Energy Trader - Career Insights

Goals

To have an understanding and overview of the energy trader's career by identifying similar job titles, the role's scope, responsibilities, typical qualifications, compensation, and typical career path.

Early Findings

Similar Job Titles

Compensation

  • The national average wage for an energy trader in the United States is $106,536 per year. An energy trader's average hourly wage is $51.81. The annual salary can go as low as $61,000 and it can go as high as $170,000. The annual salary varies depending on the company.
  • For example, the annual salary of an energy trader working in Shell ranges from $91,000 to $113,000 while the energy trader who works in Southern California Edison has an annual salary of $143,554.

Scope and Responsibilities

  • Energy traders act as brokers between sellers and buyers of energy commodities on an exchange. The energy trader "trade futures, which are a contract to purchase some asset at a future time." The asset is typically some amount of natural gas, oil, or liquid gas.
  • Similar to a stockbroker, the responsibilities of an energy trader "include tracking commodity prices, predicting market trends and changes, and making informed decisions on what purchases or sales will make the most profit." It is crucial that commodity traders are up-to-date with research and news in the field.

Typical Qualifications

  • One of the typical qualifications to become an energy trader is a bachelor's degree. According to Zippia, "it's impossible to become one with only a high school degree or GED." Also, almost half (41.6%) of energy traders have a master's degree. Some energy traders also have a doctoral degree.
  • The bachelor's degree has to be related to finance or a similar field. One also needs to pass a required licensing. A master's degree is not required but many employers prefer one who has it. One also needs to have studied an energy-related field. Strong interpersonal and negotiation skills would also be crucial. The series 3 exam from NFA is also required "to trade any commodities on an exchange."

Typical Career Path

  • Most energy trader jobs also require experience as a trader. Many energy traders had previous career experience in equity trading or had trading internships. One can start as an equity trader before becoming an energy trader.

Summary of Early Findings

  • We have provided an overview of the energy trader's similar job titles, compensation, scope, responsibilities, typical qualifications, and typical career path.
  • We have found other relevant information and details that may also be helpful in understanding and learning more about the career of an energy trader but we didn't have enough time to write about it. These include a typical day in the life of a day trader, salaries of energy traders in different companies, top energy trader employees, best states to work as an energy trader, top skills for an energy trader, and top colleges for an energy trader.

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