Banking vs Trading: Which path ? [ Easy read ]
Hello guys
I am a first-year student at a target school and I am torn between investment banking and trading as a career path. You might say that they require totally different profiles but I did a lot of research and think I can do both. I am pretty good at math, love markets, and enjoy learning about businesses.
I am fairly new to the industry, so if I offended s.o with my way of thinking I apologize in advance.
BANKER:
For:
- I love learning about businesses and the way they operate.
- I try to build financial models whenever I have the time. It allows me to practice my skills and discover a new industry (I don't want to come as a try-hard)
- Comp is higher
- Investment banking is less risky compared to trading
- I can transition to an HF later which interests me because I can combine market & business passion
Against:
- Merciless hours. This is my main fear, especially after reading through the wso survey. I have pretty good endurance and I am (fairly) confident I can survive the hours but I will have to sacrifice going out w friends, gf, missing important plans, vacations.. Even having a family later on is complicated.
- Even if I do a two-year stint and go to PE it's not that different (probably will have more control over my time tho).
TRADER:
For:
- working market hours. So free time after and at weekends even though I will be consistently following the news
- Having my own P&L is motivating as I am more of a results-driven person
Against:
- AI: this scares me the most. Starting at a position and then later being replaced by an algorithm 100 times more efficient than me (GPT might replace some of the junior bankers' tasks but not all)
- Exit opp: if I choose to be a trader I wouldn't have many exit opportunities (hf but related to my previous role or asset management)
What would you do if you had my profile and have you ever regretted choosing one over the other ? Any advice is appreciated. Thank you for your answers !
Cheers
I was in your situation, and can address the feat of AI regarding trading. Banks may slow hiring soon on trading desks but based on everyone I’ve spoken to, it’s hard to imagine a world where there are no people working on the S&T desk. So long term it’s a fair concern but you are probably okay to start your career.
Do you think ai will have major effect on ib?
.
Was thinking about this too. Decided to do IB summer junior year, if I don’t like it or the hrs seem too much, then I can pivot and recruit for trading FT. Also, the environment (trading floor), etc factored into me leaning towards banking.
How did you find the trading floor environment?
what exactly was it about the environment that you didnt like on a trading floor?
Bump
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