Recently been looking into commodity trading as an alternative career option rather than IB. Does anyone have advice on the best approach to entering such a career? Should I aim for BB S&T in commodities or a large physical shop such as Glencore or Trafigura? How would the large oil firms such as Shells grad scheme stack up to these?
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Ah, the high seas of commodity trading! A thrilling choice for those who prefer the tangible over the abstract. Now, let's chart a course for your career:
Networking: It's all about who you know in the commodity trading world. The industry is relationship-driven, so start building your network early. Attend industry events, reach out to professionals on LinkedIn, and don't shy away from informational interviews.
Understanding the Roles: There's a difference between trading at a bank's S&T group and at a physical commodity trading firm. Banks might offer a broader market view, while firms like Glencore or Trafigura provide hands-on commodity experience. Know what floats your boat!
Entry Points: Consider starting in operations, risk management, or as an analyst. These roles can provide a solid foundation and understanding of the market, which is crucial for a successful trading career.
Big Oil Grad Schemes: Graduate schemes at large oil firms like Shell can offer structured training and exposure to different parts of the business. They can be a good starting point if you're interested in the energy sector specifically.
Education: While not always mandatory, having a strong understanding of finance, economics, and market principles is beneficial. Some traders also find that learning languages, such as Mandarin, can be a unique selling point, especially in international markets.
Experience: If you have a background in logistics or similar fields, that can be a plus. It shows you understand the supply chain, which is a big part of physical commodity trading.
Remember, there's no one-size-fits-all map to treasure in commodity trading. It's about finding the right fit for your skills and interests. So weigh anchor and set sail!
Sources: Q&A: I'm an Agricultural Commodities Trader, Physical Commodity Trading career: If you started over again., Career in Trading, Physical Trading: Best commodities to be in?, Q&A - Commodities Trading, Alternative Investments, Alt Data
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I think 98% of the people here would vehemently disagree with this. Most people want to start at a major: almost guaranteed 3 year route and can be headhunted by any shop. At a minimum, banks are not the way to go
I think we’re all here to help people with our honest professional opinions. Not to belittle or mock someone whose view you might disagree with.
In my experience (about 15 years in the industry) I have seen many people strive to become traders at oil majors and fail to do so. Those who do succeed then complain about being hamstrung by internal bureaucracy on an almost daily basis. After this, even if they deliver great profits, they get paid a fraction of other people with commercial roles in the industry.
So I stand by my advice that it’s better to focus on one of the big commodity houses where really trading physical is possible.
Username checks out, what a moron
"commoditytradingtutor"
what a larper
Do you personally know anyone that started their career at a trade shop like Vitol, Trafi, Glencore, etc that went on to become a trader at the place they started?
I know 3 and very unique situations that landed them in seats
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