The career of trader captures the imagination of many.
The main attraction is the legendary high salary.
Others want to trade for a living instead of the nine-to-five grind of moving bricks.
But don’t take it easy when someone tells you how much a trader can earn on a steady basis, even if it’s a friend or insider.
The salary of a trading career is influenced by many external factors.
There is never a definite amount of money a trader can make.
The nature of the institution, the size of the money management, and even the cities in which the traders are paid can make a big difference.
Start with a table of salaries and bonuses for commodity traders in five countries: the US, the UK, the eurozone, Singapore and Switzerland.
(Chart credit: Shipping and Commodity Academy) Trading for Clients — How much do professional traders make?
Trading for a client is a decision that needs to be carefully considered. You need to evaluate the pros and cons.
To become a trader, you need to be fully trained by the company.
This career will give you better tools and strategies to make money than a regular trader, and you will be less stressed if you have a team to work with.
However, if profits are “insufficient,” you may be subject to tougher rules and tests.
After all, the money you trade comes from clients, so you have to accept interference and influence from others.
One of the great things about trading for clients is that you get a basic salary, maybe not much, but at least a steady income.
If your company is a large investor, your base salary should be comparable to the average standard of living in your city.
In the United States, for example, the annual salary of a stock trader is between $50,000 and $70,000, which is enough to cover basic living expenses such as utilities and coal, but certainly not enough for other expenses such as owning a car, taking vacations and attending private schools.
To succeed, traders need bonuses.
Roughly, to make $100,000 in revenue, the transaction would need to make $300,000 in profit.
Glassdoor analyzed 1,694 trader pay surveys: Top 3 traders Average pay: $576,000 Nationwide Average pay for traders: $89,000 Average pay for traders in New York City higher than the nation: 27% Average securities industry bonus range 2002-2016:
Most people are interested in a salary of $576,000.
But this requires not only a large amount of money managed by traders, but also a lot of effort and sweat to get it.
In the United States, a trader’s pay also depends on the city where he or she lives.
The average salary in New York City ranges from $100,000 to $175,000, with good traders making more, perhaps $250,000 to $500,000.
Outside New York, traders earn an average of $89,496.
Another look at the pay of traders at several large banks: Citigroup, Bank of America, Morgan Stanley traders at hedge funds. Many banks’ top traders often move to hedge funds and other institutions, which allow traders more freedom to make trading decisions than banks do and offer better pay.
At hedge funds, traders often get paid more for their profits, as long as they add value to the firm.
As a result, some top traders earn even more than their bosses.
Being a trader at a proprietary trading firm Frankly, the risk of being a trader at a proprietary trading firm is higher.
In addition to generous pay packages and paid vacation, some proprietary trading firms even require employees to trade their own money.
The biggest benefit of proprietary trading firms is a higher profit commission, ranging from 30% to 50%.
The downside is that traders may not be paid a basic salary and sometimes have to absorb some of the losses themselves.
Traders at proprietary trading firms typically make less money than institutions such as banks, largely because of the limited amount of money they manage.
The average salary for this position ranges from $60,000 to $100,000.
Better traders can get between $150,000 and $250,000.
But if the money under management is limited, and the traders are making little money and simply honing their trading skills, they can be quickly wiped out.
Trade for yourself – How much money is enough to make a profit?
As traders, our desire for money is almost innate.
But there must be a wake-up call.
First, a trading career is no match for a nine-to-five job when it comes to steady income.
If you don’t have any source of income, the instability of the transaction may be more than you can afford.
In addition, trading is not a job where hard work pays off. No matter how much you put in, you won‘t get good results if you do it the wrong way.
Given these characteristics, we won’t talk about how much profit you can make, but simply estimate how much profit you can make from your initial trading capital.
If you have less than $50,000 to start with, plus other living costs, you may run out of money in six to 24 months.
You may think this is an exaggeration, but it is.
That’s why I pay a lot of attention to money management. Numbers are everything.
In general, it is advisable to trade as much capital as possible, above $50,000 before talking about profit.
Between $100,000 and $250,000 probably a lot of traders have money in that range.
That’s not a lot of money, and it’s hard for me to say that you can make a living from full-time trading.
But do some basic research: The average transaction income is between $20,000 and $50,000.
A few very successful traders can get anywhere from $100,000 to $250,000.
Are you counting profits you haven’t earned yet?
After seeing the different pay levels listed above, do you start to think or imagine yourself working as a trader at a large bank or hedge firm?
Pause for a moment. I want you to imagine another scenario where you are responsible for someone (a parent or child), which might include paying for college, living costs, medical care, etc.
Now the only source of income you can rely on is an unpredictable financial market.
Suppose you don’t have a steady income in a month or the next six months or even three years…
How long can you live like this?
Many people only look at the potential profits of trading and often forget that it is full of uncertainty and even the impact on daily life.
No career is not to pay a lot of energy can get fruit.
Even if trading profits can be substantial, we should not forget to prepare for bad outcomes while hoping for good ones.
