What is the difference between a professional and institutional trader?
Does having regulated status (in the UK or the US) make you a professional trader or an institutional trader? At first I thought it was if you we are responsible for client money that made you a professional but it could possibly also make you institutional … something about controlled function, but that doesn't account for trading proprietary funds? Plus, a lot of people at HF are not FCA regulated but they are still putting traders on their LinkedIn profile. I'm currently studying Regs CISI and my brain has just got obsessed with trying to understand the definition of a professional and/ or institutional trader. I have literally spent the whole afternoon researching online instead of studying and I'm still nowhere closer it's getting closure on the matter. Please can you put me out my misery by giving me a definition of a professional and or institutional trader in the UK. Thanks
In the US, an institutional trader works for, and trades on behalf of an institution, like a bank or fund.
A professional trader is somebody who get paid to manage and trade OPM (other peoples money).
A trader at a bank, or a fund is both...if you are an institutional trader, then by default, you are also a professional
However, there are other "professional traders" that do not work at banks or funds...these are individuals who other people have entrusted with managing their money, and they get paid to do so.
if you just trade your own money, then you are "retail"
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