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A salary question

Joy Pathak

Joy Pathak

Swaptionz
Joined
8/20/09
Messages
1,330
Points
73
Would fresh graduates from MFE programs ever be open to getting 50-60K in salary(Almost no bonus but cost of living is 30% of NYC) at a NON NYC location front office job with the upside of becoming a trader in 2-3 years and larger compensation thereafter.

Curious what current students or recent graduates think...
 
This would not be a sponsorship. Green card minimum let’s assume.


I want to get some ideas of who would be interested... with the caveat that there is no ViSA sponsorship
 
Joy Pathak said:
This would not be a sponsorship. Green card minimum let’s assume.


I want to get some ideas of who would be interested... with the caveat that there is no ViSA sponsorship
Click to expand...
Then almost no one. Without sponsorship, the becoming a trader in 2-3 years and larger compensation thereafter means nothing.
 
BoY said:
Then almost no one. Without sponsorship, the becoming a trader in 2-3 years and larger compensation thereafter means nothing.
Click to expand...


Really ? Surprising . That’s what i was curious off... a full director trader job on Wall Street still pays 7 figures if you are half decent. I would think someone who has an upside of making it to a 7 figure salary from 60K in 5-6 years is a profitable trade.


Has it become very easy now to get front office trading jobs right out of MfE programs ?
 
Joy Pathak said:
Really ? Surprising . That’s what i was curious off... a full director trader job on Wall Street still pays 7 figures if you are half decent. I would think someone who has an upside of making it to a 7 figure salary from 60K in 5-6 years is a profitable trade.


Has it become very easy now to get front office trading jobs right out of MfE programs ?
Click to expand...
Maybe I missed something here, but how could you earn 7 figure in 5-6 years in US when your OPT expires in 3 years. Native students would jump on it, but most MFE students are international students.
 
And no, in fact sell-side back-office quant is still most MFE students’ first job from my observation.
 
Obviously assuming ViSA is not an issue. If you start as an analyst on any Tier 1 trading desk and you crush it and if you become director you can make 7 figures. I just don’t don’t how many people are getting front office jobs out of MFE that easily. This is a back room pass to that kind of job possibility with a lower start and I am trying to gauge the demand.


I want to understand if there are people with that kind of long term or big vision mind set who would be interested in a lower paying job to start for upside in knowledge an
 
Joy Pathak said:
Would fresh graduates from MFE programs ever be open to getting 50-60K in salary(Almost no bonus but cost of living is 30% of NYC) at a NON NYC location front office job with the upside of becoming a trader in 2-3 years and larger compensation thereafter.

Curious what current students or recent graduates think...
Click to expand...
Where in US? Are there more financial companies around? Is this place an established joing? All these factors could be important for a US/Greencard holder. Also 5-6 years is a long time, you can crush it in the first couple of years and your firm can still go south and you will have nothing to show.
 
Okay. Lets say several financial companies in a 2 hour drive radius. The probability of the company going to zero is basically zero. In terms of established... lets say it is the biggest in its sector (so assume if it was hedge fund, it would be one of the largest hedge fund)... and location interior California... around an hour to two from the coast.
 
My other query is that would a bit seasoned person who is in the industry would take a possibly large pay cut (assuming they are making 125-150K to goto 60k) like this to move into trading.
 
Joy Pathak said:
My other query is that would a bit seasoned person who is in the industry would take a possibly large pay cut (assuming they are making 125-150K to goto 60k) like this to move into trading.
Click to expand...
It is SO difficult to take a pay cut (get used to your style of living), certainly one of this magnitude. I would bet no one would do this.

To your first question I am certain I could find a few candidates but not with an MFE.
 
i will be interested but taking a pay cut is hard. what if i dont make it to the "promised land" in 5 years?

and i know somebody with model validation experience is really interested because it gives the opportunity to move back to california
 
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Joy Pathak said:
My other query is that would a bit seasoned person who is in the industry would take a possibly large pay cut (assuming they are making 125-150K to goto 60k) like this to move into trading.
Click to expand...
Again, It all the depends on the place and the location. Everybody's situation is different and different thinking goes into the decision making process.
 
Joy Pathak said:
Okay. Lets say several financial companies in a 2 hour drive radius. The probability of the company going to zero is basically zero. In terms of established... lets say it is the biggest in its sector (so assume if it was hedge fund, it would be one of the largest hedge fund)... and location interior California... around an hour to two from the coast.
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If you are used to NY, a 2hr drive radio is a problem.
 
I dont want to give away too much...

I am trying to gauge interest from what I have given right now if people would be receptive. I will post an official job posting here if i see that there could be demand.

just fYI if it was me starting off from MFE.. i would have jumped on it in a heart beat... the chance of becoming front office right away and path to trader would be a no brainer. But I think nowadays things might have got easier to get jobs and maybe not everyone even wants to be a trader.
 
Joy Pathak said:
I dont want to give away too much...

I am trying to gauge interest from what I have given right now if people would be receptive. I will post an official job posting here if i see that there could be demand.

just fYI if it was me starting off from MFE.. i would have jumped on it in a heart beat... the chance of becoming front office right away and path to trader would be a no brainer. But I think nowadays things might have got easier to get jobs and maybe not everyone even wants to be a trader.
Click to expand...
People will be receptive. If you post the job, you will definitely get answers. Just post it and you'll see.
 
I would not take the bet.
True that a full trader at a director level makes 7 figures. But it takes more than being half decent to get to a director. It is a losing bet to be lured into a position thinking of a prospect after x years, reasons which i explain below:
1) For an mfe candidate, trading is a very different game compared to the program they are enrolled in or they are are set out to do. (I am assuming a sellside trader and not buyside where the lines are more blurred especially for quant funds). As a sellside trader you dont sitdown hours writing a code or coming up with equations to model. You make markets and take stress. (And constantly communicate and try to take fast and smart decisions). Some quanty folks excel in that environment and some dont. I have seen both kinds. You dont know it unless you have experienced first hand. So the prospect above asks to take a bet on an unknown terrritory with the payouts also being stochastic and negatively skewed.
2) i just dont understand the business of taking a paycut for a particular role, unless it is your own startup. I have never heard of a established firm giving a paycut to employees when they move from nyc to say charlotte. A firm offering to pay lower for same role is taking a hedge on its positions and so should you.
3) Trader compensations at junior levels (associate/vp) are an exaggerated myth now. Top IT companies like fb/google/amzn pay as much if you are a decent technologist and ML guy.

Bottomline, in my opinion it is great being a trader or trying to become one but not worth taking a significant paycut or starting career at a much lower pay just so that you get to call yourself a trader.
 
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