Wednesday 1 June 2011

Commodity Brokers

Commodity Brokers are people that are dedicated to providing their clients with the knowledge and guidance needed to succeed in trading the future markets like corn, soybeans, wheat, crude oil, unleaded gas, gold, silver, and many more.
                                     
The term ‘commodity broker' usually encompasses:

•  Floor Broker: Individual broker trading commodity contracts like futures, options and other derivative instruments on the floor of a commodity exchange on behalf of clients.
•  Introducing Broker (IB): An introducing broker is usually a firm that accepts orders from customers to execute commodity contracts traded on an exchange and does not hold customers' funds to margin.
•  Futures Commission Merchant (FCM): Similar to an Introducing broker, FCM also accepts orders to execute commodity contracts traded on an exchange; however, it holds customer funds to margin.
•  Commodity Trading Advisor (CTA): Such firms play a key role in not only providing their expert advice to investors on trading in commodities, they also usually hold power of attorney to trade on behalf of their clients.
•  Commodity Pool Operator (CPO): Acting as per the instructions of CTA, such firms operate commodity pools, which are similar to a mutual fund.
                                             
A discount commodity broker is someone who exchanges products or services that can be duplicated or made by any manufacturer or company and who are members of an exchange that initiates buying and selling by contracts that service the clients of exchange firms. Agriculture and mining products are common articles of trade or commerce in commodities.

There are some well established and experienced commodity market advisory firms that are providing free trial of Commodity tips and commodity trading services to their clients.

2 comments:

  1. Thanks for sharing this great content, I really enjoyed the insign you bring to the topic, awesome stuff!

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  2. Great blog nice n useful information , it is very helpful for me , I realy appreciate thanks for sharing. I would like to read more information thanks.


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