Investment Banking Traders

Most recently, the pandemic disrupted the global economy, with significant effects on the investment banking industry. Changes in financial regulations, shifts to remote work schedules, ongoing technology advances continue to challenge investment banking professionals. According to a Deloitte report, in the coming years, "...investment banking will transition from a full-scale service model to a bifurcation of two broker archetypes: 'client capturers' that specialize in front-office functions and 'flow players' that focus primarily on middle-office functions." More opportunities will be available to traders and other banking professionals through 2030 as banks retool their operational and business platforms for higher levels of return.

The Department of Labor predicts 7 percent employment growth, faster than the average, for securities, commodities, and financial services sales agents (including traders), through 2033. Trading in standard products (such as equities, fixed income, currencies, and commodities) is increasingly automated, but traders who are specialists in trading complex financial products (e.g., mortgage-backed securities, asset-backed securities, collateralized mortgage obligations, and collateralized debt obligations) will still find good opportunities. Additionally, traders who have developed skill at designing computer trading algorithms will have much stronger employment prospects. Finally, investment banks are increasingly focusing on the use of data analytics to increase profits and improve efficiencies. Traders—with their innate analytical and detail-oriented natures and backgrounds in finance and mathematics—are good candidates (if they pursue additional education) for work in data analytics.