Investment Banking Traders
Overview
Introduction
Investment banking traders buy and sell equities (stocks and shares), fixed income products, currencies, commodities, corporate credit, government debt, interest rate products, and other types of securities. Flow traders do this for their firm’s clients, while proprietary traders use their employer’s own capital to make the trades. Quantitative traders use mathematics and computer programs to create, test, and optimize models of trading techniques. Traders often specialize, becoming experts in particular t...
Quick Facts
Median Salary
Employment Prospects
Minimum Education Level
Experience
Skills
Personality Traits
Earnings
Securities, commodities, and financial services sales agents (a career category that includes traders) earned median annual salaries of $75,900 in May 2023, according to the U.S. Department of Labor. Earnings ranged from less than $45,420 to $212,800 or more. Highly skilled and experienced traders can earn more than $500,000 a year.
ZipRecruiter.com reported that, in February 2025, deriv...
Work Environment
Unlike their analyst and associate colleagues, investment banking traders don’t work 100-hour weeks that include weekends. They typically arrive to work prior to market open (6 a.m. to 7 a.m.), and then are able to leave when their particular market closes in the late afternoon. Less-experienced traders typically work longer hours. The trading room can be hectic, and the work of traders is ofte...
Outlook
Most recently, the pandemic disrupted the global economy, with significant effects on the investment banking industry. Changes in financial regulations, shifts to remote work schedules, ongoing technology advances continue to challenge investment banking professionals. According to a Deloitte report, in the coming years, "...investment banking will transition from a full-scale service model to ...