Do physical commodity trading ever exit to their respective industries?

I'm interested in pursuing physical commodity trading (glencore/trafigura etc) out of college but ultimately I want to be working at a oil/gas/agriculture/steel type company in a sort of managerial role. Is this type of transition common?


 
Most Helpful

In my experience it's less common to see end users or producers poach from a trading house because they just can't compete on comp. That said, they can compete on lifestyle, location, and work/life balance so you'll occasionally see people move over for that.

If you're worried about the ability to make the transition, I wouldn't be. Any airline would love to hire an ex-Vitol fuel trader. They just typically can't pay enough to get them.

 

Alpha --

Agree 100%.  The main issue (at least for the WSO masses) is total compensation.  If you are willing to take less money, but trade that for a real life and a lower cost of living, you can EASILY exit to a utility or corporate reliant on commodities (airline, steel, aluminum, renewables, trucking, etc.).  Physical commodities folks live in places like Doniphan, NE, Hammond, IN and similar.  If you are willing to exit to a corporate/utility, $200k + is a very, very nice life working 8-6.

Namaste. D.O.U.G.
 

I'll take a VP slot at a refining, utility..Base comp 200k + 100k+ bonus. Only downside is lots of meetings which blow

If SocalGas ever came calling i would for sure answer and offer my services..Socal can't be beat. Trading starts at 5am and done by 2pm just in time to hit the beach bike path for some biking/jogging maybe even an early evening pickleball

 

okay I'll be honest I'm a bit surprised by most of the replies here - perhaps I was using the wrong terminology i.e. when i said managerial role

You will have to learn all aspects of running a trading business as you move up in the organization.  Everything from logistics, to contract negotiation, accounting, transaction settlement, risk management, credit, and more all are factors on physical trades and learning these skillsets make you a better trader but I can also see them lining up well with your desire to own your own business one day.  I personally know of at least one trader that did a few year stint at a large energy company before going back and taking over his family's manufacturing business and he has cited the holistic exposure he gained in trading as being instrumental to his ability to integrate back into his family business. - AlphabetTrader

This was more in line with what I was thinking about. That is, leveraging all the experience gained + network to start a manufacturing company for example (young ambition) as opposed to trading down for a more cushy lifestyle 

 

Hic iste reiciendis dolor magni. Velit consequuntur nemo quo blanditiis possimus. Quis laborum rerum perferendis nobis id. Tempora eos est eligendi veniam eos debitis voluptatem.

Aut illum voluptates minus porro at ut. Et recusandae ea ipsam explicabo et ut placeat. Autem unde veritatis quia numquam aliquid repudiandae. Quia at voluptas ullam. Corporis accusantium beatae dolorum earum nulla nostrum.

Quis non est animi aperiam. Possimus sed quasi eum maiores sit pariatur quam. Recusandae alias accusantium ducimus dolor eligendi debitis velit.

Cupiditate voluptatem et et. Qui ut et sunt qui aut optio ut. Aut explicabo quidem sit cupiditate quo maiores totam. Iusto quia sequi laboriosam vel dolor modi.

Namaste. D.O.U.G.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
kanon's picture
kanon
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
DrApeman's picture
DrApeman
98.9
9
GameTheory's picture
GameTheory
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”