(ZT) https://www.wallstreetoasis.com/forums/quant-research-vs-quant-trading
Fundamentally at prop shops (applies to quant hedge funds too, but hedge funds differ in that there are fewer traders and the role is typically execution focused, with the alpha coming from researchers), there are 3 main roles - researchers, traders, and devs:
1) (Quant) Researchers: The 'quants.' These are typically PhDs or exceptional undergrads/masters, though some shops are more open to undergrads and some aren't. Interviews are a mix of stats, linear regression, coding, and probability puzzles. This role doesn't really work on market hours like a trader and is charged with coming up with strategies ('signals') and working on creating and coding the models that traders will use to trade live. Much more coding but if you like doing research and posing hypotheses/using the scientific method, plus prefer a slower pace than trading, QR is the way. If you have a successful model, you can expect to do very well. Less job stability and security than being a dev, but more than being a trader (very roughly). QRs are typically the lead at quant hedge funds and certain prop shops (Tower, HRT, even IMC to an extent bc of how systematic they are).
2) (Quant) Traders: Typically undergrad or master's students. Also strong quantitatively, but not requiring the research background and rigor that QR requires. Typically need to be better at quick math and probability games interview wise, not much coding tested. Similar compensation wise to a researcher with a lot of variance (you will get compensated more if you have a stronger delta to results and this is more likely to happen at a trader led shop) plus the role can be pretty broad in how research heavy or trading heavy it leans. Live trading isn't actually manually entering bids and asks but more like adjusting volatility curves on models live and responding to specific market situations/dynamics as they come up. Also you typically do a good amount of data science work in python (using pandas etc) and, if you desire, can do mostly research/projects depending on the firm you're at. At Jane Street for example, traders do all desk specific research. Typically this role is the lead at prop shops (some that stand out as being pretty trader focused include Jane Street, Optiver, and SIG).
3) Devs (and Quant Devs): Some firms choose to delineate between developers and quant developers and some do not. Typically this role is gonna be standard software engineering interview wise, but maybe with some math/probability stuff thrown in. Devs at prop shops and hedge funds can expect to work on low latency C++ stuff, or make tools for traders / quants. Quant devs on research teams can sometimes implement strategies that researchers are working on. Still get compensated quite well (this year, Jane Street and HRT offered 375 year one to their devs, and Cit offered 380 as a return offer, though 150 of it is a signing bonus) and have much more stability to boot. Of course, this comes with less potential upside down the line.
Some of the points I made in describing the roles are more applicable to prop firms. As stated earlier, at many quant hedge funds traders are execution focused and unlikely to be contributing alpha, so they are not compensated as well as researchers. Prop shops are more equitable in compensation since the trader role has much more autonomy and ability to generate alpha.
