Difference between trading roles?

I'm a STEM student at a target who will be applying for summer internships in London. Currently I'm learning how to trade/invest, use technical analysis tools on a broker and have made some good starting money for a student these past months. I also have an interest in crypto trading and can see myself building algos to trade for me. I have an interest for markets and like the high risk high reward opportunities that trading offers. But I don't really understand the difference between trading roles at various firms.Could somebody explain to me the difference of a trader at a BB, at a prop shop like JS and at a quant HF like Citadel? Is there a different skill set for each? Also, what's the difference in compensation, job security and career progression for each?

Finally, Private Market Access for Retail Investors

Investors like you can access previously exclusive private market investments all on one platform.

With Yieldstreet, you can invest in a variety of alternative investments with low stock market correlation and all sorts of yields, durations, and minimums.

Comments (5)

  • Intern in PropTrad
Aug 15, 2021 - 7:40pm

Traders at a bank don't really trade in the same way someone at a hedge fund or prop shop does. There's no proprietary trading of assets and it's a lot more selling an idea/product to a client and executing trades on their behalf. The most creative, and offensive, allegory for it I've heard is that bank trading is akin to being a ball-boy in tennis. The comparison is very crude and somewhat inaccurate but I hope it conveys that traders at other places are much more directly involved with the markets whereas the banks are more into market making. They're called the sellside for a reason.
 

Strategies for trading differs a lot throughout the buyside, some fundamental hedge funds deal with distressed debt, long/short opportunities etc. You can Google different type of fundamental hedge funds. Quant funds are similar but use quantitate methods + some algo trading.  

FYI: no one in the industry uses that type of TA. 

  • Intern in PropTrad
Aug 16, 2021 - 9:28am

I see, thanks for the insight. I am aware that *some* desks aren't agency focused but neglected to mention that. Thanks for the correction.

  • Intern in S&T - Other
Aug 17, 2021 - 1:12am

This is just downright inaccurate; you are still fully able to express a view/take prop positions while trading in the sellside, with the only 2 main caveats being that you have to conform to certain risk limits, and you must be ready to make markets/quote prices to clients. 

Take FX for example, let's say a client trades a large sum of GBPUSD through your platform, you can choose to express a view through a large variety of ways. You can hedge the risk out immediately through the market; you can simply choose to carry that risk on your book if you have a view on GBPUSD; you can also choose to do proxy hedging such as by trading the highly correlated EURUSD, etc.

Especially given the use of proxy hedging, you have a vast number of ways to express a view and take (essentially) prop positions, and this is just spot FX; derivs will add even more dimensions to this, and other products like rates/credit also give you more liberty to do creative things.

Most Helpful
  • Intern in PropTrad
Aug 15, 2021 - 7:45pm

Autem aut quo autem qui nihil molestias harum ea. Qui doloremque suscipit eveniet omnis praesentium placeat eligendi est. Assumenda saepe quaerat esse qui. Voluptatem molestias deserunt repudiandae in.

Start Discussion

Career Advancement Opportunities

May 2022 Investment Banking

  • Jefferies & Company (▲03) 99.6%
  • RBC Capital Markets (▲07) 99.1%
  • Bank of America Merrill Lynch (▲02) 98.7%
  • Lincoln International (▽02) 98.3%
  • Houlihan Lokey (▲07) 97.9%

Overall Employee Satisfaction

May 2022 Investment Banking

  • Jefferies & Company (▲12) 99.6%
  • Rothschild (▲02) 99.1%
  • Truist Securities (+ +) 98.7%
  • Robert W. Baird & Co. (▽03) 98.3%
  • Greenhill (▲05) 97.9%

Professional Growth Opportunities

May 2022 Investment Banking

  • Jefferies & Company (▲04) 99.6%
  • Bank of America Merrill Lynch (▲06) 99.2%
  • RBC Capital Markets (▲09) 98.7%
  • Lincoln International (▲02) 98.3%
  • Houlihan Lokey (▲06) 97.9%

Total Avg Compensation

May 2022 Investment Banking

  • Director/MD (9) $661
  • Vice President (35) $399
  • Associates (179) $247
  • 2nd Year Analyst (109) $161
  • 3rd+ Year Analyst (16) $154
  • 1st Year Analyst (346) $148
  • Intern/Summer Associate (73) $146
  • Intern/Summer Analyst (272) $91