commodity broker
A commodity broker is, strictly speaking, a person who is a member of a commodity exchange and who, in addition to buying and selling for his or her own account, executes orders to buy or sell futures contracts for the clients of member firms. Those member firms are often referred loosely as commodity brokers. The salesperson working for such a firm is popularly known as a commodity broker, but is correctly called a "Registered Commodity Representative" (an "RCR") and is not in fact a broker, strictly speaking. A commodity broker is regulated not only by the exchange of which he/she is a member, but also by the agencies that regulate brokerage firms and their sales personnel ("RCR"s), namely, the CFTC and National Futures Association.
See also
- Commodity
- Commodities exchange
- Single-stock futures
- Commodity market
- Futures exchange
- commodity money
- futures contract
- hedging
- PaperTrading
External links
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