answersLogoWhite

0


Best Answer

Securities and commodities brokers differ in the investments they buy and sell. Securities brokers typically buy and sell stocks, bonds, and mutual funds. Commodities brokers buy and sell futures contracts for metals, energy supplies such as oil, and

User Avatar

Wiki User

13y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is the difference between a securities broker and a commodities broker?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Economics

How can you purchase commodities?

You can purchase commodities through a broker or agents who acts as an intermediary between you and the commodity institutions. This can be done also through the conventional trading platform in Forex as long as the broker offers commodity instruments or securities in their services.


What is the safest way to trade commodities?

The safest way to trade commodities is through a broker. He/she will have a better idea of what is safest.


What is the difference between dealer and broker?

Broker buys/sells securties on his/her clients behalf and dealer buys/sells securties for his/her accounts. 1. A broker is a person who executes the trade on behalf of others, whereas a dealer is a person who trades business on their own behalf. 2. A dealer is a person who will buy and sell securities on their account. On the other hand, a broker is one who will buy and sell securities for their clients. 3. While dealers have all the rights and freedom regarding the buying and selling of securities, brokers seldom seldom have this freedom and these rights. 4. A broker has only a little experience in the field compared to dealers. It has also been seen that brokers become dealers once they get experience. 5. A broker is normally paid a commission for transacting the business. A dealer is not paid a commission, and he or she is a primary principal.


What is a buyer and seller of commodities for profit called?

It depends: are we talking about commodities CONTRACTS, or the commodities themselves? A person who specializes in buying and selling commodities futures and options is a commodities broker. Someone who buys and sells the physical good--lumber, wheat, whatever--is a commodities dealer.


How does a securities broker dealer differ from a registered investment advisor?

A broker-dealer is allowed by industry regulations to make money on commissions, if acting as a broker, and mark-ups, if acting as a dealer. Registered Investment Advisors are not allowed to charge commissions and to hold inventories of securities; and earn their income from advisory fees. Such fees are commonly calculated based on total value of assents under management. Investment advisors usually have close associations with broker-dealers, which allow them to execute transactions on clients' behalf instantaneously. Very frequently a broker-dealer can be a registered investment advisor and vice versa.

Related questions

How can you purchase commodities?

You can purchase commodities through a broker or agents who acts as an intermediary between you and the commodity institutions. This can be done also through the conventional trading platform in Forex as long as the broker offers commodity instruments or securities in their services.


How does the role of a dealer differ from that of a commodities broker?

In contrast to the broker's role as an agent, a dealer acts as a principal in relations with customers. This is the only difference between commodities brokers and dealers.


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 is a broker?

A person that deals in commodities.


What is the Difference between brokerage and commission?

difference between broker and commission agent


Difference between broker and jobbers?

The difference between a broker and jobbers is the role that they play in the buying and selling of stocks. A broker is hired by an investor to buy and sell stock for them. A jobber ensures that when the broker wants to buy or sell, that there is someone lined up for the broker to buy or sell from.


Do you need a license to sell commodities?

You need one to broker them - to arrange deals between sellers and buyers. Some commodities require their sellers to have licenses.


What is the Difference between exchange and broker dealer?

An Exchange is the direct authority where the direct Trade execution happens and where as the broker dealer is a service offered by the Sell Side firms to their Clients (Buy Side, Hedge Fund) in trading the Securities by acting as a medium with the Exchanges and charging the commissions is return


What is the safest way to trade commodities?

The safest way to trade commodities is through a broker. He/she will have a better idea of what is safest.


A is a person who buys and sells securities for client?

A Stock Broker.


What is the role of a stock trading broker?

A stock trading broker's role is to buy and sell stocks and securities on behalf of someone else for a fee. A stock broker must have a professional designation depending on what securities they are selling and what services they provide their client.


What is the total cost and is there a difference in supervised Mort Broker and Mortgage Broker?

I think there was no difference between supervised Mort Broker and Mortgage Broker. from the following link you can get the information about total cost of Mortgage Broker au.pfinance.yahoo.com/home-loans/features/online_homeloans/index.html