Commodity brokers do trading for the company they are employed with. In commodity trading firms there are certain people who conduct actual transactions and face brokers. They determine the prices and quantity to be bought or sold using hand signals. Then there are desk traders who are supposed to keep track of prices that keep changing and send instructions to exchanges in different parts of the world and to floor traders as well.
Being a commodity trader, you need to speculate the price of a commodity at a specified date in future. Traders are continuously in touch with their clients and on that basis commodities are bought and sold. Brokers work for long hours under pressure situations. This is because due to different time zones the commodity markets are always open in some part of the world.
The work environment of commodity trading is different each day. Every day is a new day as the market is volatile. To be a commodity trader, you need to be a very confident and an assertive person who can make quick decisions. You must also possess market research and analytical skills. Commodity trading firms also have a dedicated department that does just market research and analysis.
To be a commodity broker, you need to have a license that can be obtained by registering with the National Futures Association (NFA). There are certain exams that need to be passed that include the Series 3 examination. This will test your knowledge about all key aspects of commodity trading.
Once you pass the test, you need to fill out an 8-R form. This form covers all important details about your life history, residential history, criminal history, if any, and disciplinary actions taken against you if you happen to have a license for other financial jobs.
Commodity trading does not happen in stock brokerage firms. Being a commodity trader is an excellent profession for those who are really interested in it. In terms of education, you must possess a degree in accounting, economics, mathematics or any other related degree. Formal education however is not a compulsion but definitely gives one an extra edge. With experience, one can close profitable deals.
The initial couple of years can be a little difficult when it comes to commodity trading. However, if you are able to sustain the initial few years this can be a very rewarding profession.
You must register at a Trading Jobs portal to find a suitable commodity trading job. You must ensure that the job site is reliable and your resume is professional. Apply for all suitable commodity trading jobs and follow-up promptly. Best of luck in your search!