Best FX desks? (for new hires...)
I'm thinking about a transition into S&T, primarily FX S&T. Any ideas on where a good desk would be to start with? I know DB is huge in the FX space, but are there any other top places to consider? and why?
My story: I'm a new analyst in consulting and I've interned in FX ops at a BB before. Undergrad in mechanical engineering, 3.5 gpa, had 5 internships (mostly engineering, NASA, and the BB ops).
Any desks which I'd be more likely to land? How useful (for the application and interview) is my FX ops experience or do I need direct S&T experience?
thanks for the input
Can you explain what FX S&T is?
by FX S&T, I'm referring the sales and trading of currencies/FOREX.
http://www.wallstreetoasis.com/forums/qualitative-macro-st-desks
Depends on the type of destiny that you want. I trade currency futures and commodities. I couldn't imagine having to pitch those ideas all of the time. Do yourself a favor if you want to start messing around in currencies. Oanda has a free demo that is lifetime. Start piddling around to see if you have the knack to trade currencies. It doesn't matter that you came from the Ops side...if you know what you are doing...you can develop a trading style that you can take anywhere.
There are proprietary New York firms that you can attempt to get a job as an asst trader on the currency desk...so I'd start there if you are in NYC or I'd look to Chicago at one of the majors.
John
UBS is huge in that space
I think one thing to consider is whether you want to be on the trading or sales side as both are very different. Also you need to figure out what product space you plan on being in (spot, forwards, options). Spot trading is slowly becoming a dying business in the sense that you dont need that many traders to make prices in currencies with the exception of clients who are looking to do very large notionals. Trading currency forwards is basically an interest rate trading job between different countries. Then there is option trading as well which can range from pure vanilla stuff to exotic options. Generally speaking having a somewhat more quantitative background would probably help you land something in derivatives but depends on your experience, to be honest an ops background doesnt really help for trading at the big banks.
I work for one of the top banks in FX and I must say that I disagree with CLGCTrader a little bit. Though FX trading may be successful for some people who don't do legitimate size and just develop a knack for it through scalping all day, it is actually much more complex when you attempt to profit on a larger scale. Before working on my desk, I had been following FX markets for about 5 years on a daily basis and I learned more the first week on my desk than the entire 5 years beforehand. Furthermore, I learned that half the stuff I thought was important, didn't mean anything relative to the stuff that really moves the FX markets. If you are truly interested in FX and want to start interviewing on Wall St, I'd recommend you read the Tim Weithers book entitled "Foreign Exchange".
Below are the 2009 league tables for global FX marketshare %:
1) Deutsche Bank @ 21% 2) UBS @ 15% 3) Barclays @ 14.5% 4) RBS @ 8% 5) Citi @ 7% 6) JPMorgan 7) HSBC 8) Goldman Sachs 9) Credit Suisse 10) BNP Paribas
What do you mean stuff is not that important?, and what is "legitimate size"?
I am sure if you are putting on billion dollar ++ positions most indicators do not make any difference at all as the scale and size force a longer holding period. However, that is out of reach for 99.999% of traders, and even yourself, on your own, cannot trade the same way or use the same rules. You simply do not have the capital to bet big, or more aptly, ride out the risk of ruin.
I know traders that make well into 7 figures per year trading FX, and stuff does "matter". An very well funded trader, with say 5 or 10 mil in an account would still care about most of the stuff you are saying does not matter. And they would not just load in, load more, load more with "knowledge that in time I will be right". The issue is the one time that does not work, who the hell wants to lose 50% or more (or all) of your account in 1 trade. Very large players can "make" a trade work because they have the help of governments etc which intervene to control fx. They also have massive sources of funding which eludes normal people, and can ride out waves that would break most people (as in they have no more money to ride the wave).
Typo:
Barclays @ 10.5%
Sorry about that.
Best banks for FX options trading? (Originally Posted: 08/15/2015)
What banks perform the best in FX options? I've heard that Deutsche, Citi, and Barclays are very good but are they the best?
whats the difference say if u trade fx in barclays' singapore office versus london or tokyo office? thanks
Citi as the clear leader, DB comes in at a respectable 2nd
What about Barclays?
Overall for FX, Citi/DB/UBS/Barclays are a clear top 4.
https://www.greenwich.com/greenwich-research/research-documents/awards/…
Barclays lost a lot of people over the past year or so. UBS is making a push back into FX but I wouldn't say it is top at the moment. GS would have to be up there.
What is the context of the question? Certainly varies a bit by complexity.
In terms of exit opps to a macro fund, would all BBs be similar if you were a top trader?
Probably, they all have a relatively good rep so it would be more about your rep than where you're coming from.
Citigroup
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