Sales and Trading is one of the most dynamic and revenue-focused divisions in finance. Professionals in this field connect institutional clients to the markets, pitching investment ideas, executing trades, and managing risk in real time. They generate revenue through commissions, spreads, and market-making, requiring strong market intuition, quick decision-making, and deep product knowledge. Success depends on client relationships, sharp analysis, and seamless collaboration with research and structuring teams.

- Sales : Act as the main point of contact between the investment bank and its institutional clients, such as hedge funds, mutual funds, pension funds, and insurance companies. Their role is to

   - Build and maintain long-term client relationships

   - Understand each client’s investment strategy, risk appetite, and portfolio needs

   - Pitch trade ideas, market themes, and financial products (e.g., equities, bonds, derivatives) tailored to client interes

- Trading : responsible for executing trades and managing market risk. They operate in fast-paced environments and make real-time decisions. Their responsibilities include:

   - Use tools such as technical analysis, quantitative models, or pricing algorithms to inform trading decisions

   - Execute client orders efficiently while minimizing slippage and market impact

   - Provide liquidity by acting as a market maker (buying/selling when no immediate counterparty exists

1) Equity Trading
   - Stocks, ETFs, and equity derivatives (options, futures)
   - Includes cash equities and structured equity products

2) Fixed Income Trading

   - Bonds (government & corporate), credit derivatives, interest rate products
   - Often bundled with FX and Commodities under FICC (Fixed Income, Currencies, and Commodities

3) Other Desks

   - FX Trading: Currency pairs and macro hedging
   - Commodities: Energy, metals, agricultural products
   - Quant/Algo Trading: Automated, model-driven strategies

1) Structure of Salary 

1. Guaranteed Pay:
   a. Base Salary: Fixed biweekly income — generally similar to or slightly higher than Equity Research, and comparable to Investment Banking at junior levels For entry-level Sales & Trading analysts: typically $100K – $120K annually depending on firm and location
   b. Signing Bonus: Most firms offer a moderate signing bonus, usually around $10K – $20K, though top firms may go higher; Often comparable to IBD at the entry level

2. Performance-Based Incentives: 
   a. Year-End Bonus: Heavily performance-driven. Bonus is based on individual P&L (for traders), client flow and revenue (for salespeople), and desk performance. Typically 50% – 100%+ of base salary for high performers, especially at revenue-generating desks.
   b. Equity & Deferred Comp: More common at the senior level, especially for high-producing traders and sales directors. May include company stock, deferred cash, or retention bonuses tied to long-term performance and compliance.

2) How Much Do S&T Make? Salary & Bonus by Role

3) Independent Trading Firms vs Bulge Bracket : S&T Salary Breakdown

Independent Trading Firms

   Independent trading firms typically offer higher upside potential through performance-based bonuses and P&L sharing, while bulge bracket banks provide more structured pay with greater stability. Compensation at trading firms can be more volatile but significantly higher for top performers.

   Sales and Trading is known for its intense pace during market hours, but unlike investment banking, the workday typically ends when markets close. Most professionals start their day early—often before 7 a.m.—to prepare for market open, and wrap up by early evening. The routine is generally consistent, but volatility in the markets, major economic events, or client activity can create periods of high stress and rapid decision-making. For traders, every second counts, and managing real-time risk adds psychological intensity, even if the hours are shorter.
   Salespeople, on the other hand, balance fast communication with clients, constant idea generation, and intra-day execution, which can extend into post-market follow-ups or preparation for the next day. While weekend work is rare compared to banking, the job demands sharp focus, stamina, and constant alertness throughout the day. Global teams or products tied to Asia or Europe can also mean early or late calls across time zones.
   Despite the pressure, many find S&T rewarding due to the direct impact on revenue, real-time exposure to global markets, and a clear, merit-based feedback loop. The lifestyle tends to be more sustainable long-term, particularly for those who thrive in fast-paced, outcome-driven environments. For the right personality, Sales & Trading offers both intellectual adrenaline and work-life balance, rarely found together on Wall Street.

   A career in Sales & Trading builds sharp market intuition, risk management skills, and real-time decision-making ability—making it an excellent springboard into a variety of market-facing and analytical roles. Here’s a breakdown of the most common exit paths:

1. Hedge Funds / Prop Trading Firms (35% – 45%)
   a. Apply trading strategies in a more flexible, high-reward environment
   b. Focus shifts from client flow to generating alpha and proprietary P&L

2. Asset Management / Portfolio Management (20% – 30%)

  a. Use market knowledge to construct and rebalance institutional portfolios
   b. Emphasizes longer-term investment decisions over intraday trading

 
3. Fintech / Electronic Trading / Quantitative Research (10% – 15%)
  a. Move into roles focused on automation, algorithmic execution, or pricing models'
   b. Ideal for those with coding or quantitative skill sets developed on the desk

 
4. Corporate Treasury / Risk Management (5% – 10%)

  a. Apply knowledge of markets to manage liquidity, currency exposure, or hedging strategy at corporates
   b. Often a lifestyle upgrade for those seeking a shift from market hours

5.  Internal Mobility (5% – 10%)

  a. Shift within the bank into structuring, capital markets, or research roles
   b. Valuable for those seeking different exposure without changing firms

6. Top MBA Programs / Academia / Startups (~5%)

  a. Some traders and salespeople use their experience to pivot into business school, entrepreneurship, or teaching
   b. Strong market understanding and performance metrics boost applications