Commodity broker

Commodity broker job description: Typical employers | Qualifications and training | Key skills | Useful links | Find jobs and courses

Employers of commodity brokers include investment banks, commodity brokers, financial clearinghouses and exchanges such as The London Metal Exchange (LME), ICE Futures and The London International Financial Futures and Options Exchange (LIFFE).

Typical responsibilities of the job comprise:

• monitoring international market performance;
• providing investment advice and market recommendations to clients;
• trading on behalf of clients;
• liaising with transport, shipping and insurance companies;
• devising ‘hedging strategies';
• visiting international suppliers;
• meeting with clients;
• interpreting market reports;
• negotiating price, specification and delivery details;
• investigating new business openings.

Commodity brokering is a career that offers high levels of responsibility, good opportunities for promotion and impressive financial rewards including generous salaries and large bonuses. However, in return, long hours of work and high levels of stress are common.

Most opportunities arise in London and other major cities. Vacancies are advertised by careers services, financial recruitment agencies, in The London Evening Standard, The Financial Times, national newspapers, and specialist publications such as The Economist. Early applications to major employers are advisable. Undertaking relevant sector/company research, attending presentations, and networking is essential.

Qualifications and training required

Any degree discipline (min 2.1 hons.) is acceptable for entry into the profession, although employers may prefer qualifications in management, business, financial or numerate subjects. A number of institutions offer specialist postgraduate qualifications, which can be advantageous, as can relevant work experience gained via job shadowing, placements or vacation work (internships). Computer literacy is essential as the majority of trading is now automated.

Key skills for commodity brokers

Recruiters commonly have a lengthy and rigorous application procedure designed to identify motivated graduates who possess outstanding personal qualities and intellectual abilities. To succeed, candidates need to be ambitious, competitive and determined. On top of this you need to be quick witted, numerically capable and able to negotiate.