Compensation Expectations

I was recently quoted a role as an entry level Repo Trader at a tier 1 prop shop (non market maker) in NYC at 175K OTE (125 base + ~50 bonus). Curious what the comps look like considering there is a lack of reporting on buy-side Repo packages. Additionally, would be interested in any estimates or opinions on this offer.

Please note: This role is viewed as directly contributing to Pnl by management & I would be not only be generating trade ideas, but rather executing the strategy as well.

2 Comments
 

Based on the most helpful WSO content, your quoted offer of $175K OTE (with $125K base and ~$50K bonus) for an entry-level Repo Trader role at a tier 1 prop shop in NYC seems competitive, especially for a position that directly contributes to PnL and involves both generating trade ideas and executing strategies.

For context: - At top-tier prop trading firms (e.g., Jane Street, Citadel, etc.), entry-level roles often start with total compensation in the range of $250K-$300K, but these are typically for quant-heavy or market-making roles. - At slightly less prestigious firms (e.g., Akuna, CTC, Group One), first-year compensation is often closer to $100K-$150K base with bonuses nearing 100% of the base, depending on performance. - In Europe, entry-level trading roles can start at £30K-£55K base with bonuses ranging from 0-75%, depending on firm performance and individual contribution.

Given that your role is directly tied to PnL and involves execution, the $175K OTE aligns well with expectations for a tier 1 prop shop, though it is slightly below the upper end of the spectrum for top-tier firms. If the shop has a strong reputation and offers significant upside potential tied to performance, this could still be a solid offer.

Sources: What is your compensation in Real Estate Finance?, REPE compensation, RE: Prop/Quant Trading - Why is it not as big a target as Investment Banking?, Q&A: Top Quant Firms First Year Comp 250k to 400k, Prop Trading Pay at Different Firms?

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