Small Energy Trading Prop Shop vs Management Consulting
Senior in college with a degree in physics from a large research university. I have an offer from Accenture and PwC both in their management consulting arms, and an upcoming final interview with a small prop trading firm that goes by DC Energy. They trade FTR's and are pretty small with around 60 people. I really didn't have any knowledge about energy trading before this but it seems to be pretty analytical and at least interesting. I really value technical work which is why i'm leaning towards something that affords that opportunity. The problem is exit opportunities. Moving to DC is a big commitment, and it would be a big gamble if I found that I disliked the work there. There is also a pretty strict non-compete, which from what Ive read from glassdoor, bars working in trading for 2 years. Salary with accenture is 80k, salary at DC would be comparable 80-90k (glassdoor) with bonus around 30k from what ive read. Ill be honest and say I don't have any experience in either of these fields, but really just want to be interested and passionate about the work i'm doing. Long term goals are just centered around making a lot of money in the least soul crushing way as possible.
FTR is quite niche and the turnover is high in that market. Do some reading up on what you can find online... they are very large in PJM and MISO and a very good shop.
Management consulting offers a handful of entry points -- straight out of undergrad, post-MBA, and coming in from industry. Comp is a bit more predictable and structured, though there's no telling who/what/where the next client or project might be.
energy trading often has fewer and less well-defined entry points, so getting in mid-career can sometimes be tricky without hitting restart. Comp varies more, but because PnL-related bonuses can make up the majority of pay in front-office trading roles, the potential upside is quite large.
My two cents -- give energy trading some serious consideration and keep consulting (perhaps after a trip to B-School) in your back pocket as Plan B.