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Trading Analyst Job Description

by KJ Henderson

A trading analyst is a financial services provider found in a variety of environments, including investment banks, commercial banks and hedge funds. Serving as a liaison between buyers and sellers, he executes that sale of securities, commodities and other financial products on the open market. He and his firm are paid a commission on each completed deal.

Working Environment

Trading analysts work whenever the stock market is open. Depending upon which market she trades, an analyst may begin work as early as 4:00AM EST or end as late as 8:00PM EST. However, she does not work when the market is closed, such as on weekends and federal holidays. In addition, the daily life of a trading analyst can be quite stressful, as this is a fast-paced, highly demanding environment.

Education

In most instances, trading analysts must possess a bachelor's degree in finance, economics or a related field of study. Career progression, however, often requires analysts to ultimately pursue a master's of business administration (MBA) degree. Analysts must also be licensed to practice in their jurisdiction. The type of licensing varies, however, depending upon location, the type of firm in which they are employed, as well as what type of security or commodity they will be trading.

Skills

In addition to a formal education, there is a specific set of qualitative skills a successful trading analyst should possess. He should be an articulate communicator, as this is a highly customer service-centric role. He must also be able to think quickly on his feet, as he will often be required to make important decisions in the spur of the moment. Perhaps most importantly, he must be detailed oriented. Trades occur very quickly. A mistakenly added zero or a missing decimal point can lead to large, expensive consequences.

Compensation

In 2010, the U.S. Bureau of Labor Statistics reported that trading analysts and other securities, commodities and financial services sales agents earned an average annual income of $70,190. The lowest 10 percent of these professionals earned less than $31,330, while the top 10 percent grossed more than $166,400. These payments are typically broken up into a base salary and a yearly bonus. Additionally, it is not uncommon for first year analysts to receive a signing bonus.

About the Author

KJ Henderson has more than a decade of HR and talent acquisition experience. He has held roles at a Fortune 100 investment bank, a media conglomerate and at one of NYC's largest executive staffing firms. He currently heads recruitment sourcing at a major movie studio. He read literature at Oxford.

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