Introduction

Following our recent PGP x UCLA career panel, we wanted to consolidate some of the key takeaways in a structured Q&A format.

One of the most common questions we receive is how to choose between Investment Banking and Sales and Trading. While there is no universal answer, the decision becomes clearer when framed through a few practical lenses.

Q: How should I choose between IBD and S&T?

A: Start with two simple questions.

First, are you a morning person or a night owl? Sales and Trading typically requires an early start, often around 6:00 AM, aligned with market hours. Investment Banking, by contrast, starts later but extends deep into the night.

Second, think about how you work under pressure. S&T resembles a sprint. The working day is shorter, usually around 10 to 12 hours, but requires sustained focus and rapid decision-making throughout. IBD is closer to a marathon. The pace can fluctuate, but the hours are longer and more consistent, often exceeding 15 hours per day.

These two dimensions usually provide a strong initial indication of fit.

Q: Data Science or Finance, which offers better long-term prospects?

A: Both paths offer strong outcomes, but the decision should be driven primarily by interest and aptitude.

If foundational technical concepts such as introductory programming are already challenging, a data-focused path may become difficult to sustain. On the other hand, finance requires a different skill set, centered around markets, communication, and decision-making under uncertainty.

From a geographic perspective, for candidates planning to return to China, finance often provides a more balanced outcome. Data roles at large technology firms can be demanding, with compensation that may not fully match international levels. Finance careers, particularly those starting in New York or Hong Kong, may involve an initial adjustment in compensation upon returning, but tend to offer more stable long-term positioning.

Q: What are the pros and cons of working in IBD?

A: Investment Banking offers unparalleled exposure.

You work on high-profile transactions and interact with senior executives, which accelerates both learning and network development. Over time, this creates a strong foundation for a wide range of exit opportunities.

However, this comes at a cost. The workload is intense and often repetitive, with a significant portion of time spent on presentations and financial models. During active deal periods, overnight work is common. While there are occasional slower periods, the overall expectation is sustained high intensity.

Q: Is it possible to go directly to the buy-side after graduation?

A: It is possible, but highly competitive.

Smaller domestic private equity or venture capital firms may offer more accessible entry points. However, top-tier global funds such as Bridgewater Associates, Point72 Asset Management, or Blackstone have significantly higher barriers to entry.

The interview process is also more demanding. In investment banking interviews, candidates are typically expected to discuss valuation concepts at a high level. In buy-side interviews, you may be required to build a model in real time under time constraints. The process is also more extensive, often involving interviews with multiple members of the investment team.

Q: Do I need coding skills for a career in finance?

A: For Investment Banking, coding is not required.

In Sales and Trading, it is not strictly required at present, but there is a clear trend toward favoring candidates with some programming exposure. Even a basic understanding can be beneficial.

For most students, taking a few programming courses during university is a practical and low-cost way to build optionality.

Q: Does IBD offer better exit opportunities than S&T?

A: Not necessarily, but the nature of the exits is different.

S&T provides a direct pathway into asset management and hedge funds, where both compensation and intellectual engagement can be highly attractive. Investment Banking offers broader optionality within the deal-driven ecosystem, including private equity, venture capital, and corporate roles.

The question is less about which path is better, and more about which aligns with your interests and strengths.

Closing Thoughts

Choosing between IBD and S&T is not a purely strategic decision. It is a question of fit.

Your working style, energy patterns, and long-term interests will ultimately determine which path is more sustainable. The earlier you understand these factors, the more effectively you can position yourself during recruiting.