Introduction
The work of a broker is to perform the job of a mediator in between the client and the retailer. Similarly a commodity broker or a firm performing commodity broking actually performs transactions on behalf of a commodity retailer or on behalf of a client by using his money. This way he earns a specific commission from both or either of the parties. Working as a commodity broker is much more profitable and secure than working as a stock investment broker. Every commodity broker must get himself registered and get a license from the government. To become successful in this field you essentially need to be a good salesperson. If you can convince people well and possess excellent communication skills then this profession can help you make a lot of money.
The first few steps
First of all you get yourself registered and obtain a broking license as a commodity broker from the concerned authority in your country. Getting licensed is not very easy as you skills on this domain will be tested and if and only if you pass both the parts of the test. You need to have common knowledge on the market and the service rules and ways of dealing with the clients. A commodity broker has to provide details about his qualifications, past professional experiences and details about his whereabouts. All these information are verified before issuing the license. As a fresher in this profession, you should also associate yourself to a broking firm that specializes in this field.
Qualities required
To become a commodity broker and become successful as well is a tough task. First of all you need to have good knowledge about the present market scenario, far sight and excellent communicating skills. Making money will become easier when you will be able to create a dependable circle of clients and remain in their good books. Proper treatment and service towards the customers is also a vital part. You will have to be very convincing while you speak so that the client opens an account. Get your facts right and do not mislead the clients in the process. This may ruin your reputation and hence your business. Many clients may also take legal actions against you if you overlook any rule or mislead them. Making consistent and continuous money for the client is essential. Try to create a group of trustworthy clients; otherwise you may have to replace them. This often hinders the growth of your business.
Generating proper commission from clients
You need to charge optimum commission from your clients. Analyze the market first and then standardize your commission rate. If you generate high commission from your customer’s account then they might switch to a different commodity broker. So maintain balance between your interest and the welfare of your clients too. If you charge less you will make less money. So choose the best rate and try to flourish your business by properly dealing the customers and looking after their demands. Thus becoming successful is not easy but not impossible either. Hard work and dedication towards the work along with honesty can pave your way to success.
