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Becoming a commodity trader is a very important decision that one may make in his or her life due to the extensive study and requirements that the position holds. To become a commodity trader, one must take a series 3 licensing exam, which covers a number of aspects involved with trading futures and investing strategies. By passing this test, one will receive his or her license to trade commodities, which will help him or her get a job with a commodities firm. As a commodity broker, one will be able to make a very lucrative living in the area of trading things such as oil and other futures.
Requirements
Just like any other job, there are certain requirements that one must meet in order to find employment as a commodities trader. The first step is to take the test required by the National Futures Association. This organization will administer the test through a third party in which the test taker must know detailed information about trading commodities and futures in general. After passing the test, one must submit an application that details their last ten years of employment and five years of last known addresses. This form is called the 8-R and is a must for licensure as a commodities trader. This form will also list any criminal history or disciplinary actions that have be taken by former employers.
Looking for Careers
When you have passed the licensing test and completed your 8-R form, you can then become employed as a licensed commodities trader. Most commodity companies are in the cities of Chicago and New York, which may require relocation. Commodity traders are not generally a salaried position and revolve around commission. However, there are some brokerage houses that will offer a small salary and a large percentage of the sales. Starting salaries are said to range from $35,000 all the way to six figures, but one should keep in mind that those making larger salaries are highly successful. In order to become successful as a commodities trader, one must gather a large clientèle and manage their investments wisely as this will keep them financially satisfied with their gains.
What else can I help you with?
What company in South Carolina is the best commodities trader?
First, learn about the commidities markets: http://en.wikipedia.org/wiki/Commodity_market . Then read this article about becoming a broker: http://commodities.about.com/od/becomingabroker/a/broker_how.htm
What is the difference between a stock or commodity broker and a stock or commodity trader?
A Trader is someone who buys/sells stocks or commodities. A Broker is one who helps the trader in his buying/selling
What should I study in college to become a commodities trader?
A degree in finance, economics or business would come in handy if you are planning to become a commodities trader. Even without one, if you have a fair idea of the commodities market, the basics underlying commodities futures, and have someone to show you the ropes, you can start working and keep learning from experience as you go along. In addition, you would need a licence for which you can check the state specific requirements.
Where may one learn about copper futures?
To learn more about copper's future you can talk to a commodities trader or an investment trader to get their opinion on how the price of copper will fare in the future.
How long does it take to complete a commodities trading course with a diploma?
There is no commodities training course specifically required to be a commodities trader but commodities traders need a bachelor degree in commerce, accounting, business, finance, or economics. The coursework for these degrees can take 3 to 4 years full time.
What are the negative effects of foreign trade?
there is a rise in speculative activity in case of essential commodities in which a small trader suffers.
What is the role of commodities traders?
The role of a commodity trader is to buy or sell commodity contracts on behalf of clients and then later charge them a commission for their service. A commodity trader can work as an individual or with a firm.
What do they write about at the Commodity Trader website?
On the the Commodity Trader website the writers create discussion topics on futures trading, Forex and stock trading. These are the popular topics that engage people and educate them on the trading commodities.
What has the author Victor Sperandeo written?
Victor Sperandeo has written: 'Trader Vic on Commodities' -- subject(s): Business, Finance, Nonfiction, OverDrive
What college degree is best for becoming a stock trader?
I would recommend a masters degree.
Where can I get advice on commodity trading?
You can get advice on how to get started in commodity training on the website wallstreetdaily.com. On this website, there is an article titled Commodities 101: Tips and Tricks from a Former Exchange Floor Trader. In this article, they tell you the basics that you need to know and how to get started trading commodities.
What qualifications do I need to become a commodities trader?
If you want to become commodity trader and trade for yourself then you do not need any qualifications, by law. To become successful commodity trader you need much more than educational qualifications. Strong financial backing, complete knowledge of market and risk taking capacity are very necessary.
