Sales and Trading Career Path – Roles, Salary, and Day-to-Day
Sales vs Trading vs Structuring
| Role | What They Do | Skills Needed | Personality Fit |
|---|---|---|---|
| Sales | Pitch trade ideas, manage client relationships | Communication, market knowledge, relationship-building | Extroverted, persuasive, client-focused |
| Trading | Execute trades, manage risk, provide liquidity | Quick decision-making, quantitative skills, risk management | Decisive, calm under pressure, competitive |
| Structuring | Design custom financial products for clients | Math/quant, derivatives knowledge, creativity | Analytical, detail-oriented, innovative |
S&T Desk Types
| Desk | Products Traded | Market |
|---|---|---|
| Equities Cash | Stocks, ETFs | NYSE, NASDAQ |
| Equity Derivatives | Options, volatility products | CBOE, OTC |
| Rates | Government bonds, interest rate swaps | Treasury, swap markets |
| Credit | Corporate bonds, CDS | OTC |
| FX | Currencies, forex derivatives | Interbank FX |
| Commodities | Oil, gas, metals, agriculture | CME, ICE |
| Mortgage-Backed Securities | MBS, ABS, CLOs | OTC |
The S&T Hierarchy
| Title | Years | Total Compensation | Primary Role |
|---|---|---|---|
| Analyst | 0–2 | $125K–$200K | Support traders, learn the desk, build tools |
| Associate | 2–4 | $175K–$300K | Trade smaller books, manage client flow |
| VP | 4–8 | $300K–$700K | Run a desk segment, P&L responsibility |
| Director / ED | 8–12 | $500K–$1.5M | Senior trader, major client relationships |
| Managing Director | 12+ | $1M–$10M+ | Head of desk, strategic direction, top clients |
A Day in S&T
S&T operates on market hours. A typical day: arrive at 6:30–7:00am for pre-market prep, morning meeting at 7:30am, markets open at 9:30am. The trading day is intense — managing positions, executing client orders, reacting to news. Markets close at 4:00pm, followed by end-of-day reporting and analysis. Most people leave by 5:30–6:30pm.
This is the key lifestyle advantage over IB: your day is defined by market hours, not by deal timelines. Weekends are free, and the work has a natural rhythm.
How to Break In
| Path | Details |
|---|---|
| Summer Analyst Internship | Same recruiting cycle as IB; rotate through desks during summer |
| Full-Time from Undergrad | Target schools + strong market knowledge + quant skills |
| Lateral from IB or ER | Possible if you demonstrate market interest and product knowledge |
| Quant Background | Math/CS/engineering grads sought for derivatives and electronic trading |
Key Takeaways
- S&T offers market-hours schedules (7am–6pm) — the best lifestyle of any front-office bank role.
- Sales is client-facing and relationship-driven; trading is risk-focused and quantitative.
- Compensation is performance-driven: top traders can earn $1–10M+ at MD level.
- Primary exits include hedge funds (macro, quant, relative value) and prop trading firms.
- Electronic trading and regulation have changed the industry — quantitative skills are increasingly important.
Frequently Asked Questions
Is sales and trading a good career?
Yes, if you love markets. S&T offers strong compensation, reasonable hours, intellectually stimulating work, and direct exposure to financial markets. The main risk is that electronic trading and regulation have reduced traditional trading roles — quantitative and electronic trading skills are increasingly valuable.
How much do traders make at investment banks?
First-year analysts earn $125K–$175K. VPs earn $300K–$700K. Top-performing MDs can earn $2–10M+. Compensation is heavily bonus-driven and tied to desk P&L performance, making it more volatile than IB comp.
What is the difference between sales and trading and investment banking?
IB advises on transactions (M&A, IPOs); S&T executes trades and provides liquidity. IB is deal-driven with unpredictable hours; S&T operates on market hours. IB pays more at junior levels; S&T offers better lifestyle.
Is prop trading still a thing?
The Volcker Rule (part of Dodd-Frank) prohibited banks from proprietary trading. However, independent prop trading firms (Jane Street, Citadel Securities, SIG) are thriving. Many former bank traders have moved to these firms where prop trading continues.
What skills do you need for sales and trading?
Market awareness (read the FT/WSJ daily), quick mental math, probability and statistics, risk management intuition, communication skills (especially for sales), programming (Python/VBA for quantitative desks), and the ability to stay calm under pressure.