Most traders are unqualified to operate as investment bankers and the same thing can be said about investment bankers who want to trade.
Traders take more risks, and their livelihood is primarily based on their annual profit and loss statement. As a consequence, they are well rewarded.
Investment bankers are essentially glorified salespeople hired to schmooze sell and close initial public offerings (IPOs), mergers and acquisitions (M&As), and other sorts of deals, which are frequently conducted using standardized boilerplate forms and spreadsheets. While a consequence, “Sales” is the most essential role, as the rest of the work is rather consistent and does not vary significantly.
It also relies on your definition of a trader. Setting up off takes in third-world countries for minerals may bring in a lot of money for a physical commodities dealer; one deal might bring in $200,000 to $2 million, or $50,000 on a smaller scale. If you do it once a month, it will be beneficial. A commission is paid to investment bankers; there are several degrees of commission, thus the bucket shop type with few customers may make nothing, while the Knightsbridge elite might earn $2 million to $7 million a year and more.
Trading is a competitive business where your success is entirely dependent on your ability to execute. Investment bankers work in transaction teams, and while their pay is performance-based, it isn’t as high as that of traders. To make a lot of money as an investment banker, you only need one big transaction per year, but in trading, you must deliver every day. If you don’t, you’ll be out on the streets in a day.