Many who become commodity brokers do not survive past the first two years. The brokers who work hard and understand what it takes to be successful tend to have long and prosperous careers as commodity brokers. Are you one of them?
Being a commodity broker is not just about trading commodities. You have to be a salesman, a market analyst and you have to provide customer service to multiple accounts on any given day. Some days will be absolutely exhilarating and other days you will just be feeding that soon-to-be ulcer. You have to be always on your toes on the current trends.
First, you need to find out what objective the prospect has in trading commodities. Some are just curious and will never open an account, while a few will already have their checkbook in hand when they contact you. However, most of the prospective clients you will have contact with are serious about trading commodities and it is up to you to give them a comfort level where they will open an account with you.
I highly recommend that you do not hype any markets or fill your prospects with fantasies of getting rich through trading commodities. This will only lead to problems down the road – both legally and the fact that you will have a lot of explaining to do if / when things do not work out.
Make your goals reachable are realistic. Above all else – be honest. Answer their questions and equally explain the opportunities and risks. If the prospects like you and believe you are capable of making money for them, you should be okay in this department.
You should be researching the markets daily. People do not consistently make money in trading commodities without a lot of hard work. Read every book you can on trading commodities and design a thorough trading plan for yourself and your clients. Most importantly, you do not have to make your clients rich overnight. You should be shooting for a respectable annual return.
Remember to use the golden rule and treat your clients the way you would want to be treated. One of the main complaints of commodity brokers is that they don’t keep in touch with their clients. Many clients feel they only get a call when the broker wants something – like placing a trade and generating commissions.
Believe me, a phone call once a week to each client for an account update goes a long way toward your success as a commodity broker. Create a bond with them.
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