Traders are the ones who get some ridiculous bonuses. It would be very interesting to know which types of traders are the ones getting this kind of money.
Is it the commodities guys that deal in petroleum, energy, etc...?
| +25 | what does the power spec landscape look like? Prop vs pod vs quant | 7 | 1d |
| +22 | Best resources for macro rates trading | 2 | 2d |
| +17 | Buy Side Equity Execution Trading | 5 | 2d |
| +11 | Help a curious student | 2 | 2d |
| +10 | Compute as an asset class | 5 | 1d |
| +3 | Moving from sales to trader | 3 | 2d |
| +3 | Millennium structured capital markets interview | 1 | 1d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Commodities traders do really well, as well as heads of prop desks at places like goldman. But this past year, almost all the 50million+ traders were at hedge funds, not investment banks. This could change in the future, but only a few bank traders, such as Driss Ben-Brahim of GS, got 50million+ bonuses this past year.
I know commodities traders make enormous amounts of money. I'm sure in the future, with the whole fiasco about ethanol, agriculture traders will start to make a ton of money as well.
The only bank traders that I know of that make this much money are heads of desks.
It's not like there are specific positions that routinely recieve $50M bonuses. Many of the best prop desk traders at ibanks get paid a % of the money they earn for the firm. Thus, the few traders who get $50m bonuses, probably earned the firm 10x that in trading profits over the year. Over the past couple years, commodities traders just happened to do the best, thanks to the high volatility in the commodities markets. Banks are now being forced to reward traders with a % of the money they earn in order to keep them from jumping to hedge funds.
You get a %%%% of what you earn. Get 50mill bonus you probably earn between 10 - 20 times that amount for the bank.
when you make the firm a large amount of $, you get a large bonus
Go here and look at 'The Trader Monthly 100' of the various years.
http://www.traderdaily.com/magazine/index.html
Right on the head.
Traders do get huge bonuses. But if you look carefully, it's not the same people getting them year after year.
So what does this mean for YOU?
You'd have to be very lucky or can see the future. Don't chase the bonus areas. They're almost one-off things.
Prop traders are the ones who make the big money.
Keep in mind though that prop trading isn't a role that you can just jump into. Usually a bank will handpick only the very best traders to work on the prop desks.
In reality it's not as cut and dry as that, but that's the general idea.
Ut consequuntur dignissimos molestiae nemo veritatis eum. Voluptatem soluta dolor voluptates velit possimus dolores fugit. In et consequuntur aspernatur est aliquam. Laboriosam facilis mollitia temporibus iusto nobis accusamus quia vel. Porro unde quaerat nisi explicabo soluta eaque quibusdam.
Soluta aut ullam quia beatae nihil reiciendis. Quaerat molestiae qui cum. Tempore odio earum ab provident nemo. Qui velit nesciunt qui repellat a.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...