Getting into commodities trading seat
Hello All,
Would appreciate some honest advice. Currently Summer Analyst in NYC with European BB in S&T. I think commodities trading is the role I would enjoy the most, most interested in energy. Oil is what made me love markets and I still haven't found anything that speaks to me as much as energy does.
I hope to go work for a Glencore, Traifugra, Vitol type of place though I don't care much about name if I can prop trade energy. From what I have read, Natty is a cool market but the idea of Carbon futures has also peaked my interest. I would love any advice: books to read, how to get there, or recommended further education. Thank you!
World for sale was an interesting read. I do think commodities is a good spot to land. They will only continue to grow
Commodity Trading in Europe is more rewarding than Commodity Trading in the US
*at least for energy
I see that the big shops are European and seem to have their strongest presence from energy to Metals in Europe.
I am American though and don’t really see myself moving to Europe. I guess it’s not impossible my
parents themselves are immigrants but do you happen to have any color on American opportunities. Will be in NYC currently but anywhere in America is fine.
Thanks for the help!!!!!!
yes, I waste my mornings meeting with Europe unfortunately
The US banks are building up their commodities arms. Does your bank have a commodity trading desk?
How so ? Curious to hear the differences
Curious to know why you think that?
Hey there, you seem like a good young kid. I graduated 2 years ago and now am a junior phys gas trader at a major American utility.
I interviewed at the big banks and everything and for 2 of the merchant shops you mentioned above. PM me if you want to hear my side about getting into the space. Seems like you are doing well already by interning at a BB in S&T.
will do after I move in to school next week! Thank you!
So, Trafigura/Gunvor/Glencore/Vitol they are the shops that get the headlines and they are really good shops to be at, but these days less and less of the book pay %. Lots of companies are shifting away from that after major blowups are costing them hundreds of millions from people swinging to hit it big.
Majors are now paying nearly as well but with much better work life balance.
another thing to consider, all of these shops can hire the best traders in the market, and they do. At Trafi/Vitol/Glencore/Gunvor…don’t even bother thinking you’ll work your way up to being a trader - that’s no their model - they don’t home brew traders, they just pick the best ones in the market and pay up for it.
My experience is from being a trader in the physical market for the last 5 years. I’ve gotten offers from 2/4 above and I’ve traded against all 4 and I’ve seen it happen.
1) would you rather be at Citadel/MLP or Vitol/Trafi?
2) Power/Gas at oil majors seem to be a massive political fight against the oil guys. Any thoughts on smaller/renewable focused firms vs large majors?
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