Back-office work

I'm trying to break into the trading field, and I wanted to know what the back-office people do, how much they are paid, etc. (How much it sucks?) Is that the typical place to start Ugrad?

I'm considering southern CT area. Thanks.

Comments (12)

Nov 1, 2006 - 5:12pm

yeah, I'm used to looking at the company hierarchies in terms of 1st, 2nd year analysts, like an investment bank. However, the hedge fund model doesn't necessarily play by those rules. From what I've learned, back-office (trade support or operations) at a hedge fund is a normal spot to start fresh out of college.

As far as advancement goes, I have no idea. I guess I'll see what happens when I get there.

Nov 5, 2006 - 12:01am

Well, I can answer my own question now.

For anyone wondering what salary back-office pays generally:

33k+12k+10k= mid 50s total compensation.

From what I understand, this is a fairly standard rate across multiple types of companies. The bonus might change considerably, either up or down, depending on the type of company.

Nov 26, 2006 - 3:07pm

i assume that the original poster was talking about ops at hedge funds

did you take the position? iam guessing that you wouldnt be comfortable naming the fund, but could you list a few comparables without distinguishing your firm from the others.

i am also contemplating taking a position in ops at a hedge fund vs some other offers and I would like hear what you ended up doing and why.
what do you think are the opportunities to transition into a trader and how long will that take? What about moving from ops at a HF to trading assitant/perhaps trader at a BB or a boutique?

in terms of comp, this position is offering a bit more than what you have mentioned so I think that fundamentally its firm-dependent.

Dec 14, 2006 - 1:35am

I worked at 2 top IBs in ops (back and mid-office). Additionally, I know several people whose experiences at several other top IBs mirror mine. Depending on what you like, it may or may not be for you. If you like working MAX 40 hrs/wk, and job responsibilities and pay is less important to you, then it's not so bad. If you have a family, like most of the people I worked with, it's probably ideal for that type of situation. If you wanna get into S&T, this isn't the ideal route. Look elsewhere.
zero stress
pay: $40-50k first year
5-10 yrs out, $80-90k. Yes, this is 100% correct, and leads to my next point:
Bonuses are negligible, about 5-15% regardless of ability. This will be a "communist" atmosphere. Noone's bonus will be better than the next person's, regardless of ability or how hard they worked.
Hrs: 40 hrs/week. OT is completely optional.
Work is pretty much paper-pushing busywork. There are minimal deadlines, but nobody's stressing them, and if they're not met, it's passed off. You have to try really hard to get fired. Seriously.
BOTTOM LINE: It wasn't for me, but may be for some people. If you just want a secure, stable job with zero stress that pays average, then this is for you. If you want the high-stress, high responsibility, high-reward, INTERESTING (IMHO) work of S&T, go directly to S&T. Take a TA or SA job, regardless of the seemingly low pay. You will have a much better chance of getting a job as a salesperson or trader via that route. Hope this helps!

Jan 26, 2007 - 9:52pm

I assume you all are referring to these positions in NYC, Boston or Chicago, yes?

If so, I'd be quite concerned about the cost of living, since each of those places has a cost of living 50%-100% above the national average. This means $33k salary in NYC is only worth, say, $17k anywhere else. That's not taking into consideration the crazy rental/real estate prices.

You gotta be careful!

It's not a matter of me losing; it's a matter of you not winning.

It's not a matter of me losing; it's a matter of you not winning.
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