What is the commodity broker doing?
commodity brokers usually act as agents responsible for making purchases and selling commodity futures and options. They routinely create shops for individuals, companies or even for their own accounts. Generally, these brokers are employed in brokerage companies, work on the trading floor of stock exchanges or act as independent. When acting as a middleman named others, brokers are usually paid a fee or commission. There are basically two types of brokers: discount brokers and brokers with full service. On the other hand, full service brokers together with shops can also serve as advisors to trade commodities to their customers. They can also provide a wide range of other services, including recommendations for market and trade exploration. First of all, the brokers must be available to accept orders and carry out shops. When orders are fneedo, they must immediately communicate specific information regarding completed orders to their clients.
many brokers with complete serviceIt informs me of its customers about any relevant reports that could affect customers' business positions. Monitoring and maintaining financial information, such as account balances and other relevant data, is also included in tasks generally performed by commodity broker. In order to work on the floor of commodity exchanges, the commodity broker must have membership on the stock exchange.
Most brokers are employees of brokerage houses that have exchanged membership. It is allowed to trade directly on the floor of the exchange. Many of these mediation houses usually have their own brokers who make shops for the company. When the company brokers receive orders from the general public, these applications are handed over to the floor brokers of the Company who in the business pit.
Other categories of brokers, known as the introduction of brokers, are operated by their own companies. They trade for their accounts and have a nodThe carcasses they requested for trading. The brokerage introduces their orders to intermediary houses, which will place shops for them. The representative brokers are paid a fee; However, they do not deal with customers' funds.
generally has a commodity broker of university degree. People who develop a solid academic background in courses such as economics, finance and business have a good start when entering this area. The ability to sell, strong research skills and excellent communication skills is also required. Intensive and rapid environment trading with futures also requires the ability to carry out under pressure.
In order to meet the regulatory requirements of state and federal agencies in the United States, the brokers must pass the national commodity test. It is also called series 3 tests. The exam is a measurement of the competence of a commodity broker and includes questions on the market for commodities, business knowledge and business regulations. Registration at the National Futures AssociationIt is also a condition for practicing as a commodity broker. Brokers working on stock exchange floors do not have to perform a test, but they must have a strict training program.