A Trader’s Salary and Bonuses
Who is a trader?
Put in simple terms: A trader is a person or a group, who makes money, from buying financial instruments/assets from the financial market, monitor market trends and sells the same financial instruments when the market trends favor him.
It is widely known that in 2008, the greatest economic disaster since 1929, hit the financial industry and the market fell into a great depression. A lot of traders lost their jobs and money, and since then, trading has not been the same.
Nonetheless, traders, the ones that are worth their bean anyway, still make a lot of money from the financial markets. Depending on the kind of trading you want to engage in, the most important thing is consistency, having a high for detail, patience and knowing market trends.
Traders, generally earn anything within $120,000 – $150,000, per year. Whether you are thinking of being a Fixed income trader, or an Equity trader, maybe even a day trader, salary is earned based on a ladder structure, i.e. the higher you go, the more you earn.
A first-year trader earns within $60,000 – $75,000 annually, the bonus is usually about 50% – 100% of earned salary. As stated earlier, bonuses are given based on the performance and achievements of the employee. Going up the ladder, a second-year trader (not really measured in years, but in the time it will take to get a promotion, which can be up to 6 years), can earn within $80,000 and $100,000 per year. A vice president earns within $120,000 and $150,000 per year and bonuses are 60% – 100% of his salary. A director, executive director, and a managing director earn within $250,000 – $500,000 and their bonuses and not only dependent on their achievements, but also based on the company’s performance. If you want to make huge amounts of money, then try Equity trading, where there are a lot of opportunities to make money.