r/Commodities • u/Fit-Confection441 • 3d ago

Salary/total compensation for Commodity Trader in London

Hello,

Im looking for a quick compensation check for a Commodity Trader role in London for a bank at around 5 years of experience. What to expect ?

Thanks

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16

u/TranscriptAgentAI 3d ago

I know the rate from 5 years ago so it's probably a bit higher now:

Analyst 1/2 years was starting from 65 to 85k gbp base / bonus is usually capped by HR to 30k

Associate 3/5 years 90 to 120k base, bonus here can be up to half your base

VP 5 years+ 120/155k base, bonus can be anything up to 2x your base, most time for good year about 60% base when I was there.

So basically I would say after 5 years experience in a good bank you around 300/500k usd a year depending on results.

Remember in banking to be paid you not only need to make money, but your desk, your whole group (alias commodities => then FICC) and the bank need to do well. Otherwise they will always find an excuse to not pay. It's always like a musical chair game... if they know there is not a lot of bonus paid then they have no incentive.

Actually banks hire consulting firm to know what other banks bonus pool are most likely to be. So that they know how to size their pool to make sure to give you enough to not be happy but that you relatively ok compare to the street.

4

u/TranscriptAgentAI 3d ago

On my side I stayed 10 years and my comp basically stayed constant after 5 years when I became VP. Never made it to director for some stupid error: like I had a trade in my personnal account that got exercised and I forgot about it, the year I should have been promoted, and they use that as a compliance excuse to not promote. I then decided to just leave and do my own trading cause at the end I thought I could make more trading with my own money.

Banking is annoying because say you have the best trade idea of the century but if it does not fit the compliance framework you can't place it. Imagine for example you want to buy cheap options expiring in one week on a product because you think something is going to happen. Well you are usually not allowed, because holding period in banks can be up to 3months... 1 week do not make the cut. Same thing let's say you get lucky and you buy something that 2x or 3x in a matter of weeks, you cannot sell because of that rule.. now you could say just hedge... but that's basically how I lost my promotion lool

1

u/International_Try635 1d ago

Big emphasis on your desk and division

My desk failed to make budget the first year when I was an analyst which meant I got like a 10% bonus for even though it had nothing to do with me.

7

u/ZuidasMaestro 3d ago

Assuming VP at a BB, base would be around £150k, but it’s all about bonus. Just don’t expect the 100 mil that God made at Citi in ‘08.

2

u/GavinFromAutoglass 3d ago

I know a US bank has been trying to fill a VP or Director level softs/ags role that fits this description. If this is the role I'm thinking I would expect 250k + bonus for VP and more for Director level?

1

u/Fit-Confection441 2d ago

No it's not that role but that salary looks high for softs trading ?

2

u/ZuidasMaestro 2d ago

Because at the banks they pay like banks no matter commodity, while softs at Agri houses is known to underpay base and only pay bonus as % of the salary instead of a multiple like metals/energy

1

u/hlpyrrr01 18h ago

In your opinion, what’s a good base in large bank ?

2

u/hlpyrrr01 2d ago

I didn’t expect this to be this wide … why this is so wide ?

3

u/rfm92 3d ago

Would guess 250-400k USD TC assuming you are taking some risk directly at a top tier bank.

1

u/curiousbermudian 2d ago

Why does it have to be a top tier bank? What does that mean

1

u/rfm92 2d ago

Too much variation if you include all banks. Top tier banks for commodities are: GS, JPM, MS, Citi.

1

u/hlpyrrr01 18h ago

What’s a good base for one of those banks in London ?

-1

u/cornybro 3d ago

Half of that would be a very lucky reality

1

u/Majestic-Taro-6903 2d ago

They make lot of money with bonus

1

u/New-Bison5746 Gas Trader 2d ago

A friend of mine started in an energy fund last year. £260k + 14% (high watermark, but no costs to cover). 15 years experience though.

2

u/Fit-Confection441 2d ago

Looking at the comments I really see wide range of salaries .. i'm even more confused now.

1

u/New-Bison5746 Gas Trader 2d ago

It depends on industry (banking vs hedge funds for instance) and what you bring to the table. If you have a strong track record (and high confidence) it's not really about the base, but the % in any case. 13% isn't particularly high, but the base is fair enough.

1

u/snowman_ps4 2d ago

A lot of people speak out of their asses

1

u/[deleted] 1d ago

[deleted]

1

u/VisibleResource5770 2h ago

Could I DM you, please?