How Much Does Two Sigma Pay?
Two Sigma is one of the world's largest systematic hedge funds, with $60+ billion under management and a culture that is unambiguously engineering-first. Compensation reflects that. Two Sigma pays at the upper tier for quant researchers and engineers, sitting alongside DE Shaw and Renaissance in the highest band among quant hedge funds, though slightly below the very top market makers (Citadel Securities, Jane Street, Hudson River) at the graduate level.
This guide breaks Two Sigma compensation down by role, level and office, drawing on levels.fyi data and our own research. For the full interview process, see our Two Sigma interview guide.
The Headline Numbers
Graduate / First-Year Total Compensation
| Office | Role | Base | Sign-on / Year-1 guarantee | Year-1 bonus | Total Year 1 |
|---|---|---|---|---|---|
| New York | Quantitative Researcher | $175,000 | $50,000 - $100,000 | $50,000 - $150,000 | $275,000 - $425,000 |
| New York | Software Engineer | $175,000 | $50,000 - $100,000 | $40,000 - $130,000 | $265,000 - $405,000 |
| New York | Modeller | $175,000 | $50,000 - $100,000 | $50,000 - $150,000 | $275,000 - $425,000 |
| London | Quantitative Researcher | £125,000 | £30,000 - £60,000 | £40,000 - £100,000 | £195,000 - £285,000 |
| Hong Kong | Quantitative Researcher | HK$1,300,000 | HK$400,000 - HK$700,000 | HK$400,000 - HK$1,200,000 | HK$2.1M - HK$3.2M |
For broader cross-firm context, see our quantitative analyst salary guide and quant researcher salary guide.
Compensation by Level
Quantitative Researcher
| Level | Years experience | Base | Total annual comp |
|---|---|---|---|
| L1 (Junior QR) | 0-2 | $175,000 | $275,000 - $425,000 |
| L2 (QR) | 2-5 | $200,000 | $400,000 - $700,000 |
| L3 (Senior QR) | 5-10 | $225,000 | $600,000 - $1.2M |
| L4 (Staff QR) | 10+ | $250,000+ | $1M - $3M+ |
Software Engineer
| Level | Years experience | Base | Total annual comp |
|---|---|---|---|
| L1 (Junior SWE) | 0-2 | $175,000 | $265,000 - $405,000 |
| L2 (SWE) | 2-5 | $190,000 | $380,000 - $650,000 |
| L3 (Senior SWE) | 5-10 | $210,000 | $550,000 - $1.1M |
| L4 (Staff SWE) | 10+ | $235,000+ | $900,000 - $2.5M |
Modeller
The modeller track is similar to QR in compensation but with less variance in bonus - modellers' contributions are more diffuse and harder to attribute, so bonus dispersion is narrower than for researchers.
How Two Sigma's Bonus Works
Two Sigma's bonus has three notable features:
1. Bonus pool tracks firm performance. As with all quant funds, the size of the bonus pool depends on the year. 2022 was reportedly weaker than 2021 and 2023; 2024 was strong. The base salary is meaningful enough that even in a weak year, total comp remains very competitive with top tech firms.
2. Allocation is discretionary but more even than at Citadel. Two Sigma's culture is more collaborative than the pod-shop hedge funds, and bonus dispersion within a level is narrower (typically 2-3x rather than 5-10x at peers). This means strong individual performance has less direct upside but also that mediocre years are less punishing.
3. Sign-on / first-year guarantee insulates new hires. Most graduate offers include a year-one guarantee setting a floor on total compensation. After year one you are exposed to the full bonus dynamic.
Comparing Offices
- New York pays the most in nominal dollars and houses the largest workforce
- London pay is roughly 30 to 35% behind New York in nominal terms
- Hong Kong pay is comparable to London on nominal-USD basis but with lower tax (15-17%) materially boosting take-home
- Houston and Phoenix offices (recent expansion) pay similarly to New York but with significantly lower cost of living
Other Benefits
- Free meals at the office (lunch and dinner most days)
- Generous parental leave (up to 26 weeks)
- Sabbatical programme for senior employees
- No equity grants (Two Sigma is privately held; comp is entirely cash)
- Generous matching 401(k) and pension contributions in respective offices
- Sabbaticals and learning stipends
How Two Sigma Compares to Peers
Approximate first-year graduate compensation (US, 2026):
| Firm | Year 1 total comp |
|---|---|
| Citadel Securities (trader) | $400,000 - $700,000 |
| Jane Street (trader) | $400,000 - $700,000 |
| Hudson River Trading (engineer) | $300,000 - $500,000 |
| DE Shaw (analyst or engineer) | $275,000 - $400,000 |
| Two Sigma (engineer or researcher) | $275,000 - $425,000 |
| Citadel (quant researcher) | $275,000 - $475,000 |
| Top FAANG (L4 engineer) | $250,000 - $350,000 |
| Top investment bank (analyst) | $150,000 - $250,000 |
Two Sigma sits firmly in the upper tier but is generally one step below the very top market-maker comp at the graduate level. The trade-off: Two Sigma's culture is significantly more collaborative and less intense than the top market-maker firms, with broader career flexibility into research, engineering, modelling and leadership.
For comparison with specific peer firms, see our Jane Street salary guide, Citadel salary guide, and Hudson River Trading salary guide.
Frequently Asked Questions
How much does Two Sigma pay graduates?
In New York, total first-year compensation for quantitative researchers and engineers is typically $275,000 to $425,000. In London, £195,000 to £285,000. The exact number depends on role, performance and the firm's overall trading year.
Does Two Sigma pay equity?
No. Two Sigma is privately held; compensation is entirely cash.
How does Two Sigma's bonus work?
Bonuses are paid annually (typically in February for the prior calendar year). The pool is funded by firm-wide P&L; allocation is discretionary but with less dispersion than at the pod-shop hedge funds. Most graduate offers include a year-one guarantee.
What is the highest-paying role at Two Sigma?
Senior quantitative researchers and senior staff engineers earn the most. Top performers earn into the seven figures in strong years; senior staff or principal engineers earn into the low millions.
How does Two Sigma pay compare to Citadel?
Citadel Securities pays graduate traders meaningfully more than Two Sigma pays graduate researchers ($400-700K vs $275-425K in NY). Citadel's hedge fund pays graduates similarly to Two Sigma in cash but with higher long-term upside via the PM track. Two Sigma offers a more collaborative culture in exchange.
Does Two Sigma pay relocation?
Yes. Standard relocation includes flights, multi-month temporary housing, and a relocation lump sum scaled to seniority.
Are there bonuses tied to specific projects?
Generally no. Compensation is firm- and team-driven rather than project-driven. Researchers and engineers do not receive bonus increments for specific deliverables.
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