Job Outlook for Hedge Fund Software Developers 2022 and Beyond
I'm a web developer but I'm looking to break into fintech or finance as a front office developer. My goal is to start at a shop and over the years transition from coder to deal-maker or at least work in a capacity where I get a cut of the pie like bankers, traders and principals do. I know quants get paid a lot.
Is this even possible? Please don't reply saying no just because you haven't heard of it. If you don't think it's possible for specific reasons and can back it up, I'm open having to have my dreams crushed by an anonymous buyside MD on the internet. I know people who've gone from no-name "ibanks" to making $500k+ at a bulge bracket just by waiting it out over 10-15 years and collecting niche experience along the way.
My background: 35yr male. Non-target undergrad, Applied Mathematics B.S. I worked in a finance for about 4 years before in operations (Japanese bank) and as client service associate at JPM and UBS where I got my Series 7. My point is I know a little bit about the industry so when replying feel free to use jargon and acronyms. I should understand.
Afterwards I left to get into tech because my job was boring AF. But I want to get back into finance as a dev because I like the culture more than tech and the long term potential for $$$ is greater.
TL;DR How can I become a front office software dev on the buyside and make oodles of money?
Thank you.
To get a cut of the pie, you have to contribute to revenue growth for your fintech and finance firm. That's the role you need to target. As to what roles, I have no idea - I don't know what front office dev means.
A front office dev is a software engineer that works on software used by front office folk in a revenue generating capacity (e.g pricing calculators, trading platforms etc.). The FO dev may or may not sit next to the FO staff. Back office dev is like IT support and building the company intranet or HR portal etc. Quants and risk management devs I'm not sure how they are classified but some quants are for sure front office and they get paid like it. Risk management developers are in a MO function but it's so technical and financial math heavy and close to the FO it may as well be FO in some regards. Except they don't actually generate revenue they just prevent the cowboys from betting the farm.
At my AM firm, the FO technology folks are not in the FO. They just work on the technology we use. They sit with our technology folks, not the FO. They also get paid like the technology folks not the FO because they are not in a revenue generating capacity.However, their are technical/quantitative people within the FO but they don't just maintain our platforms, they are in a seat that generates revenue directly as quant traders or indirectly as risk/allocation model builders.It's probably different at a quantitative hedge fund where quant devs and quant traders sit side by side which is probably what you are looking for. At 35, it will be close to impossible to get into that seat with your profile. They don't want to train a 35 year old who can't provide alpha generation for another two to three years probably. If I were you, I would try to rise the ranks as an engineering manager/director/executive. It's not FO, but it pays pretty good and fits closer with your profile.
Thx. Unless the tools front office dev builds can replace the front office human beings making the money-making decisions, front office dev, despite the terminology, is not revenue generating so it's not really "front office."
The only revenue generating piece of technology is the algorithm that helps make money (generate revenue).
Check out Quantnet for additional information about what it takes to succeed in this space.
You’ll find it probably echoes what’s said here.
Not a lot of seats and those that exist, you’re competing against the literal best of the best. Even MFEs from good schools aren’t able to find the seats they hoped for...
A quick linkedin search will show you who has these seats at Citadel, HRT etc…. Its inspiring and a bit deflating in equal measure.
Great idea. Thanks,
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