Need some advice...IB vs Prop house

DavidCarpentier · Feb 26, 2009

Hi,

Wondeirng if someone could offer some advice...im currently in a decent role working at an IB but got an offer at a prop house ...at the moment, i have about 2 years experience at the bank (joined as a grad) always wanted to be a trader but not sure if this is the time to be switching roles especially as the market is so bad. what if i go for the prop house and f*ck it up...its going to be twice as difficult to get another job...

also, prop house means no regular income so it wud be a huge risk as i have a few responsibilities..

on the up side.. if i can go to the prop house for a couple of years (assuming i wud be profitable for that long so that they would keep me on) and come out the other side with 2 years experience and a bouyant market (hopefully), i should be able to find a job at an IB as a prop trader or at a hedge fund as a prop trader...

any advice?

much appreciated

dave

Skill Leverage · Feb 26, 2009

You're at an IB just now and you want to leave your job, go and trade for a prop firm for 2 years and then move back to an IB? If you're 'not sure that it's time to be switching roles' to trading, why is it a good time to be joining a firm that relies entirely on its traders?

If the firm you are joining will be investing time/money training you, I'd be very surprised if there weren't stipulations in your contract stating that you can't trade for another firm within x number of years - I'd imagine x would be greater than 2 for most places. Not to mention the fact that it's not exactly great professional conduct to accept a job with full intentions to use it as a short-term stepping stone to something else.

Based on what you've said, I'd say you'd be much better off staying where you are and trying to make inroads into trading internally. That said I'm not the oldest/most experienced person here so you might get some better advice from someone else.

SL

DavidCarpentier · Feb 26, 2009

Skill Leverage said:
You're at an IB just now and you want to leave your job, go and trade for a prop firm for 2 years and then move back to an IB? If you're 'not sure that it's time to be switching roles' to trading, why is it a good time to be joining a firm that relies entirely on its traders?

If the firm you are joining will be investing time/money training you, I'd be very surprised if there weren't stipulations in your contract stating that you can't trade for another firm within x number of years - I'd imagine x would be greater than 2 for most places. Not to mention the fact that it's not exactly great professional conduct to accept a job with full intentions to use it as a short-term stepping stone to something else.

Based on what you've said, I'd say you'd be much better off staying where you are and trying to make inroads into trading internally. That said I'm not the oldest/most experienced person here so you might get some better advice from someone else.

SL

HI SL, thanks for your reply

the reason why im not sure if its a great time to be switching roles is because a prop house will get rid of you if you don't make as much money as they want you to. its not because im not sure i want to be a trader..If it turns out, i dont perform as well as i hope to, i just dont want to be in the current job market looking for work...

the reason why i would come back to a bank or move to a hedge fund is because in my eyes, it would be a more stable job (fixed salary etc). also, if i look to buy a house in a couple of years, i need a steady income to get a mortgage (do many prop traders have this problem?)

at the moment, im leaning towards taking the trading job because if i decline it, i might regret it as its what ive always wanted to do.

my worst fear, like i said, is being out of work because i NEED to have an income of some sort

cheers,
dave

Skill Leverage · Feb 27, 2009

I see what you're saying; I just recently took up a very similar offer. If I was looking for a stable income over the next year or so, I would have run a mile.. I left a job with a steady (and increasing) income in order to move down south and start 6-12 months of eating out of bins, and I did so for the reason you state - it's what I want to do.

If I were in your position, I would take the trading job. I am not you however, and it seems from the tiny bit I know about you that you have your doubts; I'm not sure whether I would advise someone who had doubts to leave a stable job in IB at the moment. I'd have a long hard think about it, as I'm sure you are most days, and figure out where you see yourself in 2 years' time, in either direction you may choose.

SL

DavidCarpentier · Mar 1, 2009

Cheers

Need some advice...IB vs Prop house

DavidCarpentier

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