Sales Trading vs IB
I will go for banking if I can choose again. Here is why:
a. Compensation. The mean is much higher for banking but deviation is much lower. In order to get good pay nowadays, you want to be in a right bank , right desk, good year and perform well. It is actually challenging to meet so many requirements at same time.
b. Exit option. If you are an average trader, your job security is no good. Banks would rather hire younger and cheaper people instead of keep you. You have to be really good once you become VP, one bad year can mean you lose the job forever. No buy side will hire a trader if you have a bad stint. Even middle or back office may not want you because they you can be hard to deal with. The only exit option is to become a retail trader or sell car insurance if your trading career didn't work out.
c. Regulation. Regulation on trading is much more than banking because of systematic risk associated with it. It will only get worse if not the same.
d. Job Mobility. Hedge funds investment related jobs head counts are decreasing over time. This is because of there are many hedge fund closing than launching over past several years. The bigger fund get bigger but they don't necessarily need more people.
e. Politics. Almost most of CEO in BBS nowadays come from a banking or wealth management background. Sales trading is a business doesn't get love from CEO.
f. Taxes. IB share the same pain. New York and New Jersey will for sure rise tax again. It is really bad for high earner getting cash bonus instead of carry.
Feel free to add more. This only for US job market.