Roles
What does a software engineer do?
KnowQuant research deskUpdated 1 September 2026Method 2026.1
Short answer
A software engineer at a quant firm builds the internal platforms the desks depend on: order and position systems, research tooling, reference data services and internal applications. New York total compensation typically runs from about $175,000 at entry level to $550,000 or more at staff level. How much of that sits in bonus varies by firm and desk; we do not hold a measured comparison against general technology pay, so treat the split as offer-specific.
This is the largest technology population at most trading firms and the one most often misread from outside. The work is ordinary software engineering in language and tooling, but the operating environment is not: releases affect live risk, correctness matters more than velocity, and at some firms engineers own their services end to end rather than handing them to a separate support tier. Firms hire heavily from large technology companies. Cash compensation is structured differently from a big-technology package because bonus is funded from firm profit rather than an equity refresh; we do not hold a measured comparison of the two, so treat any step up as offer-specific.
The recurring requirements are Python, C++, Java or Rust, Distributed systems, Testing and correctness, Linux. Typical backgrounds are computer science graduates, engineers from large technology companies, backend and platform specialists from fintech, self-taught engineers with strong systems fundamentals.
The role concentrates in New York, London, Chicago, Amsterdam, Singapore, Austin, where the New York median is $305k in annual total compensation.
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Cite these figures
KnowQuant Quant Compensation Benchmark, Q3 2026 edition, method 2026.1. https://www.know-quant.com/answers/what-does-a-software-engineer-do
Free to quote and republish with attribution and a link to the source page, under our terms. Method 2026.1, last reviewed 1 September 2026. The methodology sets out how each band is built and what it excludes.
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More on roles
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A quant is a specialist who uses mathematics, statistics and code to price instruments, find trading signals or run systematic strategies inside a trading firm, hedge fund or bank.
What does a quant researcher do?
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What does a quant trader do?
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What does a quant developer do?
A quant developer builds the systems that research and trading depend on: backtesting infrastructure, data pipelines, execution platforms and production strategy code. New York total compensation typically runs from about $180,000 at entry level to $600,000 or more for senior developers at leading firms.
What does a quant analyst do?
A quant analyst prices instruments, builds risk models and validates the models a firm trades on - most often on the sell side or in a risk function. New York total compensation typically runs from about $130,000 at entry level to $450,000 or more at senior level, with a lower bonus share than buy-side quant roles.
What does a hft / low-latency engineer do?
A low-latency engineer optimises the path from market data to order at nanosecond resolution, working across C++, kernel bypass, network hardware and FPGA. Chicago and Amsterdam total compensation typically runs from about $200,000 at entry level to $800,000 or more for specialists with proven latency results.
Methodology
Figures are expressed as annual total compensation (base salary plus expected performance bonus) in the reference market's local currency, converted from a US dollar base. They describe typical market ranges rather than any individual offer, and exclude sign-on payments, deferred equity and carried interest. Portfolio-manager figures reflect formulaic profit-share arrangements and are therefore far more dispersed than any other role.
KnowQuantIndex 2026.1 · Updated September 2026
Modelled bands describe the market, not an individual offer. Where an employer states pay, the stated figure is used and labelled as such.