I’ve mostly been applying to QR internships at hedge funds and prop shops but I’ve been thinking to expand to banks as well. Can anyone share what being a QR is like at a bank vs a hedge fund? Is it worth considering and applying? Thanks!
Hello. I actually know some people who were deciding between starting off as a quant in a bank or a hedge fund. Quants at banks receive good packages at the beginning, where they can work on technical projects, learn more than they would at some hedge funds. You work on longer-term projects
However, salary progression is not great at banks and the forward does not look as good relatively. Usually, the people who get paid the highest bonuses in markets are people in sales/trading/structuring. The further you are from the business, or from actual trades, the lower the compensation you’ll get. That’s why you’ll see a lot of quants leaving banks after 2-5 years to work at hedge funds because TC can be at least 2x more. But keep in mind, QR at banks is generally less stressful with better hours. One last thing is that there’s less modelling and financial mathematics involved in qr roles these days and they are becoming more like tech jobs. This isn’t inherently good or bad but just depends on your interest and background.
If you have more specific questions, let me know.
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Thank you!
So is it true quants at banks are kind of at the bottom of the pecking order?