How to Find a Good Commodity Broker
Finding the Right Commodity Broker
Not all commodity brokers are created equal. There are many who are very young and inexperienced. This isn’t always a bad thing, but you want to use a broker who exhibits knowledge, skill and success. This can be measured through discussions with the broker and reading his market commentary or watching any interviews the broker might have on...
What is a Commodity Broker
A commodity broker typically refers to the person who places commodity trades on behalf of his clients. The term commodity broker is also synonymous with the brokerage firm that handles commodity trades. For registration purposes, the brokerage firms are designated as Introducing Brokers(IB) or Futures Commission Merchants(FCM). The...
What is an Introducing Broker
An Introducing Broker (IB) is an industry term for a commodity broker or futures broker. In essence, an introducing broker is a brokerage firm that deals directly with the client, while the trade execution and back office work is left to the Futures Commission Merchant (FCM) - commonly known as a clearing firm.
Do You Need a Local Commodity Broker
There was once a time when investors would go down to their local stockbroker’s office to place trades. Those days are long gone for most people, as a handshake is no longer required to do business for the majority of traders. Placing trades over the phone or electronically has become the accepted way of doing business for decades.
Another Step for Checking Commodity Brokers
Not too long ago, commodity traders thought the only risk to their accounts was themselves. With the recent scandals of MF Global and PFG Best, the safety of one’s money in a commodity account is no longer being taken for granted.
Commodity Brokers - Searching For A Commodity Broker
You will need to search for a commodity broker once you decide to start trading commodities. I have outlined the best places to search for commodities brokers and what to look for.
Avoid the High Pressure Sales Pitch From a Commodity Broker
Some commodity brokers will use a high pressure sales pitch to get prospective commodity traders to open an account. You should recognize the signs and avoid these commodity brokers.
Can You Trust Your Broker After the MF Global Scandal
It is not surprising that confidence in the futures industry, more specifically the brokers, has taken a serious turn for the worse. MF Global was the largest futures broker (non broker dealer). Many of MF Global’s customers were with them because of the security of being with a large firm. If something like this can happen at MF Global, is...
What Clients Expect From Commodity Brokers and What Happens in Reality
Commodity brokers are expected to make money for their clients. What should commodity traders expect from their commodity broker? And how do commodity brokers help their clients - in reality?
Commodity Brokers and Commission Rates
Commodity brokers charge commissions per trade to their clients. How much should you pay a commodity broker in commissions? There are also ways to negotiate your commission rates.
Advantages and Disadvantage of Hiring a Commodity Broker
Most new Commodity Investors will find it beneficial to hire a full service commodity broker to help with their trading education and chance to make profits.
Commodity Brokers Information
CommodityBrokersOnline.com is a site devoted to information on commodity brokers including helpful articles and profiles of 700+ brokers.
Commodity Broker Background Check
You can check the background of commodity brokers and brokerage firms at the National Futures Association. They are the regulatory body in the futures industry.
Financial Information for Clearing Firms(FCMs)
The Commodity Futures Trading Commission produces a regular report containing financial information on all clearing firms(FCMs).
Online Commodity Broker Or Full Service Commodity Broker?
Does a full service commodity broker have an advantage over an online commodity broker? Or, are the lower commission rates with an online commodity broker such a large factor that the savings on commissions far outweigh the benefits of using a full service commodity broker?