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.
Trader responsibilities
Here are examples of responsibilities from real trader resumes:
- 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.
- Focuse on derivative trading strategies across global index and commodity futures, equity options and strategic foreign exchange currencies.
- Trade arbitrage, macro, and theme orient biases.
- Perform technical analysis of micro and macro trends in commodity supply, demand, and price.
- Provide best execution for customer order flow in NMS, NASD small-cap, OTCBB, ADR's.
- Seize arbitrage opportunities (price, currency, dividend discrepancy) as ADR issues simultaneously trade abroad.
- Communicate with brokers to ensure accurate allocations for futures, foreign exchange, and equities between separately manage accounts.
- Identify, develop and execute complex global government bond and derivative arbitrage trading opportunities in the nascent European debt markets.
- Recruit, train and direct a team of market analysts to perform technical analysis and fundamental analysis of securities investment vehicles.
- Utilize innovative market spread pricing and low latency market data to infer future market states and capitalize on temporary latency arbitrage.
Trader skills and personality traits
We calculated that 13% of Traders are proficient in Portfolio, Financial Markets, and Derivative. They’re also known for soft skills such as Analytical skills, Customer-service skills, and Detail oriented.
We break down the percentage of Traders that have these skills listed on their resume here:
- Portfolio, 13%
Trade financial sector stocks according to fund mandate including maintaining fully invested portfolio and alpha generation via equity and index options.
- Financial Markets, 6%
Performed research and monitored financial markets.
- Derivative, 5%
Identified, developed and executed complex global government bond and derivative arbitrage trading opportunities in the nascent European debt markets.
- Fixed Income, 5%
Gained extensive knowledge of the fixed income market including economic indicators used in determining the overall direction of the economy.
- Equities, 4%
Communicated with brokers to ensure accurate allocations for futures, foreign exchange, and equities between separately managed accounts.
- Securities, 4%
Recruited, trained and directed a team of market analysts to perform technical analysis and fundamental analysis of securities investment vehicles.
"portfolio," "financial markets," and "derivative" are among the most common skills that traders use at work. You can find even more trader responsibilities below, including:
Analytical skills. To carry out their duties, the most important skill for a trader to have is analytical skills. Their role and responsibilities require that "to judge the profitability of potential deals, securities, commodities, and financial services sales agents must have strong analytical skills." Traders often use analytical skills in their day-to-day job, as shown by this real resume: "developed tools with vba, c++ to assist traders (hft bond book compression using fifo, pnl analysis tool). "
Customer-service skills. Many 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 trader will need this skill often in their role. This resume example is just one of many ways trader responsibilities rely on customer-service skills: "traded various foreign currencies to satisfy customer needs. "
Detail oriented. traders are also known for detail oriented, which are critical to their duties. You can see how this skill relates to trader responsibilities, because "investment bankers must pay close attention to the details of initial public offerings and mergers and acquisitions because small changes can have large consequences." A trader resume example shows how detail oriented is used in the workplace: "execute detailed strategies for most favorable trade ideas. "
Initiative. A big part of what traders do relies on "initiative." You can see how essential it is to trader responsibilities because "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." Here's an example of how this skill is used from a resume that represents typical trader tasks: "instituted us listed derivatives, and led new business initiative to develop latam equities. "
Math skills. Another common skill required for trader responsibilities is "math skills." This skill comes up in the duties of 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 trader resume shows how this skill is central to what a trader does: "worked with quantitative research and technology teams to develop/enhance/test pricing models and risk-management tools (vba). "
The three companies that hire the most traders are:
- Morgan Stanley18 traders jobs
- Citi17 traders jobs
- T3 Trading Group
14 traders jobs
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Compare different traders
Trader vs. Finance associate
Finance associates perform various financial tasks for a company. These include managing accounting records, preparing payroll documents as well as financial and budget reports, and handling payments. Additionally, finance associates help with tax preparation, audits and reviews, and help with developing and implementing procedures, best practices, and policies for financial and accounting operations. The skills and qualifications for this role may include a bachelor's degree in finance or accounting, excellent communication skills, and attention to detail.
These skill sets are where the common ground ends though. The responsibilities of a trader are more likely to require skills like "portfolio," "financial markets," "fixed income," and "bloomberg." On the other hand, a job as a finance associate requires skills like "powerpoint," "financial services," "work ethic," and "strong customer service." As you can see, what employees do in each career varies considerably.
Finance associates really shine in the professional industry with an average salary of $95,092. Comparatively, traders tend to make the most money in the finance industry with an average salary of $108,107.The education levels that finance associates earn slightly differ from traders. In particular, finance associates are 0.2% more likely to graduate with a Master's Degree than a trader. Additionally, they're 1.4% more likely to earn a Doctoral Degree.Trader vs. Finance service advisor
A finance service advisor provides clients with recommendations on taxes, college savings accounts, retirement, estate planning, and investments. Finance service advisors collaborate with the executives for profitability and efficiency through project management strategy and accounting procedure restructuring. They provide assistance, referrals, and information on eligibility for services. Also, they maintain client retention through strategic investment plans base on equity and fix income report evaluations.
While some skills are similar in these professions, other skills aren't so similar. For example, resumes show us that trader responsibilities requires skills like "portfolio," "financial markets," "fixed income," and "bloomberg." But a finance service advisor might use other skills in their typical duties, such as, "cash handling," "customer relationships," "financial services," and "bank products."
On average, finance service advisors earn a lower salary than traders. Some industries support higher salaries in each profession. Interestingly enough, finance service advisors earn the most pay in the finance industry with an average salary of $69,449. Whereas traders have higher pay in the finance industry, with an average salary of $108,107.Average education levels between the two professions vary. Finance service advisors tend to reach similar levels of education than traders. In fact, they're 4.7% less likely to graduate with a Master's Degree and 1.4% less likely to earn a Doctoral Degree.Trader vs. Finance representative
A finance representative, also known as a financial advisor, provides sound financial proposals to clients. Primarily, financial advisors guide and plan the financial decisions of clients based on their needs, goals, and requirements. They recommend financial products and services to manage clients' portfolios. Their other duties include analyzing current accounts, interpreting data, and developing strategies to improve and manage their assets and portfolios. Also, they monitor market trends to identify potential leads. Finance representatives should have an analytical mind to analyze, assess, and make decisions based on the data they are given.
There are many key differences between these two careers, including some of the skills required to perform responsibilities within each role. For example, a trader is likely to be skilled in "portfolio," "financial markets," "derivative," and "fixed income," while a typical finance representative is skilled in "financial services," "customer service," "life insurance," and "mutual funds."
Finance representatives earn the best pay in the health care industry, where they command an average salary of $45,004. Traders earn the highest pay from the finance industry, with an average salary of $108,107.finance representatives typically earn lower educational levels compared to traders. Specifically, they're 6.3% less likely to graduate with a Master's Degree, and 0.3% less likely to earn a Doctoral Degree.Trader vs. Commodity broker
Types of trader
Updated January 8, 2025
