Oil Trader to S&T BB
Is it possible to transition from a trading role at a large Oil company into an S&T role at a BB?
Thanks
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Wondering why would you want that? I’m looking to do the exact opposite. There is no good money in BB S&T anymore compared to prop commods trading or physical trading at a commods house/major.
in what world is the potential to earn high 6 figures / low 7 figures "not good money"?
In a world where that’s not true. I work at a top BB in their commods department (front office). For banks, commods is a seasonal business. They allocate capital to the biz when it’s booming, then they stop allocating when there are more profitable businesses. Commodities is a very cyclical industry, and right now working in commods at a bank is shooting yourself in your foot.
Reason being, banks are not doing well. That means that top performers are being paid OK bonuses at best (Associates making 200-350K all in comp and VPs 350-500K total comp)
High 6 figures won’t happen in a commods department in a bank unless you are at the right desk, at the right time, at VP+ level.
In commodities companies, commodities is the business all year round. Capital allocation will not be a problem. Comp will be directly related to the industry.
You must be new. Equity sales is a cyclical business just like the market. Right now it’s a bust sure but during booms the rainmakers are going home with 7 figures a year.
Lol. Equity SALES? At a BB? Sure if you’re an MD. Basically impossible if you are An/Ao/VP. I have been in the industry for 8 years.
HFs are a different story, though.
I'll correct myself for clarification. No, not the sales of S&T. I meant traders. I agree most sales make median salaries unless they become MD but top traders are still making bank if they're expert market makers and get their clients good prices.
Extreme outliers are always making bank in the industry, sure. They will also make bank being a SWE (yup, I stalked you). I have been both: a trader and originator. I have worked in both, commods houses and tier 1 BB. Banks are not the place to be, period.
The “I have heard” stories are one in hundreds. Most people are average or a bit above average at best. This is an industry full of smart, highly educated people where being special is unlikely. The road to kill it is to climb the ladder and climbing the ladder requires a long time, patience and social skills (assuming you’re good at the job also).
Also, equity traders are worth shit and will only lose value. Unless they are on the derivs desk, that business will be automated and spreads are as tight as ever.
I don’t know the stories you’ve heard (given that you have never been in a FO role in the high finance world), but those are the extreme exceptions in BBs.
From my perspective in oil trading, not true. Have seen multiple people significantly exceed your numbers, not least at some of the bigger oil trading shops (GS, JPM, MS, C etc)
2nd year power trader here, if you are trading oil right now is there a reason to go to a BB? There should be plenty of shops you could go to with more better pnl share no?
I initially asked the question as I am unsure in the differences in compensation between the two. On average who takes home more: traders at the likes of BP, Valero etc, or commodities desks at BBs?
If you can get a seat at a major, that will pay you more 5 years in. If you don’t like the pay at the majors then you go to a trade shop, but almost never a bank. You’re trading flow for clients instead of spec trading. Not super easy to get a seat at a major though
What I think OP wants is high pay, low risk, and the title trader. If that is the case OP you are probably safe at a bank, you get to act like a trader and have the title, and just trade customer flow.
pretty much spot on
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