Commodity trading offer, worth it?
hey all,
i received an offer from an ABCD trading firm about a week ago. I was wondering if anyone has any idea how compensation trends in this field. In addition, I was wondering about the feasibility of transitioning from ags to energy (ng, power). The starting comp that I received seemed fairly low to what i expected around 65k (salary + sign-on bonus) and not a big fan of obscure locations. I have a SDE offer that has a total comp around 3 times as much, but I do like trading and am willing to sacrifice in the beginning for a payout. thanks
In my opinion I would take the offer. It's pretty tough to get a seat in the industry, and if you're young why not try it out since you're interested in trading. SDE will always be hiring, and you can always go back.
I think it’s a giant mistake to turn down a SDE role for ags trading at an ABCD and strongly advise you to reconsider based on what you’ve written. In general, the pay is more like working in the agriculture industry than it is working in a high finance trading role. I’d say average comp for someone with 10 years experience is 150-200 all in. You probably won’t clear 100for at least 3 years. Odds of a bonus >200 are probably 2%. Very pidgeonholing and hard to move to other trading roles, and very unlikely to even get looks from a hedge fund.
With all that said, it’s an interesting job and relatively relaxed. If you want to work 45 hours a week in a town in the Midwest making 150k, it’s a great lifestyle and can’t be beat
That comp number is innacurate, I am an ags trader in rural area outside boston (nashua,nh) and I can confirm with you that the average compensation on my floor is around 250-300 for people well into there careers. And while that might not seem like alot you have to account for the fact that the cost of living is about a third less which means your actually making about $325-400. And thats on average. The best traders on my floor make upwards of 1.5M /yr.
It's a super lax job for high level finance, I only work about 50 hrs a week and senior traders generally work about the same. I even know of some guys that run their business from the golf course. Do keep in mind that it is a hard sell when looking for an exit opp. You can go to the buy or sell side but your garaunteed to take a pay cut. Probably 100K max salary.
Other than that its realy great industry and it is truly like running your own business. At the end of the day its on you to win or lose.
Would second this. Only caveat is adm and Bunge don’t pay well at all. Frankly you’d do better to work for a smaller (Private) shop where traders still run the place and bonuses are exponentially higher
I’m not sure where you are working but would you say the same for Cargill? it seems odd that the initial pay is so low or is this normal in ags?
But how long does it take to become a trader?
In general, entry level (trainee) roles in the industry have "low" pay
That's a pretty standard number for starting out even at metal shops.
hi all,
I was accepted into MIT's MFin (financial engineering concentration) program. I think I will pursue the degree and maybe try to get a job in fixed income trading
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