Do physical commodity trading ever exit to their respective industries?

I'm interested in pursuing physical commodity trading (glencore/trafigura etc) out of college but ultimately I want to be working at a oil/gas/agriculture/steel type company in a sort of managerial role. Is this type of transition common?

13 Comments
 
Most Helpful

In my experience it's less common to see end users or producers poach from a trading house because they just can't compete on comp. That said, they can compete on lifestyle, location, and work/life balance so you'll occasionally see people move over for that.

If you're worried about the ability to make the transition, I wouldn't be. Any airline would love to hire an ex-Vitol fuel trader. They just typically can't pay enough to get them.

 

Alpha --

Agree 100%.  The main issue (at least for the WSO masses) is total compensation.  If you are willing to take less money, but trade that for a real life and a lower cost of living, you can EASILY exit to a utility or corporate reliant on commodities (airline, steel, aluminum, renewables, trucking, etc.).  Physical commodities folks live in places like Doniphan, NE, Hammond, IN and similar.  If you are willing to exit to a corporate/utility, $200k + is a very, very nice life working 8-6.

Namaste. D.O.U.G.
 

I'll take a VP slot at a refining, utility..Base comp 200k + 100k+ bonus. Only downside is lots of meetings which blow

If SocalGas ever came calling i would for sure answer and offer my services..Socal can't be beat. Trading starts at 5am and done by 2pm just in time to hit the beach bike path for some biking/jogging maybe even an early evening pickleball

 

okay I'll be honest I'm a bit surprised by most of the replies here - perhaps I was using the wrong terminology i.e. when i said managerial role

You will have to learn all aspects of running a trading business as you move up in the organization.  Everything from logistics, to contract negotiation, accounting, transaction settlement, risk management, credit, and more all are factors on physical trades and learning these skillsets make you a better trader but I can also see them lining up well with your desire to own your own business one day.  I personally know of at least one trader that did a few year stint at a large energy company before going back and taking over his family's manufacturing business and he has cited the holistic exposure he gained in trading as being instrumental to his ability to integrate back into his family business. - AlphabetTrader

This was more in line with what I was thinking about. That is, leveraging all the experience gained + network to start a manufacturing company for example (young ambition) as opposed to trading down for a more cushy lifestyle 

 

Est similique ullam iure fuga quia sunt repellat. Et rem sed aliquam tenetur itaque odit. Tempora eum qui qui pariatur itaque ut. Excepturi rerum facilis iusto autem ut. Dolorum voluptatem unde nisi a dignissimos debitis.

Namaste. D.O.U.G.

Career Advancement Opportunities

May 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.8%
  • JPMorgan 01 98.2%
  • Guggenheim Partners 01 97.6%
  • Morgan Stanley 07 97.1%

Overall Employee Satisfaction

May 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Morgan Stanley 01 98.8%
  • Evercore 01 98.2%
  • BMO Capital Markets 12 97.6%
  • Banco Santander 01 97.0%

Professional Growth Opportunities

May 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Evercore No 98.8%
  • Morgan Stanley 05 98.2%
  • JPMorgan No 97.6%
  • BMO Capital Markets 12 97.1%

Total Avg Compensation

May 2026 Investment Banking

  • Vice President (14) $434
  • Associates (43) $259
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (13) $156
  • 1st Year Analyst (75) $151
  • Intern/Summer Analyst (65) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
kanon's picture
kanon
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
DrApeman's picture
DrApeman
98.9
6
Betsy Massar's picture
Betsy Massar
98.9
7
CompBanker's picture
CompBanker
98.9
8
dosk17's picture
dosk17
98.9
9
GameTheory's picture
GameTheory
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”