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Trader vs merchant

The differences between traders and merchants 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 $74,999 average annual salary of a merchant.

The top three skills for a trader include portfolio, financial markets and derivative. The most important skills for a merchant are product development, gross margin, and market trends.

Trader vs merchant overview

TraderMerchant
Yearly salary$90,179$74,999
Hourly rate$43.36$36.06
Growth rate10%-
Number of jobs17,35115,395
Job satisfaction--
Most common degreeBachelor's Degree, 78%Bachelor's Degree, 57%
Average age4341
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 merchant do?

A merchant is responsible for selling goods and services for an organization to generate revenues by reaching out to existing and potential customers and discuss the products' features. Merchants must have extensive knowledge of the goods offered by the company to be able to respond to customers' inquiries and concerns accurately. They also maintain the adequacy of inventory for store orders, create purchase requests, and analyze sales performance. A merchant coordinates with the sales and marketing team to develop efficient promotional strategies and increase brand awareness on public platforms.

Trader vs merchant salary

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

TraderMerchant
Average salary$90,179$74,999
Salary rangeBetween $56,000 And $144,000Between $47,000 And $119,000
Highest paying CityWhite Plains, NYSan Francisco, CA
Highest paying stateNew YorkCalifornia
Best paying companyThe CitadelLevi Strauss & Co.
Best paying industryFinanceFinance

Differences between trader and merchant education

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

TraderMerchant
Most common degreeBachelor's Degree, 78%Bachelor's Degree, 57%
Most common majorFinanceBusiness
Most common collegeUniversity of PennsylvaniaStanford University

Trader vs merchant demographics

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

TraderMerchant
Average age4341
Gender ratioMale, 82.1% Female, 17.9%Male, 42.1% Female, 57.9%
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, 8.5% Unknown, 5.2% Hispanic or Latino, 23.3% Asian, 7.4% White, 55.1% American Indian and Alaska Native, 0.6%
LGBT Percentage6%7%

Differences between trader and merchant 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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Merchant example responsibilities.

  • Partner with production on achieving IMU targets and in store deliveries.
  • Manage merchandise deliverable deadlines: photography, copy, and inventory.
  • Manage the OTB to ensure seasonal sales, inventory levels, and margin objectives are met.
  • Lead online visual merchandising decisions base on in-depth understanding of weekly KPI s and high investment products.
  • Set and achieve monthly goals in new accounts and investment referrals; encourage cross-sells of services as per management
  • Manage social media (Facebook) by posting new content, questions, pictures, new arrivals, graphics, etc.
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Trader vs merchant skills

Common trader skills
  • Portfolio, 13%
  • Financial Markets, 6%
  • Derivative, 5%
  • Fixed Income, 5%
  • Equities, 4%
  • Securities, 4%
Common merchant skills
  • Product Development, 8%
  • Gross Margin, 7%
  • Market Trends, 7%
  • Customer Service, 6%
  • Strong Analytical, 6%
  • Math, 6%