Quant Compensation in London Compared With New York

London pay looks close to New York pay after a currency conversion, but tax treatment and cost of living make the two very different outcomes.

Reported total compensation for a quant trader or researcher a few years into their career runs somewhat lower in London than in New York even before accounting for currency, with figures commonly reported between 120,000 and 280,000 pounds in London against $180,000 to $400,000 in New York for comparable roles. Converting the two into the same currency at the prevailing exchange rate understates how different the actual outcome is once tax and cost of living are factored in, so a London figure and a New York figure with the same converted value are not equivalent offers.

London-based quant roles at firms such as G-Research, Qube Research, Man Group, and the London offices of Citadel and Jane Street commonly report total compensation for a mid-level trader or researcher between 120,000 and 280,000 pounds, according to candidates who have been through the process, with senior researchers and portfolio managers reporting figures well above that band. New York figures for comparable seniority at firms such as Two Sigma, Citadel Securities, and Millennium Management commonly run from $180,000 to $400,000 or higher.

On the surface, converting the London figure at a typical exchange rate can make the two ranges look close to comparable, but this conversion is the wrong comparison to make, since neither figure reflects what the employee actually keeps after tax, nor what that after-tax amount buys in each city.

A currency conversion answers what a London salary would be worth if spent entirely in the United States, which is not what a London-based employee does. The relevant comparison is what each figure is worth inside its own city, after that city's tax system and cost structure, which is a fundamentally different calculation from a spot exchange rate.

This is why comparing two roles by simply converting pounds to dollars, or dollars to pounds, at the day's exchange rate produces a misleading picture, and it is a common mistake candidates make when a firm operates in both cities and presents two offers with similar converted headline figures.