I did a search on this topic and found one thread discussing this from last summer but it didnt go into much depth. My guess is that Sell side traders probably make more and have greater input into the trades they make but how much of a difference is their? Is buy side trading even considered front office if you are basically just executing, tracking and settling trades? I am trying to figure out what an assistant trader at a buy side shop would really do, whether the position would qualifier as part of the investment decision making process under the cfa guidlines and about what they make (shop has between 1 and 5 bill AUM and is located in the northeast usa (not NYC). Thanks all GenY
how do you figure ss traders make more than buyside? Read an issue of Trader Monthly and get back to me on that.
Why didnt you pick up an issue of traders monthly before you asked about the difference between being an assistant trader at GS and keeping your job as an equity options trader at a top prop shop? I said it was my best guess, i wouldnt have asked if I already knew.
You have to break down terms before this question can be answered… sell side “sales and trading” traders basically push the securities the I banking division underwrites into the open market… they are salesmen… not that interesting in my opinion… Sell side “prop traders” trade the firm capital… meaning they come up with ideas, do the research, and follow through with it. This can be interesting/lucrative (think GS guys who shorted ABX). Execution traders: buy/sell side: these guys receive orders and actually do the trade… they should have expertise in executing block orders, hiding/obtaining information, getting best price, etc. Not that interesting in my opinion either. Buy side traders: For the non-execution kind, this is a broad term that can cover analysts for all types of securities and strategies. These guys sometimes execute their own trades (by phone if distressed debt, by computer if liquid, etc), but they are doing the analysis first. A hedge fund manager would fall into this category. FYI… I would much rather be an assistant trader on the buy side than the sell side. I would much rather be a trader on the buy side than the sell side. It is risker, but only because you have more freedom/control… which only means more earnings potential (again, these are hedge fund managers… highest paid sell side trader makes a small small fraction of the highest paid fund manager/traders).