TRAFIGURA INTERNATIONAL TRADER PROGRAMME

Hi all,

I am currently working as a Senior Analyst at a hedge fund specialising in agri-commodities in London. After a few years in this role, I find myself reflecting on the next step in my career. While I am comfortable as the lead analyst here and my insights are valued by the traders, there seems to be a limit to how far I can progress in terms of both financial reward and career growth within research.

I could potentially transition into a trading role and request a book of my own at the firm, but as it is a proprietary fund, taking on a book as a standalone prop trader would involve considerable risk. Ideally, I would like to manage a physical book and take positions in other markets, but I recognise that, having started in this prop fund, I am somewhat lacking in physical and operations knowledge. As such, I would likely need to start as a junior trader at a new firm, with the goal of progressing within that organisation.

Given this, I am considering the TRAF International Trader Programme. Does anyone have insights into what the programme entails? Specifically, I’d be interested to know about the role one starts with and the exposure to different markets. Additionally, coming from an agri-commodities background, are firms in the programme more inclined to hire candidates with experience in energy or metals? Last but not least, what is the salary package expectations? I am currently well-remunerated, earning above the average, with a bonus in excess of 100%. Therefore, I assume the compensation may not be as competitive in comparison.

Any advice on the programme or general career guidance would be greatly appreciated.

Cheers,

7 Comments
 

Based on the most helpful WSO content, the Trafigura International Trader Programme is a highly competitive and structured pathway designed to develop future traders within the firm. Here’s what you need to know:

  1. Programme Structure and Role:

    • The programme typically starts with rotations across different desks, providing exposure to various markets, including energy, metals, and potentially agri-commodities.
    • The goal is to build a strong foundation in physical trading, operations, and risk management.
    • You’ll likely begin in a junior capacity, supporting senior traders and learning the intricacies of physical trading, including logistics, hedging, and P&L management.
  2. Background Preferences:

    • While energy and metals are core to Trafigura’s trading operations, candidates with agri-commodities experience are not excluded. However, transitioning from agri to energy/metals may require demonstrating adaptability and a strong understanding of physical trading fundamentals.
    • Your hedge fund experience and analytical skills could be a strong asset, but you’ll need to address your lack of physical and operational knowledge during the application process.
  3. Salary Expectations:

    • The starting salary for the programme is competitive but may not match your current compensation, especially given your bonus structure.
    • Junior traders at Trafigura can expect a base salary in the range of $100,000, with bonuses tied to performance. As you progress and take on P&L responsibility, compensation can increase significantly, with senior traders earning in the $2-3 million range, depending on book performance.
  4. Career Progression:

    • The programme is designed to fast-track participants into risk-taking roles. However, it’s worth noting that most successful candidates have 4+ years of commercial experience, often with P&L responsibility, before joining the International Trader Programme.
    • Given your current role, you might also consider applying to the graduate programme first, as it could provide a smoother transition into physical trading.
  5. Advice for Transitioning:

    • To strengthen your application, focus on building knowledge of physical trading and operations. Resources like "Oil 101" and Trafigura’s own materials on trade finance and hedging can be helpful.
    • Highlight your analytical expertise and ability to adapt to new markets, while addressing your motivation to transition into physical trading.
    • Be prepared for a rigorous interview process, including technical and personality assessments.

If you’re serious about the move, applying to the Trafigura International Trader Programme could be a great step, but be ready for a potential pay cut initially as you build your expertise in physical trading.

Sources: Trafigura Commodity Graduate Process, Transferring Commodities, Q&A: I'm an Agricultural Commodities Trader, https://www.wallstreetoasis.com/forum/trading/picking-the-right-ag-trading-role-early-career?customgpt=1, Trafigura Graduate Programme, 2017

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

If you can bring a book useful, if not, they don't care. They care about raw commercial talent. They need to see you are hungry and can bring in the business. If you make it through the interviews on the weekends, they'll give you a ring telling you the commodity and office location. They'll give you a book and expect you to hit the floor running or you'll be cut within the year, if you decide you can handle the pressure and want to stay.

Also, comp is separate from the additional dividends you'll get from ownership in the company, so you'll want the other units in the firm to do well too

 

Also in ag and kinda curious about this program. You talk about bringing a book in and hitting the ground running. Are they ever expanding to different commodities through this program like a dude who trades coffee could find themselves starting their coffee book in Singapore with the same parameter of start making money in that first year?

 

you're better off where you are at right now. Trafigura has a toxic work culture everyone knows this. On top of that their Trader program does not covert you to a seat (pretty sure they even have a disclaimer on their website). Trafi usually hires their traders externally. 

 

You seem to be mixing up their graduate programme and their International Trader Opportunity, which is exactly aimed at those with existing trading experience but who want to play in the big boys league. The culture can be toxic - for the middle and back office, since the front office makes too much money to consider sharing that and training their future replacement. If you are a profitable trader that likes a direct and commercial environment, you won’t find a better seat in the industry. If you want to have a corporate physical trading job you should join Vitol in London.

 

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