Table of Contents
How do I start trading in physical commodities?
You can start trading commodities by opening a brokerage account and purchasing shares in the commodity-specific company of your choice or a commodity ETF after you have done your research and determined the specific investments that are right for you.
How do I start a commodity brokerage business?
To summarize, to open an IB firm, you will need to pass the Series 3 Exam and arrange for all proper registrations with the NFA. You will need to choose and agree to terms with an FCM for clearing trades and handling the accounting and client statements.
Do commodity traders make good money?
Online trading has decreased broker commissions for commodity traders. Even a mediocre trader can earn up to $70,000 per year with enough business. Top tier traders have both excellent sales and trading skills. These traders can earn six or seven-figure incomes each year.
Which timeframe is best for commodity trading?
One to two hours of the stock market being open is the best time frame for intraday trading. However, most stock market trading channels open from 9:15 am in India.
How hard is it to start a career in commodity trading?
You know that starting a career in physical commodity trading is HARD. Being in Geneva and having a healthy network, I can tell you that the big ones receive between 500 to 800 CV per opening for junior level job. Hard to stand out ! You’d better sharpen your saw as soon as possible.
What is physical commodity trading/merchandising?
Physical commodity trading/merchandising is about moving raw material from the area of production to an area of consumption. Even if the paper side is the one under the light, the backbone remains the physical side. The producers use the future markets to hedge their production, while the end-user use to hedge their purchase.
What degree do you need to become a stock market trader?
Being a graduate is sufficient for getting a trading job, but with the growing competitions, you will be a much-preferred candidate you have financial degrees like CPA, CFA , and MBA. Since trading is all about math and statistics, therefore, candidates who have done postgraduate or doctorate in mathematical and statistical fields.
What is the career path of a trader?
In any career in trading, one begins as an intern in any financial organization and then moves up to the level of an assistant trader and then subsequently to the position of a senior trader.