Hey guys,First time poster here.Two main questions:I've heard things about if you go to a place like optiver or liquid capital (or any prop shop), the bigger banks are more reluctant to take you on should you wish to make a transition. Can anyone give me information on why this is the case? (Bearing in mind that I'm speaking completely from the perspective of an undergrad with 1 year left to go of an actuarial science major). Also, what are longer-term prospects like at prop shops? I imagine the turnover rate is high, as they want keen young market makers who won't demand too high a salary.In addition, I'm a bit confused about finishing my final year of actuarial science as I really have no interest in the insurance field. I was thinking of switching to a finance major, taking a part-time job at at a smaller financial instituion and just learning in my own time any quant stuff that I need. That won't cut it, will it? I could do a math major or something but that would add an extra 2 years to university (which already feels like it's been 90% a waste of time). Thanks for any insights.

It's clearly much more difficult, but not impossible. I have read few months ago of a Liquid Capital trader going to trade equity derivatives for Morgan Stanley. It's possible not easy. Risk appetite and size/style of trading may differ a lot, although from what I had seen at Optiver (gone there, got offer but rejected), the firm the traders are good.goodge

Question: would a summer internship at a prop shop make you less attractive for banks come job search time during senior year? While I would rather work for a small firm than a huge monolithic bank, I'd like to keep my options open.

QuoteOriginally posted by: LivermoreI've heard things about if you go to a place like optiver or liquid capital (or any prop shop), the bigger banks are more reluctant to take you on should you wish to make a transition.I'd like to hear from someone who turned down a bigger bank to go to Optiver in the first place, to get the sample size up to 1.Anyway, I think that if you compare two groups of people, 1) people who get a starting job at a big bank, and 2) people who get a starting job somwhere else, it is safe to say that big banks are more reluctant to hire people from the second group.

Livermore,I think you will find it difficult to move to a bank for several reasons:1) If you are successful at prop trading, why would you go to a bank? Most banks don't run huge prop businesses (save some notable exceptions) so moving would either imply that you are unsuccessful (which if not so,why would you leave?) and therefore damaged goods or your salary expectations will be out of line with what the bank will pay you. Usually the prop desks at large banks are more akin to well-capitalized hedge funds that can trade complex and/or illiquid products. Even the ones that trade vanillas usually have a special edge or strategy, but I think it is unlikely that you will be doing something similar at a prop shop.2) I'm not sure that the skillsets you develop at a prop shop are transferable to a bank. When I think of prop shop, I think of making markets in or trading liquid options or day trading equities. Banks have long abandoned these businesses in search of higher margins. In fact, I do not know of any large investment bank that has a day-trading desk. I doubt you will trade the products in which banks deal at a prop shop (unless it is a well-capitalized hedge fund, in which case see (1)). Banks usually trade in highly complex products in illiquid and/or emerging markets (think vol swaps or energy derivatives). These are the businesses that are growing and it is unlikely that you will learn what you need to about these products at a small prop shop.These are just things to keep in mind. Like others have pointed out, it is not impossible. Usually, it all comes down to how you can sell your experience and make the right contacts. However, as a gambling man, I will say that the odds are stacked against you. Don't let that get you down though because persistence and confidence definitely pays off. To the rest of the community: if something I said is incorrect, please correct me.Hope that helps. Regards.

just wondering if anyone else on this site has mad the transition from day prop trader to an IB/hedge fund?if anyone wants to know anything about these prop trading outfits, do let me know, i've worked for a few in the city