The Average Salary of a Trader
The life of a trader is a stressful one that rises and falls with the financial markets. When the market is riding high, traders can live a very glamorous and plentiful existence. Yet when the market is down, the stress can become enough that burnout and even suicide occur among traders. Trading can be a high earning profession, though not as high on average as many may think.
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Function
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Traders facilitate the purchase and sale of stocks, bonds and commodities for their clients. Traders also advise their clients on the stocks and bonds whose performance makes them a good buy. In addition, traders advise their clients on the opportune time to sell for maximum profit or minimum loss.
Compensation
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A large share of a trader's pay comes from commissions on the transactions he makes, though there are some salaried traders. This makes it difficult to predict an accurate pay scale over a long-term period. According to PayScale, as of December 2010, the average annual salary for a trader is between $46,643 and $88,102, with bonuses and commission increasing that amount by 50 to 100 percent. There may be additional compensation included in the total earnings, such as retirement benefits and stock compensation.
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Work Life
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Most traders work over 40 hours a week. This includes both evening and weekend hours, as most of their clients have day jobs. Traders may work in the office, but they also work out of the office to meet with clients and network. Some work in call centers that take customer orders and provide customer service. Since these call centers can sometimes be open 24 hours a day, there are traders that work night shifts. A trader is only as good as his list of customers and the size and profitability of his clients' portfolios, so there is constant pressure to perform. Exchange traders have the best hours, since their work is heavily tied to the hours the markets are open.
Qualifications
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A minimum of a bachelor's degree is required to be a trader, particularly degrees in finance, business, accounting or economics. Many firms hire interns in the summer before their senior year, with an eye toward hiring the best candidates upon graduation. Advanced degrees such as MBAs are common among traders. All representatives must pass the General Securities Registered Representative Examination, or Series 7 Exam to be licensed to work in their field. Some states also require representatives to pass the Uniform Securities Agents State Law Examination Employers, or Series 63 or 66 Exam. Employers generally offer on-the-job training on the company's products and services, as well as sales training.
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References
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