Flow trader pay
How bad is it? It’s well rumored to be below average but how bad? Are we talking about maxing out at $2-3m? $1m? $500k? Less? Curious what happens several years in and for experienced hires on the PM/trading side.
How bad is it? It’s well rumored to be below average but how bad? Are we talking about maxing out at $2-3m? $1m? $500k? Less? Curious what happens several years in and for experienced hires on the PM/trading side.
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Based on the most helpful WSO content, here's what you need to know about flow trader pay:
In summary, while some posts suggest that pay in trading is below average, the reality is that it is highly variable and can be very lucrative for top performers.
Sources: Q&A: VP Trader at BB, https://www.wallstreetoasis.com/forum/trading/qa-vp-trader-at-bb?customgpt=1, Junior PM at a platform - How to negociate salary, Q&A: I'm an Agricultural Commodities Trader, https://www.wallstreetoasis.com/forum/trading/qa-pm-at-hf-former-sellside-macro-trader?customgpt=1
They publish annual reports and also an annual renumeration report which can be found here https://www.flowtraders.com/investors/reports-documents. Other than 2020 it's pretty bad for the past 5 years. In 2021-2022 16-18 employees got total compensation > 1 million EUR (I believe including deferred stock based compensation) and the CEO was around 1.5-1.8 million EUR. Another board member seems to get similar comp to the CEO but those may be the highest paid. In 2023 the CEO got 656k EUR total compensation.
From what I understand pay there is heavily linked to firm performance so unless firm performance improves to something closer to 2020 levels I wouldn't expect much. Senior employees may make low 7 figures in good years but not consistently. Over time it seems Flow Traders has also reduced the fraction of operating profit paid as bonuses which is not helping either.
Where do you see those numbers of employees making 7-figures? I read the report multiple times and definitely could have missed it, but I didn’t see anything about employee compensation outside of the executives.
It seems to be removed from the 2023 reports but was included in previous years. In the 2022 renumeration report it's under "Variable compensation granted" on the last page
Is this comp in line with other prop firms outside of the ultra competitive top firms Jane Street, Citadle Swcurities, etc.?
No. Allegedly well below average.
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