Investment Banking vs. Physical Trading
The title is relatively straight forward, but I am having trouble deciding what path is best for my interests as well as my future goals. I have been lucky enough to receive offers to a well known Investment Bank as well as a graduate trading position at top tier Physical House (Glencore/Traf). I am much more interested in the work at Physical house but am worried about narrowing my career opportunities at such a young age. Investment Banking to me seems like a safer option as it would allow me to branch out to numerous other fields/industries.
I was hoping to get any insights for why someone might have chose either investment banking or physical trading. As well as any insights into the future of physical trading specifically in oil and precious metals.
Thank you in advance.
I just love the myth that you're not narrowing your career opportunities by doing IB. Making decisions is always about narrowing your opportunities.
bump
Being bad at your job is career narrowing. Correlated with not enjoying what you do.
I am in physical trading and really couldn’t imagine doing anything different. There are still plenty of doors that are open for future career moves as physical trading gives you a vast skill set to make you valuable. Also, commodities are so intertwined that when you trade one, you’re really learning about five.
Thanks for your response! How much traveling is typically involved with your work? One of the things that draws me towards the physical trading is work done in unique places that most people would never visit.
Additionally, how do you see technology and smaller margins affecting the industry/pay.
Traveling comes along more when you get promotions and actually have knowledge to share with people. Not sure what you mean by “unique places.”
Low margin environments are tough, even for ABCD commodity traders. Right now we are seeing the washout of the ethanol industry. Small plants go bankrupt and bigger companies acquire in a JV’s. Eventually the tables turn and margins come back. If you’re with a big shop, it shouldn’t affect your pay.
Online physical commodity exchanges, in my opinion, are still in their very early stages. They won’t be commonplace until everyone gets one board and, right now, are just a pain to the big houses. Relationships with your buyers and sellers is still paramount in the industry.
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