How do you get a job as a Trader with a bank or investment firm?

By the time many people get their MBA's some 23 year-old kid is already trading for 2 years and has a high six-figure to low seven-figure comp. Personally, I think that an MBA is a waste of time for trading. MBA's are a dime a dozen. It's better to take the road less travelled. To me, a CFA is more useful as a resume builder, although, nothing would substitute for 2 solid years of experience on the desk as a 'rookie'.
 
but there's no easy shortcut to the trading desk, no one says "oh! you've got these degrees....sit on the desk"
More...


Don't agree. When top or second tier banksa gree to take you as a trainee (after you have shown them your degree and passed a few tests), you directly sit on the desk. You won't need to bring coffee for others. They will directly assess your potential by giving you the full responsability of a small book. They know you have got the technical skills but they want to know if you can stand the stress, the trading losses... And the only way they can make up their mind is by giving you full responsability of a small book.
 
The number of traders that actually get hired into the Sales & Trading programs on Wall St. (especially on the Trading side) are miniscule and it is just not practical to play this angle to get on a desk, in my opinion. Granted, if you are the Valedictorian of Harvard B-School you will get into a Sales & Trading program and then if you pass all the hoops and screens you may get your own book. For the rest of us mere mortals, it's more worthwhile to play different angles. The head traders on these desks are rarely guys that came through the traditional Sales & Trading program and just worked their way up. They played some angles and made some breaks for themselves. What you suggest is one way to go, however, trying to compete with the rest of the world head-to-head isn't practical in my book. Best, Neal.
 
As I said earlier, there is indeed an old guard who didn't make it through the trading program. But this is more and more an image from the past. I had older colleagues who began in the back office before getting a trading desk. But nowadays, the best way is the trading program. If you can't enter such a program and trading is your dream career, better work for a prop firm than lose your time in the back office in the hope that you will be able to enter the dealing room 5 or 10 years later (which will probably never happen).

Best,
 
In my opinion, the best way to become a 'real' trader these days is to offer to do an unpaid internship for a newly formed hedge fund. Often, even unpaid, you may be rejected. However, there are many new hedge funds springing up on a daily basis and many are in need to cheap, reliable help to do all sorts of things in a newly formed business. The hedge funds are very unstructured and allow you the opportunity to make your own way and potentially align yourself with the head guy (presumably an experienced trader). If you grow with them from the beginning, especially if you are young, I venture to say that you may get a shot to take some small positions in return for your strong efforts from the beginning. Just a thought..Neal.
 
You could just focus on what type of trading you want to do then find a professional trader who does that type of trading od start making money your self??

I have several friends who worked for investment banking firms and it was nothing like trading. Its all about sales ect..

Non of them work for firms anymore and are all trading their own money making much more now. And are free of work ect...
 
Quote from trade-ya1:

In my opinion, the best way to become a 'real' trader these days is to offer to do an unpaid internship for a newly formed hedge fund. Often, even unpaid, you may be rejected. However, there are many new hedge funds springing up on a daily basis and many are in need to cheap, reliable help to do all sorts of things in a newly formed business. The hedge funds are very unstructured and allow you the opportunity to make your own way and potentially align yourself with the head guy (presumably an experienced trader). If you grow with them from the beginning, especially if you are young, I venture to say that you may get a shot to take some small positions in return for your strong efforts from the beginning. Just a thought..Neal.
More...

This is, I feel, is probably one of the best strategies if you aren't Oxbridge / LSE (in UK terms). Even if you are, graduate programs are few and far between - not only that, there is no guarantee at the end of the training cycle. I saw 30 people axed from 50 while at that stage.

On balance, you will learn as much at a good start up hedge fund and the odds of success, in terms of starting your career, are higher at a start up hedge fund. Plus it's nice to be a customer, haha. Finding such hedge funds will require research and extensive networking. Be lucky, as they say.

With regard to previous posts on trader salaries, I'm a seller. One or two will make spectacular incomes, most will be comfortable. It depends on the bank, the bank's year, the area one trades in, how well they did, and the size of the team. After 2 years, £50k + 50k bonus would be a good start IMO.
 
Quote from trade-ya1:

By the time many people get their MBA's some 23 year-old kid is already trading for 2 years and has a high six-figure to low seven-figure comp. Personally, I think that an MBA is a waste of time for trading. MBA's are a dime a dozen. It's better to take the road less travelled. To me, a CFA is more useful as a resume builder, although, nothing would substitute for 2 solid years of experience on the desk as a 'rookie'.
More...

23 years old? maybe 2 or 3 kids on wall street. This is def. not the norm...

You make it sound like that is "expected."
 
You must log in or register to reply here.
Back
Top