dwindling hopes of Commodity Trading
Fellow Monkeys,
I am an aspiring commodity trader currently working as a Commercial Manager at a Logistics Shop in the UK. It is almost completely removed from the complexities of commodities as it is mainly focused on Air Freight for FMCG/Retail.
I studied Mathematics at a top 25 Uni globally (grad 2021) and never knew what I wanted to do, but I know for a fact I would not succeed being a quant (IQ too low). Fixed Income is something I really enjoy and dabbled in post college, currently pursuing CFA Charter, but I wanted something a little more entrepreneurial at the start of my career and I've learned a lot in my current role. I feel commodities is a perfect extension of everything I've enjoyed wrt CRM, negotiations, etc. but bridges that markets gap with additional dimensions of risk and complexities.
I've been looking to pivot into Commodities trading for some time, but I am a little down on my luck. Recently I was verbally offered a position as a Jr Trader at ADM -- there was a Visa issue so that opp is gone.
I also made it to the final round of a Cargill Trainee programme but was ultimately not offered a seat.
I try to network with a lot of people via LinkedIn (1 in 100 hit rate) and sporadically apply to ops/trainee roles at a multitude of different trading houses and utilities companies with no traction.
I like energy and metals but I feel any commodity to start with is a good gig so I don't want to be picky. What can I do? Is there any courses I can do to learn more (Some interviewers mentioned ICS is a good start, Traf also has a great white paper)?
I am turning 26 this year and I'm scared it will be too late to break into the industry soon. I don't have any issues joining an entry level role at a shop but the issues I'm having: Visa issues (Canadian passport holder, most opps are in EU and have no motivation to sponsor a junior guy), and traction getting on the phone with guys who have strong seats.
I've also considered moving to Canada (think Alberta etc.) where some of the players have offices (not sure of the size of the market there)
What are your guys thoughts?
The market size in Calgary is fairly large- lots of oil and gas traders based there- all the big international majors, most of the tradeshops represented. And should get bigger over time as Canada is expected to be one of the fastest growing oil, gas, and eventually lng producers over the next decade.
Navigating the path into commodities trading can indeed be challenging, but your background and current efforts show you're on the right track. Here are some actionable steps and insights based on the most helpful WSO content to enhance your journey into this field:
Leverage Your Current Role: Your experience as a Commercial Manager in logistics, especially in Air Freight for FMCG/Retail, is valuable. Highlight how skills gained there, such as CRM and negotiations, are transferable to commodities trading. This can make your applications stand out.
Networking Strategy: Continue networking but refine your approach. Based on insights from WSO, try to offer value in your interactions on LinkedIn or other platforms. Share insights or articles related to commodities trading and engage in discussions. This could improve your hit rate beyond the current 1 in 100.
Educational Resources: Pursuing the CFA Charter is a great move. Additionally, consider courses specific to commodities trading. The ICS (Institute of Chartered Shipbrokers) courses can provide a solid foundation in shipping aspects of commodity trading, which is crucial. Traf's white paper and other industry-specific resources can also be beneficial. Look for courses or certifications that cover market analysis, risk management, and trading strategies in commodities.
Target Entry-Level Roles: Focus on roles that can serve as a stepping stone into trading, such as operations or analyst positions in trading houses. These roles often provide the necessary exposure to trading activities and can lead to trading positions internally.
Explore All Commodities: While you have a preference for energy and metals, being open to starting with any commodity is wise. Each commodity market offers unique challenges and learning opportunities that can be valuable in your trading career.
Consider Geographic Flexibility: Visa issues can be a significant hurdle. While you've faced challenges in the EU, moving to Canada, especially to regions like Alberta known for their energy sector, could be a strategic move. Canadian markets can offer opportunities in commodities, particularly in energy, and being a Canadian passport holder might ease the transition.
Stay Persistent and Positive: The journey into commodities trading is often nonlinear. Your age should not deter you. Many traders have transitioned into the field from various backgrounds and at different stages in their careers.
Seek Mentorship: Try to find a mentor in the commodities trading space. A mentor can provide guidance, insider insights, and potentially open doors for you.
Remember, breaking into commodities trading is a marathon, not a sprint. Your mathematical background, current role, and the CFA pursuit all contribute positively to your profile. Keep refining your approach, stay informed about the industry, and remain persistent in your efforts.
Sources: Q&A: I'm an Agricultural Commodities Trader, Q&A: I'm an Agricultural Commodities Trader, Breaking into commodity trading, Physical Commodity Trading career: If you started over again.
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