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Software Companies (FINCAD, Super Derivatives) vs IBs

Once_Set

Once_Set

Joined
8/18/14
Messages
37
Points
18
Hi,

I have seen entry-level job postings for the like of FINCAD and Super Derivatives.

Does anyone know about these and what it's like to work for one of those as compared
with investment banks?

Is it generally less demanding and less rewarding. I heard their analytics are not as advanced, you
won't learn or earn as much, and your exit opportunities aren't good. The last part is especially important to me because this will be the start of my career.

There seems to be a fairly negative vibe, and people tell me that you only take positions there if you
can't get anything else.

Is any of this true and to what extent?

Thanks!
 
A lot more laid back (I wore jeans & t-shirt to work at the last fintech company I worked for), but less money.
 
thanks, would you happen to have a rough estimate of entry-level salaries, and whether they have bonuses? This would be for London, UK.
 
I don't know about London because I live in NY but an entry-level developer in NYC will probably be getting 80k-100k. An entry level salary at an IB is 70k-90k (depends on what degree you have). I have heard that developers in London don't get paid much though. A quick search on Glassdoor suggests that an entry-level analyst in an IB will get something like GBP 40k-50k while a developer for a technology company will be making closer to GBP 30k.

These days a lot of tech companies give out bonuses because of the competition, but I do know of some that don't. Do your research. Bonuses will be lower in tech companies obviously.
 
Thanks!

quick question: so, you got paid more as a developer than at an IB?
Or what kind of entry-level salary? I would be starting with a PhD..

Here in the UK starting salaries for quants for IBs should be GBP 60-70k.

I find it impossible to find starting salaries for quants in these companies, i see
a couple of positions, including developer and sales people.. However, I cannot
find any information about bonuses.

Did you like the work? Did you find you learned a lot or it was too laid back and you'd
prefer IBs more?

thanks again for all the info!
 
I only have a Bachelors so my salary wasn't that high.

In the first IB I worked for, I was in the neighborhood of USD 70-80k. My friends who went to software companies were getting 80k-100k. I then moved to a software company and then came back to my current IB.

GBP 60-70k is 90k-110k USD which seems like a reasonable entry-level quant salary for a PhD. This is associate to senior associate-level pay at most IBs. Glassdoor tells me the average salary of a quantitative analyst at UBS is around GBP 60k. Other banks are similar.

Bonuses vary wildly and are not very predictable. Sometimes it could be 10%-20% of base, other times it could be 50% or more. Really depends on individual/group/firm performance, office politics, how much power your MD has, etc.

I liked the work and life was very chill but it wasn't fulfilling after a couple of years so I went back to an IB for the action. Plus, I had started my MFE and wanted to work more closely with the quant team (I am a pure developer at the moment). So far it's been good.
 
ah, cool, thanks for all the info!
That's good about the bonus, because many people told me a financial tech company would have no bonus and if they do, it'd be tiny (like less than 10%). Most people say, it will significantly cut your future earnings as well, as you have less bargaining power and it doesn't look as good on your CV as an IB does.

One guy told me: "You'd only take this dead end job if you're very desperate and couldn't get any REAL quant job" which I found a little extreme.

The positive side is also that there seems to be more client-facing work where you get to meet many hedge (and other kind of) fund managers, as well as travel.

Do they have commission if you're involved with the sales?

Thanks!
 
thanks! that's awesome! but i guess there's no specific information about financial tech?

or maybe a comparison of model val vs FO vs algo trading?
 
Once_Set said:
thanks! that's awesome! but i guess there's no specific information about financial tech?

or maybe a comparison of model val vs FO vs algo trading?
Click to expand...

Treat fintech like software houses but with better salaries. Ex. at Bloomberg some of the best paid employees (other than senior executives) are developers.
 
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