Trader, Commodities Salary
The average Commodities Trader in the United States can expect to rake in roughly $79K annually. Earnings generally vary between $49K and $185K per year. Geographic location is the biggest factor affecting pay for this group, followed by tenure. Making up 78 percent of those who took the survey, male Commodities Traders greatly outnumber their female counterparts. Most Commodities Traders like their work and job satisfaction is high. Medical benefits are awarded to most, and a strong majority earn dental coverage.
|Salary||$48,280 - $147,459|
|Bonus||$2,065 - $51,599|
|Total Pay (|
XTotal Pay combines base annual salary or hourly wage, bonuses, profit sharing, tips, commissions, overtime pay and other forms of cash earnings, as applicable for this job. It does not include equity (stock) compensation, cash value of retirement benefits, or the value of other non-cash benefits (e.g. healthcare).)
|$49,163 - $184,653|
Job Description for Trader, Commodities
Commodities traders facilitate transactions related to commodities such as securities, stocks and bonds, currency, agricultural output, and others. These traders work with clients to evaluate the market, analyze its movements and tendencies, and use this information to develop sound financial advice for clients. Once this information has been shared with clients and these clients decide to make a transaction, the commodity trader does the necessary buying and/or selling.Read More...
Commodity traders may be employees of banks or brokerage firms, or they may work independently with clients of their own. They may choose to conduct most of their transactions and business from an office via computer or telephone, or they may stand on the floor of a stock exchange, handling deals in person.
A bachelor's degree in finance, economics, or a related field is typically the minimum educational requirement for this position, though many traders have post-baccalaureate degrees as well. Employers and clients may require additional studies with a focus on a specific industry, such as agriculture. Additionally, a trader must be licensed through the Financial Industry Regulatory Authority (FINRA). They need to register with the National Futures Association and pass the National Commodity Futures exam; additionally, the FINRA requires licensed traders to continue their education and report at least 12 hours of classroom education every three years to maintain licensing.
Trader, Commodities Tasks
- Derive optimal transaction prices for clients and execute accordingly.
- Create, maintain, and expand relationships with suppliers and clients.
- Research and monitor target companies and investment channels while applying the appropriate strategies for futures, commodities, and trading.
- Evaluate market movements and communicate their importance with clients and coworkers.
Pay by Experience Level for Trader, Commodities
Median of all compensation (including tips, bonus, and overtime) by years of experience.
Experience seems to be a major factor in determining the incomes of Commodities Traders. Individuals with fewer than five years of experience earn $73K on average, but those in the five-to-10 year group see a six-figure median of $115K. Commodities Traders claiming one to two decades of experience make an estimated median of $141K. Commodities Traders with more than 20 years of experience report incomes that are only modestly higher; the median for these old hands hovers around $150K.
Pay Difference by Location
For Commodities Traders, busy Houston offers a higher-than-average pay rate, 85 percent above the national average. Commodities Traders will also find cushy salaries in New York (+63 percent) and Chicago (+12 percent). Trailing the national average by 13 percent, Miami is the market with the smallest paychecks.
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Key Stats for Trader, Commodities
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