Quantitative investment, also known as quant trading, has become one of the hottest jobs on Wall Street in recent years. With the rise of big data and machine learning, demand for quants has surged. Top quant firms like Citadel, Two Sigma, DE Shaw, offer total compensation exceeding $300k for new grad hires. In this article, we will analyze quantitative investment jobs salary at top firms, career development prospects, and how to land quant roles.
Citadel quant total comp exceeds $375k for new PhDs
According to anonymous users on Zhihu, Citadel offers $175k base + $50k sign-on + $150k bonus = $375k total first year compensation for new PhD quants. For returning interns, sign-on bonus is $100k, so total comp is $425k. Master’s level quants also receive attractive packages, with $150k base + $50k sign-on + $100k bonus = $300k total first year compensation.
The quant hiring at Citadel is also expanding rapidly in Chicago, New York, London and Hong Kong offices. Internal referrals are available according to some users.
Two Sigma quant offer on par with D.E. Shaw, slightly below Citadel
Two Sigma, the quantitative hedge fund founded by former D.E. Shaw managers, offers compensation for new grad quants similar to D.E. Shaw. According to market sources, these two firms pay slightly less than Citadel, but still exceed $300k total first year compensation.
Two Sigma hires a lot of PhDs in math, physics, computer science and statistics from top universities globally. The firm is famous for using big data and machine learning techniques to discover signals for trading.
Major banks pay $100k-$150k base for front office quant roles
While hedge funds and prop trading firms top the compensation ranking, major banks on Wall Street also offer attractive quant packages, especially for traders and structurers.
According to H1B salary database, the average base salary for front office quant roles at banks like Goldman Sachs, Morgan Stanley, JP Morgan is around $100k-$150k. Bonus varies significantly based on performance, but could reach 30-50% base salary.
So total compensation at major banks ranges from $150k to $250k for new grad hires. Far below the top quant hedge funds, but much higher than traditional banking and tech roles.
Quant salary rises exponentially in early career
One distinct feature of quant roles is the exponential salary growth in the first 5-10 years. According to market sources, it’s not uncommon for total comp to double or even triple during this period at top firms.
This is driven by the high bonus component, which increases disproportionately as quants gain more experience and move up the ranks. Bonuses of $500k-$1M+ for MD level quants are regularly reported on Glassdoor and Blind.
The rapid salary growth enables the most successful quants to accumulate significant wealth while still relatively young. However, the competition is also cut-throat, with high churn and turnover.
In summary, quantitative investment jobs offer some of the highest salaries on Wall Street, with total compensation exceeding $300k for new grad hires at top firms like Citadel and Two Sigma. Major banks pay around $150k-$250k for front office quant roles. The most distinguishing feature is the exponential salary growth in early career, enabling top performers to earn over $1M in total compensation within 5-10 years.