Dispelling the myths around high frequency trading tech pay
Techies in the high frequency trading space are a rare and, highly sought-after, commodity who can often command upwards of 500k for their services. At least that's the popular perception - sadly, this may have little basis in reality.
OK, so we've also been guilty of perpetuating the theory that HFT techies are especially lavishly rewarded. However, with development roles in this areas becoming more commonplace, it's becoming increasingly evident that these packages may have been somewhat exaggerated.
"High frequency trading has become more prevalent, and while the early adopters could command a premium for their intellectual property and core coding skills, their uniqueness has diminished and these packages simply aren't being offered any more," says Paul Bennie, director of financial IT headhunters Bennie MacLean.
What these roles do pay, though, is still open for debate. Bennie suggests that developers typically earn between 90-120k, depending on how core they are to the project, and anything north of 300k is likely to be the preserve of those in managing director positions.
Robert Colborne, team leader of the technology practice at NJF Search, says: "A strong developer is likely to earn 100k+, but I know from experience that it's possible to earn over 250k in these roles."
The distinction needs to be made between the IT workers developing systems to shave milliseconds of trading times, and the highly-mathematical people originating HFT trading strategies - it's the latter that earn the big bucks.
Nonetheless, relatively speaking, techies in the HFT are well-rewarded and can expect a healthy bonus included in the packages offered, says Paul Elworthy, associate director in the IT in banking and financial services division of Hudson.
"A front line developer in HFT can expect between 80-120k and a bonus of around 100% of salary," he says. "However, if you're a technologist reporting into the business, the bonus element is likely to be a lot more significant."
