you can take that logic even further now. Floor traders moved upstairs since the late 90s, which lead to more technically competent people getting in the industry and now those ex-floor traders who trade upstairs are losing their luster leaving the technical guys taking over the trading. So basically, if you are manually trading you're done.
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What trading career would be best from these 3 options?
- Thread starter leifeiriksson
- Start date
you can take that logic even further now. Floor traders moved upstairs since the late 90s, which lead to more technically competent people getting in the industry and now those ex-floor traders who trade upstairs are losing their luster leaving the technical guys taking over the trading. So basically, if you are manually trading you're done.
Quote from leifeiriksson:
Hi everyone, I am a recent college grad about to enter the trading industry. I will have to decide which of the following 3 roles would be best for me, and any help would be appreciated.
1) I have been offered a job as a trading assistant on the exchange floor in Chicago. The salary is rather low (35k) but the training period is 12 months with 10-12 hour workdays after which they expect me to graduate to trader (not a sure thing). What are future earning expectations if I do reach trader status and am moderately successful? Any other aspects of a career as a floor trader would be helpful as well.
2) I have been offered a paid internship at a derivative market-making firm with the opportunity to graduate to a junior trader after 6 months (not a sure thing). Think along the lines of a company similar to Optiver with low-latency computer software. I'd be making 2-3 times as much doing this than as a floor trading assistant.
3) I have a final interview with Chopper Trading coming up, which is computerized trading and would seem to offer decent pay and a bonus with a good work-life balance.
I'm mainly looking at choosing between options 1 and 2 since option 3 may never happen. I'm still torn between turning down a full-time job (option 1) for an internship (option 2), but I suppose they both are similar b/c if I can't make the cut I'll be out of a job in both within a year. Which of these options would likely lead to higher lifetime earnings, and am I correct in assuming a job on the trading floor would be more stressful? Option 1 as a floor trader is a sure-thing right now but I don't want to be putting in 12-hour work days making little money for the next 5 years, when if I accept the internship I'll give myself a chance at making 6 figures with a nice work-life balance.
My only concern is that trading on the floor can be heavily romanticized and it flat out sounds real cool too, but I want to make sure it's also the best path to take. I know a lot of trading has shifted to computers and away from the floor in recent years, and companies are only doing that if they thought trading on computers would be more profitable.
Basically my dilemma is either awesome experience running on the floor making less........or staring at a computer but possibly making 2-3x as much.
Any insight into a career choice would be immensely appreciated. I'm a bit confused about how a career as a floor trader works as well so if anyone can shed light there it'd be helpful. Thank you.
If you can get the job with Chopper, that is by far the best option of all 3. Like Mav said, they are a top firm in Chicago. But forget about a nice work/life balance. You will work long hours there, and I believe the new guys hired are clerks for at least 18 months working the overnight shift as they learn (5 p.m. to 5 a.m. Sunday to Thursday). So you will have to give up your social life for the next year and a half.....but in the long run will be well worth it.
To provide more detail, Option 1 would be options trading in the pit. Is there a future there?
Quote from Maverick74:
For the love of God get that damn job at Chopper. That is one of THE premiere trading firms in Chicago with practically ZERO turnover rate among employees. The partners make well into the 7 figures.
The floor is dead and quite frankly market making is dominated by one or two firms. Do what you have to do to get the Chopper job.
+1
Without a doubt. Your whole list is in reverse order. Take 3 (Chopper) first, then 2 (the internship), with the floor bringing up the rear. It hasn't been relevant for 10 years. Honestly, it's amazing that it's still around at all.Quote from Maverick74:
For the love of God get that damn job at Chopper. That is one of THE premiere trading firms in Chicago with practically ZERO turnover rate among employees. The partners make well into the 7 figures.
The floor is dead and quite frankly market making is dominated by one or two firms. Do what you have to do to get the Chopper job.
Be prepared to really work, though -- your toughest competition won't be too worried about work/life balance, no matter where you wind up.
None.Quote from leifeiriksson:
To provide more detail, Option 1 would be options trading in the pit. Is there a future there?
(By the way, it has to be options trading... because really nothing else is traded in the pits these days. Just about any underlying, regardless of order size, is already traded electronically.)