Assuming everything was the same, same school, same age, same years of experience -- who would normally have the higher total compensation package? Ibankers or Quants?
Who Is Wealthier - Investment Bankers or Quantitative Analysts
Our users generally share that "Quants" generally make more and are wealthier than Investment Bankers due to the fact that their skills more differentiated and difficult to acquire.
Quants, at least the ones i've worked with, tend to be of more value, and are harder to train from the firm's prospective. You can take most college grads and turn them into bankers (it's really just glorified accounting), but quants are typically highly educated.
As well many quants develop a thesis on the market that is their own and can open up their own shop, or run their own books based on this. Whereas bankers cannot have this sort of freedom, except a select few at the MD and above levels.
Quants generally have higher requirements to break in (MS, PHD, etc) so their pay scales accordingly - however, they're typically capped off at a certain salary level.
Of course, some quants I know have great hours, 9-6 daily, no weekends, great pay. However it's a highly specialized skillset that not everyone can do, unlike most sell-side positions.
User @LTV, a hedge fund associate, shared that the compensation at the beginning of your career is similar:
All-in package is very much comparable, at-least for first 2-3year. However, quants get paid a lot more per hour.
How Much Do Quants Make?
First it is important to note that there are different types of quants on Wall Street. The highest paid type of quants are the ones that work for hedge funds / trading firms. In these cases, earnings will be tied to the returns of the firm and therefore are variable. There are also developer quants that create software for trading firms and investment banks. These individuals require a less quantitative background and therefore command a smaller paycheck. A high level developer might earn up to $250,000.
Overall, a quant position could earn $250,000 with a bonus over half a million dollars. On the low end, a quant may earn only $125,000.
How Much Do Investment Bankers Make?
To learn more about how much money an investment banker makes - check out our IB Industry analysis report.
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