How much a trader ususally makes? Salary.com reports around 100K. But I saw on the job board traders’ compensation usually boast at 300-400K. I guess there are traders just take client orders, so they don’t make much money. Only the prop traders make more because they are compensated for how much they make for the shops?
Prop traders make the majority of their $$$ on commissions. I’ve worked with traders that made between $0 and $10 million. The better you are, the higher cut you’ll get as the shop will do everything to keep you.
You make a % of commissions you pay out to salespeople…How much sales people make depends on the shop. Say you cross a bond from one client to another for 100,000. The firm takes 1/2, then each salesperson splits the other half. As the trader, you get 5-10% of the gross commission (5k-10k). Additionally, you make 20-25% of any P&L. How much P&L vs Commission you pay out depends a lot on what you trade…
former trader Wrote: ------------------------------------------------------- > Prop traders make the majority of their $$$ on > commissions. > > I’ve worked with traders that made between $0 and > $10 million. The better you are, the higher cut > you’ll get as the shop will do everything to keep > you. Prop traders work on the buy side, right? And they pay the brokers commission. So how do prop traders make money on commissions? Do you mean make money on trading profits?
Yes, that’s what I meant, trading profits.
What about traders on a desk for a buy side firm? Since they are just executing trades (trade decisions made by PMs) I would imagine they are more salary oriented and get less comp overall relative to prop traders. Any ideas on what their comp would be?
50k ish for trader on buyside firm who executes pm’s trades. in atlanta region.
psn0706 Wrote: ------------------------------------------------------- > What about traders on a desk for a buy side firm? > Since they are just executing trades (trade > decisions made by PMs) I would imagine they are > more salary oriented and get less comp overall > relative to prop traders. Any ideas on what their > comp would be? Depends on volume… type of accounts (institutional vs individuals)… and/or size.
AUM ~2.0 Trillion (so mostly institutional) 1 main desk (Boston) and 2 desks in London & HK for the whole firm.
ssga? psn0706 Wrote: ------------------------------------------------------- > AUM ~2.0 Trillion (so mostly institutional) 1 main > desk (Boston) and 2 desks in London & HK for the > whole firm.