Why chose high frequency trading firm over software firms

  

This is one of the most common doubts people studying in the premier institutes have when the placement season approaches. Apart from the obvious difference in the work, there is a difference in their pay as well as a difference in the work timings and flexibility.

About Me

I have done my B Tech in Computer Science and Engineering from IIT Bombay. I too faced a similar dilemma and chose to finally go with doing a job in an HFT.

Work culture

The work in HFTs is hectic if we compare it to software companies but it’s interesting too. It’s a fast-paced industry and you are required to work quickly on things that the company wants to be done in order to reach its goals. You are required to give a lot of time to some ongoing problem that the team faces in trading which might be hampering live trading. And once the team finds a solution, it is brought into production rapidly.

Comparing this with the work in a typical software firm, you are generally assigned some tasks with their corresponding deadlines. The tasks in themselves may be of varying degrees of importance but it’s not something that the company is dependent on at the moment. The deadlines are lenient and since the work you are assigned is not that important as of now, your work is too flexible. You can work whenever and wherever you want.

Salary Structure

Moving on to the pay structure and the CTC of HFTs vs software firms.

The CTC of software firms generally comprises of some base which is almost 50 per cent or more of the total package and the rest of it comprises of share in stocks and other perks as well as joining bonus. In high-frequency trading firms, the package comprises of the base, joining bonus, and bonus which usually depends upon how well you performed in a financial year. After a few years, the bonus is the only part which the employee is concerned about since it is much more in proportion than the base of the CTC.

The growth in terms of CTC is much more for a profile like Quant Trader/ Researcher in a HFT as compared to a software developer. But the work-life balance is affected and the work is too hectic in HFTs. So one should compare both of them at many levels and choose according to his/her requirements and goals.

To be continued..