5 ms·

Software engineering in finance, you mean? How specialized is this?

tumahimikka 7y ago
Software engineering in finance doesn't pay anywhere close to FAANG salaries. I assume he meant finance as in trading or investing
codingslave 7y ago
350k is probably doable but if you wanna make like high six figures/7 figures you need to know about finance. You need to learn ML, fundamental analysis of companies, distributed systems, NLP, data analysis on data sets with extreme bias, holes, messy, etc. Could go the c++ low latency route, idk how well those are paying these days
maest 7y ago
It's a big field - I'd say buyside algo funds pay best in the space; I expect you'd be able to increase your income if you find the right fund and the right position. As everywhere else, the closer you are to the profit centres, the more you get paid: e.g. exchange connectivity specialist at an HFT shop, devops maintaining the plumbing and infra for ML systems, data wrangling specialist etc. Also, some funds are notorious for having made weird decisions regarding their main programming language (e.g. ocaml or q/kdb), so being a language specialist can also prove lucrative. You can also look to join a trading team inside a fund - the ceiing is much higher on what you can be paid, but it's a lot riskier too. Generally, working on the infra side of a highly sophisticated algo fund is less risky.
- anonu 7y ago
  > the closer you are to the profit centres, the more you get paid Yes, this. I would go further and say that if you're "IT" in a finance firm you're a second class citizen. You want to do engineering in a trading role: designing prop trading strategies, managing portfolios and pnl. There are very few financial firms that are tech companies at the core. The landscape today is certainly better than it was ten or twenty years ago. Today, the firms who have a standing chance to compete in the arena have automated everything. I'm making sweeping generalizations, so obviously YMMV.
  - codingslave 7y ago
    This is outdated. Top non quant funds still pay their programmers 400 - 700k. Places like bridgewater, pimco, etc.
    - gricardo99 7y ago
      The comp structure is very different though. Base salary in finance is low compared to tech/silicon valley. most of the typical finance comp comes from yearly bonus, usually cash, but sometimes stock/options with vesting.
    - maest 7y ago
      Yes, but the harsh truth is, you are still a 'second class citizen', even if a well paid one. It's really a matter of culture; virtually all places will have a clear delineation between Investment and Technology, with various perks given to Investment people: better visibility into what is going on, access to higher management, general power to influence which projects need work etc. Also, Investment people tend to hang out together. EDIT: Just realised you were maybe not commenting on the 'second class citizen' bit. I'll leave my comment here anyway.
      - codingslave 7y ago
        So what, if youre paying me 600k a year to write code, I'll accept some abuse. Its why they pay so much
  - maest 7y ago
    > You want to do engineering in a trading role: designing prop trading strategies, managing portfolios and pnl. From a income maximisation PoV, that's true. However, OP was looking to not increase his risk, so taking PnL risk might not be what he wants.
  - downerending 7y ago
    That's true, but "IT" can still be paid pretty well. It's sort of like being a SRE at a FAANG. They won't respect you, but they need you anyway. Someone has to clean up the messes devs make. :-)
- Niksko 7y ago
  What's the culture like at these places if you're an engineer? Does the finance bro culture bleed over, or is it separate?
  - maest 7y ago
    Depends on the fund - most specialist algo funds don't really have a 'trader bro' culture - no loud trading floor, no brash yelling on the phone. The vibe is more of a tech firm with people working quietly in front of their copmputer.
anonu 7y ago
Once you're seasoned enough on the finance side you'll wish you went to silicon valley... The grass is always greener.

Software engineering in finance doesn't pay anywhere close to FAANG salaries. I assume he meant finance as in trading or investing

codingslave 7y ago

350k is probably doable but if you wanna make like high six figures/7 figures you need to know about finance. You need to learn ML, fundamental analysis of companies, distributed systems, NLP, data analysis on data sets with extreme bias, holes, messy, etc. Could go the c++ low latency route, idk how well those are paying these days

maest 7y ago

It's a big field - I'd say buyside algo funds pay best in the space; I expect you'd be able to increase your income if you find the right fund and the right position. As everywhere else, the closer you are to the profit centres, the more you get paid: e.g. exchange connectivity specialist at an HFT shop, devops maintaining the plumbing and infra for ML systems, data wrangling specialist etc. Also, some funds are notorious for having made weird decisions regarding their main programming language (e.g. ocaml or q/kdb), so being a language specialist can also prove lucrative. You can also look to join a trading team inside a fund - the ceiing is much higher on what you can be paid, but it's a lot riskier too. Generally, working on the infra side of a highly sophisticated algo fund is less risky.

anonu 7y ago
> the closer you are to the profit centres, the more you get paid Yes, this. I would go further and say that if you're "IT" in a finance firm you're a second class citizen. You want to do engineering in a trading role: designing prop trading strategies, managing portfolios and pnl. There are very few financial firms that are tech companies at the core. The landscape today is certainly better than it was ten or twenty years ago. Today, the firms who have a standing chance to compete in the arena have automated everything. I'm making sweeping generalizations, so obviously YMMV.
- codingslave 7y ago
  This is outdated. Top non quant funds still pay their programmers 400 - 700k. Places like bridgewater, pimco, etc.
  - gricardo99 7y ago
    The comp structure is very different though. Base salary in finance is low compared to tech/silicon valley. most of the typical finance comp comes from yearly bonus, usually cash, but sometimes stock/options with vesting.
  - maest 7y ago
    Yes, but the harsh truth is, you are still a 'second class citizen', even if a well paid one. It's really a matter of culture; virtually all places will have a clear delineation between Investment and Technology, with various perks given to Investment people: better visibility into what is going on, access to higher management, general power to influence which projects need work etc. Also, Investment people tend to hang out together. EDIT: Just realised you were maybe not commenting on the 'second class citizen' bit. I'll leave my comment here anyway.
    - codingslave 7y ago
      So what, if youre paying me 600k a year to write code, I'll accept some abuse. Its why they pay so much
- maest 7y ago
  > You want to do engineering in a trading role: designing prop trading strategies, managing portfolios and pnl. From a income maximisation PoV, that's true. However, OP was looking to not increase his risk, so taking PnL risk might not be what he wants.
- downerending 7y ago
  That's true, but "IT" can still be paid pretty well. It's sort of like being a SRE at a FAANG. They won't respect you, but they need you anyway. Someone has to clean up the messes devs make. :-)
Niksko 7y ago
What's the culture like at these places if you're an engineer? Does the finance bro culture bleed over, or is it separate?
- maest 7y ago
  Depends on the fund - most specialist algo funds don't really have a 'trader bro' culture - no loud trading floor, no brash yelling on the phone. The vibe is more of a tech firm with people working quietly in front of their copmputer.

anonu 7y ago

Once you're seasoned enough on the finance side you'll wish you went to silicon valley... The grass is always greener.