Compensation for traders at top firms?

Discussion in 'Trading' started by sammybea, Mar 25, 2002.

  1. sammybea


    Curious if anyone had info on what a typical equities trader would make at a top firm like Goldman Sachs or JPM.. lets say after 5 years. Would it be over a million dollars? Are there any particular websites that would give a insight to this?
  2. Banjo


    Think somebody on these boards said they would gross about 5 million and keep one third. Anybody who knows for sure please correct my memory.
  3. mbs


    i can only speak on the fx market but traders ususally get a base of 100 to 150k plus health care, 401k, lots of other perks (many supplied by interdealer brokers) and are expected to make the firm 2 to 3mln per year for the bank. once the salaried level has been achieved they will get a percentage of the profits over the required amount....when you first start trading at a bank it's usually 10% and goes higher as the years pass....
    however, successful, consistent traders normally move from bank to bank for better deals.....
    i think equities are the same type of deal....however, when you get into areas like credit default swaps, structured finance, the base salary is significantly higher...
  4. axehawk


    Any insight on these top firms' hiring practices? I know their not going to hire any schleppe off of the street, but is this club strictly reserved for Ivy League MBA's with GPA's of 4.0 ????

    I think Don Bright touched on that the trading jobs at big brokerages and banks are a thing of the past. Anyone have and inside info?

  5. Where do you go to find a job as a fx trade. Do they hire people who traded US equity's or does that disqualify someone. Also do these firms make most of there money off of fees like prop shop's.
  6. mbs


    my experience is the firms hire ONLY top school mba/phd grads and those with internal connections....
    trading experience is not particularly valued at jpm, gs, etc..they prefer new grads that can be indoctrinated into the firm's business by serving a rotation for the first couple of years...time in back office, accounting, i-bank, trading, etc...then you/they decide where you're going to actually start your career...
    those not right out of school know generally know someone at the firm and bring a very profitable scorecard to the table (could be trading, could be relationships)

  7. mbs


    trader 555,

    the fx market is tough to get into given the implosion of ccy mkt since monetary union-- thus significantly fewer players in the market, much higher volumes of trade concentrated in fewer hands...and proliferation of electronic platforms sponsored by the biggest bank and brokerage players...

    none of these firms charge the traders money to trade..they are trading for the house account (which can include market making to the sales side) and are paid a salary...
    given the risk the banks are taking, it makes sense for them to go with what's tried and true..either a fantastic track record and/ or top school mba, phd...
    all interdealer traders must have a solid math foundation to get their heads around options, cross ccy credit linked instruments, etc as many fx trades are linked with other derivative instruments..

  8. Those days are long over. The GS "trades" are few in numbers any more, and they pay is performance based (for the most part). So if you can make 10 Million, you may make 1 Million....but if you can make 10 Million, why not keep all of it...?
  9. Arb


    Total BS.

    Any half decent trader\salesperson at a major firm will clear $1M within 5 yrs, easily. I made $500K just writing software for these guys.

    If you join a Wall St. firm, and can last a few years, you're pretty much guaranteed to be making more money than 99.99% of day traders, and with far less risk\stress.
  10. Wow Don,
    I know you like to push prop trading but that statement inferes that a person is better off trading at a prop firm than GS....
    Have to agree with arb...that is total crap, and I think its also completely out of order to say it. I would hate to think that someone who had an offer from a big IB wud start thinking he may be better off trading at Bright or Echo...hahaha.
    Actually, perhaps it was just a joke, can't believe someone would seriously say that.

    Now if you compared it to say "owning a prop firm"........
    #10     Mar 28, 2002