I work for a top-3 Canadian bank in Corporate FX sales. I am lucky to be good at what I do and am a 2nd year VP at 27. I’m paid well (for FX Sales - expecting all-in 300ish the coming year which is weak for 2VP in capital markets but apparently how it goes for Canadian FX Sales) and have an option through a close friend to interview and likely get a job as a first or second year Consultant at the Canadian office of one of MBB.
Obviously I’m taking an upfront pay cut but it’s marginal, and in exchange I know the exit opps are much better on the consulting side. My dilemma is that I like what I do, I’m good at it, and I think pay is going to start really ramping up soon... with that said, in my opinion the prospects for pay and longevity in FX Sales specifically - despite my strong options knowledge and status as an expert in my team - are not very good. My worst case scenario is being let go at 40 as a Director or MD in FX Sales with no transferable skills. The hours will be significantly worse, as will travel at MBB but I think it’s a good long term play.
What are your thoughts? From pay, to the move, to comments on FX Sales in general. Appreciate any advice, thank you.
if you ultimately want to be a macro research analyst or macro hedge fund manager, then FX sales is a great career...that really is the only stepping stone career path.
Consulting obviously opens a lot of doors...and puts you in position to choose your ultimate exit based on the intersection of great opportunity with your personal interests.
These are very different careers...only you know which would interest you more. I would expect that FX should require minimal sales people as time goes on...so you are correct to expect to be let go unless you have a great relationship with large trading clients that will follow you to another bank if you were to leave. If you have those relationships, then you can make a ton of $$ in sales (typically you lateral to another bank to monetize them). This is really personality based...do you have the personality to socialize with hedge fund managers, to the point where they love you, and want to continue to socialize with you....and throw you business (trades). If yes, then monetize that. If no, then goto consulting sooner rather than later.
If you have the relationships, candidly ask them if they would follow you to another bank. If yes, then do that, and negotiate to double your pay. If no, then go consulting.
I think you nailed it re: the amount of FX salespeople in the future. My career is likely longer than institutional FX salespeople dealing with fast money since I have to teach corporate treasury teams a lot more, but ultimately I don’t see a long future. I think the ideal scenarios in Corp FX Sales are; 1. Get to a high level management position as an MD managing e-platform salespeople 2. Become a risk management specialist and manage a team of options-oriented salespeople with few, deep impact clients 3. The demise of FX Sales is slower than predicted and I can get away with eaking out a career in the field til 55 at which point I should be in a position to retire
I’m worried I’m overexaggerating the risk I face of being phased out and I could have a great, fruitful career in FX Sales, but the alternative - getting let go mid-level- is a terrifying potential reality. The exit opps for Corporate FX Salespeople are to go work in Treasury at a corporation or in Cash Managment at a bank, and frankly, both make me want to blow my brains out.
Ultimately both interest me immensely for their own and I think I'm stuck between two fairly good choices given my strengths and interests which I'm fortunate for. Given that I think both are good options, the decision comes down to a very utilitarian / future-oriented one.
for some perspective...10 years ago, the BB i was at had about 20 FX sales people in NY...totally separate from EM, rates, mortgages, commodities, etc...
how many FX sales people are at your firm on the NY desk now?
3-4 in NYC, though it’s not our HQ. 4 corp, another 10 commercial / retail / e-commerce, and 4 institutional in Toronto. So near 20 (if you’re including all client bases)
Bump
Hi what’s your final decision. I am curious since I am entering a similar career as you do. But we do structured transactions across all asset classes including asset solutions, commodities episodic hedging, rates hedging and FX solution for APAC companies. Do you think it’s a good career track and what are potential exists?
Hey I ended up staying and have had a lot of success over the past few years. Increased volatility due to the pandemic etc has been a big boon for revenues and promotability. I think clients have realized the importance of having someone to talk to vs a platform so sales careers have been extended (at least for the forseeable future)
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