Energy Trading -- Energy Broker

I'll make this quick:

Graduated with Finance undergrad December 2008
1st year MBA with focus in Energy Risk Management
~2 years experience as Credit Analyst for commercial bank

I want to transition into a role that leads to energy trading (risk, scheduling, etc. as my long term goal would be to trade). For those with energy trading experience, how does the industry perceive energy brokers -- specifically Liquefied Petrochemical Gas Brokers?

I wouldn't want to jump into this position if it carries a negative connotation (as seen with wealth management brokers) that would limit me to getting to where I want to be.

Thoughts?

 

The entrepreneurial spirit of the industry means that if you prove yourself in any manner that's what matters.

It really depends on what you mean as an LPG broker. If you're selling door-to-door in houses in WV, you're probably out of luck.

I rich, smarts, and totally in debt.
 

Excuse my french but wtf is an LPG broker? Liquids is such a young industry still I would say. There is lots of shops that trade liquids between the majors and end-users. I know a guy who got filthy rich doing it, but he was basically a one man show.

Is this for an internship or FT? Would you be working for one the major brokerage houses?

 

I would be working FT for a large brokerage house based in London (I'll be working in the U.S.)

This is not a door-to-door position...I will be working in the corporate office.

MrDouche: You're right. If you prove yourself, then you can do whatever you desire. I just want to make sure that I am not tainting my resume by taking a position that possibly carries a negative with it.

Thanks for the info!

 
Best Response

Ignore the comment above it makes no sense. You will in no way resemble Hank Hill. Top energy brokers can make great money, work market hours, and take zero risk. Its a certain personality type that will thrive in the brokerage world. You have to be willing to wine and dine your top/perspective clients and get nothing in return. I know brokers that use to be traders. I do not think a broker could become a trader because they do not know the fundamentals of their products. Just because you know where the LPG market is trading does not mean you understand the complex supply and demand side of the market. Brokers are only trying to match a buyer and a seller. In terms of market respect I think it depends on the individual trader/broker relationship. Its a tough life and some traders will treat you like shit and some will be very respectful.

 
McMo:
Ignore the comment above it makes no sense. You will in no way resemble Hank Hill. Top energy brokers can make great money, work market hours, and take zero risk. Its a certain personality type that will thrive in the brokerage world. You have to be willing to wine and dine your top/perspective clients and get nothing in return. I know brokers that use to be traders. I do not think a broker could become a trader because they do not know the fundamentals of their products. Just because you know where the LPG market is trading does not mean you understand the complex supply and demand side of the market. Brokers are only trying to match a buyer and a seller. In terms of market respect I think it depends on the individual trader/broker relationship. Its a tough life and some traders will treat you like shit and some will be very respectful.

agree to all above. We use ours for free dinners and peaks...

 

The best way to get to trade energy is by applying for a scheduling, clerk or back office spot and learning the business. Most of these Energy trading guys are people that have started in operations and have worked their way up the company ladder by workign long hours and proving to management that they are quick thinkers and detail specific. Good luck!

BADUCH
 

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