The commodities brokerage business might appear to be a thriving industy to many outsiders, but the industry has had many challanges as of late.
In the recent past, the industry has had to deal with the collapse of some large players. The first was Refco, then MF Global and the most recent debacle of PFG Best. The three firms shocked the industry and caused huge headaches and losses for many commodity account holders.
The good news is that the commodity markets have been long-term bull market and they might continue for some time. There are very good opportunities in the markets and the good money managers and brokers should continue to do very well.
The online brokers are getting very competitive as rates continue to drop. It is a tough market for them, but the good firms will continue to do well as long as the markets bring in new investors to commodities.
Many commodity brokers have left the business either because of the competitiveness or they were the victims of PFG. Some traders didn't do well in the high volatility that we saw in recent years. Nonetheless, those who have passion an expertise for commodities trading will continue to thrive and keep the industry moving forward.