Feel hopeless breaking into commodity trading
Sent in apps to all the trade houses / available majors. I recently seem to have been ghosted after making it deep into the process with a supermajor (has been over a week since I did my past round) and only heard back from 1 trade house that later ghosted. I responded to this by actively cold emailing some commodity boutique shops but I have either been ghosted or told they're looking for more experienced people. I find the industry to be fascinating and understand I need to put in the reps / groundwork in ops/risk to even get a shot at trading but it seems like I am not even getting that breakthrough and I don't have much time left. I have an alternative career path in line but genuinely would choose to give this a shot over that if possible. Any advice would be great! I am ideally looking to work in Houston.
Hey there, I can sense your frustration, but remember, the road to success is often a winding one. Based on the most helpful WSO content, here are a few tips that might help:
Networking: This industry is very relationship-driven. So, try to get to know people in the industry. Attend industry events, join online forums, and don't be afraid to reach out to people on LinkedIn.
Internships: Don't just focus on the big names. Sometimes, smaller companies can provide more hands-on experience.
Persistence: Keep applying and don't get discouraged by rejections or lack of responses. It's a numbers game. The more applications you send out, the higher your chances of getting a response.
Broaden Your Scope: If you're finding it hard to break into trading directly, consider roles in operations or risk management first. As one user on WSO mentioned, the path could be Ops > Risk > Analyst > Trading Commodities.
Stay Updated: Keep yourself updated with the latest trends and news in the commodity trading industry. This will not only help you in your interviews but also in your job once you break into the industry.
Remember, every no brings you one step closer to a yes. Keep pushing, and don't lose hope. You've got this!
Sources: Breaking into commodity trading, Q&A: I'm an Agricultural Commodities Trader
I think plenty of people have said here before, there isn’t a defined path. Just because you didn’t get an offer after you finished studies is not the end of the world. Keep plugging away while you are doing something else. I didn’t break into trading straight out of school either and got to experience other things irrespective of commodities that has helped me in many ways now.
PM me. Perhaps I can help!
PM'ed you.
1) 'Commodity trading' is not limited to metals and energy. Time to branch out into other products if you really want to trade phys.
2) As another poster said, there is no set path. I know a girl at a major trade shop that started out at a commodity trading recruiting company and found her way in through that. I know another guy that started out as at a pipeline operator as an analyst and now trades a permian crude book. Part of being a good physical trader is being savvy and knowing how to look at a system and pull the right levers to further your own goals. Breaking in is no different. Get creative.
3) If the thought of a poorly defined career path and a lot of uncertainty scares you then do yourself a favor and choose another career. The entire trading world is just operating under various levels of uncertainty.
Last I checked Houston had tons of physical trading opportunities (especially in oil). I would encourage you to keep applying and aim for roles in ops which give you a chance to indirectly work with traders and work your way up (ie. Pricing analyst, confirmations analyst, risk, scheduler, commercial anayst, etc). And as mentioned above, don't just limit yourself to metals or energy, you could aim for just about any commodity, be it grain, lumber etc.
I got work experience at a commodity broker in London through cold calling. Just had a look and saw that they also have an office in Houston. DM me if you want to chat more about it
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