From student to trader: the insider's guide to breaking into the Australian trading sector

We'll cover:

1. The entry-level roles trading firms hire
2. What degree you'll need
3. The skills you'll need
4. The hiring process
5. Interview questions
6. Best tips

... all with tips from real grads themselves!

What entry-level roles do top trading firms hire?

There are three main types of roles at trading firms.

1. Traders
2. Researchers
3. Software engineers

Today, we'll just focus on how you can become a trader. (Research roles are mainly for PhDs and we've already covered how to break into the trading sector as a software engineer.)

Photo courtesy of Graduate Trader @ Optiver

What degree do I need to get into a trading firm?

According to our data, the majority of grads who work as traders have degrees in Computer Science & IT, Math & statistics, and Engineering. However, this isn't necessarily because you need these degrees to be hired.

It's more because people with these degrees tend to have certain qualities and skills that trading firms value.

🎓 Hear from a grad

It’s useful to develop skills in programming and data analysis. University studies in areas such as computer science, mathematics and engineering are typically valued highly as they can teach or extend these skills and provide good opportunities to apply them to practical problems. – Graduate trader @ IMC

Do I need a STEM degree to get into trading?

STEM degrees certainly help you develop the analytical and problem-solving skills that are crucial to trading. However, that doesn't mean you can't break into the industry if you don't have the right degree. Just be ready to pick up the more technical skills and work hard!

🎓 Hear from grads themselves

Whilst the majority of traders come from STEM backgrounds, the different degrees people did shine through in the way they approach data analysis problems to determine the best trades for us to do. This leads to a lot of productive discussions on a day-to-day basis, all of which are very mentally stimulating. – Graduate Trader @ Optiver 

My colleagues range from mathematicians and engineers to commerce and accounting professionals to computer scientists to lawyers (all of whom are working as traders now). While maths and statistics knowledge is definitely up there as very handy skills, there’s no set degree for a ‘trader’, so it’s much more based on being logical and working hard. – Options Trader @ Citadel Securities

What skills & qualifications do I need to get into a trading firm?

🎓 Hear from grads themselves

It’s extremely important to develop your ability to work with teams and ensure you are able to communicate your ideas effectively. – Graduate trader @ IMC

It’s important to be able to do quick mental math, have a basic knowledge of calculus, probability, and statistics, and equally importantly, to be humble and capable of breaking down your own opinions and ideas in a productive way. – Quantitative trader @ Citadel Securities

Trading is extremely competitive, with high expectations and pressure. The markets are harsh; they take no prisoners and have little tolerance for mistakes. Some of the most important attributes many successful traders share are: having sharp attention to detail; determination and grit to work as hard as necessary; being proactive towards opportunities and risks; using creativity to innovate while remaining highly pragmatic; and a hunger to master your craft and continuously be better and more knowledgeable. – Delta1 Trader @ Vivcourt

Mathematics is the one commonality between all traders, whether it be Actuarial, Engineering or even Physics, everyone comes from a strong quantitative background. Everyone is mathematically inclined. Every single day we’re using maths in our work in some form. – Options trader @ Optiver

Do I need experience in finance to get into trading?

🎓 Hear from a grad

Most of the traders in my graduate class come from quantitative backgrounds, studying things like electrical engineering, actuarial studies, computer science, physics and economics. Generally, some proficiency in mathematics and programming will be useful, but no prior experience in financial markets is required. – Delta1 Trader @ VivCourt

Do I need to have coding skills to be hired as a trader?

As a trader, knowing a bit of code will help, but it won't be the core skill you're judged on – that's for developers.

🎓 Hear from a grad

I write and maintain a lot of Python code, which often involves interacting with various systems and databases ... Once we have a good idea of what we want from a tool, we can pass it over to developers to make it more robust and efficient, but being able to iterate new ideas quickly is vital to keeping up with an ever-changing, competitive market. – Graduate trader @ Maven Securities

Don't worry if you're not great at coding – firms will train you.

🎓 Hear from a grad

We have an in-house training scheme called Tibra Uni for all grads and today I have a 1-hour session with the team leader of software development. Having not been proficient in C++ before joining Tibra, I've received lots of training and support while learning it. – Junior Quant Trader @ Tibra Capital

What's the hiring process like?

The top trading firms are thorough in their vetting, so expect a multi-stage interview and assessment process, that usually starts with online assessments and culminates in in-person interviews (which you'll be flown in for!).

Here's what you can expect if you're aiming for a trading role.

1. Maths test: The first round of screening is usually an assessment that tests your mental math and problem-solving skills.
2. Interviews: Maths tests are followed by a few rounds of interviews (phone, video call, and in-person) which assess cultural fit and problem-solving skills. 

🎓 Hear from grads themselves

First-round was an online maths aptitude test, involving mental arithmetic and problem-solving. This was followed by a round of in-person interviews and a further maths assessment. The final round was an assessment day involving interviews with senior traders and activities like trading games. There was also plenty of time in which we got to look around the office and talk about Maven and the graduate scheme. We also got taken out for lunch, which was a nice perk and an opportunity to chat to the traders in a more casual setting, which helped to get a feeling of the culture of the firm. – Graduate Trader @ Maven Securities

1st round - mathematical testing
2nd round - behavioural - phone interview
3rd round - behavioural + problem solving - video interview
Final round - behavioral, problem solving (individual + group) – Anonymous Graduate Trader @ Optiver

Round 1: Exams in the office ... followed by an interview with HR and the CEO  

Round 2: Flown to Hong Kong for a couple days of testing and the chance to get a good feel on the culture and what the role actually entails. Traders took the candidates out for lunch and dinners which presented more opportunities to ask more questions and get more of a feel about the role itself – Anonymous Trainee Trader @ Eclipse Trading

3 interviews in total following on from 2 online assessments (1 in python, 1 on "general aptitude"). – Anonymous Junior Quant Trader @ Tibra Capital

Mental maths test + personality test, then phone interview, then final interview – Anonymous Junior Trader. @ Akuna Capital

Maths/Sequence test, 2-3 in person interviews, testing a range of behavourial and maths concepts. – Anonymous Graduate Trader @ Vivcourt Trading

What interview questions do trading firms ask?

According to our surveys of grads, trading firms generally ask these types of questions.

1. Technical questions: Technical questions focus on probability, statistics, and financial theories. 

2. Brain-teasers & games: Many questions aim to test the candidate's problem-solving abilities, often through logic or brain-teaser style questions.

3. Math questions: Questions frequently test math skills, including basic arithmetic and expected values.

4. Behavioural questions: Firms will also ask behavioural questions to test soft skills and cultural fit. Examples include "What are your strengths and weaknesses?" and "Tell us about times you've let a team down?" Make sure to reflect on both your successes and failures, showing self-awareness and the ability to learn from your failures.

5. Industry-specific questions: Some grads were asked about current market conditions and  trading theories.

Grads' best tips

#1 Show you're passionate about trading

A recurring theme in our survey responses is the importance of being genuinely interested and passionate about trading and financial markets.

🎓 Hear from a grad

I think one of the best things anyone can do at uni is joining a club relevant to the industry they want to work in. I founded an algorithmic trading club at UWA called Quantitative Finance UWA, which allowed me to get some experience doing relevant projects before graduation. I’d also say that building a portfolio containing some of the cooler projects you’ve worked on is a beneficial thing to do. I still maintain my website, which has project summaries and blog posts about things I find interesting. This, in addition to being an interesting hobby, can be a great way to showcase your projects to a potential employer. – Delta1 Trader @ VivCourt

It can also help to have a basic understanding of what's going on in financial markets and some knowledge of trading concepts – keeping in mind many top firms here trade in options.

#2 Brush up on math & arithmetic

Many traders emphasise the need to brush up on your mental math skills and basic statistics & probability, as these are often tested during interviews.

🎓 Hear from grads themselves

Brush up on your maths + stats. Practise mental math for trading. – Anonymous trader @ Akuna Capital

Brush up on basic probability theory and your arithmetic beforehand – Anonymous trader @ VivCourt Trading

Make sure you are prepared for some lateral thinking, estimation or fast paced maths questions. – Anonymous trader @ Tibra Capital

Going over some simple mental math shortcuts could be helpful to let you focus on the meat of the problems. – Anonymous trader @ Optiver

#3 Connect with current graduate traders

Connecting with graduate traders can help you see if the career is for you and maybe even earn you a referral.

It always helps to reach out to recent grads or interns and ask them any questions you might have about the application, the job, or anything really. – Intern & Grad @ IMC Trading

#4 Be yourself

It sounds trite, but a lot of grads' advice is to "be yourself." 

In terms of interviewing, try and be relaxed so we can see the real you. No one is looking for perfection. – Software Developer @ Optiver

Take the time to understand Optiver, what we do, and bring your real self to the interviews. We want to find out if you’ll be a good fit for us, as much as we want to find out if we’ll be a good fit for you. – Graduate Software Developer – Delta 1 @ Optiver

During networking and interviewing processes, be yourself. Most company representatives can tell when you are putting on an act to appear like a strong candidate. Just be yourself. – Quantitative Trader @ SIG

#5 Focus on the process over your final answers

When you answer interview questions, it's not so important that you arrive at the right answer but that you work through them logically and explain your thinking clearly.

Be resilient and keep going if you get an answer wrong. – Anonymous trader @ Optiver

Be able to explain what you're thinking when solving problems. That way the interviewer can see what you're doing, as they'll help you out a bit if they think you're going down the wrong direction. – Anonymous trader @ IMC

Be very self-reflective in both your analytical and behavioural questions. They don't expect you to get everything right and you should definitely be able to admit when you are wrong as well – Anonymous trader @ Optiver

What next?

Ready to take the next step? Check out the best trading firms for grads and apply away!