What Is a Commodity Broker and How to Become One

A commodity broker buys or sells physical commodities, such as agricultural products, minerals, natural gas or oil, or precious metals, on behalf of an investor. They closely follow international markets in a specific commodity or group of commodities and make trades on the trading floor. Duties include developing reports and forecasts. They often work for brokerage firms, and present their research either to their managers or to give their clients trade recommendations. Some commodity brokers may travel to sites where commodities are made or extracted, such as a large farm or a coal mine.

Qualifications for a career as a commodity broker include a degree in business, economics, or a related subject, and a license from the National Futures Association (NFA). Many brokers gain skills and experience working in an investment bank or brokerage firm as interns while they prepare for their license. Other requirements include the ability to work in a fast-paced environment, as well as strong analytical and communication skills. Because they deal with international markets, many people in this job travel extensively.

To work as a commodity broker, you are required to be certified by the National Futures Association (NFA). The NFA oversees licensing for stockbrokers and commodity brokers. Typically, you study for the licensing exam while working in an entry-level position or internship. The first section of the exam tests your knowledge of exchanges, commodity trading, and other fundamentals of the profession. The second part tests you on the regulations and rules that govern commodities trading. Once you complete the exams, you must fill out a profile and work history which is checked by the FBI.