What does a commodity broker do?
Commodity broker responsibilities
Here are examples of responsibilities from real commodity broker resumes:
- Manage and execute physical/financial grains book as well as base metal arbitrage portfolio.
- Trade on the NYFE, CME, and CBOT exchanges.
- Provide research and analysis of prospective exchange trade funds for listing on the AMEX.
- Support the firm's compliance director with records verification pertaining to audits, inquiries, and questions concerning NYSE floor operations.
- Reorganize the UBS NYSE floor structure utilizing state-of-the-art technology and consolidating booth spaces.
- Solicit profitable freight brokerage business by marketing transportation capability via direct sales calls, telephone and direct mail marketing activity.
- Position also works closely with community resources and Medicaid offices in determining program eligibility for client base.
Commodity broker skills and personality traits
We calculated that 17% of Commodity Brokers are proficient in Commodities, Market Analysis, and Risk Management. They’re also known for soft skills such as Analytical skills, Customer-service skills, and Detail oriented.
We break down the percentage of Commodity Brokers that have these skills listed on their resume here:
- Commodities, 17%
Specialize in finding undervalued and/or overbought commodities by using fundamental and technical analysis that exist throughout the markets.
- Market Analysis, 8%
Compiled daily and weekly market analysis reports summarizing market developments
- Risk Management, 5%
Consulted with clients regarding risk management strategies to increase their P&L and leverage their balance sheet.
- Technical Analysis, 4%
Conduct daily market research including technical analysis to identify trends.
- Client Accounts, 4%
Set up and managed client accounts to ensure compliance with established policies and procedures.
- NFA, 4%
Passed NFA (National Futures Association) examination with a 90% rating
Most commodity brokers use their skills in "commodities," "market analysis," and "risk management" to do their jobs. You can find more detail on essential commodity broker responsibilities here:
Analytical skills. One of the key soft skills for a commodity broker to have is analytical skills. You can see how this relates to what commodity brokers do because "to judge the profitability of potential deals, securities, commodities, and financial services sales agents must have strong analytical skills." Additionally, a commodity broker resume shows how commodity brokers use analytical skills: "traveled throughout the united states teaching fundamental and technical analysis to stockbrokers/commodity brokers and individual investors. "
Customer-service skills. Another essential skill to perform commodity broker duties is customer-service skills. Commodity brokers responsibilities require that "securities, commodities, and financial services sales agents must be persuasive and make clients feel comfortable with the agent’s recommendations." Commodity brokers also use customer-service skills in their role according to a real resume snippet: "managed ongoing customer relationships for repeat business. "
Detail oriented. commodity brokers are also known for detail oriented, which are critical to their duties. You can see how this skill relates to commodity broker responsibilities, because "investment bankers must pay close attention to the details of initial public offerings and mergers and acquisitions because small changes can have large consequences." A commodity broker resume example shows how detail oriented is used in the workplace: "collaborated with floor brokers in the negotiation of prices of commodities in the market, specifications and delivery details. "
Initiative. For certain commodity broker responsibilities to be completed, the job requires competence in "initiative." The day-to-day duties of a commodity broker rely on this skill, as "securities, commodities, and financial services sales agents must create their own client base by making “cold” sales calls to people to whom they have not been referred and to people not expecting the call." For example, this snippet was taken directly from a resume about how this skill applies to what commodity brokers do: "provide sales/marketing support for business development initiatives that encourage progress towards critical goals of the organization. "
Math skills. Another crucial skill for a commodity broker to carry out their responsibilities is "math skills." A big part of what commodity brokers relies on this skill, since "securities, commodities, and financial services sales agents need to be familiar with mathematical tools, including investment formulas." How this skill relates to commodity broker duties can be seen in an example from a commodity broker resume snippet: "analyzed financial markets and processed quantitative and qualitative information and vast arrays of data. "
The three companies that hire the most commodity brokers are:
- GROWMARK2 commodity brokers jobs
- C H & S Inc1 commodity brokers jobs
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Compare different commodity brokers
Commodity broker vs. Energy derivatives trader
The foreign exchange market is volatile and influenced by numerous factors. A foreign exchange trader considers these factors and utilizes them in their favor. They typically take care to predict misvaluations of currencies accurately. They act on the conclusions reached from their analysis and either buy or sell assets in different markets. This position requires diligence and patience.
These skill sets are where the common ground ends though. The responsibilities of a commodity broker are more likely to require skills like "market analysis," "risk management," "client accounts," and "nfa." On the other hand, a job as an energy derivatives trader requires skills like "python," "interest rates," "p/l," and "fixed income." As you can see, what employees do in each career varies considerably.
Energy derivatives traders tend to make the most money working in the agriculture industry, where they earn an average salary of $116,251. In contrast, commodity brokers make the biggest average salary, $89,520, in the finance industry.On average, energy derivatives traders reach higher levels of education than commodity brokers. Energy derivatives traders are 10.6% more likely to earn a Master's Degree and 0.5% less likely to graduate with a Doctoral Degree.Commodity broker vs. Futures trader
Options traders are financial experts who work for large investment banks or private hedge fund companies to buy and sell stock options as well as manage complex capital investments for clients. These traders are required to create options contracts and develop forecasting models so that they can determine the optimal price to buy an option to maximize profit and minimize risk. They must assist head traders with client services to allow more trading revenue production. Options traders must also employ risk management strategies to minimize portfolio risk and increase their volume in trading.
In addition to the difference in salary, there are some other key differences worth noting. For example, commodity broker responsibilities are more likely to require skills like "client accounts," "nfa," "cold calls," and "client relationships." Meanwhile, a futures trader has duties that require skills in areas such as "financial data," "equity futures," "r," and "market making." These differences highlight just how different the day-to-day in each role looks.
On average, futures traders earn a higher salary than commodity brokers. Some industries support higher salaries in each profession. Interestingly enough, futures traders earn the most pay in the finance industry with an average salary of $116,582. Whereas commodity brokers have higher pay in the finance industry, with an average salary of $89,520.In general, futures traders achieve similar levels of education than commodity brokers. They're 3.9% more likely to obtain a Master's Degree while being 0.5% more likely to earn a Doctoral Degree.Commodity broker vs. Foreign exchange trader
Some important key differences between the two careers include a few of the skills necessary to fulfill the responsibilities of each. Some examples from commodity broker resumes include skills like "commodities," "risk management," "client accounts," and "nfa," whereas a foreign exchange trader is more likely to list skills in "manage risk," "foreign exchange products," "foreign currency transactions," and "swaps. "
Foreign exchange traders make a very good living in the finance industry with an average annual salary of $118,788. On the other hand, commodity brokers are paid the highest salary in the finance industry, with average annual pay of $89,520.When it comes to education, foreign exchange traders tend to earn higher degree levels compared to commodity brokers. In fact, they're 6.3% more likely to earn a Master's Degree, and 0.3% more likely to graduate with a Doctoral Degree.Commodity broker vs. Options trader
Even though a few skill sets overlap between commodity brokers and options traders, there are some differences that are important to note. For one, a commodity broker might have more use for skills like "commodities," "market analysis," "risk management," and "client accounts." Meanwhile, some responsibilities of options traders require skills like "fx," "training programs," "stock options," and "stock market. "
The finance industry tends to pay the highest salaries for options traders, with average annual pay of $118,188. Comparatively, the highest commodity broker annual salary comes from the finance industry.In general, options traders hold similar degree levels compared to commodity brokers. Options traders are 3.0% more likely to earn their Master's Degree and 0.1% less likely to graduate with a Doctoral Degree.Types of commodity broker
Updated January 8, 2025
