Commodity brokers

Commodity brokers are individuals or companies that charge clients a fee for their services of buying and selling of commodity contracts on behalf of them. Basically commodity brokers are intermediaries between buyers and sellers. Brokers must be licensed to be able to perform the duty. They offer a wide range of derivatives like livestock, metals, currencies and financial commodities.

Some brokers are called introducing brokers, floor brokers, commodity pool operators and futures commission merchants. Providing investments advice and market recommendation to clients, interpreting market reports and liaising with transport, shipping and insurance companies,is part of commodity brokers’ job description.  Brokers have the ability to reach the large possible base of buyers. Insurance brokers are largely associated with indemnity insurance (property, cars etc.) than non-indemnity insurance (life insurance). Metal brokers help make good quality orders for clients in another country or region then route them to the client or where the client wants them to be delivered to. They provide a commission structure that enables one to compare with other brokers. Intermediaries help buyers to analyse quality and quantity of a commodity being sold or bought then advise whether the price is reasonable or not.

Commodity brokers have a trading platform that places and executes trades electronically at the exchanges. Import and export agents help companies buy and sell in foreign countries with ease. Difference between stockbroker (individual professional) to stock broker (brokerage firm) must be noted as some people confuse these two.

To find more about commodity brokers, browse our Yellow Pages listings.