Learning how to become a smart commodity broker
If you want to become a commodity broker, you must develop the skills to buy and sell commodities. Commoditybrokers bring buyers and sellers togetherin commodity markets. These traders sell and buy oil, sugar, beans, coffee, gold, rice, fruits and other commodities. A commodity is anything that you can buy or sell. Simply put, it is also something that you can use or something that has value. Commodity brokers receive a commission when buyers and sellers agree to the terms of a contract.
According to the United States Department of Labor, the median salary forcommodity brokers was $70,190 per year in 2010. The median hourly pay was $33.75 per hour in 2010. As a commodities broker, you will be offering advice about buying and selling commodities.
You must call sellers that have commodities for sale. Then, you must find buyers that want to purchase the commodities. Help the buyer and the seller agree to a price and you receive a commission.
In order to succeed, you will have to enjoy makingcommodity trades. Brokers must learn how to work long hours and handle stress. You should also be a good listener, and work well with numbers and computer programs. Also, you should be able to interact with clients and close commodity deals quickly.
Most commodity brokerage firms hire individuals with a bachelor's degree for entry level positions. It is important to have college course work in finance, economics, business and accounting. If you have a Masters of Business Administration degree (MBA), it will improve your chances for advancement.
There are many ways to receive training that will help you become a commodities broker. Employers do offer on the job training for entry level commodity brokers. However, you can perform volunteer work at a commodity firm for a few months to find out what this business entails. Try to conduct at least ten interviews with successful brokers and take notes. Use theNational Futures Associationas a commodity broker training resource.
Some commodity brokers might have topass the Series 3 licensing examination. There are two parts to this exam. The first part tests you on your understanding of orders, options, future contracts and basic commodity market knowledge. The second part of the exam will test your knowledge about the rules and regulations in commodity trading. If you pass the test, you will earn the designation - Associated Person. You can obtain additional information about licensing requirements by contacting the Financial Industry Regulation Authority (FINRA).
Certification is not always a requirement to become a commodity broker. However, it can enhance your career. Brokers can learn how to become a certified commodity broker by contacting their secretary of state's office.
Clearly, there is always room for advancement in commodity brokering business. Like all other jobs, you have to be good to move up the ladder. Basically, you will be a salesman. If you treat your clients fairly, you will make a good living as a commodity broker. To dine with the classes, commodity brokers have to sell to the masses.
