How different is S&T recruiting from IB?

Based on the most helpful WSO content, recruiting for Sales & Trading (S&T) and Investment Banking (IB) can indeed have some differences, especially when it comes to the skill sets and interests that firms are looking for in candidates.

1. Skill Sets and Interests:

   • S&T: Firms are often looking for candidates with strong quantitative skills, but as mentioned in the WSO Dataset, perfect math scores are not a necessity. However, being good at math does help. S&T roles, particularly in commodities trading, may also value candidates who have a good understanding of the markets and can make quick decisions.
   • IB: Investment Banking recruitment tends to focus more on candidates with strong financial modeling skills, valuation techniques, and an understanding of corporate finance. Energy IB roles may require knowledge of energy technicals, which you've mentioned you're comfortable with.

2. Recruiting Process:

   • S&T: The recruiting process for trading roles can be more focused on simulations and trading games that test your market sense and reaction to real-time data. It's also common for firms to assess your risk management abilities and how you perform under pressure.
   • IB: IB recruiting often involves a more traditional process with networking, behavioral interviews, and technical questions related to finance and accounting.

3. Networking and Events:

   • Events like the University of Houston Commodity Competition provide an excellent platform for students interested in commodity trading to showcase their skills and network with industry professionals. Such competitions can be a gateway to trading roles in Houston and beyond.

4. Cultural Fit:

   • Firms may also look for a cultural fit, which can differ between S&T and IB. For example, trading floors are known for their fast-paced and sometimes intense environment, while IB might be more corporate and structured.

5. Location:

   • Houston is a hub for energy and commodities, so recruiting for commodity trading there might involve a deeper understanding of the energy sector, which seems to align with your background and interests.

If your primary interest is in energy IB but you're considering commodity trading as a backup, it's wise to understand these differences and prepare accordingly. Networking, participating in competitions, and gaining a solid understanding of the energy market will be beneficial for both paths.

Sources: University of Houston Commodity Competition, Houston Summer 2020 Associate Recruiting, Commodities Trading - Tons of post that S&T is downsizing, Physical Commodity Trading career: If you started over again., Oil vs Nat Gas Trading