Learn about Online Brokers for Futures Trading and Commodities

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Let’s make the navigation around this article a bit easier by providing definitions that may seem foreign to some people.

Online Brokers

Online brokers handle the orders of their customers through different online platforms instead of the usual transactions that happen at brick and mortar office locations. Since most of their transactions happen through the worldwide web, online brokers can afford to offer fees or rates that are much lower than that of a full-service broker. Just like middlemen between companies that grow food and shoppers that purchase them, online brokers function as middlemen between the investors and the securities that trade. They are basically salespeople who earn commission by processing your trade. There are two licensing examinations from the National Association of Securities Dealers (NASD) that one must pass before becoming a certified broker: The first exam is the Series 7 The other one is Series 63 These two licensing examinations are important because they will test an aspiring broker’s knowledge about the laws and regulations of the securities industry. It is also one way of checking if he or she understands the market and the products.


Futures Trading While customer service and earning commissions are essential parts of futures trading, one must understand that there are other elements that need to be looked into, which is why a lot of online brokers see futures trading as the complicated business. There are data, research papers, and investing tools that an online broker needs to do futures trading. Price quotations and real-time data, charts, screening tools, trading platforms, and technical indicators are also essential in finding out which are worth investing in and which ones are not.

Commodities Hard assets such as oil, gold, and wheat are called commodities. Since there are plenty of commodities in the market, they are classified into three basic groups: metals, energy, and agriculture. Commodities that are tagged under “agriculture� are also listed in the United States Department of Agriculture (USDA).

In business terms, commodities are services or goods that may be sold or bought depending on how much they cost. Dealers trade commodities in an open exchange, which means that the price of these commodities changes on a daily basis. These daily fluctuations cause meal prices to change as well.

Commodity Basis If you’ve reached this part of the article and are still unable to digest the information written above, you can seek the help of Commodity Basis, a platform that links together those who are participating actively in Commodity Trade. They collate information from commodity brokers from different countries and they make sure that company and businesses are able to do things efficiently. Aside from commodity future trading, Commodity Basis also helps with commodity physical trading by providing trends and real-time price changes. They form a network where brokers and traders can communicate with each other, and they provide intra-day cash market data which allow brokers to make on the spot decisions.

Mail: - support@commoditybasis.com Contact: - 207 193 7892


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