Highest Commodities Trading Comp
Where can you maximize comp for commodities trading? Is it going to be at trading houses, supermajors, banks, hedge funds, or refiners? Could someone rank these in terms of comp - thanks!
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Knew of a guy at a multi-manger take home 20m after tax. Guy sent a picture of the check to all his brokers. Dude was trading ethanol of all things
20mm is crazy for an ethanol dude. Sounds about right for a top tier macro guy
but why would he send the pic to all his brokers? Seems like a stupid thing to di
No clue. There are some weirdos out there. He now left the market & owns a ton of car washes
Hedge funds, then trade shops, then majors, then refiners/producers/midstream, etc. at least generally when it comes to earning potential. Though there are exceptions and the gap between some companies in different buckets may not be large. There is also a general inverse relationship between pay potential and job stability, which goes with the territory. And the highest payers may not be the best places to start.
What would you say the best place, and role is to start? End goal being working at a hf or trade shop as a trader.
Trade shops tend to hire externally for traders. Hfs externally too. The later does hire a lot of bank traders, but your best bet for career longevity and flexibility is still starting out at Shell or BP. As you learn physical and financial.
Where would banks slot into this?
This is pretty much correct. One thing to also point out is that the distribution of comp is really skewed. For every fund guy taking home 8 figures, there are a lot of guys who either blew up (esp since most commod fund jobs nowadays are pod shops, with relatively tight draws), or weren't able to put on enough size for trades that worked.
I think the median fund guy is maybe slightly under TC for what they could make at a bank, but people go to HFs as a terminal job in the space.
Hedge funds pay the most. Even the top merchants cap out at 15% usually, that said if you make it towards partner you get more equity upside at some merchants.
So partner level at merchants probably pays most of anyone.
How much would you say the avg HF commodities guy makes on the street?
I feel like different shops' setup, comp structure differs too much to generalize; be sure to get a better idea of the place you are going to. That said, if we have t generalize, hedge fund and then prop shops probably the highest maximum. and then major (even then being trader is Exxon and BP are different, and being in Shell for longterm vs for TDP are different things as well)
this is hard to peg as different firms handle comp differently. I use to think outright the HF pays the best but i wouldnt mind being a partner at Vitol or hartee
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