1. Your Questions About Commodities Broker
Chris asks…
Commodities broker?
How can I become a Commodities broker, where can I get the training & education so I know
all about Futures and Options to be a sucessful broker?
Steve Winston answers:
I suggest you start by learning about futures and options trading from some of the better books
on the subject. One of the best is "Options, Futures, and Other Derivative Securities" by John C.
Hull. This is an advanced text, any you may want to start with some lower level books first. I
also suggest if you to not have some background in statistics and basic calculus you will want to
get some texts on those subjects.
One book I consider "must read" is "Options Volatility & Pricing" by Sheldon Natenberg.
Before becoming a broker you will also need to take appropriate license examinations, such as
the Series 3 exam for "Futures and Commodities". There are special preparation courses for
these exams, if you are interested, such as the one at
http://www.aitraining.com/series3.htm
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2. Steven asks…
How to become a stock/commodities broker?
I know someone who is into commodities and he does VERY well. He worked on wall street.
Anyway. If I want to become a stockbroker, how would I go about doing it? I want to go to
college. What IS a commodities broker anyway?
Are there any other types of "broker's"?
Which make the most.
I know these questions are really vague but can someone please try and shine some light on
this for me. Thanks.
Steve Winston answers:
A broker is someone who makes a commission off of someone else's buying and/or selling. Of
anything - stocks, commodities, real estate.
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3. With regard to financial brokers and the advent of computerized trading, there is much less
need to call a broker and tell him what do to (or ask for advice). Commissions are a fraction of
what they used to be. And the value of brokers is diminished as the investing community is
becoming more self reliant in their analysis.
Btw commodities brokers do the same thing stock brokers do but for commodity futures or
options (usually) instead of common equity shares. Oil or corn or soybean (futures) rather than
company stocks.
A broker differs from a trader, who actually takes positions of risk in buying and selling, a broker
just tries to come up with ideas to get you to trade (more trading means more comissions). The
idea is that it is better to sell picks and shovels than to be the one who prospects for gold.
Watch the movies wall street or boiler room (stocks), and Glengarry Glen Ross (real estate) for
rather jaded views of these professions.
Sandy asks…
where can I find the list of India's top commodities broker?
I run a little commodities office and I want to change my current broker. So want to study top
commodities brokers in India. Plz help.
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4. Steve Winston answers:
Dear reader,
Its really easy.
Every top stock broker is now member of MCX & NCDEX.
You can join them.
The only note from me is: Commodity market is in dormant stage, & is operated by few people,
better if you stay away from it, see recent Silver rally & fall down for proof.
John asks…
Can anyone tell me what is a commodities broker and what they
do please?
I saw a job posting to be an Broker Assistant and to learn commodities.
Thank you
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5. Steve Winston answers:
There very similar to a reagular broker.
Maria asks…
what is a Wall Street commodities broker?
What does a Wall Street commodities broker do ?
Steve Winston answers:
Commodities and futures are not traded on Wall Street.
They are traded at the Chicago Mercantile Exchange.
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6. Ruth asks…
How do I check if a commodities broker is reputable?
How do I tell if they are licensed and when they were licensed? Is there a website or something
that can do a kind of background check? Thanks.
Steve Winston answers:
The CFTC governs the commodities brokers
http://www.cftc.gov/
Here's a good comparison of brokers
http://www.clarkfinancial.com/comparison.html
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7. Mary asks…
I want to start a new carrer as a commodities broker?
....can anyone offer any POSITIVE advice on this career path?
I have a Finance degree and several years of finance experience.
Steve Winston answers:
I've known several commodities brokers, but not because I was a client. My father was one. It's
not so much about the money and commissions, as it is the trust and your knowledge of the
markets. You really have to chart progress, be able to give solid advice, realize trends, read the
news, watch the weather. Yes, the weather. If you have people in corn future commodities, you
have to know what the weather's like in Russia and Argentina and such to see whether they
might be going up or down. The riskiest are the metals because nobody can predict those.
It can be stressful, but the most positive aspect is that you know you are working FOR clients
first, not yourself. A lot of people have their life on the line by taking the risk. When they do well,
you will do well.
Good luck in your endeavor, I was a straight A in Ag Commidities Trading, and am still good at
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8. predicting, but I'd never do it for a career.
Lizzie asks…
What does a Stock / Commodities Broker Earn?
I'm being recruited by a local brokerage to broker oil. They're offering me a 25% split on
revenues, moving up to 40% as production grows. What is standard for this industry?
I am currently brokering a different product (will keep it hush for now) so i wouldn't be bringing a
book of business with me... Really looking for an industry average for revenue splitting...
THANKS GUYS
Steve Winston answers:
I dont know exactly, but I have a family friend who retired from that business. They are
extreamly wealthy. I dont know if the money was from family or from the job. Maybe both. But
he was no dummy and they were very wealthy. Good luck.
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9. David asks…
I am looking to find my commodities broker. Do you know how i
can find him?
his name is maximilan schacter can you tell me how to locate him. His last location 10 yrs ago is
west palm beach fl. i'm looking to invest again.
Steve Winston answers:
If he's a currently registered commodities broker, you should be able to find him on
http://www.nfa.futures.org. Simply click on the BASIC tab at the top right of the page and enter
his information in the search function.
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