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    5 Replies Latest reply on Feb 2, 2010 1:29 PM by tallfantastic

    in and outs of becoming a commidities trade broker

    arakael Wayfarer
      I'm trying to start a business becoming a commodities trade broker with international customers as well as domestic. Getting the leads is proving to be the easy part. Its completing the deal successfully with all the proper paper work (i.e. BCL LOI PO's etc) and not getting stiffed out of your commissions seems to baffle. Can any one help mentor me as to the in's and out's of this type of business. A FEW of my questions are; 1. If I buy from a company say rice and sell to another company and the first company is to ship blind but does not I get stiffed for future deal, how do I avoid this? 2.How do I know when I need a BCL? 3.If I buy from a certain company that does want to dole out commissions how can I purchase from them with out having front money? When & how to use a LOI, CPO, NCND? How to find out if my pricing is comparable?
        • Re: in and outs of becoming a commidities trade broker
          LUCKIEST Guide
          becoming a commodities trade broker, Welcome to this web site.
          Interesting question. Tell us more about yourself. your education and
          why you are starting a business becoming a commodities trade broker??
          Do you have the FUNDS?? How about a Business Plan??
          The more you share, the better we can answer you.
          Good luck, LUCKIEST
            • Re: in and outs of becoming a commidities trade broker
              arakael Wayfarer
              Thank you Luckiest for your help....I am a high school grad from 91. Since then I've work in the construction business and even had my own business for a couple of years. It didn't pan out to well due to lack of advertising and finding quality employees. Funding for my business is one of the reasons for starting this venture....me being a broker (middleman) only need to complete product transferees from one company to the next. example; Company "ABC" in West Africa wants 50,000MT of #2 long grain white rice. I find the sell of such product and quote him my offer (usually CIF but every transaction may differ). Say ABC agrees to my quote I have him send me the $ or I think a bank comfort letter (from 1 of the top 50 international banks I.E. Bank of America) then pay the CO. I got my quote from then have them ship it blind or arrange shipping.
              The reason I chose commodities are the quantities of product are usually large enough to make higher commissions, also I can aquire more leads internationally.
              As for the business plan I'm still writing it, and having trouble, but nothing i wont be able to finger out.
              I contacted a company that teaches you all the ins and outs but they want $8500 for there services (up-front) I sure with my ambition I will aquire all the necessary knowlege necessary to run this business successful.
            • Re: in and outs of becoming a commidities trade broker
              DomainDiva Ranger

              Just because you pay an 8500 fee to learn something does will not give you the experience to be a commodities trading wunderkind.

              Commodities trading requires years of learning and experience. Below is a link that may help. Please think about getting some real education prior to starting this venture, there are tons of rescources on the net.

              http://commodities.about.com/od/understan
              dingthebasics/Understanding_the_Basics_of_
              Commodities.htm