Crazy to consider EB over prop trading?
Currently deciding between FT offers (US-based) at an EB (moe/laz/pwp) and prop trading firm (js/optiver/sig/citadel).
Considering the differences in comp and competitiveness, am I crazy to be considering the eb? I genuinely have an interest in learning about companies/deals which the prop firm won't provide and obviously job security is better at the eb. First-year comp discount (post-tax) should be around 25% at the eb but likely almost double the hours. Any thoughts on my predicament would be greatly appreciated! What questions should I be asking myself in order to make this decision easier for myself?
You should ask yourself what you want to do long term. Undoubtedly you’ll make way more per hour at a prop shop, but you’ll acquire a narrow skill set that is not very transferable. Good, but tough choice.
Thanks. When I think about what I'd like to be doing 5 years from now, it's probably something investing-related. Should be easier to get there from IB than PT in my eyes, hence my inclination to take the IB offer.
I turned down an internship at a prop ship for IB (at a less prestigious bank than an EB) because I didn’t want to realize I suck at trading in a few years and get fired/no comp increases. From my experience interviewing, it’s a very eat what you kill model, where you either do well or don’t. Banking is more of a grey area where hard work alone can carry you through, plus banking opens up a whole lot more doors down the road
Thanks for weighing in, this is also playing a role in my decision.
I assume you haven't come to regret your decision at all now that you've started?
Take the trading gig IMO. If you really hate it after a couple of years you’ll have a fat bank account and can go for banking post-MBA. Of course, comes down to what you really want to do as you noted.
bump
In similar position to you mate deciding between EB (pjt/eve/laz) and HF (DEshaw/citadel/p72) straight out of uni. Best think about NPV of each job. EB might pay discount out of uni but pay ramps up quickly outstripping prop with more security as well. That being said if your offer is from JS defo take that as I've heard their turnover is relatively low. Others are known to very high churn - you don't want to be that guy that gets fired after year 1 with little transferable skills vs IB which can open doors almost anywhere
Thanks for sharing man, glad to hear we're thinking along similar lines here. Congrats on the offers either way!
Prop definitely pays more as you move up, assuming you are good at it and perform.
I think most people (including myself) have a tendency to overstate how well they’ll perform in a prop shop environment. It’s VERY hard to perform well AND be consistent over time. Tenure accounts for nothing in prop - you be killing it for 10 years and mess up 1 and you’re out. IB might pay lower total comp but factor in career stability as well as optionality to PE/HF, I think it’s a close one between IB and prop
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