Discerning what quantitative trading industry is looking for in Applicants
Recently i've been in the beginning stages of applying for MFE and Finmath masters programs across the country. As I learn more and more and peek at career placements of programs alongside the curriculum, I am noticing a subtle discrepancy between what quant trading firms are looking for in a candidate and the students that MFE masters programs are producing upon graduation. It seems that raw computational talent and mathematical maturity are the main factors in landing oneself in a top role at say, quant trading for Millenium,Optiver,Twosigma etc. This is evidenced by many current quants at these firms having avoided learning finance strictly in an academic setting. They will typically go as far as a masters in CS or masters in math at a great school (and then usually PhD for quant research if that's the case).
Despite this, I've also personally talked with several people who have landed an incredible role at the aforementioned firms, after completing their MFE/MFIN/Finmath masters. This is heavily dependent on leaning towards the more rigorous programs in the country, thinking CMU, MIT, Uchicago, but yet again as we delve farther down the rankings, thinking rutgers, georgia tech, boston, I still see some great success here and there.
Question is, I would like to have some insight on the cost/benefit of enrolling in one of these expensive programs as opposed to changing course and shooting for a masters in CS or math, with my goal ultimately to land a great quant trading role upon graduation.
thanks.
Based on the most helpful WSO content, here's what you need to know about what the quantitative trading industry is looking for in applicants and the cost/benefit analysis of different educational paths:
Key Skills and Educational Background for Quant Trading Roles:
Mathematical and Computational Proficiency:
Educational Pathways:
Cost/Benefit Analysis:
MFE/FinMath Programs:
Masters in CS or Applied Math:
Recommendations:
Conclusion:
Both paths have their merits, and the best choice depends on your current skills, background, and career goals. If you are confident in your quantitative abilities and can handle the rigor, a Masters in CS or Applied Math might offer broader opportunities. However, if you prefer a more finance-focused curriculum and can get into a top program, an MFE or FinMath degree could be the way to go.
Good luck with your decision!
Sources: Deciding on quantitive majors/career path?, Best internships for Quant Trading?, RE: Prop/Quant Trading - Why is it not as big a target as Investment Banking?, MBB vs Quant at IBank, Finance PhD vs. Applied Math MSc
For a quick fact, Optiver does not recruit MFEs, or at least they don't pull from UChicago MFE. They don't like the way finance is taught there and prefer people who come in with no finance knowledge.
The candidates who use an MFE to end up in QT were already good enough out of undergrad. I.e., Peking/Tsingua or any top 10 STEM major. Look at most MFEs who end up in QT and level-set with yourself. If you're coming from a shit undergrad or international where you aren't recruited on campus, you're not landing QT with an MFE.
With an MFE, you can land Akuna, Valkyrie, Chicago Trading Company, and DRW. The only one who is good out of that list is DRW, and you need to be at Princeton with a top undergrad. Yes I know it says I work at Akuna, we recruit from Berkeley MFE for sure, and I am still cognizant that DRW is the only good one on that list.
I recently corresponded with someone currently working at the likes of IMC/Tower Research/Hudson River, who began with an undergraduate from an under-represented school, followed by the MFE at Rutgers. Explain how? You're signaling that the defined pathways to quant for various backgrounds are each separated by 3-ton impenetrable concrete slabs, not sure whether that sentiment is warranted. Also you put DRW to a higher liking than your own firm, why?
danke
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