Small trading firm or masters and re-recruit after internship

I recently got an offer for a trading SA position at a small equities market making firm. However, it’s not as well known/prestigious/high-paying as JS/Optiver/Citadel.

I didn’t realise I wanted to do trading until near the end of the recruitment season and only passed a couple firms’ tests and then flopped the interviews, mostly because I didn’t realise they’d be hard given how straightforward (formulaic/memorisation based, no hate to the IB guys) IB recruiting was.

On track for a strong first in one of the main-target degrees at Oxbridge/LSE/Imperial. Most of my peers are all going to JS or Optiver or Citadel so it seems a bit of a waste to not brush up on Olympiad combinatorics and some linear algebra and try for them again.

Would this require an extra year for a masters as I heard you need to be an intern at most of these places before you can be hired as a grad? If so what quant finance masters programs are the best?

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Based on the most helpful WSO content, here's what you need to consider:

  1. Taking the Small Trading Firm Offer:

    • Starting at a smaller equities market-making firm can still be a valuable stepping stone. It provides hands-on experience, which is highly regarded in trading. Even if it's not as prestigious as JS/Optiver/Citadel, the skills you gain can make you a stronger candidate for future opportunities.
    • Many quant firms value practical experience, so excelling in this role could help you re-recruit for top-tier firms later without necessarily needing a master's degree.
  2. Pursuing a Master's Degree:

    • If you decide to pursue a master's to re-recruit, programs in Applied Mathematics, Computer Science, or Financial Engineering are highly recommended. These degrees are quantitatively rigorous and align well with the skills sought by top trading firms.
    • Some of the best programs include:
      • Princeton MFin
      • Columbia MFE
      • NYU Courant (Mathematics in Finance)
      • University of Cambridge (MPhil in Finance)
      • ETH Zurich (MSc in Quantitative Finance)
  3. Re-Recruiting Without a Master's:

    • While many top firms prefer candidates who have interned with them, it's not impossible to break in as a graduate hire. However, you'll need to demonstrate exceptional technical skills (e.g., Olympiad-level math, strong coding in Python/C++) and a deep understanding of trading concepts.
    • Use your time at the smaller firm to build a strong track record and network within the industry.
  4. Preparation for Re-Recruitment:

    • Focus on brushing up on linear algebra, probability, stochastic processes, and algorithm analysis.
    • Coding proficiency is mandatory—Python and C++ are the most relevant languages.
    • Practice mental math and combinatorics, as these are often tested in trading interviews.
  5. Timing and Strategy:

    • If you’re on track for a strong first at a top university, you’re already in a good position. Consider whether the additional time and cost of a master's degree are worth it compared to gaining experience and re-recruiting directly.
    • If you do pursue a master's, aim to intern at a top-tier firm during the program to maximize your chances of converting to a full-time role.

Ultimately, the decision depends on your long-term goals and how confident you feel about re-recruiting with or without a master's. Both paths can lead to success if approached strategically.

Sources: Best internships for Quant Trading?, What offers would you take over a BB S&T?, Deciding on quantitive majors/career path?, Majoring in Wall Street?, How to be a Millionaire Trader

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

There are quite a few good firms that while not quite at the level of the 3 firms you mentioned still present excellent opportunities but there are also quite a few small trading that are struggle to make significant pnl and where you are unlikely to be successful. If this is your only offer it's certainly worth doing the internship to get some relevant experience and a better idea of the firm and how likely you would be successful there. Even though many firms primarily/exclusively hire returning interns it is also still worth recruiting for full time opportunities directly as a master's is a lot of investment for the far from certain prospect of an offer from a top firm. 

 

Is there any point recruiting for FT trading roles at banks? I get the sense they hire more outsiders for FT roles compared to the top quant market making firms.

The investment in a masters isn’t really a concern - I genuinely enjoy academics and I wouldn’t mind another year of university and cost isn’t too much of an issue.

That said, I wouldn’t mind another primarily be doing it to add a year in which I can reapply for internships.

I think I’ll apply for FT at any places that are better/more prestigious than my internship and who hire FT grads who haven’t done their internship (I’m assuming this category is more bank-heavy?) then internships at top trading houses with the assumption of a masters year. Is this a sensible plan?

 
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I'm not sure if this is an Europe specific thing or something that has changed a lot in the past few years but certainly most if not all large quant trading firms have hired a decent number of graduates who didn't intern there. 

FT recruiting at banks makes a lot of sense if you would be happy working at a bank and doesn't make a lot of sense if you wouldn't be happy working at one. Personally I don't think I would have enjoyed or succeeded working at a bank but I know others who certainly have.

Unless you plan to return to where you interned I think it makes sense and is fairly common to simultaneously apply to FT positions and masters programs and it shouldn't present a problem when recruiting as long as you make it clear in interviews that you would pick the FT role over the masters if you got an acceptable offer.

 

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