How Much Does a Wall Street Trader Make on Average

The salaries of Wall Street traders can vary greatly depending on their level of experience, the type of trading they do, and the firm they work for. According to industry reports, the average salary for a Wall Street trader is around $500,000 per year.

Some traders may earn much more, with bonuses that can add millions to their annual income. For example, top performers in investment banks can earn bonuses of up to $10 million or more.

However, it's worth noting that these high salaries come with a price - long hours, high stress, and a constant need to perform at a high level.

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Wall Street traders can earn a median salary of around $134,000 per year, with more experienced traders making upwards of $224,000 and top performers reaching $300,000.

The salary for Wall Street traders is nearly three times higher than the median executive wage, according to the Bureau of Labor Statistics. This is a significant factor in the high demand for Wall Street trading jobs, which attract thousands of highly qualified applicants each year.

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Top 10 percent of traders on Wall Street can expect to earn around $300,000 per year, while the average salary for sales and trading analysts starts at around $85,000 with a bonus of $50,000 to $75,000.

Here's a breakdown of average compensation for sales and trading analysts:

Sales and trading associates, on the other hand, can earn a base salary of $125,000 with a bonus of $90,000 to $130,000, resulting in an all-in comp of $240,000 to $270,000 in their first year.

Here's a breakdown of average compensation for sales and trading associates:

Some recent trader salaries include a $200,000 salary for a trader at Citadel Securities Americas Services LLC, and a $150,000 salary for a quantitative trader at Optiver Services Us LLC.

A sales and trading analyst's first full year can bring in a whopping $135,000-$160,000 in all-in compensation, with a base salary of $85,000 and a bonus ranging from $50,000 to $75,000.

The industry standard for a sales and trading analyst's base salary is $85,000 at most bulge bracket investment banks, with a bonus ranging from $50,000 to $75,000.

Here's a breakdown of average compensation for sales and trading analysts in their first three years:

A sales and trading associate's first year can bring in a significantly higher salary, with a base salary of $125,000 and a bonus ranging from $90,000 to $130,000.

The all-in compensation for a sales and trading associate in their first year can reach as high as $270,000, with a base salary of $125,000 and a bonus ranging from $90,000 to $130,000.

Here's a breakdown of average compensation for sales and trading associates in their first three years:

In sales and trading, individual performance, desk performance, and broader line of business performance all impact bonuses, making it a performance-driven field.

Trader salaries can vary widely, with a range of $56,000 to $144,000 per year, depending on factors like location and experience.

The average base salary for stock traders nationwide is around $57,600 per year, with the highest earners taking home $66,600 per year.

Those who work on other stock exchanges, including San Francisco or Philadelphia, tend to make about half as much as their Wall Street counterparts.

The lowest 10 percent of stock traders' salaries nationwide are around $43,200 per year.

Sales & Trading Associates in New York can expect a base salary of $125,000, with a bonus range of $90,000 to $130,000, resulting in an all-in comp of $240,000 to $270,000.

Here's a breakdown of average compensation for Sales & Trading Associates in New York:

The nationwide average base salary for stock traders is surprisingly decent, considering it's a field that's often associated with high stress and long hours. The lower 10 percent of stock traders earn around $43,200 per year.

Those in the middle 50 percent earn a slightly higher salary, often around $57,600 each year. This is a notable amount, considering it's $10,000 to $20,000 more than the median American wage.

Discover more: What Is a Stock Trader

The highest earners nationwide, on average, take home $66,600 per year. This is a significant amount, but it's worth noting that these numbers pale in comparison to the salaries earned by those who work in the country's premier stock exchanges.

Here's a breakdown of the average salaries for different levels of stock traders nationwide:

The average trader salary varies significantly across different states in the US. New York has the highest average trader salary at $120,415.

New York is followed closely by Delaware, with an average trader salary of $107,010. This is a notable difference, highlighting the importance of location in determining salary.

Rhode Island and New Hampshire also make the top 5, with average trader salaries of $113,200 and $113,348, respectively. These states offer some of the highest earning potential for traders.

Here's a list of the top 5 states with the highest average trader salaries:

On the other hand, the lowest average trader salary states are Florida, Nebraska, and Wisconsin. Florida has an average trader salary of $71,535, while Nebraska has an average trader salary of $70,580.

If you're a trader looking to boost your salary, you're in luck – some cities are paying top dollar for your skills. White Plains, NY, takes the top spot with an average salary of $121,527.

The highest-paying cities for traders are concentrated on the East Coast, with Las Vegas, NV, coming in second at $112,415. Stamford, CT, is a close third, offering an average salary of $101,860.

Here's a rundown of the top 5 highest-paying cities for traders:

These cities are also in high demand for traders, with White Plains, NY, and Las Vegas, NV, being the most sought-after.

The average trader salary has actually decreased over the last ten years, falling by $10,150. This means that in 2014, traders earned $100,329 annually, but today they earn $90,179 a year.

The decline in salary is a -4% change in pay for traders over the last decade. This trend is worth noting, especially for those considering a career in trading.

Here's a rough breakdown of average trader salaries nationwide: the lower 10 percent earn around $43,200 per year, while the middle 50 percent earn around $57,600 each year. The highest earners take home $66,600 per year.

Discover more: Percent of Successful Day Traders

The highest paying states for traders are a great place to start when considering a career in trading. New York takes the top spot with an average salary of $120,415, followed closely by Delaware at $107,010. Rhode Island and Connecticut also make the top five, with average salaries of $113,200 and $102,420 respectively.

New York is the clear winner when it comes to average salary, but other states like Nevada and District of Columbia are also worth considering. Nevada comes in at number six with an average salary of $112,738, while District of Columbia follows closely behind at $103,407.

Here's a list of the top 10 highest paying states for traders:

These states offer some of the highest average salaries for traders in the country, making them great options to consider when starting a career in trading.

The highest-paying cities for traders have remained relatively consistent over time, with White Plains, NY, Las Vegas, NV, and Stamford, CT, consistently ranking as the top three cities.

In White Plains, NY, the average trader salary has been steadily increasing, reaching $121,527 as of the latest data.

Las Vegas, NV, has also seen a significant increase in average trader salary, reaching $112,415.

Stamford, CT, has maintained its position as one of the top-paying cities for traders, with an average salary of $101,860.

Here's a rough breakdown of the average trader salary in these top cities over time:

Keep in mind that these figures are subject to change and may vary depending on individual circumstances.

The Citadel Securities Americas Services LLC offers a Trader position in New York, NY with a salary of $200,000 as of December 2023.

A Quantitative Trader at Optiver Services Us LLC in Chicago, IL earns a salary of $150,000 as of November 2023.

Junior Traders at SG Americas Securities, LLC in New York, NY can expect a salary of $175,000 as of October 2023.

The salary for a Programmatic Trader at HM Infinitum LLC in New York, NY is $63,000 as of October 2023.

In the energy sector, a Trader-Crude & LPG at Ampol Us Management Services LLC in Houston, TX can earn up to $151,000 as of October 2023.

Verition Group LLC offers a Trader position in Greenwich, CT with a salary of $135,845 as of October 2023.

Peak6 Capital Management LLC has an opening for an Algorithmic Trader in Chicago, IL with a salary of $100,000 as of September 2023.

Jump Operations, LLC is hiring a Quantitative Trader in New York, NY with a salary of $122,824 as of August 2023.

Here's a summary of the recently added trader salaries:

Earning to Give is a concept where individuals pursue high-paying careers to donate a significant portion of their income to effective causes.

The mean income of a hedge fund trader is $650,000, which translates to $20 million over a 30-year career.

Donating half of this amount would be enough to cover the salaries of about 5 nonprofit CEOs or 2-3 academic researchers, while still leaving a huge amount to live on.

This is why earning to give can be a high-impact career for those who are a good fit.

To become a stockbroker, you'll need a bachelor's degree in any field, but a strong background in accounting, business, finance, and economics is a must. You'll want to take classes in macroeconomics, microeconomics, securities, risk management, accounting, and finance.

Many aspiring stockbrokers serve internships with brokerage firms, which can lead to a full-time position after graduation. To start working as a stockbroker, you'll need to obtain several FINRA licenses by passing a series of exams.

These licenses include the Securities Industry Essentials (SIE), Series 7, and Series 63 exams, which demonstrate a basic understanding of the securities industry and allow you to sell various securities, including stocks, bonds, and mutual funds.

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A trader's salary can vary greatly depending on their performance and personal fit. If you have a higher chance of making it to the top roles, your expected earnings could be many times higher.

The 90th percentile for a trader's salary is a significant $144,000 per year, which translates to $12,000 per month and an hourly rate of $69.

Here's a breakdown of the average salaries for traders:

Keep in mind that your expected earnings will also be sensitive to the chances of leaving the job, which can be influenced by factors like going into operational roles or entirely different industries.

To become a stockbroker, you'll need a bachelor's degree in any field, but a strong background in accounting, business, finance, and economics is highly recommended.

Taking classes in macroeconomics, microeconomics, securities, risk management, accounting, and finance will give you a solid foundation for a career in the securities industry.

Many prospective stockbrokers serve internships, which is a great way to get your foot in the door and potentially land a full-time position with a brokerage firm after graduation.

To work as a stockbroker, you'll need to obtain several FINRA licenses by passing a series of exams, starting with the Securities Industry Essentials (SIE) exam.

Passing the SIE exam will cover the basics of the securities industry, including financial products, financial risks, and regulatory agencies.

You'll also need to pass the Series 7 exam, which will lead to a General Securities Representative license and allow you to sell any securities, including stocks, bonds, options, and fixed-income investments.

The Series 63 exam will lead to a Uniform Securities Agent license, allowing you to work as a stockbroker and sell mutual funds.

Some brokerage firms may require additional licenses, such as the Series 3, Series 31, Series 65, or Series 66, which will give you more advanced skills and qualifications.

Before taking these licensing exams, you'll need to make sure you can pass a criminal and credit background check, which is a requirement for employment in a brokerage firm.

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Traders who work for investment firms are paid based on the profits or losses they incur each month. They typically have a considerable amount of buying power and can earn much more than they could on their own.

Some traders earn high salaries and don't receive bonuses, as they focus on developing and running computer systems that model investments through data projections. These traders have emerged due to the increasing use of computer programs in investments.

The base compensation for a sales & trading VP closely tracks investment banking VP's, but there is a larger variation in compensation levels at the VP level and above. This is because sales & trading VPs are expected to have a trading P&L or sales credits, whereas investment banking VPs may still be focused on execution.

Individual performance, desk performance, and broader line of business performance all impact sales & trading bonuses. This is in contrast to investment banking, where most associates and VPs are focused on pitchbooks and execution.

The average day trader makes $80,000 a year, but this can vary depending on whether they trade professionally or as a supplemental income. Those who follow strict trading rules can easily make over $100,000 per year or more.

Here's a breakdown of the average salary for day traders who work for a company: