Futures Commodity Broker: Prospects are traders who have some experience in trading commodities such as corn, oil, wheat and gold. They buy products and sell them directly to individual clients. They have to divide their time between contacting potential customers and actually doing business to build their own clientele. While some commodity brokers conduct auction-style trading on an exchange, others buy and sell commodities online.
For those interested in commodity futures trading, the following chart provides some important career facts.
What do sellers of potential items do?
You can help buy and sell futures contracts, currency options and commodity options as a futures trading brokers. Depending on your licensing level, you can help, solicit, or take money and other assets from customers to make purchases. As a rule, you focus around a specific type of merchandise, so you can strengthen the main areas of strength in that particular industry and strengthen your insight factors that affect that item.
What kind of training or education do I need?
A bachelor’s degree in business, finance, economics or accounting is usually required to be competitive in the financial industry, despite the fact that it is not required to enter the field. A Master of Business Administration can also help you advance professionally. In addition, businesses often offer on-the-job training. Mostly, this training focuses on specific products and services of the company. Your company may require you to train in various departments to fully understand operations.
What licenses do I require?
The Financial Industry Regulatory Authority (FINRA) administers the National Commodities Futures Examination (also known as Series 3) as a prerequisite for entry into the field. You can take this test after you have worked for a registered securities firm for at least four months. You can pursue specialized licensing to sell specific services, and many states require you to pass additional tests.
You may also need to take the Futures Managed Trust Test (Series 31) and Branch Manager Test (Series 30) to progress in this area. In addition, you must be registered with the National Futures Association and continue with advanced education courses and seminars to update your industry knowledge.
What are the job prospects?
The median salary for securities, commodities, and financial services traders, including commodity futures brokers, was $64,770 in 2020, according to the U.S. Bureau of Labor Statistics (www.bls.gov). The work of protection specialists, monetary administration products and trades should become 4% somewhere between 2020 and 2030, with the item’s business development facilitating it to be one of the fastest growing positions in the industry. As the number of applicants in this industry continues to exceed the number of vacancies, it will continue to be a highly competitive field.
What other careers are related to this career?
As a broker, you can choose to buy and sell securities rather than commodities. In this position, you would buy and sell bonds and stocks, either on the stock exchange or online. The minimum education requirement is to have a bachelor’s degree. The position of investment banker is another job opportunity in the financial sector. Their responsibility is to connect financial supporters with organizations that need credits to help with tasks or extension work. Most investment bankers, like brokers, have at least a bachelor’s degree.