Equity Sales Trader Job Description
An equity sales trader applies economic acumen and financial expertise to buy and sell investment securities on financial markets with a profit motive. A sales trader also invests on behalf of customers and recommends asset selection strategies for clients. A equity trader typically holds a four-year college degree in business.
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Responsibilities
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An equity sales trader usually has two duties---trading on a firm's or a customer's behalf and selling investment products to customers. A trader who trades with corporate funds is also referred to as a proprietary trader. A company records in its income statement the gains made and losses incurred in proprietary transactions. A equity salesperson also sells to investors financial products, such as bonds, commercial papers or stocks, that a company issues on securities exchanges.
Education/Training
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An equity sales trader usually has a four-year college degree in accounting, finance, economics or investment analysis. Nonetheless, traders with liberal arts backgrounds are not uncommon in the industry. For senior roles, a master's or a doctorate is typically required. Some traders have prior accounting or auditing backgrounds and hold professional certifications such as certified public accountant (CPA), financial risk manager (CFM) and chartered financial analyst (CFA) designations.
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Salary
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A equity trader's compensation consists of a base salary and a bonus package that may include cash, stock and stock option bonuses. A trader receives a substantial part of his compensation in bonuses. Consequently, salary levels are affected by performance, industry outlook, economic trends and financial markets' developments. According to the Bureau of Labor Statistics, median wages of equity sales traders were $68,680 in 2008, excluding cash and stock bonuses. The middle half of the occupation earns from $40,480 to $122,270, according to the same government report.
Career Development
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A trader's chances of career growth depend on staffing needs, economic developments and performance. Promotion considerations also may be affected by academic training, financial product expertise and professional credentials. As a result, many traders attend continuing education courses to stay up to date with regulatory requirements and financial products. For example, a senior Latin America equity trade analyst working for a large North Carolina-based investment bank may attend four courses during the year to learn about new regulations regarding Brazil and Venezuela stocks.
Working Conditions
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A trader typically works from 7 a.m. to 5 p.m. Financial markets' hours of operation generally affect a trader's schedule. However, there are instances where a trading specialist may stay late at the office or work on weekends because of business demands. For example, a junior Eastern Europe stock strategist working for a mid-sized California-based hedge fund may stay in the office until 9 p.m. to hold a sales strategy conference call with a colleague.
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