Sales Trading Salary: A Comprehensive Guide

Sales trading is a demanding and rewarding career path that offers the potential for high earnings. However, the salary expectations for sales traders can vary widely depending on a number of factors, including experience, skillset, and the size and location of the firm.

Factors Affecting Sales Trading Salary

Experience: The number of years of experience a sales trader has is one of the most important factors that determines their salary. Entry-level sales traders can expect to earn a lower salary than those with more experience. As a sales trader gains experience, they will develop a stronger understanding of the markets, build relationships with clients, and become more proficient in executing trades. This increased experience will lead to a higher salary.

Skillset: The skillset of a sales trader also plays a role in determining their salary. Sales traders with strong analytical skills, market knowledge, and communication skills are typically able to command higher salaries. Additionally, sales traders who are able to generate new business and develop relationships with clients are also likely to earn more money.

Firm Size and Location: The size and location of the firm can also affect a sales trader's salary. Sales traders who work for large, global firms can typically expect to earn higher salaries than those who work for smaller, regional firms. Additionally, sales traders who work in major financial centers, such as New York, London, and Hong Kong, can expect to earn higher salaries than those who work in smaller cities.

Average Sales Trading Salary

According to the U.S. Bureau of Labor Statistics (BLS), the median annual salary for sales traders was $83,610 in May 2020. However, the BLS also notes that the top 10% of earners made more than $187,200, while the bottom 10% of earners made less than $43,800.

Sales Trading Salary by Experience Level

The following table shows the average sales trading salary by experience level, according to the BLS:

Sales Trading Salary by Firm Size

The following table shows the average sales trading salary by firm size, according to the BLS:

Sales Trading Salary by Location

The following table shows the average sales trading salary by location, according to the BLS:

Conclusion

Sales trading is a demanding but rewarding career path that offers the potential for high earnings. However, the salary expectations for sales traders can vary widely depending on a number of factors, including experience, skillset, and the size and location of the firm. By understanding these factors, sales traders can better position themselves to negotiate a salary that meets their expectations.

Additional Information

• The Financial Industry Regulatory Authority (FINRA) regulates the sales trading industry. FINRA requires all sales traders to pass the Series 7 exam.
• The Chartered Financial Analyst (CFA) designation is a highly respected credential for sales traders. CFAs must pass three levels of exams and have at least four years of experience in the financial industry.
• Sales traders can earn additional compensation through bonuses and commissions. Bonuses are typically based on performance, while commissions are based on the volume of trades executed.