Salesperson vs. Trader: What Are the Differences?

Salespeople and traders are both professionals who work in the business world. They share some similarities, but there are also several key differences between the two. If you’re interested in working in sales or trading, learning more about each field and what you may earn can be beneficial. In this article, we explain what salespeople and traders are, provide a list of differences between the two and review helpful tips you can use when choosing a profession.

What is a Salesperson?

Salespeople are responsible for generating new leads and developing relationships with potential customers to sell products or services. They work closely with other members of the sales team, such as account managers, to identify opportunities and develop strategies to close deals. They use a variety of methods to reach potential customers, including cold-calling, networking and emailing. Salespeople often give presentations to potential customers to demonstrate how their products or services can meet their needs. They also answer questions and address concerns to overcome objections and close deals.

What is a Trader?

A trader is a professional who buys and sells securities or other financial assets in the financial markets. Traders work in a variety of settings, including banks, hedge funds, and investment firms. They use their knowledge of the market to buy and sell assets in a way that will generate a profit for their firm. Traders must be able to make quick decisions based on market conditions and their own analysis. They must also be able to handle the stress of the job, which can be intense at times.

Salesperson vs. Trader

Here are the main differences between a salesperson and a trader.

Job Duties

Salespeople and traders perform some of their job duties in similar ways. For example, both professions contact clients to discuss business transactions and meet with clients to complete sales or trades. However, the tasks that these professionals complete during these interactions differ. Salespeople typically work with clients to purchase products from a company, whereas traders work with clients to exchange one type of product for another.

Other job duties that salespeople perform include creating proposals for clients, researching products to inform clients about offerings and keeping records of client information. These professionals also manage their own accounts and track client purchases to ensure they receive payment.

Traders’ job duties often involve completing different types of transactions. For example, traders may trade currencies or commodities, such as metals or grains. They also may research markets to understand current values and create strategies for approaching trades. Finally, traders may oversee employees who assist with trading activities.

Job Requirements

Salespeople typically need at least a high school diploma to enter the field, but many employers prefer candidates with some college experience. Salespeople can pursue a bachelor’s degree in business administration, marketing or another related field to gain the skills and knowledge they need for success. However, a degree is not always required, as many salespeople learn through on-the-job training.

Traders usually need at least a bachelor’s degree to enter the field. Many traders have a degree in finance, accounting, economics or another business-related field. Some traders also pursue a master’s degree in business administration or another related field. In addition to their education, traders must also pass the Series 7 exam from the Financial Industry Regulatory Authority (FINRA) to become licensed.

Work Environment

Salespeople typically work in a variety of environments, depending on the industry they’re working in and the company they’re selling for. For example, if you’re a salesperson for an insurance company, you might spend your days visiting clients’ homes to discuss their current policies and help them find new ones that meet their needs. If you’re a salesperson for a clothing brand, you might travel to different retail locations to promote new products or visit local fashion shows to display your latest designs.

Traders usually work in offices, but some may also have jobs that require them to travel frequently. Depending on the type of trading they do, traders may need to be available at all hours of the day to monitor markets and make trades as necessary.

Skills

Both salespeople and traders need to have strong communication skills. They use these skills to build relationships with clients, understand their needs and explain the products or services they are selling. Salespeople also need to be persuasive to convince potential customers to buy what they are selling.

Both salespeople and traders need to be able to think on their feet and make quick decisions. This is because they often have to react quickly to changes in the market. For example, if a trader sees that the stock price of a company is about to drop, they may need to sell their shares quickly to avoid losing money.

Salespeople need to be organized so that they can keep track of their clients and their needs. Traders also need to be organized so that they can keep track of the different investments they are making. However, traders may need to be more organized than salespeople as they often have to track multiple investments at the same time.

Salary

Salespeople earn an average salary of $55,910 per year, while traders earn an average salary of $89,245 per year. The average salary for both positions may vary depending on the type of salesperson or trader you are, the company you work for and the location of your job.