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Trading firms are businesses that buy goods which will be resold to its buyers. Trading firms usually have inventories of goods to be resold. Service firms do not have these inventories. Service firms derive their revenue from services which they provide to customers. For example, the revenue of accounting firms relate to fees from conducting audits in organizations. For income statement of service firms, revenue from these services is reported as fees earned (or service revenue). Net operating revenue for service firms is the difference between the fees earned and the operating expense involved in offering the services. If you are interested in trading or you need trading services I suggest you to look at 5markets.com It offers trading services in currencies, commodities and indices, highly competitive trading conditions and superior customer support.

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Q: What difference between trading and service firm?
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