Tower Research is a quantitative trading firm founded in 1998 that uses sophisticated computer systems and trading algorithms to trade securities. It is headquartered in New York City and has offices around the world. Tower Research employs hundreds of researchers, developers, traders and other staff to maintain its trading operations.
When considering working for Tower Research, some key factors to research are the work culture and environment, opportunities for career advancement, compensation and benefits. Understanding Tower Research’s reputation as an employer can help job seekers determine if it would be a good fit for their career goals.
Company Overview
Here is some background information on Tower Research:
- Founded in 1998 by Mark Gorton, who was also the founder of LimeWire.
- Headquartered in New York City, with additional offices in Asia, Europe and North America.
- Employs around 600 people worldwide.
- Operates as a quantitative trading firm, using complex computer systems and algorithms to trade securities, options, futures and other assets.
- Trades over $2 billion worth of assets daily.
- Privately held company.
Tower Research utilizes its proprietary trading systems and advanced quantitative modeling to trade securities and derivatives around the clock and across markets worldwide. The firm is a major player in high frequency trading.
Work Culture and Values
The work culture and environment at a company plays a big role in employee satisfaction. Here is an overview of Tower Research’s work culture:
- Intense and competitive – The trading floor is high pressure and fast-paced.
- Analytical – Strong focus on math, statistics, programming and quantitative analysis.
- Team oriented – Traders, researchers and developers work together to improve trading strategies.
- Meritocratic – Employees are promoted and compensated based on their skills and contributions.
- Secretive – Tower guards its trading strategies and inner workings closely.
Former employees describe the work culture as challenging, stimulating and stressful. It requires analytical, quantitative thinkers who thrive under pressure and don’t mind the long hours. The environment is not for everyone.
Diversity and Inclusion
Tower Research has been working to increase diversity within its workforce. Women make up around 30% of employees, which is higher than many trading firms. Tower has several employee resource groups for women, LGBTQ employees and multicultural employees to help foster diversity.
Career Advancement and Development
For the right candidates, Tower provides opportunities to advance within the company by developing specialized skills in trading, research or technology.
- Traders can progress from junior to senior roles by improving their trading strategies.
- Researchers and developers have a path to lead their own teams and take on more responsibility.
- Managers are promoted from within, providing incentive to perform.
- Emphasis on performance – skills, results and merit determine promotions.
However, the environment is still quite competitive. Employees must continuously improve their contributions to move up the ladder. The high pressure means some churn through the ranks faster than others.
Training and Mentorship
Tower provides training to get new hires up to speed, as well as ongoing education:
- Traders go through an initial training program to learn the proprietary trading systems.
- Regular seminars, workshops and peer collaboration to sharpen skills.
- Experienced employees mentor more junior team members.
The firm invests significant resources into developing talent and sharing knowledge within the organization. Employees are given access to the tools and guidance needed to advance their expertise in trading strategy development, market analysis, quantitative modeling, software engineering and other relevant domains.
Compensation and Benefits
Tower aims to compensate employees competitively to attract top talent in trading and technology. Here are some details on their compensation and benefits packages:
Compensation
- Salaries vary significantly by role, experience level and performance.
- Front office traders and executives earn base salaries $100k+ with bonuses and profit sharing that can exceed base pay.
- Technology salaries also range widely from $60k for junior developers to $250k+ for senior managers.
- Bonuses are substantial for strong performers but variable – tied to profits and fund performance rather than guaranteed.
High performers can earn total compensation packages at the top of the industry, but compensation is tied closely to results. Bonuses and profit sharing may be minimal during periods when trading is less profitable.
Benefits
- Medical, dental and vision insurance.
- 401(k) plan with company match.
- Life insurance provided.
- Generous vacation time, holidays and sick leave.
- Free daily lunches and snacks provided onsite.
- Wellness benefits like gym discounts.
Benefits are competitive for the finance and tech industries. Perks like free meals help mitigate the long work hours.
Reputation and Reviews
Understanding Tower Research’s reputation as an employer can provide helpful insight into its work culture. Here is an overview of the firm’s employer reputation.
Pros
What employees like about working at Tower:
- Excellent compensation for top performers.
- Cutting edge proprietary trading technologies.
- Opportunities to advance skills and leadership roles.
- Intellectually stimulating work.
- Impressive career boost for future roles.
Cons
Common complaints about Tower:
- Extremely high pressure and demanding work culture.
- Long hours, including weekends and holidays.
- Lack of work-life balance.
- Very competitive colleagues and work climate.
- Job stability not guaranteed – high risk of burnout.
The intense environment and hours lead to heavy attrition. Employees report an “up or out” mentality where people who can’t handle the pressure quickly leave. While rewarding for the right individuals, the high stress culture does not suit everyone.
Ratings on Glassdoor
Tower Research employees give the firm a 3.3 rating out of 5 on Glassdoor, indicating moderate overall satisfaction. Here is a breakdown of Glassdoor ratings:
Category | Rating |
---|---|
Overall | 3.3 |
Compensation & Benefits | 4.1 |
Culture & Values | 2.9 |
Career Opportunities | 3.5 |
Work-Life Balance | 2.4 |
The highest ratings are for compensation and career opportunities. The lowest are for work-life balance and culture, consistent with reviews highlighting the demanding environment.
Conclusion
In summary, Tower Research provides significant upside for skilled employees in terms of compensation, training and career development. The firm is an excellent launching pad for quant trading, investment analytics and software engineering careers.
However, the intensely competitive culture also leads to burnout and high turnover. The work-life balance is strenuous and stressful. The environment caters to analytical, metrics-driven individuals who thrive under constant pressure and don’t mind sacrificing personal time for their careers.
Candidates should weigh their tolerance for the extreme work demands against the rewards of skill development, career advancement and high compensation potential. Tower Research can be an outstanding employer for people aligned with its hard-driving culture, but it is certainly not suited to every job seeker. Performing thorough due diligence on the work environment and reputation is crucial before joining the firm.