Post job

Trader vs hedge fund trader

The differences between 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 $90,179 average annual salary of a trader.

The top three skills for a trader include portfolio, financial markets and derivative. The most important skills for a hedge fund trader are hedge funds, macro, and derivative.

Trader vs hedge fund trader overview

TraderHedge Fund Trader
Yearly salary$90,179$117,549
Hourly rate$43.36$56.51
Growth rate10%10%
Number of jobs17,35112,689
Job satisfaction--
Most common degreeBachelor's Degree, 78%Bachelor's Degree, 84%
Average age4343
Years of experience--

What does a trader do?

A trader is responsible for buying and selling financial instruments for a firm or an individual, monitoring stock movements, and analyzing price fluctuations. Traders focus on short-term and long-term trades, depending on their customers' demands and best interests. In some cases, traders also act as financial advisors to their clients, providing financial management support, and handling their account investments. A trader must have excellent knowledge of the financial industry and must be highly-analytical, dealing with consistent changes in the stock market and maintain smart decisions to achieve their clients' financial goals.

What does a hedge fund trader do?

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.

Trader vs hedge fund trader salary

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

TraderHedge Fund Trader
Average salary$90,179$117,549
Salary rangeBetween $56,000 And $144,000Between $68,000 And $201,000
Highest paying CityWhite Plains, NY-
Highest paying stateNew York-
Best paying companyThe Citadel-
Best paying industryFinance-

Differences between trader and hedge fund trader education

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

TraderHedge Fund Trader
Most common degreeBachelor's Degree, 78%Bachelor's Degree, 84%
Most common majorFinanceFinance
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Trader vs hedge fund trader demographics

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

TraderHedge Fund Trader
Average age4343
Gender ratioMale, 82.1% Female, 17.9%Male, 65.8% Female, 34.2%
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, 5.4% 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 trader and hedge fund trader duties and responsibilities

Trader example responsibilities.

  • Manage Smithtown branch office ensuring compliance with NASD regulations.
  • Manage and hedge generation within PJM, MISO, and ERCOT.
  • Manage options trading to ensure a positive ROI within a volatile market.
  • Initiate and manage financial, physical and virtual trades resulting in a positive PnL.
  • Manage products with the supply chain warehouses and interface with both corporate logistics and common carriers.
  • Coordinate MBS and whole loan delivers to ensure settlements are achieve to minimize extension and pair off fees.
  • 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

Trader vs hedge fund trader skills

Common trader skills
  • Portfolio, 13%
  • Financial Markets, 6%
  • Derivative, 5%
  • Fixed Income, 5%
  • Equities, 4%
  • Securities, 4%
Common hedge fund trader skills
  • Hedge Funds, 15%
  • Macro, 14%
  • Derivative, 8%
  • Fixed Income, 7%
  • Bloomberg, 7%
  • Inbound Calls, 5%