Commodity brokers can either be individuals or firms that provide help to traders when it comes to the buy and sale of commodity contracts over a predetermined fee or commission. They should be registered to a regulatory authority in your respective country. In the United Kingdom, the regulatory body is the Financial Conduct Authority. They are the ones who are responsible for overseeing the commodity brokers in the country. As for South Africa, they have the Financial Sector Conduct Authority (FSCA) of South Africa that regulates the activity of commodity brokers. In Germany, they have the Federal Financial Supervisory Authority (BaFin) that constantly regulates the activities of commodity trading.

Tips When Choosing Commodity Brokers

Finding the best commodity brokers is the first challenge that you have to undergo to succeed in your chosen investment. When it comes to choosing the right broker, there are several things to consider, including the type of broker to deal with.

Introducing Broker

This broker, individual or firm, doesn’t hold into the fund of the client but through FCM instead.

Floor Broker

These types of commodity brokers do trading on the exchange floor in the name of the client or trader. The broker will then be paid commission for it.

Futures Commission Merchant

FCM holds the client funds just like the relationship between a broker and a dealer.

Commodity Pool Operator

They are equivalent to a mutual fund. They operate under the strict advice of CTA.

Checklist Of A Reputable Commodity Broker

• A reputable commodity broker needs to have at least two years of experience and a history of trading commodities and Forex Trading.
• Your commodity broker needs to have at least 15 customer support representatives to answer your questions and respond to them as soon as possible.
• A reputable commodity broker needs to be regulated by the regulatory body of a certain country. This ensures that they don’t misbehave and avoid bigger disputes in the future.
• A reputable commodity broker can process deposits and withdrawals within 2 to 3 days. This aspect is very important when a trader withdraws their funds.
• A reputable commodity broker needs to have an international presence in different countries from all over the world. This should also include training and local seminars.
• Communication is the key to a better relationship between a broker and a trader. A reputable commodity broker should be able to communicate with you in your local language. They should hire people from different parts of the world to respond to their customer’s needs as soon as possible.

If you are a new commodity trader, you may have lots of questions to ask, and good communication among customer service representatives should be of great help. Things such as installation assistance, upgrading, training, troubleshooting, or even cancellation of the service can be addressed properly through the help of representatives from your commodity trading firm or Forex Trading.

Additionally, customer service should also support live chats, phone calls, and emails for more efficient communication. There are already a lot of brokers nowadays that support languages such as Japanese, Danish, Chinese, Afrikans, German, Dutch, and English.