You apply to various trading firms, go to interviews, and then get selected. Banks, hedge funds, and proprietary trading firms (and I do mean proprietary not some retail/arcade joint) all hire out of undergrad.

2)I have heard in college it breaks down into a corporate finance/investment management split in terms of courses in stuff. So should a trade learn about investment management and things, or are there special courses for traders to take?

Most firms spend the first couple of months “unlearning” you of the stuff you were taught in business schools. Practical education is important and the only place you will get it is by working in the industry. Take good problem solving courses and definitely know how to program (you don’t need to be a software engineer but you should be able to code) and have a good quantitative background (refers to the problem solving part).

3) I have heard Investment Bankers generally work at an Investment Bank for 2 years then go onto Business School. I know out of college, a potential trader would start as an Assistant Trader. How many years would it take to be promoted to a Trader without business school, and if you go to business school how many years should you stay as an Assistant Trader to get work experience?

4) Do Traders really need to go to business school at all? I heard somewhere they usually don’t need to, but on some career websites I read that you need an M.B.A. to get a position as a trader, and not just an assistant trader.

Traders don’t go to MBA programs. Most start as an assistant trader working under a trader while doing various tasks to get acquainted and learn the ropes. After this you become a trader and are allowed to take risks.

I suggest you search these forums for discussions in the various types of trading (flow vs prop. etc).