Becoming a Commodity Broker
Working as a Commodity Broker or Opening a Brokerage Firm
Most commodity brokers and traders who have reached some type of success often think about opening their own brokerage firm at some point in their career. The pay is usually much better, but there is also a lot more work and responsibility. Each person has to realize their strengths and weaknesses and weather opening a commodities brokerage firm...
Making a Living as a Commodity Broker
The fact is that many new commodity brokers struggle to make a living. Most new brokers work on a commission basis and some receive a token salary just to pay the basic bills. Getting through the first six months can be painful, but it will take some hard work and talent to make a career as a commodity broker.
Commodity Broker Who Don't Want to Trade
Being a commodities broker has numerous challenges and dealing with stress is on the top of the list. Not only does a commodity broker have to open accounts and raise capital to trade, but he has to manage the accounts in the treacherous commodity futures markets.
How To Open A Commodity Brokerage Firm
The first thing to be done is to pass the Series 3 Exam if you are not a current broker and register as an Introducing Broker with the NFA. There must be at least one Associated Person (AP, commonly called a broker) listed with the firm. If you plan on being a one-man shop, that would be you. There are fees and paperwork associated with the...
Commodity Brokers - Online or Full Service?
Commodity brokers have the option of focusing on an online trading business or a full service business. The margins are much smaller when it comes to online trading, but there is less work and stress. When it comes to full service, the commissions are much higher but a broker has to offer a useful service.
Trading Commodities As A Commodity Broker
Trading commodities is a major part of being a commodity broker. Online commodity trading has become increasingly popular with investors making their own decisions, but demand by new commodity investors to have someone manage their trades will never go away. Therefore, it is important to learn everything you can about the commodity markets and...
Key Features of the Series 3 Exam
The Series 3 Exam for commodity futures broker is a 2 hour and 30 minute exam that covers knowledge on the futures markets and industry regulations. It is a test that you need to study for and we have included the key features of the series 3 exam and some helpful tips for passing the test.
The Good and Bad Types of Commodity Brokerage Firms to Work For
There are good and bad types of commodity brokers to work for. We examine how you can determine whether you are looking at a good or bad brokerage firm.
Becoming a Successful Commodity Broker
Learn the steps that it takes to become a successful commodity broker. You have to open accounts, trade the commodities markets and service your clients.
How to Become a Commodity Broker
Learn the process of what you need to do to become a licensed commodity broker. Areas covered include passing the series 3 test, choosing a brokerage firm and what the job involves.
The Complete AP Handbook
This handbook walks you through the process of becoming a commodity broker and working as a commodity broker. Written by Melinda Schramm and presented by the CME.
Commodity Broker Registration
These are the rules pertaining to registration with the National Futures Association to become a commodity broker.
Study Outline for the Series 3 Exam to Become a Broker
This is an outline of the Series 3 Exam from the National Futures Association, which must be passed for you to become a licensed commodity broker.
Series 3 Prep Courses
The Institute for Financial Markets provides study courses and materials for the Series 3 exam.
Would You Rather Be A Commodity Broker Or Stock Broker?
There is no doubt that the term stockbroker is much more familiar to most people than the term commodity broker. There are also about ten times more licensed stockbrokers than there are commodity brokers. Both brokers do similar jobs, but the commodity broker has a much more specialized profession.
How Much Money Do Commodity Brokers Make?
Commodity brokers are usually paid on a commission basis, which means they get paid a percentage of the commissions from the trades their clients place. Since some commodity brokers are very good and many brokers fail in the first six months, it is very difficult to give an accurate estimate of what a typical commodity broker gets paid.