How To Become A Hedge Fund Trader: What It Is and Career Path - Zippia (2024)

Updated June 25, 2024

5 min read

A hedge fund trader is a professional who creates investment strategies and manages market portfolios. They use their knowledge of the market and trends to make profitable trades. Their duties include researching and developing trading strategies, communicating with investors and analysts, and trading stocks, bonds, and derivatives. They often work with financial analysis tools and may automate trade allocation procedures. A hedge fund trader typically has a degree in mathematics, science, engineering, or a relevant field and possesses strong analytical, asset management, and quantitative skills.

How long does it takes to become a hedge fund trader?

It typically takes 6-8 years to become a hedge fund trader:

  • Years 1-4: Obtaining a Bachelor's degree in a relevant field, such as finance, economics, or mathematics.
  • Years 5-6: Accumulating the necessary work experience in financial analysis, market trends, and investment strategies.
  • Year 7: Gaining on-the-job training or additional certifications, if required.

Note: This timeline is based on the assumption that the reader already has a high school diploma and the 25th percentile experience is 3-4 years. The exact timeline may vary depending on the specific job requirements and individual circ*mstances.

ScoreHedge Fund TraderUS Average

Salary

8.1

Avg. Salary $117,549

Avg. Salary $59,228

Stability Level

9.5

Growth Rate 10%

Growth Rate 0.3%

Diversity

6.1

Race

American Indian and Alaska Native 0.21%

Asian 12.18%

Black or African American 5.43%

Hispanic or Latino 11.24%

Unknown 4.12%

White 66.82%

Gender

female 34.25%

male 65.75%

Age - 43

Race

American Indian and Alaska Native 3.00%

Asian 7.00%

Black or African American 14.00%

Hispanic or Latino 19.00%

White 57.00%

Gender

female 47.00%

male 53.00%

Age - 43

Stress Level

9.5

Stress level is very high

7.1 - high

Complexity Level

10.0

Complexity Level is advanced

7 - challenging

Work Life Balance

3.5

Work Life balance is poor

6.4 - fair

Hedge Fund Trader career paths

Hedge fund traders often move on to roles like sales traders or equity traders. They may also become portfolio managers or finance analysts. Some transition into operations specialist or analyst positions, while others move into leadership roles like team leader or vice president.

Key steps to become a hedge fund trader

  1. Explore hedge fund trader education requirements

    Most common hedge fund trader degrees

    Bachelor's

    83.8

    %

    Master's

    9.4

    %

    Associate

    5.2

    %

  2. Start to develop specific hedge fund trader skills

    A hedge fund trader uses a variety of skills on a daily basis. They conduct financial and technical analysis to make trading and investment recommendations, and maintain dialogue with analysts for idea generation. They also process trades, reconcile accounts, and communicate with brokers to obtain market quotes and execute orders. Additionally, they stay up-to-date with economic trends, political processes, and monetary policies to inform their trading decisions.

    SkillsPercentages
    Hedge Funds15.08%
    Macro13.77%
    Derivative8.32%
    Fixed Income7.02%
    Bloomberg6.53%

    Show more

  3. Research hedge fund trader duties and responsibilities

    A hedge fund trader's primary responsibility is to analyze financial and technical data to make informed trading and investment recommendations. They engage in various activities such as researching investment opportunities, coding trading strategies, and executing trades on platforms like Interactive Broker. They also maintain relationships with sell-side and buy-side analysts, participate in investment conferences, and ensure strict confidentiality of client documentation.

    • Manage business, sales, marketing, international negotiation and communication for a commodities business.
    • Trade ETF baskets base on NYSE floor position (long/short).
    • Assist with the conversion of all securities to trade directly through the NSCC.
    • Perform critical maintenance of new & existing securities in multiple operational systems by using Bloomberg.
  4. Get hedge fund trader experience

  5. Prepare your hedge fund trader resume

    When your background is strong enough, you can start writing your hedge fund trader resume.

    You can use Zippia's AI resume builder to make the resume writing process easier while also making sure that you include key information that hiring managers expect to see on a hedge fund trader resume. You'll find resume tips and examples of skills, responsibilities, and summaries, all provided by Zippi, your career sidekick.

    Choose From 10+ Customizable Hedge Fund Trader Resume templates

    Build a professional

    Hedge Fund Trader

    resume in minutes. Browse through our resume examples to identify the best way to word your resume.

    Then choose from 10+ resume templates to create your Hedge Fund Trader resume.
  6. Apply for hedge fund trader jobs

    Now it's time to start searching for a hedge fund trader job. Consider the tips below for a successful job search:

    1. Browse job boards for relevant postings
    2. Consult your professional network
    3. Reach out to companies you're interested in working for directly
    4. Watch out for job scams

How Did You Land Your First Hedge Fund Trader Job

How To Become A Hedge Fund Trader: What It Is and Career Path - Zippia (10)

Are you a Hedge Fund Trader?

Share your story for a free salary report.

Average hedge fund trader salary

The average Hedge Fund Trader salary in the United States is $117,549 per year or $57 per hour. Hedge fund trader salaries range between $68,000 and $201,000 per year.

Average

Hedge Fund Trader

Salary

$117,549Yearly

$56.51

hourly

What Am I Worth?

How To Become A Hedge Fund Trader: What It Is and Career Path - Zippia (11)

How do hedge fund traders rate their job?

-/5

5 Stars

4 Stars

3 Stars

2 Stars

1 Star

Hedge Fund Trader reviews

How To Become A Hedge Fund Trader: What It Is and Career Path - Zippia (12)

A zippia user wrote a review on Jul 2023

Pros

Flexible job to do other things during the day

Cons

You have to be careful or you could lose money

Hedge Fund Trader FAQs

Have more questions?

See all answers to common sales questions.

Search for hedge fund trader jobs

Updated June 25, 2024

How To Become A Hedge Fund Trader: What It Is and Career Path - Zippia (13)

Zippia Team

Editorial Staff

The Zippia Research Team has spent countless hours reviewing resumes, job postings, and government data to determine what goes into getting a job in each phase of life. Professional writers and data scientists comprise the Zippia Research Team.

  • Zippia Careers
  • Sales Industry
  • Hedge Fund Trader

Updated June 25, 2024

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How To Become A Hedge Fund Trader: What It Is and Career Path - Zippia (2024)
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