How Much Do Quants Really Make?

[@DimitriBianco]

Updated data on quant compensation in 2018: www.quantnet.com/mfe-programs-rankings/

[@nickf1724]

This guy answered the "How much do quants really make" question in the most quant way possible... why would I expect anything less.....

[@bosunfalade2777]

From a student heading in to postgrad school, you give sound advice man. Best channel I've subscribed to this year. Keep it up! 👍

[@jameshuh8362]

Some good points but these numbers are way too low..like some comments mentioned, quants can start at ~250k at places like 2sig and citadel. There are plenty of other quant hedge funds that pay well.

[@cavalry_knight]

Dimitri , I'm impressed how you took the time to comment/like almost every comment on this video .

[@DimitriBianco]

Thanks! I take about 1-2 hours each day to respond to subscribers.

[@yw4660]

I think most of my classmates do not really think they could make a million dollars(even for HKD) upon graduation, but still, I find this video really helpful for a second-year college student. Somehow I haven't figured out which way to choose, to study for a master degree in computer science, or to get a master degree in financial engineering. Btw Baruch is quite attractive to me but maybe CMU works better if I wanted to get a job at Hong Kong or Shanghai.

[@DimitriBianco]

Yifei Wang both are great schools. My advice is to apply to a lot of programs because they are all very competitive to get into.

[@NegativeAccelerate]

I’m 17 and I have to decide between computer science and general engineering which then specified into whatever branch you choose after one year

[@theplaintiff5450]

I think this is an excellent video... I love working in quant finance, but I’m definitely not a millionaire doing so.

[@tdreamgmail]

how much are you making?

[@anissaa1017]

I feel a little guilty for falling into the trap of “quants make so much money” , in the other hand I love Financial Engineering and I can’t wait to be more experienced in it. Thanks for the video, always good content!

[@DimitriBianco]

If you love financial engineering then the money is just a bonus so you should do good!

[@codewebsduh2667]

The most stereotypical "Quant" look i have ever seen.

[@skippylegrandgourou777]

Wrong. He's not asian.

[@naveedali1406]

Legends has it that he still likes the comments of his viewers🙏

[@DimitriBianco]

Yes, I'm still active in the comments. I try and make these more of a discussion than anonymous comments.

[@charlessmyth]

Pretty much parallels Anton Kriel's experiences and conclusions :-)

[@tigerrx7]

Your tie is ON POINT!!!

[@DimitriBianco]

Thanks! It is one of my favorites.

[@unanimous.verdict]

Quants in quant hedge funds may make a billion in ten years. You basically get lower starting salary in HF but the compounding benefits would yield higher amount after a decade of dedication compared to IB. Isnt that true?

[@neversayjello]

"eat sleep and breathe"

[@mistermomo2904]

16:10

[@THEMRblackboy7thst]

Great video. Thanks for your analysis

[@mikeg8752]

I like your other videos, but I really disagree on this one. I have a buddy who got his M.S. in Applied Math with a focus in Quant Finance and then got a job offer at Morgan Stanley. They asked him how much he wanted to be paid annually and he said “$200,000.” Their response was “we’ll pay you $250,000.” I got my MSFE from a top school and walked out with a similar salary at a different firm. Then again, this video was made before the U.S. saw inflation almost go into double digits

[@DimitriBianco]

The comps vary a lot, it depends on the role, and these are averages (there will be higher and lower). My guess is you are thinking "quant dev" which I don't consider a quant.

[@dwight4k]

Great content... very realistic. Keep 'em coming.

[@RadiohedgeFunds]

I like this video because I think being critical on protentional earnings is a lot better compared to exaggerating salaries. I would say this is one of the few fields that having a PhD really matters and directly effects your pay. Most of the lower salaries are people who flexed into the position or just have a master degree.

[@vishaljdeodhar5445]

Show a time series problem to a mba and he might agree he is overpaid...i seriously agree, how tough some quant stuff is...

[@ivoriankoua3916]

when he'll look at the Ito stuff he'll go completely CRAZY!

[@atarehman845]

@Dimitri Bianco Why didn't you mentioned about Jim Simons in this video?

[@DimitriBianco]

What do you mean? About how much he makes?

[@WonkelDee]

What do you know about working as a quant in other countries like England or Singapore?

[@DimitriBianco]

I'm not very familiar with the other markets. I try and stay focused on the US since that is where I am located.

[@thezive5544]

Hey Dimitri, great content you have here, I've subscribed! Question: as someone who's been in the industry for sometime now, what school would you recommend someone to get their MFE (or similar) from between UC Berkeley, Princeton, Columbia and Baruch? Let's just consider long-term success in the industry and professional network while ignoring the investment cost. Also, how does one become a top quant? I know you mentioned continuous learning but any specifics on pertinent skills necessary to excel in the quant world today?

[@yeahohright3097]

How the fuck do Baruch graduates make more than Columbia graduates?

[@lorenzodisarro9397]

yeah oh right networking

[@gamefax5741]

Wait! Which community college does MBA's?

[@pamiefortson243]

Hi Dimitri! Your videos are very useful. I am completing my Bachelors in Mathematical Economics at Wayne State. I am interested in applying for the Quant Finance & Risk Management program at U of Michigan Ann Arbor. I love math and statistics, and my current job is in entry Finance. I have no background in computer science. I have never learned about python or c++. So I’m a bit afraid about this program? Would I be completely doomed starting this graduate program?

[@wallstreetbravado346]

Hey!!! I like your channel. It is content rich. Keep making informative videos. High compensation comes at a price and with great sacrifices. ▶️📺🎥🙌🏽💥

[@astolfo9377]

How common is Adderall usage in wall street?

[@DimitriBianco]

Candy Slut I haven't seen it but that doesn't mean it doesn't happen.

[@astolfo9377]

Why not? Insider information

[@jayceh]

Have you seen a significant uptick since QE2020+ in the industry since AUMs have (had) skyrocketed?

[@MootBoogie]

hey, big fan of your channel. I just graduated from Columbia with a BA in statistics, I walked with a B- GPA and am looking for work. I surmised that I would have to supplement my application with a portfolio, or some kind of proof of competency. What could I make or build and show to be competitive in this job market?

[@DimitriBianco]

This depends on what type of jobs you are applying for. Usually only the tech industry likes projects/portfolio or sketchy trading firms. For quantitative finance you'll need to get a Masters or PhD to get a job.

[@houman1806]

Thank you a lot Dimitri. I'm an M.Sc student in Control Systems Engineering. I wanna know what are the trendy subjects in control theory combined with quant analysis. So: What are the related conferences and journals? And which finance courses should I take in order to be more acquainted with this topic?

[@DimitriBianco]

I'm not super familiar with control systems engineering but general math would overlap. Quant finance and financial engineering isn't too finance heavy though.

[@booonnoob7950]

Why do people on quora say that quants can easily make mid 6 figures?

[@DimitriBianco]

Because they probably only view quants as those working in elite hedge funds which do pay more. I've seen funds start employees at $200-300k but these are very rare.

[@pkamleshkr]

@@DimitriBianco I am software developer with 7 Years experience. I am in Malaysia I make around 150K RM.. pretty much compare to USD in US. You can have good standard of living and savings. I am planning to go for Quant development. I am now learning Machine learning. What is your opinion ?. If I move to Australia, is good to go towards Quant or stick to Software development side ?

[@schrodingerscat3912]

Dimitri, thanks for your material. I'm curious about Qfin education. What are your thoughts about the CQF?

[@DimitriBianco]

I have mixed feelings about the CQF. Paul Wilmott is very bright and well respected in financial engineering. I am sure the classes are of great quality however 6 months is not long enough to really learn enough to be comparable to a 2 year masters. If someone is already working in a fairly quantitative area of finance the CQF could be a great option to bring you to the next level. As for an undergrad student, grad student, or non-quant I feel you really need a 2 year masters in financial engineering.

[@schrodingerscat3912]

Cool, thanks. Keep up the good work

[@DimitriBianco]

SCHRODINGER’S CAT thanks! I appreciate the comments and questions.

[@airhogglider]

Chemical Engineers going into ExxonMobil with a Bachelor's degree makes $110-120K starting. This doesn't sound too good for Quants.

[@DimitriBianco]

It depends on the position and the city but $110-120 is great compensation especially for only a bachelor's.

[@tamar767]

Subscribed! Liked! Thanks for the wonderful videos. Just curious to know if you can share your views on common Software Engineering/Programmer job vs Quantitative Developer job duties.

[@DimitriBianco]

You're in luck, I might have a computer scientist who is working as a quant coming on my channel.

[@tamar767]

Dimitri Bianco Thats Amazing! Im doing Masters in Financial Math from NCSU. I have 3 years of Software Development exp. So is that question. Thank you in advance.

[@OK-dy8tr]

Hi.. Really appreciate your videos !!! These have helped me a lot as no one else is making such specific videos . I am joining Georgia tech Financial engineering program this year. I have a background of working as a business analyst for 2 years now .. Which things / certifications would help me get a job as a quantitative research analyst at a firm like 2 sigma / citadel investments/ DE shaw ... Ardently requesting you to mention some tips in the comment .. ( Is a CFA / FRM certification recommended ?? )

[@DimitriBianco]

For quant research at a big name firm, they'll want a PhD as this is a minimum requirement at most. If you want to work in investments, I would get the CFA.

[@OK-dy8tr]

@@DimitriBianco thanks Dimitri .. you earned a fan with this reply !!!😃

[@garyrosario1935]

Hi Dimitri, your glasses look cool. Where did you get them? I would like to buy a pair for my father.

[@DimitriBianco]

I got them at Costco. They are Ermemegildo Zegna brand.

[@songoku8627]

You’re really cool and seem really smart. I hope I can embody that and be a quant someday.

[@invictusgaming8700]

Hey dimitri im new to the quant world and was wondering what the difference between a quant analyst and trader and would an analyst be promoted to a trader (sorry if it sounds stupid)

[@DimitriBianco]

That's actually a really good question. Traditional traders are usually the people who make decisions on buying and selling assets based on tools provided by the analytics teams. For many large quant funds, quant traders are the people who monitor the computers which are trading. A quant analyst is someone who does hands on analytical work such as stats and math to build tools and come up with trading strategies. Depending on the company it is possible to move from being an analyst to being a trader. Large banks like Citi have rotation programs where you learn a lot about the different areas of sales and trading. At the end of the rotations you'll be assigned a specific area which could be a trader.

[@trustmebro703]

Is there any summary for this video?

[@jonallen3279]

whats your advice to those who graduate without good internship experience? Straight to grad school? I ran into legal trouble during college (marijuana charges), which has prevented any employers from even glancing at me. People say that there are always second chances, but I am starting to feel hopeless. Horrible cus I am passionate about what i study.

[@DimitriBianco]

What's your undergrad degree in?

[@jonallen3279]

@@DimitriBianco I have 2 degrees 1 in Finance and 1 in Economics from a dual degree program with a school in china

[@DimitriBianco]

A Masters degree can be an option. I was in a similar situation. I graduated from an average school with a finance degree and a minor in economics. I had about 4 years of experience working in corporate finance and accounting however no one would hire me to do basic finance. I realized I would prefer to do quantitative finance so I went back for a Masters however I only applied to top universities. The school's reputation was what really helped me to land my first job. In your case, taking a similar path could be a career boost. I would get a masters in something that interests you but make sure the school's name is well recognized. As for the legal issues, I would try not to worry about them too much. There isn't anything you can do about it now and there are companies who don't check or just don't care. When I worked at a startup we actually hire two guys who came from prison (with worse issues than yours). One of them was my best employee and I was glad the company gave him a shot.

[@jonallen3279]

@@DimitriBianco thanks for the reply! i really do admire your videos, cannot explain how grateful i am for them haha. I have an opportunity to teach english abroad for a year as well in Shanghai, and I want to do this while continuing my studies, but I am hesitant. i feel like this will opt me out of any career in finance in the future. life is too complicated

[@DimitriBianco]

If you study a lot and network well with others you should be able to get a job somewhere in finance. Keep up the hard work!

[@the145kinga]

Hello Dimitri, I want to know some books to learn from. And Just wondering do you guys use gann strategies or its totally different things? Thanks

[@DimitriBianco]

For quant funds...they typically use stats arbitrage and financial theory to find miss pricing. Gann's are more technical analysis and less math and theory. Some of my favorite quant textbooks are: 1) Stochastic Calculus for Finance 1/Stochastic Calculus for Finance 2 by Steven Shreve (math) 2) Introductory Econometric A Modern Approach 5th Edition by Wooldridge (Econometrics) 3) Derivatives Principles and Practice by Sundaram and Das (finance theory and implementing derivative strategy)

[@the145kinga]

Dimitri Bianco my man, been waiting for your comment. Thank you very much and now the research time 📚

[@AlaaBebar]

hello Dimitri. I'm studying ba double major finance/economics . to start off im from Israel thinking to have my master's degree in quantitative models like you're profession .what university I should try to apply for .of course I'm trying to get a schoolship to get accepted so I can start my journey to be a quant like you, to be frank I've struggled to find my path and passion academically,so im hoping you guide me what program and wich universities I should apply to so I can realy master building quantitative models, thanks for your straight forward videos

[@DimitriBianco]

If you goal is to do model development in quantitative finance, the best masters degrees are Statistics or Financial Engineering. The best advice on where to get an education will be based on your desired work location. The US has the most quant finance jobs and it is best to get a US degree. If you want to work in another country, it is best to get a degree in that country.

[@AlaaBebar]

@@DimitriBianco my goal to achieve is realy trading related combined with quantitative models that I can hedge in different market situations

[@policeman4446]

Hey, what do you think about quant compensations at firms like Two Sigma or Palantir ?

[@DimitriBianco]

Two Sigma is a great company and does pay more than most however it should be noted that these jobs are difficult to get and they only have 1,200 employees. There are higher end firms that have great pay however many students think this pay is common, and it's not. Even with a degree from CMU or Columbia doesn't guarantee students a good job. It certainly helps but a lot of students graduate upset that they didn't get as "good" of a job as they expected.

[@policeman4446]

Dimitri Bianco Really appreciate the response! Thanks

[@wesleytian5216]

​@@DimitriBianco How much of a bonus do you think a quant or programmer at Two Sigma would get with < 3 YoE?

[@nikunjpapnejja7992]

Hey, what’s your opinion on doing a phd in theoretical physics and aim for a quant position? Thanks!

[@DimitriBianco]

It's a possible route if you want to do physics as a backup. If your goal is to be a quant I think there are other PhDs that would be more focused on quant finance such as applied mathematics or statistics.

[@giulioiepure3437]

I am repeating my first year of uni in Ireland to do quantitative finance i was in a basic finance degree beforehand and it is the only place in Ireland you can do it as a BS only other option is a master. Do you think it was a good decision? I'm not driven by money but by an interest in the subject

[@DimitriBianco]

You'll need a Masters or PhD afterwards however it's a good idea to get a BS that is more math focused and less business focused.

[@Van_ax]

Wow! Great content. I noticed at the beginning of the video you touched on the quality of the school in reference to quants. I’m going to the only school in my state that offers a mathematical finance program so will I be disadvantaged when competing with other prospective students from schools like chigaco, northwestern, etc.?

[@DimitriBianco]

Yes, it will disadvantage you. Being in a good program that is close to the jobs is important. It's not the end of the world but it makes finding a job more challenging.

[@Van_ax]

Dimitri Bianco - Once you land your first few jobs and/or internships does the weight of the school you went to gradually wane over time? Will future employers only look at experience?

[@MK-jq8ow]

What should a undergrad UF CS major look to do, should I do a masters in fin engineering or mathematical finance or should I consider a PhD instead

[@AbhishekMukherjee_ezzy]

Hi Dimitri, I wanted to know your views for the Financial Engineering program offered by Columbia University. Thank you!

[@DimitriBianco]

I think its a very good program. The core courses and boot camps cover a lot material and they have useful topics for electives.

[@sohailalexander4681]

Hi Abhishek I’m doing this too. How did it go?

[@koushikkou2134]

mba's are horse crap. We the computer guys control everything .

[@Matheus-mr4tl]

in other words: this career sucks and doesn't make up for the difficulty you'll have to become a quant.

[@apollonmegara8220]

Can an engineer and mba suffice entering a analyst position?

[@DimitriBianco]

It depends on what type of analyst. If you are wanting to do traditional finance then an MBA will work. If you are wanting to do quantitative finance then an MBA won't help even with an engineering undergrad. Quant jobs compete with Masters and PhDs from all over the US with quantitative backgrounds.

[@apollonmegara8220]

@@DimitriBianco will that suffice example a prop trader? And will someone need to be a lawyer for someone to become a compliance office? Sorry for reply late abd thanks for replying btw

[@DimitriBianco]

Trading again will be divided. Traditional finance firms will hire MBAs and masters in finance while quant trading firms will hire financial engineers and other quants. Compliance is more like an internal audit job. These roles are usually filled by business students.

[@ThomasFoolery8]

I get that this video is 5yrs old, but as someone who works in chicago prop trading, your numbers are way off. The average quant makes about half a mill per year here. Note I said “average”.

[@DimitriBianco]

The data from top quant programs disagree.

[@ThomasFoolery8]

@@DimitriBianco I will compromise with you and say that the reason total comps have been so high in chicago prop trading in recent years is because of the crazy vol moves we’ve seen since the 2020 pandemic. Our performance is almost linearly a function of volatility+volume. Most traders and quants that I know across chicago prop have been making $500k, but yes, about $350k of that is bonus, and if the vol goes away, total comp could drift back down to $250k-$300k.

[@ThomasFoolery8]

@@DimitriBianco also, no disrespect, but “top quant programs” won’t have the same transparency in data as a quant who literally works at a top tier prop trading firm, and has a decade of experience working in the industry. If you have a channel like this, you should befriend a few actual quants and get the numbers directly from them.

[@andresrossi9]

I love your style there, the high class tie is too cool. 😎 Anyway I didn't know there were so many quants Making under 80.000$. I knew average was 100k but I thought it wasn't so variable. Yes, it depends on your skills and experience, but I didn't know there were all this difference. What's the average salary for new entry quants instead?

[@DimitriBianco]

The data mentioned around 8:00 is for starting salary however it should be noted that most of those schools are in or around NYC. NYC average is around $90,000 but smaller cities will be around $70,000 for your first job. If you go outside the US the numbers drop a lot even for London.

[@andresrossi9]

@@DimitriBianco I thought it was a middle career salary! New York actually pays so much, but is that because of high cost of living?

[@waldenwasted2665]

@@andresrossi9 yes, i think so. I saw some videos on KZbin about living in New York, and that city Is really really expensive.

[@THEMRblackboy7thst]

I dont want so seem arugant or anything, and i respect every course out there. But you should also base your salary on your intellectual effort and of usefull it is your background. I have a BA in physics and i can pretty much do anything that a finance student or an economics student can. Its just a reallity that some courses are just on another level and so are the people that studied them. When i look to the work rate and intellectual capability of some guy comming from accounting i can only laugh inside my head. The work he produces in 5 h i could make it in 1 and maybe better. Again, i respect all courses and every single one has its role. But an MBA eraning more thatn a quant? It´s an isult.

[@Isaiah_McIntosh]

Shrug that's not how markets work. If you could convince mathematicians and physicists to stop transferring to quant finance that might help lol.

[@bivashkhadgi436]

Can i join quant finance...after completing my bba?

[@DimitriBianco]

In the US you'll need at minimum a masters if not a PhD. In other countries where it isn't as competitive it might be different. You really need a quantitative undergrad though. A business degree isn't much use in quantitative finance.

[@J4MESRICH4RDS]

So, do ppl in consulting business make more money than quants?

[@DimitriBianco]

James Richard Susilo that's a hard question due to the amount of factors but if you took an average of all company sizes and positions I believe quants would make slightly more given the data I've dug through. Both careers are interesting and pay well but they are very different career paths. I've actually worked for both a consulting company (BCG) and many banks.

[@LGUclan]

invest in a microphone.

[@Isaiah_McIntosh]

Old video. He has now.

[@spikeybabies]

hahaha good ole boys club i really think is everything in life

[@kits1111]

How to contact you ? Any email??

[@DimitriBianco]

Dimitri.bianco@hotmail

[@realsemig]

You look like you code in java. 😂😂

[@Momo-bb2fn]

13:28

[@vicchris3943]

Surprised

[@annajones9701]

MBA = Masters of Bugger All