Social Question

slyflux's avatar

Is it better to choose a career as an investment analyst or a financial trader?

Asked by slyflux (102points) March 24th, 2015

I’m finishing up my master’s in finance, but I’m having trouble deciding whether I want to be a hedge fund investment analyst or a hedge fund financial trader. I am qualified for both, but my main conflict is choosing between the risks and rewards of each position. By risk and reward, I mean job security and salary + bonuses.

Based on the information I gathered locally, an entry level position as an analyst pays an average salary of $120,000 + $50,000—$100,000 in bonuses. The bonuses increase substantially based on how well you perform. An entry level position as a trader pays an average salary of $210,000 while the bonus is strictly based on performance. The salaries of both positions increase substantially when you’re promoted to a higher position.

The job security is a bit different. While traders have higher salaries, they’re more likely to be laid off if they’re performing poorly.

I would like to hear your personal experience or general opinion. Thank you.

Observing members: 0 Composing members: 0

6 Answers

Response moderated
Response moderated
talljasperman's avatar

Flip a coin.

slyflux's avatar

According to the coin results, I should go with financial trading.

zenvelo's avatar

An analyst has a better horizon than a trader. An analyst will eventually move into being able to manage other peoples money and take a percentage of funds under control.

Traders don’t earn $210 K without demonstrated performance of returns at 4x that amount. And after five years, despite the possibility of making a lot of money, you are still a trader. Trading is getting very difficult because it is no longer a game of matching your trading skills, it is a matter of pitting your algorithm against someone else’s.

chinchin31's avatar

Traders get fired alot as their pay is mainly dependant on their ability to make profits. However if you are very good at it you can earn big money. They also can work long and weird hours . Alot of stress. You may not have a life outside work.

Safer option is financial analyst. But if you have what it takes and willing to sacrifice your personal life in the short term go for trader..the payoffs can be very high if you are good.

Answer this question




to answer.
Your answer will be saved while you login or join.

Have a question? Ask Fluther!

What do you know more about?
Knowledge Networking @ Fluther