How much do people at prop trading firms in Chicago make?

[reppin_the_847]

Perhaps someone else in this thread (or the forum) has better knowledge of the industry. I don't want to tell you that you need to leave Chicago by any means, but I'm guessing that you should also consider prop trading gigs in NYC and possibly Connecticut although CT is more hedge-fund central than anything else really. At the end of the day, it seems that your goal is to amass as much wealth in a short amount of time as possible. Gotta follow the money (and wherever you get the right opportunity).

[Larry Siegel]

Originally Posted by Caldus

Here's what I think about all of this ... I still don't believe anyone here. I know how these types of people operate. They take advantage of the fact that everyone else thinks they are only making a little more but in reality a lot of people who don't deserve the salary have it and they got it somehow. Whether it was because they had a buddy who was starting up a hedge fund somewhere and trusted him even know he wasn't the biggest rockstar programmer in the world. Maybe it's because he really is just that damn good for his age and he was able to get multiple offers from multiple firms at the same time and arbitrage the offers to a point where he was a good $50K ahead of his crowd. Salaries are all screwed up at these places and they vary widely. You can see it on Glassdoor.

You shouldn't believe people who aren't making any money so they don't think it's possible.

Stay in finance. Most senior finance executives make way more than $400K. (I did, and now I'm retired at 55.) However, unless you are in prop trading, HFT, a hedge fund, or private equity it is rare to see that kind of paycheck for people under 35 years old. You are an ambitious young guy and you'll get where you are going but don't be in so much of a hurry. Hone your skills and stay aware of opportunities, then pursue one that you think you'll enjoy and be good at.

I agree with '847' that you may have to leave Chicago. The most lucrative career paths usually involve one or more relocations.

[marothisu]

I have friends in their late 20s who work for prop trading firms as software engineers...they make 6 figures, but nowhere close to $400k/year. Is it impossible? No, I don't think so, but yeah. My friends also have masters in computer science or software engineering. At 26 years old, $70k/year is still very good and above average for the age.

[reppin_the_847]

My guess is that the engineers probably get the stable, secure salaries, while the prop traders' compensation could fluctuate wildly. Huge potential upside, but also downsides as well. There is inherent risk with the role. I'm assuming that he's seeking out a firm that will allow him to trade the firm's capital and not his own capital (anyone can do that from their own computer these days).

Originally Posted by marothisu

I have friends in their late 20s who work for prop trading firms as software engineers...they make 6 figures, but nowhere close to $400k/year. Is it impossible? No, I don't think so, but yeah. My friends also have masters in computer science or software engineering. At 26 years old, $70k/year is still very good and above average for the age.

[Larry Siegel]

Also, if your company says they are looking for a finance PhD, they are probably looking for a finance PhD (to join the finance team, not the IT team, at a high level).

The reason that there are few 30 or 40 year careers in hedge funds, trading, etc. is that employers' needs change very quickly. If you want a 30 or 40 year career, join a non-bulge bracket bank or an insurance company.

[buylowsellhigh]

Initially, I used to trade for a prop firm here in Chicago and most I made in a year with them was $122K total compensation. I gave the firm three years. I appreciated the opportunity and I made them money so they were happy as well. Of course, we all knew that my days were numbered because my goal (and every other successful trader's goal at the firm) was to raise enough capital over time to be able to trade my own capital/account. Like I said, it took three years for me and that was three years ago so I've been trading my own account for three years. I made $80K my first year, second year I made $100K, and this year I'm at +$125K so far with about three months left to go. While I made some adjustments over the first two years and earned less, ultimately, I'm happy with my decision to strike out on my own because I feel I've actually become a better trader and it shows in my results.
I agree that you should always be maximizing your earning potential and when I hear "That's good for that age, you should be happy with that." or "That's way more than I make and I work so much harder." Well, that's your choice, right? I mean, we all have greatness in us, but most people are afraid to take any risks no matter how calculated or how much the risk/reward makes sense. My advice is to not only keep looking, but perhaps think about becoming independent. Great thing about youth is it's easier to get back up if you get knocked down so don't be so quick to want to work for someone else. If you're good and you know it, consider working for yourself!