A commodities trader is the salesperson who facilitates the purchase and sale of commodities on the commodities market.
Responsibilities:
- The commodity trader makes bids to buy and sell commodities on behalf of the clients.
- They purchase and sell product and securities futures on the exchange markets.
- They pay close attention to the condition of the market (e.g. trends, prices and the like) so they may both serve as subject matter experts to their clients, and make educated trades.
- They manage accounts for clients and may be responsible for providing financial and investment advice.
- They receive purchase and selling instructions, meeting with other commodities traders to negotiate transactions.
- They provide financial advice, often meeting with clients to plan, review or update an investment portfolio.
Skills:
- The commodities brokers must typically keep a keen eye on the market in relation to product and investment pricing, trends and demand.
- They should also have strong communication and interpersonal relationship skills.
Knowledge:
- The commodity traders are required to possess a four-year degree. Finance and economics are common areas of study. Though a minimum of a bachelor’s degree is recommended, master’s and doctorate degree-holders are not uncommon.
- They should also possess undergraduate and graduate levels include economics or finance, though programs emphasizing agriculture, banking and other social sciences may offer a strong background in specific commodities trading.
- Having practical experience via internship opportunities at brokerage houses and investment firms through a school’s relevant degree program is a plus.
- They must successfully complete the General Securities Registered Representative Examination, commonly called the Series 7, and register with the Financial Industry Regulatory Authority (FINRA) as a representative of their employer.