a commodities business.
  • Administer institutional equity accounts and expedite customer order flow for the NYSE, NASDAQ and OTC marketplace.
  • Trade exchange list and OTC stocks, fixed-income securities and equity derivatives, prior to company sell to UBS.
  • Develop relationships with institutional clients in equities primary and secondary markets.
  • Transact institutional equity and derivative trades on behalf of alternative investment funds.
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Broker example responsibilities.

  • Manage, lease and sell office condominiums on site.
  • Retail trader, fix income securities; manage client account activity; properly allocate client funds to appropriate investment options
  • Manage indexes, options, foreign equities, and short-selling positions that are compatible with clients' long-term investment goals.
  • Expand and maintain professional relationships with trading accounts including banks, hedge funds and portfolio managers.
  • Specialize in finding undervalue and/or overbought commodities by using fundamental and technical analysis that exist throughout the markets.
  • Install the oracle client for windows.
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Sales trader vs broker skills

Common sales trader skills
  • Equities, 8%
  • Derivative, 7%
  • Institutional Clients, 6%
  • Trade Execution, 6%
  • Client Relationships, 5%
  • Equity Trades, 5%
Common broker skills
  • Brokerage, 17%
  • Financial Services, 9%
  • Insurance Products, 7%
  • Risk Management, 6%
  • Client Relationships, 6%
  • Real Estate Transactions, 5%