Is this even possible? I have a minor in economics and am pretty early into my career. Would you recommend making the switch. I like coding but I think that at hedge funds or PE you just have a higher cap. Anyone made this switch or know someone that did?
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- HFT is tradind in the banking sector and banking ≠ finance.
Accounting on the other hand is part of Finance. That's why in a corporate environment it usually sits below the CFO.
So if you want to go into Banking, go ahead. If you want to join a finance team that sits somewhere below the CFO, don't be a fool like way too many othes and make sure you understand at least basic Dr./Cr. stuff.
- I think good thing about finance is that it pays well (same or below FANG). CS has been hot for a while, who knows what will happen next? But no matter what industry goes well, finance just stay well with the new industry.
- A lot of trading/quant firms have similar perks and wlb. Also, Google has a ton of boring projects that they do so that nobody else will and they don't have anything else for engineers to do. Quant firms don't have the head count or reason to do that so usually everything you work on there matters to the company. YMMVApr 5 11
- A few elite firms have stronger talent, and more senior folks. Large tech cos have a lot of variance in talent. However I want to add that there are more regulations and legal nonsense in finance, quicker firing, even enforced non competes which can be bad or good (depending if they pay you while enforcing).
- One important difference: to get a finance job, it’s okay and common practice to go through hunters. Probably 60% (my feeling, no real counting) of the financial developer jobs are posted by hunters.
- Quite many hunters have direct connections to hiring managers. So even better than submitting through company websites because HR may not know the positions that well. However, there are hunters who just submit your resume to many companies with your name removed. Avoid the latter ones. Chat with the hunters to make sure they are the first type
- Also an interesting thing is some of those financial hunters are in London. This financial hunting industry seem to have a rule: hunter must talk to you via phone to submit your application. So hunters may avoid telling your which companies in email or LinkedIn messages. They want to make a phone call, no matter how short.
- Very common. Worked at a shop that would constantly poach good people from the tech organization. I know several who have jumped over to the business in PM or trading. Bonus component of comp goes way up. 100% - 200% bonuses with about the same base. (15-50% at the IC level in the front office tech organization.
- The way of interviews really diverse. Some firms still include brain teasers(no kidding). Some firm ask computer internals (how OS works; for high frequency trading). Many of them ask language details about python, java or C++. You may think algo/ds is “a” way to screen candidates in most tech firms as C++ language details is just another way. For example, you probably need to know how jvm GC works, how packets are transmitted from NIC to applications, how vtable is implemented.
- People are conflating a lot of different paths in this thread.
PE vs. quant hedge funds vs. trading shop hedge funds are very different.
Within hedge funds, eng vs. quant vs. trader are also very different.
All these options represent very different work and very different earning potentials. Which one are you interested in?
Most finance positions won’t pay substantially more than L5-L6 FANG unless you make it to partner.
For some of these paths, at associate and VP levels, you will earn less than at FANG comparable levels.
Partner in finance is similar to L6-L8+ FANG
- I have thought about finance, but even at 1.5X increase in TC, I wouldn’t make the switch because of old school culture BS, worse hours, fewer career switch options, and worse benefits.
At 1.6X, I would maybe start considering it.
For me, the actual TC change from switching to finance is about 0.8X-1.4X.
- I would think about it this way. Go where the innovation is, go where people are going from zeroes to one's.
Financial industry arguably hasn't innovated since the early 80s when people found nouveau ways to utilize leverage to generate returns. From private equity to mortgage backed securities, financial engineering was the hot shit back in the days and thus all the new MBA grads wanted to go to Wallstreet.
Sadly, the Industry really hasn't come up with anything new, mean while, new funds and competition enter all the time to drive down returns. What was once a oligopoly ruled by a few institutions is now becoming perfect competition. And therefore, when you look at fund returns, most funds always quote figures "since inception", but when you look closely, with each fund they raise, the returns get lower and lower.
Whenever something turns into perfect competition, it's time to run away.
- Although my concern is, tech is following the same trajectory that Wallstreet moved in pre 2008. People's attitudes, ambitions, the way obsessive way people talk and live, are eerily similar... And I wonder if the tech bubble bursts, whether there will be an occupy silicon valley momentApr 6 2
- Chase 8==D~I went backwards - finance to tech.
I wouldn’t do it if I were you. Having seen both sides, the grass is greener on the tech side.
Finance job responsibilities are/will be increasingly automated, which in turn will limit employer demand for finance workers. The opposite is true for tech (for now).
Also, breaking into the so-called “high finance” jobs is extremely difficult even when you have the background that those employers seek (elite college, to top investment banking group, sometimes elite MBA), and I if you don’t have that background, I would say it’s virtually impossible.
- I have a very similar question. I have no minor in economics but I love trading stocks. I am a hardware engineer with physics /EE background. I know some working Python but I'm fascinated by mysteries of wallstreet and finance. Im someone you can call a pyjama trader.
A lot of hedge fund managers, Quants have advised me not to leave what I do. But I'm still exploring. What field in finance would you think is easier to get a foot in the door.
I have 6 yoe in what I do and I'm decent at what I do currently. Obviously I don't want to end up at the same level as a new college grad. So what fields in Finance or Hedge funds or asset Management can I Target? I would love to work under a money manager and pick stocks for them. Do in-depth analysis! Or even become a sell side analyst that retailers like myself love to hate on
TLDR: in tech, not really killing it. Love trading stocks all day and love finance in general. Know the fundamentals and technical chart analyses pretty well. Can get CMT certified as well. Where and how do I switch?
- Personally I think the most interesting ideas are to combine tech and finance to gain a material advantage like Goldman Sachs does with satellite photos of Walmart’s parking lots. Walmart is a leading indicator of the US economy so you can use Walmart’s performance in lots of ways. Parking lot activity is a publicly measurable thing to understand Walmart’s performance. These are the kinds of tech problems with opportunity. Use tech to measure something that gives you and only you a material advantage.
- You only hear about success stories. The thing about finance in general, is that you disappear if you are not an all-star and even shit happens. For every person that made it to top management style a hedge fund, PE, etc, there are hundreds of washouts. People who worked harder in a single day than you do in a week. People who kiss ass like nobodies business. People who the founding family like.
Even within the management level, you start way low. It's recursive. Granted, way low is 1M TC, but you are taking about a sliver of the all-stars. At that level, your social skills and salesperson ship far outweigh your technical skills (financial or otherwise). The same story is true for the high earners of big Enterprise tech.The same skills it takes a government to buy Oracle despite it being OK to crap is the same skills it takes to convince a pension fund to fork over 2% of the principle and 40% of the gains.
- Finance in Tech sucks, don’t do it. I was in it for 5 years and got out, moved to Eng and life is 1000x better
- The first thing to make the transition is to study the job postings. See if there is ones relevant to what you have done in the past two years. If you can find a match on specific skills, likely you may get that job. Once you entered this domain, then you are considered inside the circle. Much much easier to hop to another position in this domain.
- Smaller financial firms tend to hire people wearing multiple hats (like startups). Larger ones may just want certain expert for a specific position. For example, data engineer positions may want people with spark pipeline experience and infrastructure positions may want people with kubernetes
- Common and doable but people I know who have done it HATE it. It's obviously way more corporate, more hours, and higher demand.
It's just as "important" work and it's some cool stuff (especially if you're working w investment algorithms etc.) But at the end of the day you'll be working 12hr days at the hands of the managing director or IB firm
- My thinking is to be amazing at what you do (engineering), crush the interview and them give them your list of demands in terms of WLB. I’ve seen it work. A French friend of mine for example after he got the offer was like “I’m french. I take one month or so vacation every year, paid, and I’m completely unreachable the entire time.”
Remember that when you go from tech to finance, you’re the gold.
- Well.... I mean yeah you're the gold but there are a lot of other SWEs etc who will get poached for 200K + ridiculous equity or investment benefits at the same time. I think you have an advantage and leverage but man Management Directors and IB VPs are something else and you bend over and suck their D to make $$$.
If that's the lifestyle you want, go for it and you will make millions
- IB VPs make 250k - 1M based on experience and and performance, which is similar to L4-L7 eng. Similar comp at soul sucking hours and work. IB is not really worth it anymore with tech doing so well.
If you really wanna gun for MD level comp, you might as well go for L8+ tech positions like Senior Director, VP etc
- Facebook wootnessProblem with Finance is heavy regulation. At least today FANG is not subject to that. You will have to deal with locked down equipment and tons of red tape. Also, on average, people you will work with will be less exciting to say the least. Unless you are supporting revenue function or get a crazy comp package that you cannot reach at FANG or other solid tech firms, do not touch this shit. Also, you will likely not grow as much in many of these finance shops as an IC. They frequently require highly specialized knowledge for highest paid roles and infra space is ages behind and often drowning in glaciers of legacy systems.
- Netflix razorlabWhat not both. Most tech companies have tech p&a. It’s fp&a but tech focused. If you have a background in tech and learn the finance side, that’s very valuable.
- New bob_If you work in a portfolio manager, senior quant, or a *critical* quant developer role, the total comp can be very good. There tends to be more annual volatility in compensation at senior levels because most of your comp is tied to the performance of your strategy and the company overall.
- Is it possible to make 300k a year TC in finance after 5 years experience as a software engineer?
- Are you just trying to make more money, or are you more interested in finance?