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Trader vs investor

The differences between traders and investors can be seen in a few details. Each job has different responsibilities and duties. Additionally, a trader has an average salary of $90,179, which is higher than the $88,055 average annual salary of an investor.

The top three skills for a trader include portfolio, financial markets and derivative. The most important skills for an investor are financial statements, IR, and press releases.

Trader vs investor overview

TraderInvestor
Yearly salary$90,179$88,055
Hourly rate$43.36$42.33
Growth rate10%8%
Number of jobs17,3518,409
Job satisfaction--
Most common degreeBachelor's Degree, 78%Bachelor's Degree, 72%
Average age4342
Years of experience-4

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 an investor do?

An investor is a person who decides to put on their money into a particular bank, company, or institution without assuring the return of that investment. Often, investors spend their money on education, business, or even retirement. Some people also invest in mutual funds, stock exchanges, real estate, or stocks in a corporation.

Trader vs investor salary

Traders and investors have different pay scales, as shown below.

TraderInvestor
Average salary$90,179$88,055
Salary rangeBetween $56,000 And $144,000Between $36,000 And $214,000
Highest paying CityWhite Plains, NYWashington, DC
Highest paying stateNew YorkAlaska
Best paying companyThe CitadelGoldman Sachs
Best paying industryFinance-

Differences between trader and investor education

There are a few differences between a trader and an investor in terms of educational background:

TraderInvestor
Most common degreeBachelor's Degree, 78%Bachelor's Degree, 72%
Most common majorFinanceBusiness
Most common collegeUniversity of PennsylvaniaNorthwestern University

Trader vs investor demographics

Here are the differences between traders' and investors' demographics:

TraderInvestor
Average age4342
Gender ratioMale, 82.1% Female, 17.9%Male, 61.9% Female, 38.1%
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, 10.0% Unknown, 5.1% Hispanic or Latino, 11.9% Asian, 5.3% White, 67.1% American Indian and Alaska Native, 0.6%
LGBT Percentage6%12%

Differences between trader and investor 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.
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Investor example responsibilities.

  • Manage $250K portfolio with exposure to commodities, futures, and equities.
  • Manage a grand opening, create business website and Facebook marketing, implement marketing campaigns and sales events.
  • Manage nation-wide CRM application between technical teams and business departments.
  • Manage commercial and multifamily REO portfolio preparing property operating plans to enhance value and marketability of REO asset
  • Prepare and review necessary reconciliations to ensure assets balance and agree to FNMA actual/actual and schedule/actual reports.
  • Procure replacement instruments regarding lose securities.
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Trader vs investor skills

Common trader skills
  • Portfolio, 13%
  • Financial Markets, 6%
  • Derivative, 5%
  • Fixed Income, 5%
  • Equities, 4%
  • Securities, 4%
Common investor skills
  • Financial Statements, 9%
  • IR, 8%
  • Press Releases, 7%
  • Investment Community, 5%
  • Real Estate, 5%
  • Reconciliations, 4%