Commodities tradehouse vs FX market making

Based on the insights from Wall Street Oasis, here's a breakdown of your situation and some considerations for your potential career move from commodities trading to FX market making:

1. Current Position Strengths:

   • High Total Compensation (TC): Your current TC is impressive, especially given the low cost of living in your area.
   • Seniority and Discretion: Having full discretion over your trades as a senior trader is a significant advantage, indicating trust and respect in your current role.

2. Potential Move to FX Trading:

   • Network Leverage: The connection with the FX trading global lead could be a strategic entry point into a major financial market, which could diversify and enrich your trading experience.
   • Career Progression: Moving to a major market-making desk could indeed set you up for a transition to the buy-side, potentially aligning with your long-term goal of gaining investment discretion at a hedge fund.

3. Risks and Considerations:

   • Market Differences: FX and commodities markets have different dynamics. Ensure you are ready and interested in dealing with the intricacies of FX markets.
   • Geographical and Lifestyle Changes: Consider the impact of moving from a low-cost area to potentially a high-cost metro. This could affect your lifestyle and savings despite a higher TC.
   • Long-Term Career Goals: While the path to a hedge fund and investment discretion is appealing, it's also highly competitive and uncertain. Ensure you have a clear strategy and contingency plans.

4. Viability of Transition:

   • Skill Transferability: Your skills in niche energy product trading may transfer well to FX due to the analytical and risk management aspects, but specific market knowledge will be crucial.
   • Age and Experience: At 29, with significant experience in both FX and commodities, transitioning to a macro fund is ambitious but possible. Your diverse background could be appealing to macro funds looking for versatile traders.

5. Sanity Check:

   • Evaluate Your Current Satisfaction: If the primary motivation is boredom with your hometown, consider if there are other changes you could make in your life that might address this without a complete career shift.
   • Seek Multiple Opinions: Engage with mentors, peers, and other industry contacts to get a broader perspective on your potential career move.

In conclusion, while the move has potential, it comes with significant risks and changes. Thoroughly weigh these factors and perhaps explore incremental changes or networking further within the FX space before making a final decision.

Sources: Q&A: Non-Target School to Portfolio Manager at a Top Hedge Fund – 6 Years Out of Undergrad, Global Macro Hedge Fund is Paradise, Macro HF Interviews: Paul Tudor Jones, Louis Bacon and Bruce Kovner, 1st Year Macro HF Analyst: My Macro Framework, Would you make this move?