How To Become A Sales Trader

Photo of author

By miriammetz

A sales trader is a person who specializes in trading financial assets. For example, a sales trader can work as an investment banker, stockbroker, or commodities trader.

As a sales trader, you typically work on the buy-side and sell assets to clients. What are the best ways to become a sales trader? How does it differ from an investment banker? What are some of the skills involved in selling financial assets? This article will answer these questions and more with our ultimate guide for beginners.

How To Become A Sales Trader?

The key to becoming a sales trader is to have a good understanding of financial markets. However, it’s not enough to know how the market works; you need to assess risks and opportunities. You also need good teamwork skills and the ability to work under pressure.

First, you should get a degree in finance or economics and proceed through the ranks of an investment banking firm. This will help you learn about different trading strategies and gain experience working with clients–and this is exactly what you’ll need when applying for jobs as a sales trader. This way, you’d be able to do exactly what is in the job description.

sales trader

Advice For Becoming A Successful Sales Trader

First, you must identify your target market. What do they need? What do they want? Who are their competitors, and how can you be different from them? Finally, what’s the opportunity for profit, and how will you capitalize on this?

You should answer these questions before beginning your career as a sales trader. But, first, you must know what your company does and the opportunities for success. This will help guide you in building a strategy for success.

How Does The Job Differ From Investment Banking?

If you want to make more money than an investment banker, then becoming a sales trader is the way to go. Additionally, you have more control over your schedule with a career as a sales trader. You’ll likely be required to travel quite often for business, but it won’t be nearly as frequent as what most investment bankers will experience.

What Are Some Of The Skills Involved In Selling Financial Assets?

The skills involved in selling financial assets can vary depending on the type of assets you’re dealing with. For example, you could specialize in fixed-income securities or commodities. However, most sales traders have skills across many different types of financial products. Some of these may include:

  • Financial modeling
  • Short-selling (selling assets that you don’t own)
  • Negotiation
  • Market research
  • Foreign exchange trading
  • Macroeconomics and finance

Investment Banking vs. Sales Trading

Investment banking is a job that requires the concept of capital markets. The goal of investment bankers is to raise capital through the sale of stocks. Investment bankers deal with stocks, bonds, and other financial assets. Investment bankers also work on the buy-side when they sell these assets to potential clients. They can also be found on the sell side, selling their own company’s stock or managing a company’s stock for investors through initial public offerings (IPOs).

On the other hand, sales trading focuses on trading financial assets such as currencies, commodities (like oil), and futures. The skills involved in sales trading are more like those of a trader; they are experienced traders who take advantage of people’s emotions to make money. 

Unlike investment bankers, who have more managerial skills and deal with large sums of capital at once, sales traders typically trade small amounts at a time with an emphasis on speed rather than size. Think of it this way: investment banking has more managers while sales trading has more pit bosses.

Commodities Trading vs. Securities Trading

First, we want to discuss the difference between commodities and securities trading. As a sales trader, you’re typically working selling assets to clients. You typically work as an investment banker for securities trading and sell to investors instead of directly to customers. The primary difference is that you’re primarily dealing with physical goods like oil or gold as a commodities trader, whereas, in securities trading, you’re dealing with financial assets like stocks and bonds.

Commodities traders have more freedom when they trade, whereas securities traders need to follow specific guidelines set by laws that govern their industry. Commodities traders are paid based on the value of their investments, whereas securities traders are paid on a commission basis. Commodities traders also have more freedom when choosing which products they trade in the market.

Tips For Entering The Field Of Trading.

So, you want to enter the field of trading? A few tips can help you get your foot in the door. First, if you are interested in financial markets, you need to enter the field of trading with the proper training. Holding a CFA (Chartered Financial Analyst) certification is a good start. But don’t stop there; consider taking courses from other institutions like Columbia Business School and Wharton Business School.

Aspiring traders should also learn to code because data science is integral in trading. You can easily create models and analyze market trends using big data and machine learning algorithms with coding skills. Other skills that can help you on your way are understanding basic economics, quantitative analysis, and risk management.

Another tip when entering this field is getting experience through internships or co-op programs at investment banks or brokerages. If possible, try to find a mentor who has already been working in the industry for some time so they can share advice and guidance with their past experiences. It could be an investment banker, prop trader, or manager of an investment firm. Finally, remember that it’s not easy to become successful as a trader, but you’ll be building valuable skills along the way!


Knowing what a sales trader does is like knowing what a chef does. It’s not as easy as it might seem. However, the basic idea is that a sales trader makes money by buying and selling financial assets at the right time. If you’re interested in learning more about becoming a sales trader, read more about it.

Other related articles


Images Courtesy of DepositPhotos