Prop trading offer versus..

Hi I got a prop trading job offer at a relatively unknown shop and also a temp job at a Bulge Bracket.

Which is better for me?

Prop Trading. Base: US$20k, Bonus: 50-70% depending on performance, the better the performance the higher the %. Niche: Market neutral strategies on Fixed income and commodity derivatives.

Bulge bracket temp job... paid on a day by day basis. But if this is added up, the base for this is more than the base in prop trading.

18 Comments
 
Best Response

Does the fact that it's a "temp job" inherently imply that it's BO work? Or could they mean that it's similar to an internship?

I'm assuming they gave you some idea of the specific duties you will be responsible for. I would decide based on the actual work (and absolutely take prop trading over anything in BO/MO).

Congrats on both offers, and good luck.

 

Is that 50%-70% bonus a percentage of your base, or a percentage of your quarterly / annual p&l ? Big difference there. If you're getting 50% of $20k, that's dog shit. If you can possibly see 50% of $1M positive p&l, that's great, but that definitely seems high for an entry level guy with no track record. In my experience, you see the upper end of that range (70%) of p&l given to very good, non-equity (i.e. they aren't partners in the firm) traders to get them in the door. these are guys that already have strategies to clear big dollars, and they're just giving up a % to the house in exchange for the software, hardware, low latency network, firm execution priority, etc.

 

JOB 1 "Hey new guy, here, write this trade down for execution . . . "

JOB 2 "Hey new guy, here, write this down, 'two mocha lattes, skinny, one latte double shot, one ice coffee . . . '"

The choice is clear

 

Sorry I did not give enough information on the second option.

The temp job at the BB is a 6 month contract paid at an hourly rate. (approx prorated US$50k annual) It is a "front office" position within their AM. The main responsibility is to answer queries on the telephone, on admin, valuation request, price request, message taking and general investment enquiries. The coverage is their retail clients.

This is also the same BB (top tier GS/MS/JPM) I just finished an internship within IBD and did not get a return offer for headcount reasons. Ironically, this temp position is exploding and option 1 is not.

And the bonus on option 1 is 50-70% of gross trading revenue. (Gross is after costs are deducted)

Please advice, I am at quite a loss.

 

Do you want to do PWM or trading? Throw out a few firm names to give everyone here an idea of what caliber of firm you're dealing with. What are your instincts telling you?

Get busy living
 

It's not really PWM since the coverage is retail. A far cry from HNWs and UHNWs individuals. BB calibre (CS/ DB/ GS/ JPM/ MS/ UBS)

My instincts is telling to not to do the BB, because the role sounds mediocre. And a lot of the job scope sounds more or less like a glorified customer services rep.

 
ZifferuIt's not really PWM since the coverage is retail. A far cry from HNWs and UHNWs individuals. BB calibre (CS/ DB/ GS/ JPM/ MS/ UBS)

My instincts is telling to not to do the BB, because the role sounds mediocre. And a lot of the job scope sounds more or less like a glorified customer services rep.

... Retail coverage means your clients are not institutional. So it will not at all be a far cry from HNWs. Why are they both paying you such shit base salaries? Or at least prorated from shit base. Guys I know in AM get nearly the same starting as in IBD, without as much upside for the bonus.
 
gammaovertheta
ZifferuIt's not really PWM since the coverage is retail. A far cry from HNWs and UHNWs individuals. BB calibre (CS/ DB/ GS/ JPM/ MS/ UBS)

My instincts is telling to not to do the BB, because the role sounds mediocre. And a lot of the job scope sounds more or less like a glorified customer services rep.

... Retail coverage means your clients are not institutional. So it will not at all be a far cry from HNWs. Why are they both paying you such shit base salaries? Or at least prorated from shit base. Guys I know in AM get nearly the same starting as in IBD, without as much upside for the bonus.

I am actually surprised with the temp salary. Usually as a temp you can make some good money. Get an hourly rated (pro-rated ~50-60k) and anything after 40 hrs/week is added on as time and half. Working 60 hours a week with hourly pay isn't bad at all

 

I am in the same dilemma. I have a job offer in a prop firm ( relatively unknown not in New York City) they said that I will be in a R&D testing new strategies for futures and options for two years on minimum wages before making the big money. The question is would I be able to switch to BB (oil or currency) trading desk later on. I am not from target and my background is physics. Any help or suggestions please. I will be locked for 2 years when I finished in 2008 it was very bad for employment.

 

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