Commodities Trading Question
What is the difference between trading commodities at an IB and at a Physical House like Shell or BHP Billiton?
From what I gather:
1) Besides paper trading, you learn Physical Trading at a Physical House, which includes logistics, shipment, warehousing etc. You may not be exposed to all of these if you were working at an IB's Commodities Trading Desk.
2) As you learn more at a Physical House, it is more easier for a trader from a Physical House to switch to trading commodities at an IB, than the other way round (though it is not impossible.)
3) That being said, starting pay for traders at Physical Houses are much lower than those traders who started out at IB. For example, Physical Houses may send their newly hired graduates to handle operations and logistics before they can move on to a trading role. IB Commodities Trading Desks send their newly hired graduates to trading desks directly but they may be in trading assistant/trainee roles.
Learned this from talking to a Commodities Trader in an IB. He encouraged me to start my Commodities Trading career at a Physical House. Any comments to add on?