I recently discovered I would like to switch to quant trading
Hey everyone. I’m currently a senior in college. I have an IB offer at a “lower tier” BB in a relatively good group. I got my SA offer as a sophomore (like everybody else) and did not really research any other careers up until now. I am taking an econometrics class and I found that I really enjoy coding on R, and find it very interesting.
My professor recently mentioned that anyone interested in the quant world should really pay attention in class due to the nature of the job. This got me interested and I started researching about this “quant” thing.
Fast forward 2 months later, and I have read a couple quant / math books. I find it extremely interesting and I realized I would like to become a quant trader.
My question for you guys is what is the best path for me to become a quant trader? Should I do my analyst stint for 2 years and then get a masters in math and try to recruit from there? Or what do you all recommend I do?
Thank you all in advance.
Hey there! It's great to see your interest in the quant world. It's a fascinating field, and your enjoyment of coding and econometrics will definitely come in handy.
Based on the most helpful WSO content, there are a few paths you could consider:
Gain Experience: You could start with your analyst stint at the BB. This will give you valuable experience and a better understanding of the finance industry. It could also open doors for you later on.
Further Education: After gaining some experience, you could consider pursuing a Masters in a quantitative field. This could be in applied math, computer science, or financial engineering. The choice would depend on your interests and career goals. A Masters degree would provide you with the rigorous quantitative skills that are highly valued in the quant trading world.
Self Learning: In the meantime, continue to self-educate. Read more books, take online courses, and keep practicing your coding skills. This will not only help you in your current role but also prepare you for a future role as a quant trader.
Networking: Don't underestimate the power of networking. Reach out to people in the industry, ask questions, and learn from their experiences. This could also lead to potential job opportunities.
Remember, there's no one-size-fits-all path to becoming a quant trader. It's about finding the path that works best for you. Good luck!
Sources: How do you become a Quant Trader?, Best internships for Quant Trading?, https://www.wallstreetoasis.com/forum/trading/qa-quantitative-analysttrader-career-path-technical-topics-education?customgpt=1
Similar boat here though I’m doing a mathematics undergrad. Received return offer for BB S&T on a more technical desk, but would really love if I could work more on the quant side especially as a quant trader. Following.
Do a masters now, but don't expect anything upon graduation - it's ridiculously competitive.
What do you enjoy about the work? What areas do you feel strong in? What did you study at undergraduate?
Thank you for the input. I honestly just feel like I am more of an analytical kind of person than a relationship person. I’m not going to sit here and pretend I know anything about math but I really believe I can learn because it genuinely interests me, and tbh I found that I’d rather become a math professor and do math research than staying in IB if the quant thing doesn’t work out. I am a finance and Econ major.
The chances of you becoming a quant trader out of ugrad is next to zero unless you have advanced coursework in math/CS, are very well distinguished in a certain field (poker, chess, gaming), or go to MIT or equivalent top top schools.
And fwiw, there actually is not much math in quant trading/research. The bulk of the math is algorithmic or statistical math such as stochastics etc. but pure math unless you are cracked at it is not going to help.
So do you think getting a masters in CS or a MFE would be better? I just thought math was really interesting so I wanted to know people’s perspective on this!
I have no clue tbh, it's just really really unlikely to go from IB to quant unless you are cracked. If you really want to break in you could try trading at an AM firm, and do a masters on the side. Or pick one product (such as commodities), and specialize in that. But there is a reason base pay for quant traders is like 500k+ it's insanely hard to even get your foot in the door.
I think CS or pure math would be better than an MFE personally. I don't know any firms that exclusively look for MFEs, and getting a more broad degree still leaves more opportunities open outside of quant finance.
I suppose it comes down to, if you don't get a trading seat, would you care more about still working in finance or care more about doing more analytical work?
see below - was in a similar seat:
https://www.wallstreetoasis.com/forum/hedge-fund/so-you-want-to-be-a-qu…
This is super helpful! Thank you so much
You could try to get an internship at a small quant shop for next summer, apply for a Masters at ideally MIT or Carnegie Mellon, and recruit for Quant roles at the end of next summer.
I would be realistic with your situation. You do have a great offer in a lucrative industry.
For your specific situation, a master's degree will be the only way you're even competitive for the internships. The steps here are to just apply to MFE programs at top schools or M.S. in CS/Stats/Math, etc., but honestly, I'm just gonna say MFE is fine for most firms - especially at recognizable schools.
Everyone says it's a cash cow, but let's be honest: do you really care about learning as much as possible, or do you want to be just competitive enough to get the interviews and OAs. The interviews are meritocratic, just basic probability/stats, brainteasers + some coding. You can learn all of it at the level you need from an MFE program. I mean, let's be even more honest, you can learn it from a few books on your own. At that point, take the degree that will get you the OA/interviews, and at top schools, the MFE is fine.
No use really even suggesting anything else, especially since you're a senior and asking now - you missed the deadline for almost every full-time role and most will recruit from their intern class.
Any books you would recommend please ?
Echo the guy above, MFE from T10 school should be fine enough to get you to the interview, and then all left is your interview skill, where you need to cultivate by your own. I think you really need to get the MSC on STEM fields from reputable university, as IB experience means nothing to them.
But just to shed some lights on other opportunities, not only Prop MMs like Optiver/JSC/Citsec,,,,etc. but there are some other great seats also in BB S&T that do systematic trading who are one of the rare prop traders in the banks having great exit opps for quant trading roles in HFs/HFT shops though most would go to cash EQs/Futures/ETFs rather than options. Just my 2 cents, so you could recognize broader opportunities if you really want to be a quant trader/researcher.
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