Execution Traders have a position between a Proprietary Trader and a Sales Trader. Execution Traders work for a portfolio management company, a hedge fund, or even for insurance companies. Their role is that of a purchaser: they take orders from Portfolio Managers as they carry out the investment projects of their clients. Unlike Proprietary Traders, Execution Traders do not have any decision-making power, and they cannot make choices on which investments to make.
Even so, Execution Traders don’t merely take orders; their role is to optimize the decision of the Manager, in executing the purchase in the best manner possible, under the best conditions possible. For this, Execution Traders are in constant contact with brokers, Sales Traders, and other sources selling assets in order to get the best possible price. Once the transaction is completed, the Execution Trader reports back to the Portfolio Manager.
Execution Traders therefore have a complicated role; they are in charge of optimizing investments with little room for maneuvering. They possess a mastery of financial markets, but their relational quality is their strongest skill, as their primary goal is to obtain information from many different sources.
The combination of financial understanding and commercial qualities require an educational path similar to that of a Sales Trader: Execution Traders must take part in a market finance training program, as well as a training program in commerce or communication. The Californian Institute of Trading provides the necessary knowledge and experience, but students hoping to become Execution Traders should compliment their CIT diploma with further specialized training.
The difficulty of Execution Trader’s work justifies high annual wages, which can be as high as 35,000 Euros upon hiring and up to 60,000 Euros after three years of experience, bonuses not included. The wages of an Execution Trader remain nonetheless decidedly lower than those of a classic Trader, as Execution Traders don’t have to prove themselves through risk-taking.