A commodities trader job involves working in a variety of settings, including commodity exchanges around the world and various types of financial institutions. They may work as a team or independently. For this reason, all of this depends on their level of experience and responsibilities within their organization. The commodities sector is booming, and what everyone did is to create shortages across the commodities sector. So, how to get a job in commodities trading?
Let’s start with role-functional. Commodity traders are responsible for buying and selling commodities like cotton, sugar, coffee, and cocoa. Traders must have a thorough knowledge of the market, as well as experience in dealing with brokers and customers. They also need to be able to spot market trends before they become obvious to others. These guys have to remain up-to-date with the latest developments in their field to ensure they are always operating at maximum efficiency.
Entry-level commodities trading jobs
Those who want to get into the financial services industry and have an interesting profession. An exciting opportunity for a career in commodity trading opens new horizons. In effect commodity traders work with currencies, metals, energy, and other products and trade them around the globe. This can be an extremely lucrative career if you have what it takes to succeed in this field. Commodity traders have access to some of the most advanced technology. That’s to ensure they are making the right decisions when placing trades on behalf of their clients.
Traders also need to have extensive knowledge of current events around the world. That could affect market movements and make decisions accordingly. Commodity traders receive training on how to use computer programs like Bloomberg and Reuters to research information about different commodities before making trades on behalf of their clients.
Commodity trading job duties
A commodities trader should have the skills and expertise to help the business grow.
Staying up-to-date with global changes in the market is crucial for ensuring long-term success, particularly when it comes to making good decisions. For example:
- tracked and monitored global news to identify trends affecting demand and identify relevant forecasts to predict future trends.
- market updates through emails and presentations.
- developing short-term strategies to facilitate the increase in profit margin.
- maintaining efficient relations with traders and power marketers.
- analyzing all energy transactions to evaluate price and transmission.
- ensuring compliance with all organization regulations for risk management.
- design efficient operating strategies in coordination with the hydro planning team.
- managing negotiation of sales of excess power to increase profits and monitoring the purchase of energy and gas for the current system load.
- trading of physical markets gas and electricity.
- coordinating with the risk management team to design an energy strategy.
- managing client portfolios to analyze energy process risk factors.
- executing various trades in client portfolios in the trading desk system
- administrating price risk for client portfolios and assisting in the reconciliation of orders.
- ensuring compliance with all trading desk policies for all processes.
Let’s take a look at the three different ways how to get a physical commodity trading job.
How to get a commodities trader job #1
So I need to speak about this path because it is by far the easiest way to get a job as a commodity trader. No matter how clueless you are as a college student. In order to do this unfairly, you must already have a network and leverage that network. If you don’t even begin creating a network, what’s the point?
You can ask how? How does one create a network without working on it? But if you think about it another way, it’s easy. The only requirement is that you be born into it. Finally, you could have a family member who owns a mine or refinery or a bunch of thinkers, for example. You know life is unfair sometimes.
How to get a commodities trader job #2
All four companies on the golden path offer traineeship programs, including Trafigura, LDC, Glencore, and Cargill.
These programs rotate you for two years between different departments, including logistics, compliance, and finance. This is an excellent education, and the company prepares you for a career on the trading floor. These opportunities, however, are like winning the lottery. Hundreds of applicants apply every year, but there are only a few positions available.
Thus, competition for these jobs is typically limited because academic backgrounds are required. Furthermore, you speak several relevant languages, you are single, and you belong to a reliable aid organization. In regard to those job opportunities, I have two cents to add.
Keeping applying all of them is a good idea since you never know what might happen. Additionally, try to make yourself stand out from your competition by looking at things from a different perspective.
How to get a commodities trader job, way #3
The way of harsh hits! Essentially, it is a long, difficult, and painful path, but it works. Identify the possible openings in a commodities trading firm and agree on the position. That can be just starter positions such as manager of an archive, assistant to the secretary, office manager, etc. How low is that? To sit on the ground pushing papers all day.
Once you are working for the company, you can navigate your way to an operator position, which isn’t too challenging
Essentially, the operator moves the commodities from point A to point B as part of the contract.
So now I’m willing to give you the secret to leaping from an operator role to a trading role. I’m not giving corporate advice, just the truth about how to do it. That’s complicated. The key is to make friends with traders, but it’s not easy.
Since traders don’t understand the importance of you as an operator, you are a useful slave for them. The business world has become more cooperative and traditional in recent years.
There were a lot of brutalities back then, and it’s challenging to become friends with people who might see you that way. Traders are generally aggressive and selfish, and such people rarely make reliable friends.
When does a position open on the trading floor, who is first to consider filling it? Would you rather have a slave who is useful or a guy they enjoy hanging out with?
Whether you’re a trader or working in a support role, you can find your next career opportunity here. Start your commodity trading job today!
In the world of commodities, there are three main ways to learn how to get a job as a physical commodity trader. The most traditional method is to grow up working in the family business; if you have a family that’s owned a mining company for generations, or if your father or uncle is a trader at a major firm, you may be able to get your start by learning about the industry from their experience and connections. The next option is an internship at one of the major firms; you need to know someone well-connected who can put in a good word for you. It could lead to an opportunity to pick up some skills while being paid underneath the table.
Let’s talk seriously
If you’re a newcomer who wants to break into commodity trading, then an internship may be your best bet. Most large trading companies will have internship programs for college students looking for experience in their industry. Internships are beneficial for both parties: the newcomer gets hands-on experience in a professional environment and has a chance to meet influential people in the field; the company gains new employees with fresh ideas who already have some knowledge of the business. While largely unpaid, internships are generally well-compensated in terms of networking opportunities, and many interns go on to have successful careers after graduation.
Furthermore, you can learn the special program Commodities Trading at the University of Geneva.
So, physical commodity trading is stimulating, fast-paced, and exciting. No two similar situations are the same. If you go to the right place to trade, at the right time, you will get a lucrative offer to work as a trader.