How To Become A Commodity Trader: What It Is and Career Path - Zippia (2024)

FAQs

How To Become A Commodity Trader: What It Is and Career Path - Zippia? ›

Commodity traders typically have a bachelor's degree in finance, business, economics, or related majors and substantial knowledge of trading techniques, market conditions, and international trading. They can make high salaries, with some reaching over $92,000 per year.

It is common practice for most commodity traders to have a bachelor's degree in business, international business, finance, economics or accounting in order to compete in the finance industry, but no degree is actually required to become a trader.

Apart from earning a degree, the FCA may require you to gain additional certifications such as Chartered Financial Analyst (CFA) or to complete the Chartered Institute for Security and Investment (CISI) exams.

A commodity specialist can advance to various roles, including purchasing manager, operations manager, and supply chain vice president. Other possible career paths include director of purchasing, supply chain manager, and vice president.

The salaries of Commodities Traders in The US range from $73,918 to $762,812, and the average is $166,453.

How do I start trading commodities? First, choose from 35 commodity markets, or commodity-linked stocks and ETFs. Next, decide whether to speculate on market prices by going long or short. And finally, you'd need to open a live account with a provider who offers commodity trading.

It often takes about three years of trading before someone can become consistently profitable. Traders must internalize lots of fundamental and technical knowledge before achieving this level of competency. It helps to learn the craft as an apprentice, from a commodities trader who is already successful.

Securities and commodities brokers score highly on extraversion, meaning that they rely on external stimuli to be happy, such as people or exciting surroundings. They also tend to be high on the measure of conscientiousness, which means that they are methodical, reliable, and generally plan out things in advance.

How do I get a job in commodity trading? ›

To become a commodity trader, you need at minimum a bachelor's degree in business, economics, or finance. A master's and even doctoral degree makes you a more competitive candidate.

Top commodities traders are among the best paid in the market, irrespective of where they work. Banks pay top commodities traders incredibly well. When Edward Emerson left Goldman Sachs aged 47 last year, it was said to be on the back of $100m of earnings in a three-year period.

Commodity Advisor salary in India ranges between ₹ 2.1 Lakhs to ₹ 4.2 Lakhs with an average annual salary of ₹ 2.9 Lakhs.

It's a great education and the companies groom you to end up in a trading firm. However, getting such an opportunity is like buying a lottery ticket. There are hundreds of applicants every year and only a few openings. So the competition is tough!

To work as a commodity broker, you are required to be certified by the National Futures Association (NFA). The NFA oversees licensing for stockbrokers and commodity brokers. Typically, you study for the licensing exam while working in an entry-level position or internship.

Technically, there is no minimum capital for commodity trading.

How do I start trading commodities? First, choose from 35 commodity markets, or commodity-linked stocks and ETFs. Next, decide whether to speculate on market prices by going long or short. And finally, you'd need to open a live account with a provider who offers commodity trading.

Postsecondary Training

The vast majority of brokers have a college degree. While there is no "commodities broker major," you can improve your chances of obtaining a job in this field by studying economics, accounting, finance, or business administration while in college.