For those who have decided to become a commodity broker, job description of the same unleashes many interesting facts associated with the field of work. Read on to know what all does a job as a commodity broker has for you…
Simply put, an individual who executes orders to purchase or sell commodity contracts on behalf of the clients is referred to as a commodity broker. He sells and purchases commodities such as coffee, oil, gas, sugar, grains, and other materials that can be termed as a commodity. A commodity broker can work in a number of environmental settings such as broking companies, banks, exchanges, etc., provided they’re licensed by the National Futures Association. Between the clients and the market, it is a commodity broker who has the most significant role to play, as it is he who handles updating the clients about the recent market trends, analysis of technicalities, execution of orders, and management of accounts. For this reason, it is never wrong to refer to commodity brokers as the eyes and ears of the customer on the commodity market. A career as a commodity broker can open endless opportunities for you, considering a vast market that awaits your contribution to the market. What follows below is comprehensive information on the job profile of a commodity broker, starting with the nature of work.
Nature of Work
One of the commonest but, indeed, an effective way of combating the rising prices is investment, which has a number of aspects to be taken care of. One such aspect is commodities which is a critical segment of an investor’s investment process. However, with the help of commodity brokers and their specialized knowledge about market trends, investors have it easy with investing at the right place, and earning maximum profits out of it. Such is the nature of work of a commodity broker who acts on behalf of his client, and invests as widely as possible in commodities. His duties and responsibilities involve an assessment and surveillance of the global market, updating his client with the latest news, advising the client on the most lucrative way of investment, and occasional visit to not only local but international suppliers as well. Due to the critical nature of this job, depression and stress often take their toll on commodity brokers. Their work is definitely harder than many others, and with market too prone to fluctuation, they need to pay meticulous attention to every investment as millions of dollars are at stake.
On an average, the median salary of commodity brokers in the United States America lies between $44,000 – $140,000 on an annual basis. But naturally, with increasing experience and understanding of market trends, these salary figures take a hike too. Moreover, the salary of commodity brokers are highly driven by the industry they choose to work in. For example, commodity brokers serving in exchanges earn more than $100,000 annually, while those working in securities and finances earn lesser than $90,000 per annum. Nevertheless, for a beginner in the field of commodities, $44,000 aren’t a bad start at all!
Since it’s all about finance, the minimum qualification for becoming a commodity broker is a bachelor’s degree in finance studies, accounting, business, or economics. A master’s degree in the same is definitely an added advantage. After you’re done with getting the degree in hand, you will have to get registered and licensed as a commodity broker from the National Futures Association (NFA), as stated in the introduction, which is possible only after you get through the Series 3 examination on trading commodities and industry rules and regulations. Before taking the examination, you can enroll for vocational courses in these fields which will help you strengthen your hold over the various aspects of commodity broking. Next, enroll for the Series 3 exam and appear for it. After you pass with distinction, you need to follow the licensure and registration process at the NFA.
For the simple reason that a job in commodity broking is intimately associated with the marketing conditions, during recessionary periods, job opportunities might slump down. However, when market is blooming, people will definitely think of investing more and more, and hence, career opportunities for commodity brokers will witness new dimensions of work. Moreover, the finance and securities industry gives away a lot of benefits, including health care, retirement, life insurance, and many travel opportunities for those employees who work overtime. All in all, for a commodity broker, the job is full of advantages.
In the rich-class economy of United States, every single day, millions of dollars are exchanged for mutual funds, stocks, bonds, and much more. Hence, one of the most significant role in these daily transactions is that of a commodity broker. Job description discussed above clearly explains how interesting and lucrative the career is. If you see yourself working as a successful commodity broker in a reputable firm a few years down the lane, the world of finances and securities waits to embrace you with arms wide open.