Alternative routes into trading

Graduate Careers: Alternative Routes into Trading

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(also see trading)

Propriety Trading Houses

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Exchanges such as Euronext Liffe will show you the proliferation of proprietary trading houses. Navigating your way through all of these can be a challenge though, particularly as many of these will be small operations and may not offer a great deal of opportunities for graduates. There is a good online directory of proprietary trading houses at Traders Log many of which are worth approaching.

Trading houses that regularly advertise for trainees include Mako Financial Markets and TCA. Others, such as Schneider Trading Associates and Futex do take on graduates and run training programmes, but competition is fierce.

Proprietary trading firm ARGO Traders also takes on graduates at less frequent intervals, as does MeT Traders.

Commodities Trading Houses

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Commodities trading houses are similar to proprietary trading houses but, as the name suggests, trade in commodities. Some, such as RWE Trading, take on graduates.

RWE runs a “trading placement year” for between eight and 12 students, working in back office, risk, short-term position management, business change management and global analysis.

The firm also runs a “trading talent pool”, which is an 18-month placement programme that takes on between six and 12 people a year.

Commodity trading houses will often be on the lookout for people to slot into quant, analytical or operations roles.

Oil and Energy Companies

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Oil and energy companies will occasionally hire people to work in trading positions. EDF Trading, advertises for traders for its central and eastern European team, though based in London.

BP also takes on graduates as traders through its two to three year "Trader Development Programme".

This programme takes on between 7 - 10 people a year. Competition is fierce; the company receive about 100 applications for each position.

Oil and Energy Companies: Training

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Successful candidates learn about a range of areas, including risk, trade control, trade analytics and trading. They spend at least a year in a trade control analyst role and one year in an operations role.

This type of role is very much commodity trading (oil, gas, power and chemicals) rather than financial trading.

Companies will be particularly interested in your technical skills and financial knowledge. Unlike most jobs in the city, technical skill plays an equal or even greater role than personal skills, so a mathematical or technical background would be advantageous.

Will I be Employed?

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Anyone who considers trading as a fall-back option to working in an investment bank will undoubtedly be rejected by recruitment teams. Trading is a very competitive career and you should only apply for relevant jobs if it is something you are passionate about.

Top trading firms can receive 1,000 to 1,500 CV's a month and hire a maximum of one to two people every month. Your CV must be impressive.

Graduate Salaries in Trading

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Most trading firms will pay a similar salary to an investment bank. You can expect to earn £30,000 - £35,000, rising to £40,000 - £50,000 for applicants with a PhD.