Seems like there are a lot more PMs specialized in macro/rates/fx per capita in London based on Linkedin. All these RV funds like Capula for example, have a lot more London PMs than NYC ones. Is headcount in macro/ FI RV really higher in London? How does comp/taxes/lifestyle compare to the US? For those who are more experienced, would you build a career in NYC/US vs London if you had a choice?
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I have noticed the same. I've heard from a friend that Citadel's London office is now bigger than New York as well. I suspect it's because market hours are better in London as you can feasibly trade Asia, Europe, and US from the same time zone. US rates markets have also become somewhat boring since LIBOR has gone away and Europe is just generally more interesting to trade with differences between all the Eurozone countries (and the UK).
From personal experience, I'd say London's cost of living is definitely lower than New York, but taxes are a bit higher (overall, London is probably more affordable). If you're making ~ 300k USD equivalent, your total effective tax rate is about 39% in New York vs 43% in London.
Rent is lower, but generally the quality of apartments is worse in London than most of the US (no dryers, no central aircon/heating, no dishwasher, etc. is pretty standard even in luxury developments). Groceries are significantly cheaper, even with VAT. Food is cheaper and better tasting. Public transport is cheaper, safer, more reliable, and more extensive.
Personally, I prefer London over New York, but would still take Miami over London.
Also, if you're American it's fairly easy to get a residence permit and work authorization in the UK, but the reverse is not necessarily true.
Sums it up nicely. I'm a US citizen but moved to London right before pandemic to move to a new macro pod. Taxes are more painful but overall lifestyle has improved for me.
One caveat is that if you're in macro, it's gonna be pretty rare to make those weekend trips to Azores, Malta, etc - which as an American I thought every upper middle class Euro did that. That's what you get for being in an VERY interesting time for macro haha.
The most important reason London/Europe has the most macro traders is time zone. You can wake up early to trade Asia and stay late to trade US. The other pieces mentioned above about country spreads + same geography liquid rates/FX markets (Scandi/HUF/TRY etc) are also relevant, but to be effective at macro you need to understand global flows and the cycles of all major central banks. As an NY based trader it's hard to follow Asia especially (I've had my fair share of 2am nights waiting for BOJ).
To your point on which is better from purely a career perspective, both are similar at the sr. analyst/PM level and it's more of a lifestyle choice (presuming you are a US citizen and don't have to deal with our terrible immigration system). As a junior, salaries/comp are uniformly lower in Europe.
In a junior role, I would take New York hands down. In a more senior role, I would take London on the margin, but it probably comes down to trading style / work life balance preference. This is in terms of career progression and overall lifestyle.
I spent the bulk of my career in New York and now work in London. I actually really miss the Macro trading hours in New York: 7am - 4pm you are wired in, but 4pm-6pm there is absolutely nothing going on in the world and you can truly relax with gym / family / hobbies / whatever, and then from 8pm onwards you can dabble in Asian markets if there is something of interest. This means you wake up every morning in a maelstrom of activity, but there is a respite waiting at the end of the day. In London, Macro trading is a relatively quiet experience in the morning most of the time that builds over the course of the day and doesn't truly end until 9pm when US markets close. The way most people handle it in London is to just mentally tune out from 5-8pm and then tune back in after dinner with the family / drinks at the members club until 8pm and then log back in if things are turbulent. It also means that it is much harder to stay up late to handle events in Asia which would otherwise simply be a stay up until midnight experience a lot of the time in New York.
The flipside is that the cost of living in London is SO much better. Taxes are slightly worse, but what you get for your money is infinitely better (I'm talking not at the $300k level, but the $1m+ as you become more senior). You can live in a legitimate home with private outdoor space in a great area and easily travel wherever you want in the winter (skiing in the Alps) or summer (Italy, South of France, et al...).
I think the work / life flexibility + "choose your own adventure trading macro markets" flexibility is really appreciated by people 30+ which is why they like London vs. NY, but as I said at the end of the day, you're choosing between the two best places to do it. It's like picking between Margot Robbie and Megan Fox. Some like Blondes, some like Brunettes.
Thanks so much for the answer. Why would you say that NYC is a clear winner over London for early career?
The pay I guess
I think the combination of higher compensation at junior level and higher energy / nightlife experience makes NY a better option in your early to mid-20s. Also - if you are not American, it is easier to move from New York to London than London to New York so it is probably easier to take advantage of an opportunity in New York when you get it.
ChatGPT got literally everything wrong lol
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