<p>im surprised there are just 3 threads about stock brokers on this forum.And too many threads on ibanking. And its even harder to find information on google-as far as job outlook- what path to take to become a broker-what schools to go to-what to major in-what it takes to become one-salary-etc. Any info on 'institutional' brokers will be greatly appreciated as well.</p>
<p>Stock brokers work on commissions. Its essentially a dying breed...retail uses automated systems to place trades. Even institutional brokerage (equities flow trading) is highly automated with buyside having various models to place trades efficienctly (VWAP, GS's piccolo etc). This is strictly for flow trading (aka institutional brokers). However institutional brokerage is in better shape than retail...for now at least.
You may wish to look into deriv sales and trading where niche areas are strong. </p>
<p>All this falls under the S&T division of ibanks. These guys are recruited from all the usual suspects (ivies, Chicago, Mich, Gtown etc etc).</p>
<p>derivative sale and trading- what kind of degree would best prepare one for these jobs-mathematics?</p>
<p>math, computer science, stats, financial engineering</p>
<p>What exactly should i do in undergrad to get a good shot at these jobs besides majoring in math+ engr? And what exactly do these jobs entail? Does the prestige of the undergrad institution attended matter? What does the "S&T" in 'S&T division' of i banks stand for?</p>
<p>internships with hedge funds or trading divisions will obviously help you.</p>
<p>S&T = sales and trading. you want to be in trading, not sales.</p>
<p>Trading 1st year salary is around 100K I hear, with an easier lifestyle than that of a banker. A lot later depends on waht group your in, certain groups are trading products that are really hot. Also performance is a big factor when it comes to trading, it's an eat what you kill environment, it's possible if you're a star to make 1 million dollars in compensation at 25.</p>
<p>How hard is it to become a trader right after undergrad?
Also- whta's the difference between a quant and an analyst? Do quants work insane hours?</p>
<p>
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internships with hedge funds or trading divisions will obviously help you.
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</p>
<p>Can you get internships with hedge funds (as an undergraduate)? I'd imagine this would be rather difficult.</p>
<p>
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Trading 1st year salary is around 100K I hear, with an easier lifestyle than that of a banker.
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</p>
<p>Including or excluding EYB?</p>
<p>Actually internships with hedge funds have been becoming more and more common. There was a recent article in the NYTimes regarding this, many undergraduates are opting for the hedge fund internships because they've been seeing the crazy pay and easier lifestyle.</p>
<p>As for the salary issue, that would be in total compensation, I should have said total comp instead of salary. But again, I think a lot of how much someone makes in trading is up to the desk performance, individual performance, etc. For instance, I heard Stevie Cohen of SAC made 8,000 dollars his first day of trading, so I mean there are A LOT of factors. That 100k would be a ballpark number.</p>
<p>Ah, interesting, and thank you for the clarification. I think this calls for a little research on my part on hedge funds.</p>
<p>If you'd like to help (please?):
What kind of people do hedge funds hire?
Do they hire undergraduates (say, from HYP)?
Any particular degrees that they look for?
Average pay/working hours?</p>
<ol>
<li><p>HF's like quant types, this means you need to major in math, comp sci, engineering, maybe economics backed up with a lot of math coursework -- if you win collegiate math competitions this helps a lot (D.E. Shaw apparently likes to hire a lot of medalists from math competititions -- their prop. trading group, a group that trades with the company's on pool of money making bets on the market, has a requirement that 1st years have an SAT score of 1500 or higher with a minimum of about a 750 on math)</p></li>
<li><p>They hire undergrads, coming from HYP would be very good (financial engineering at P would be a great major)</p></li>
<li><p>see above</p></li>
<li><p>Hours should be about 60 hours a week (12 hr days 5 days a week -- when the market is open) but then you the individual might spend extra time working -- traders generally love the work that they do, some don't even bother to eat during those 12 hours, it's supposed to be very crazy and exciting at the same time. I don't have any exact numbers on pay but at least initially it should pay VERY SIMILAR to I-banking structure, so think 85-100k, and then as you advance and trade you'll earn based on performance, so you could make a lot.</p></li>
</ol>
<p>Wait- they actually ask for your SAT scores??.. Thats so lame.</p>
<p>some do some don't, the really elite places will probably ask -- but its hard as hell to get a job with them anyway so that shouldn't be a priority for you</p>
<p>Thanks a lot for the help, dcfca.</p>
<p>Hmm...what I find somewhat counterintuitive is that while these hedge funds want, let's say, a CS student, that they target HYP.</p>
<p>Granted, Princeton's got a very competitive CS department, but Harvard and Yale not so much so. Wouldn't it be better if they went after CMU people in that case? Or is it that they feel that department strength aside, the raw brainpower is demonstrably stronger at HYP?</p>
<p>Also, I wonder if the Princeton CS major (let's say with a finance certificate) would lose out to the financial engineering people there?</p>
<p>Just a few thoughts.</p>
<p>dcfca-i mean im going to be taking them again this fall because i want to transfer to harvard/upenn. However, I dont know if these elite prop trading groups will have a problem with me taking it after having completed my first year in college.</p>
<p>I'm surprised they ask for SAT scores, an incredible amount of "slush" in those scores.</p>
<p>
[quote]
Thanks a lot for the help, dcfca.</p>
<p>Hmm...what I find somewhat counterintuitive is that while these hedge funds want, let's say, a CS student, that they target HYP.</p>
<p>Granted, Princeton's got a very competitive CS department, but Harvard and Yale not so much so. Wouldn't it be better if they went after CMU people in that case? Or is it that they feel that department strength aside, the raw brainpower is demonstrably stronger at HYP?</p>
<p>Also, I wonder if the Princeton CS major (let's say with a finance certificate) would lose out to the financial engineering people there?</p>
<p>Just a few thoughts.
[/quote]
</p>
<p>CS was just one example <a href="http://www.tower-research.com/team.shtml%5B/url%5D">http://www.tower-research.com/team.shtml</a>
head over to that site and browse the backgrounds of the people who work there, it will give you a good idea of what it takes.</p>