Be a commodities trader

any insightful info on the on average how much commission can 1 earn in a year?

[CommodityTraderSingapore]

Most of the time it is discretionary because of varies reasons. For example, if you do arbitrages, should the profit sit on the supply source or the outlet?

But as a guide, commissions are typically below 15% of individual profit, after factoring for overheads.

Originally Posted by CommodityTraderSingapore

Most of the time it is discretionary because of varies reasons. For example, if you do arbitrages, should the profit sit on the supply source or the outlet?

But as a guide, commissions are typically below 15% of individual profit, after factoring for overheads.

I am new to the industry, not sure of my future outlook to make the switch to become a broker/trader...

after deducting the overheads do you think it is still worthwhile? monetary terms?

[CommodityTraderSingapore]

Compared to most industries, yes. The reason being, there is high leverage in this job.
One person's decision is responsible for moving hundreds or even billions of dollars of cargo. So if you make, you make big, else you lose big too.

Any job that has high responsibilities will come with high stress but also high payout. It applies to all industries/roles.

How about Rubber industry is it a good business to be in. I was invited for an interview in a CN commodity trading startup firm for junior trader, based on the JD it seems there are a lot of liaison with customer and supplier with very little mentioned about physical trading and futures trading.

Originally Posted by Unregistered

Looks like the commodities line is quite quiet or lacking interest. Maybe i post some salary related information and people might get more interested to join. My history has always been in physical commodities with some paper experience.

I started 7years ago as operations assistant in a metals company. Salary 3k. Promoted to junior trader just before i left after 1 year. Slight increment to 3.2k.

Jumped to agriculture sector as junior trader and annual increment exercise salary went up to 3.85k. This is at yr3.

For Yr4, i left the commodities industry for personal reasons and didn't do much work actually. Did my own thing and see more things around the world.

Yr4, i came back into the industry after realising i still love the industry. I got this opportunity through a recommendation. 5.6k.

Yr5, internal increment as did well 7k. Then nearly got poached to go into my previous sector. Discussed nicely with my boss my situation. 10k.

Yr6, still 10k. Left the company after having differing opinions on work with new bosses

Yr7, started in new company 12k.

Above just base salary only.

I realised once i hit about 5-6k. I was contented already. I didn't spend necessarily more when i earned more after that and didn't really need to work for the money. Just worked for enjoying it and love the challenge. Drive a simple car for family use. Can afford some luxuries once in a while. Give more to charity and to church. So pretty happy.

I have been deeply blessed to rise up like that although yes i know there are others better than me but more important is i'm contented with what i have and plan to give more as i earn more as really don't need it. There are still alot of poor and struggling people in Singapore so i donate to charities who target these groups mostly.

Cheers

This is the only useful post in the whole thread.

[CommodityTraderSingapore]

Originally Posted by Unregistered

How about Rubber industry is it a good business to be in. I was invited for an interview in a CN commodity trading startup firm for junior trader, based on the JD it seems there are a lot of liaison with customer and supplier with very little mentioned about physical trading and futures trading.

If done right, any business is a good business to be in. But the commodity business is getting very competitive now, so unless your start up has a very good competitive advantage, it will be hard to compete with the big boys.
Physical trading is about customer and supplier liaison, the paper supports the physical and depending on the business model, you might not even need futures to help make money from your physical flow.

So my suggestion is to find out the competitive advantage that your start up has and how valuable that is. For the rest, you can figure out later on when the company takes off.

Noble Global Associate Program, 2015
s://.linkedin.com/jobs2/view/11932123

I recently received an offer as trader trainee, in a metal trading firm. The firm has its own mining plant. Quite a SME management style but listed company. They offered 2.5 with 6mths probation, there will be increment after confirmation but I doubt will be much.
Is that industry standard, and are generally traders have high increment?

[CommodityTraderSingapore]

Traders are paid their worth. As an entry level staff, you really do not have much bargaining power. Slog it out and create your worth. Compensation will follow.