Prop Trading - Commodities?

Hello guys,


I am currently an agricultural commodity trader at ABCD type of firm. I am thinking of getting into the prop trading industry but I am not sure if my background is a fit as commodity trading is quite different. I am also not from a quantitative background. I have seen that most people have recently applied to notable prop firms like Jane Streets, Flows, Optiver etc, but they seem to be the most CHALLENGING to get in as well. I also believe that they prefer someone from a quantitative background. Would like to ask if there is any prop trading firms with a commodity trading desk? How difficult would it be to enter these firms?

 

If you want to join a multi-manager as a PM you're going to need a serious strategy and track record. 

As an analyst you'll have to demonstrate that your research process can add serious value to an existing team. Citadel certainly do have an ags team - suggest you use your network to get in front of them. If you are indeed a trader at ABCD, brokers should be willing to help you out with an intro.

On the prop trading side you are essentially going to be re-starting your career. Aside from the basics of futures and options there is very little crossover between what a sophisticated prop shop is doing and the paper desk at ABCD - they are light years apart. If you're serious about this path my advice would be to seriously upgrade your technical/quant skills otherwise you don't really have a chance.

 
Most Helpful

Caporegime

If you want to join a multi-manager as a PM you're going to need a serious strategy and track record. 

As an analyst you'll have to demonstrate that your research process can add serious value to an existing team. Citadel certainly do have an ags team - suggest you use your network to get in front of them. If you are indeed a trader at ABCD, brokers should be willing to help you out with an intro.

On the prop trading side you are essentially going to be re-starting your career. Aside from the basics of futures and options there is very little crossover between what a sophisticated prop shop is doing and the paper desk at ABCD - they are light years apart. If you're serious about this path my advice would be to seriously upgrade your technical/quant skills otherwise you don't really have a chance.

Thank you for your message, you gave me a good idea of what I should be doing. I believe that multi-manager isn't what I am exactly looking for, a career option at ABCD would offer more opportunities in the commodities industry compared to multi-manager. I am in fact trying to move over to prop trading side. I'll also take your advice to upgrade my technical & quant skills thoroughly till I apply for the job. Thanks! 

 

NuclearTrader

They (JS, Optiver, Flow, etc.) don't give a shit about your background honestly, they just care about how smart you are. Not coincidentally, most smart people come from a quantitative background. I'm sure they'll give you a shot at the mental math tests with your background. 

Thank you for the inspirations! I will definitely give it a shot to JS, Optiver, Flow - but they are indeed very competitive so I will not get my hopes too high up. Do you by chance know a lower-tier but still great kinda prop firm which is easier to get into? not the bucket shops though..

 

Perspiciatis voluptas sint amet. Odit modi recusandae et sed. Ea et quaerat dolore blanditiis sit vero eveniet.

Omnis sequi nihil ipsum cupiditate tempora sunt. Excepturi consectetur expedita ab et explicabo. Expedita occaecati fugiat ea eaque autem. Eum officiis asperiores eligendi ipsa itaque illo.

Corporis nihil dolore ut fuga. Molestiae autem ipsam quisquam. Dolore est quam alias labore consequatur esse. Odit ea praesentium tempora deserunt cum rem.

Illum velit provident quis esse dolorum dolor velit assumenda. Labore ullam nisi id consequatur veritatis tempore. Consectetur consectetur doloremque consequatur eum voluptas. Ipsa voluptatem sit nam velit consequuntur asperiores. Voluptatem eum nisi aspernatur.

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

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...”