Tough choice ahead of me...
I will graduate in 2021 from a non-target, undergraduate uni. I am keen to start a career in commodity trading with a focus on oil/gas/minerals/freight (I worked one year in the trading function of a major European utility), and there are two paths I could follow:
1. I have secured a summer internship within an oil supermajor's gas trading team (England). This would be followed by the MSc Finance & Investments at the Rotterdam School of Management (#25 MSc Finance by the World University Rankings 2021).
or
2. Accept a commercial merchandising trainee offer in the agricultural division of a major commodity trading firm (ABCD) to start in April 2021 in a remote town in England.
Any idea?
Option 1, very easy choice
Thanks for the reply! May I know why I should discard Option 2 in your opinion?
Option 1, for sure.
What I guess your background is - Loughborough/Surrey-kinda University with a placement year, and you're either joining Cargill's Commercial Merchandising Trainee scheme in Lincoln or doing a summer at BP (?) and studying the master's.
The master's will offer better opportunities down the line, with a good possibility of landing a commodity trading gig in London/Switzerland instead of Lincoln where you'll be paid peanuts and simply won't have the exposure that would be beneficial down the line.
Yes there's uncertainty that you won't get anything good after the master's, but the risk/reward payoff here skews towards trying it.
Is there any program to start as a trader assistant or trading trainee directly? Instead of staying at the middle office for almost 10 years?
BP, Glencore, Trafigura and a few others have "grad trading" schemes where you rotate for 1-3yrs before "very likely" directly joining a phys trading role
Shell has one for experienced (2-5 yrs post grad) peeps
I was told that these programs are extremely competed, however, the salary seems less decent than the S&T in banks. Are these kinds of programs crowded now?
programs are always crowded as they hire a literal handful (far less than banks) and receive lots of apps
I'm biased but option 2. Having covered two very different commodity groups in the past I am of the belief that most commodities require the same kind of mentality just a matter of specifics regarding say what mode of transport is preferred or how storage works and the effects that has on your market. If you got a merchandising offer you are cash trading which won't be you swinging big risks and will be a small universe but you at least have some semblance of a book as opposed to energy where you will have to slug it out in ops for a few years before trading even if you are in a trader trainee program. So I think taking a masters would be a bit like putting your life on pause for a year or two to improve your chance to get into a trainee program where you will wait a few more years to have a chance to trade. That said, tough to spend the prime of your dating life in a sleepy small town so if you think you will hate it that much then go with the masters just be aware of the time opportunity cost.
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