Typically who would see higher comp numbers? Is it possible to transition from being a market maker to being a portfolio manager?
From what I heard, all prop trading is not equal: sellside roles start out higher but cap out much lower, whereas portfolio managers at a solid hedge fund can pull in 8 figures on a good year but roles for buyside analysts start out much lower. Is that fairly accurate?
First of all, I'm curious of why u think proprietary trading is sell-side. If you consider making market -> providing liquidity -> could be seen as brokerage -> sell side, I'm quite sure that's not the common perception about prop trading though.
About the salary, it seems quite right when only considering the average for the junior analyst/traders.
All I'm saying is I don't see many people from firms like Optiver go to firms like Citadel - I see many go to Citadel Securities though and similar firms. Equally I see people can move from firms like Vitol to Citadel, but not to Citadel Securities, and hear that the pay far outstrips their market making counterparts. Edit: perhaps I should say market making firms rather than "sellside"
Considering prop shops have 'client' facing teams now... they're basically in the same business as th S&T divisions. Both are market-making broker/dealers.
Pay as a Portfolio Manager, whether that be at a Hedge Fund or Asset Management firm will far outstrip pay at a Market Maker. If you are at a sole Market Maker and not a sellside bank it’s very rare you’ll even make the jump over to a hedge fund. sellside Traders often mainly make the jump to Macro funds. Find it very hard to move to L/S or event-driven type funds.
Sad days.. Could you shed any light on some bonus numbers? I know an excellent trader at a MM firm can clear mid 7 figures on a very good year for the firm, but I've heard stories of PMs who pull 20M. Are those numbers viable on the buyside?
PM at my firm was in the pressers a few years back for clearing 30M that year. He was a superstar though and still is although he’s probably now earning about 10-15M a year? I’d say good PM’s are definitely still clearing millions, anywhere from 1-5 depending on the bps split, great PM’s will be in the double digits easily.
Rerum est perferendis in non id commodi. Nisi commodi nihil maxime consectetur eum iste consequuntur vel. Architecto ut rerum sit ut. Rerum aut deleniti et magnam magni. Quis dolore sit eum ut eum ex.
Eum quia provident iure eveniet. Et consequatur in fuga dolor non. Non est assumenda in. Accusantium consectetur soluta vel sunt doloribus. Vero esse exercitationem nisi non eos est odit.
Quisquam dolorem facere quaerat est provident rem. Est totam et non quibusdam necessitatibus ut deleniti. Beatae omnis aliquid praesentium aut sunt est fugiat culpa.
Dolorem tempore aperiam neque velit velit incidunt. Eveniet sit dolorem quasi et unde mollitia veniam.
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...