Getting into commodities trading seat

Hello All, 

Would appreciate some honest advice. Currently Summer Analyst in NYC with European BB in S&T. I think commodities trading is the role I would enjoy the most, most interested in energy. Oil is what made me love markets and I still haven't found anything that speaks to me as much as energy does. 

I hope to go work for a Glencore, Traifugra, Vitol type of place though I don't care much about name if I can prop trade energy.  From what I have read, Natty is a cool market but the idea of Carbon futures has also peaked my interest. I would love any advice: books to read, how to get there, or recommended further education. Thank you!

Comments (15)

  • Analyst 3+ in S&T - Comm
Aug 11, 2021 - 10:25pm

World for sale was an interesting read. I do think commodities is a good spot to land. They will only continue to grow

  • Summer Associate in S&T - FI
Aug 11, 2021 - 11:14pm

I see that the big shops are European and seem to have their strongest presence from energy to Metals in Europe.

I am American though and don't really see myself moving to Europe. I guess it's not impossible my

parents themselves are immigrants but do you happen to have any color on American opportunities. Will be in NYC currently but anywhere in America is fine.

Thanks for the help!!!!!!

Learn More

300+ video lessons across 6 modeling courses taught by elite practitioners at the top investment banks and private equity funds -- Excel Modeling -- Financial Statement Modeling -- M&A Modeling -- LBO Modeling -- DCF and Valuation Modeling -- ALL INCLUDED + 2 Huge Bonuses.

Learn more
Aug 16, 2021 - 8:52am
passthegas, what's your opinion? Comment below:

Hey there, you seem like a good young kid. I graduated 2 years ago and now am a junior phys gas trader at a major American utility. 

I interviewed at the big banks and everything and for 2 of the merchant shops you mentioned above. PM me if you want to hear my side about getting into the space. Seems like you are doing well already by interning at a BB in S&T. 

Most Helpful
Nov 7, 2021 - 8:17am
PowerNGas, what's your opinion? Comment below:

So, Trafigura/Gunvor/Glencore/Vitol they are the shops that get the headlines and they are really good shops to be at, but these days less and less of the book pay %. Lots of companies are shifting away from that after major blowups are costing them hundreds of millions from people swinging to hit it big. 
 

Majors are now paying nearly as well but with much better work life balance. 
 

another thing to consider, all of these shops can hire the best traders in the market, and they do. At Trafi/Vitol/Glencore/Gunvor…don't even bother thinking you'll work your way up to being a trader - that's no their model - they don't home brew traders, they just pick the best ones in the market and pay up for it. 
 

My experience is from being a trader in the physical market for the last 5 years. I've gotten offers from 2/4 above and I've traded against all 4 and I've seen it happen. 

Nov 9, 2021 - 7:11pm
marcellus_wallace, what's your opinion? Comment below:

Rerum impedit ut quos saepe nisi id. Accusantium nobis alias doloribus amet rerum et aut pariatur.

Start Discussion

Career Advancement Opportunities

September 2022 Investment Banking

  • Jefferies & Company (▲05) 99.6%
  • Lincoln International (= =) 99.2%
  • Bank of America Merrill Lynch (▲04) 98.8%
  • Financial Technology Partners (+ +) 98.5%
  • Evercore (▽02) 98.1%

Overall Employee Satisfaction

September 2022 Investment Banking

  • Jefferies & Company (▲12) 99.6%
  • Greenhill (▲07) 99.2%
  • Evercore (▲01) 98.8%
  • PJT Partners (▽02) 98.4%
  • Macquarie Group Limited ABN (▲21) 98.1%

Professional Growth Opportunities

September 2022 Investment Banking

  • Jefferies & Company (▲05) 99.6%
  • Lincoln International (▲03) 99.2%
  • PwC Corporate Finance (▲12) 98.8%
  • Bank of America Merrill Lynch (▲05) 98.5%
  • Houlihan Lokey (▲05) 98.1%

Total Avg Compensation

September 2022 Investment Banking

  • Director/MD (10) $613
  • Intern/Summer Analyst (318) $407
  • Vice President (38) $392
  • Associates (209) $257
  • 2nd Year Analyst (130) $163
  • 3rd+ Year Analyst (19) $160
  • 1st Year Analyst (438) $151
  • Intern/Summer Associate (83) $150