Physical Commodity Trader – Experienced | AgMotion (2024)

FAQs

How much do physical commodity traders make? ›

Physical Commodity Trader Salary. $57,500 is the 25th percentile. Salaries below this are outliers. $72,500 is the 75th percentile.

A commodity trader buys and sells financial products based on market predictions. They carry out trades of commodities such as gold or oil on behalf of clients and the firm they work for. Commodity traders might be employed by investment or commercial banks, hedge funds, or private equity groups.

For the purpose of this guidance, commodity trading is broadly understood as the process of sourcing (procuring), buying, transporting, storing, transforming and selling physical commodities, including the management of associated risks, as well as operating physical assets in this context (see General Descriptions of ...

To become a commodities broker, you need to earn a degree in fields such as business, economics, accounting or finance, after which you should get licensed and certified, build key skills including risk assessment and legal compliance, and gain industry experience in entry-level roles before applying for commodities ...

Commodities are considered risky investments because the supply and demand of these products are affected by events that are difficult to predict, such as weather, epidemics, and natural and human-made disasters.

This is a full-time position. Typical hours of work are Monday through Friday from 8:00am-4:30pm and may fluctuate with business needs. US Commodities operates in time-sensitive, global markets, so the exigencies of the business may alter working hours.

The life of a commodity trader is not without its challenges: High Stress: The pressure to make profitable trades can be immense. Market volatility, financial risks, and the constant need for vigilance contribute to high stress levels.

Some job duties of a commodity trader may include: Tracking the market performance at domestic and international scales. Buying and selling goods at a price the client agrees on. Providing advice to clients about buying, selling or investing.

An aspiring commodities trader can begin their career by earning a bachelor's or master's degree in a business-related subject, and then they can become an "associated person" with the National Futures Association to increase their qualifications for this role.

What is the difference between a physical commodity trader and a broker? ›

Brokers facilitate transactions but do not own the commodities themselves nor take any risk. They earn their income by commission on the transaction they facilitate. On the other hand, traders make money by selling raw materials or commodities at the time, location, quality, and payment terms required by the clients.

Traders buy and sell physical commodities. The profitability of these activities depends on the difference between the prices of the transformed and untransformed commodities, rather than their level.

Online commodity traders typically get higher leverage than stock traders. However, higher leverage may also make it difficult to control the urge of overtrading. And if the market goes opposite to your calculations, you may lose money against winning it.

Commodity Broker Salary. $97,500 is the 25th percentile. Salaries below this are outliers. $112,500 is the 75th percentile.

Top commodities traders are among the best paid in the market, irrespective of where they work. Banks pay top commodities traders incredibly well.

For example, the margin is usually 10% in index futures, and it is typically 15% in stock futures. However, in the case of commodity trading, the leverage can be as high as 16 times. Also, you can increase it even further if you put a cover order with stop loss.

An aspiring commodities trader can begin their career by earning a bachelor's or master's degree in a business-related subject, and then they can become an "associated person" with the National Futures Association to increase their qualifications for this role.

The estimated total pay for a Oil Trader is £132,376 per year, with an average salary of £92,254 per year. This number represents the median, which is the midpoint of the ranges from our proprietary Total Pay Estimate model and based on salaries collected from our users.