Careers in Quant Trading/Programming Dev
Hey everyone, I’m a freshman BBA student in a top 5 undergrad program, and as I’ve explored career opportunities it seems that hedge fund trading, specifically quant trading fits my skill set. I understand that often firms seek out phd grads for these positions, but there are obviously other paths to this profession. I am currently doing a BBA with a datasci mino. Would pursuing a compsci or quantitative finance masters after this be enough to find placement? Could I switch to a datasci/BBA dual degree and get placement right out of undergrad? It just seems like there’s a lot of explicitly defined barriers to entry for a field that’s 99% skill based. If anyone has any information or experience with this I’d appreciate your input.
Based on the most helpful WSO content, it seems that there are indeed multiple paths to becoming a Quant Trader. Here are some key points to consider:
Education: While it's true that many quant traders have PhDs, it's not a strict requirement. A strong background in a quantitative field such as computer science, mathematics, or statistics is often sufficient. Your current BBA with a data science minor could be a good foundation.
Further Studies: Pursuing a master's degree in computer science or quantitative finance could certainly enhance your chances of landing a quant trading role. It would provide you with a deeper understanding of complex algorithms and financial models.
Skills: Quant trading is indeed a skill-based field. Proficiency in programming languages, especially Python, is often required. Knowledge of machine learning, time-series analysis, and pattern recognition can also be beneficial.
Experience: Practical experience can be a significant advantage. This could be in the form of internships or projects that demonstrate your ability to apply your skills in a real-world context.
Self-Learning: Many successful quant traders have taught themselves the necessary skills. There are numerous resources available, including books like "Heard on the Street" and online courses in probability and other relevant subjects.
Attitude: Quant firms tend to be meritocratic. If you perform well, you can rise quickly, regardless of your educational background.
Remember, the journey to becoming a quant trader can be challenging, but with the right combination of education, skills, and experience, it's certainly achievable. Good luck!
Sources: How do you become a Quant Trader?, RE: Prop/Quant Trading - Why is it not as big a target as Investment Banking?, Q&A: From Pizza Delivery to Quantitative Research/Data Science/Programming, Best internships for Quant Trading?, Career switch into quant trading - viable?
Check out Quantnet forums. They’re probably more suited to answer your questions/concerns.
Thank you, I will definitely check that out.
Very systematic quant research roles often require a PhD but for quant trading especially on the high frequency end of the spectrum it's rarely a hard requirement. Some very large quant hedge funds also hire undergrads as quantitative researchers. A business or finance degree would be uncommon unless the position is trading focused but I think this is less about undergrad math/physics curriculums being very relevant and more that most business/finance undergrads at not especially strong at mental math or general quantitative thinking. Data science curriculums are going to vary a lot so hard to say how relevant it would be but certainly being able to do some coding and data analysis will be helpful. I'm not very familiar with MFE programs but I think a lot of the placements are for supporting roles in banks which can pay decently but are probably not what you are hoping for.
I am mostly interested in programming and trading, so is there a specific undergraduate/masters combination that would put me on a better track then than what I am currently doing? I just don't want to waste time and money on education that won't get me where I want to be.
For programming CS seems like the most relevant major but not a requirement while I'm not sure any major or degree is that directly useful for trading. There's a pretty broad spectrum of quant trading/research/development roles so if you have some more precise idea on what role you desire and why you might get more specific advice.
I would drop the BBA if you are really interested, it's very unlikely to be useful in any capacity.
What a quant trader or market maker actually does is quite different from a researcher or a software engineer at a quant firm. I would also add, it's basically impossible at this point (as insane as that sounds) to be competitive for quant research out of undergrad or even out of masters unless you put everything you have into Stats/CS and are able to compete in hackathons and events at a competitive level.
Your best bet for trading is to study CS/Stats/Math and try to show a lot of interest, for example joining your schools Quant/CS (or poker) clubs and being involved. If your school doesn't have a quant club, start one. By doing this you will get in touch with recruiters by hosting events and be able to get your foot in the door and get an interview. From there, all you have to do is study the interview stuff rigorously and you should be golden.
Thanks! After doing some digging I did find that there is a small quantitative finance club at my school, so I will definitely reach out to them ASAP. The reason I am a little bit hesitant to drop the BBA only because the program is the most select degree program my school offers, and it has a really active alumni network and better funding for clubs, recruiting connections, etc. than the math/stats/compsci departments, and the dual degrees tend to get really good tech industry offers, so if things go totally south I'll still be ok. Do you think a CS/BBA (focus in finance) dual degree be a bad idea/waste of time though if my absolute goal is to land a trading role?
I think if getting a quant trading role immediately after graduation is the only criteria the BBA degree is unlikely to be helpful but especially as a freshman I would recommend against such a narrow focus. There's a lot of value in optionality when you are in the early years of university as your interests may change or there could be cyclical changes in the job market (tech and trading firms are pretty cyclical albeit with different cycles) or you could do an internship and decide you want to do something else. You might also decide you want to start your career in bank S&T in which case the BBA degree would be more relevant. I don't think bank S&T positions are competitive with the very best trading firm positions after undergrad but the latter are also very hard to get and plenty of people have good careers working at banks in S&T or starting there and then later moving to hedge funds or trading firms. Banks often trade a wider universe of products than most trading firms and when a trading firm wants to expand their trading in those new products they frequently hire traders from banks (as well as other trading firms already active in that product).
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