How to enter in the Physical commodity brokering business
Hey guys ! I have a accountancy background .. I want to deep drive into commodity brokering business but i am clueless that from where should I start as the part of world from where I belong (Pakistan) don't have any particular Hierarchy or any kind of large and big trading/brokering companies except for really few .. Can some me help me out to reach out to the likewise people or help me to provide the roadmap ...
Based on the most helpful WSO content, here’s a roadmap to get started in the physical commodity brokering business:
Leverage Your Accountancy Background: Your accountancy skills can be a strong foundation. Many commodity firms value professionals who understand financials, pricing, and risk management. Highlight this expertise when networking or applying for roles.
Start with Logistics or Operations Roles: If there are no large trading firms in your region, consider starting with logistics, freight forwarding, or operations roles. These roles are often less competitive and provide valuable exposure to the supply chain and trading processes.
Network Strategically: Networking is critical in the commodity trading world. Use platforms like LinkedIn to connect with professionals in the industry. Reach out to people working in trading hubs like Dubai, Singapore, or London, as these are major centers for commodity trading.
Target Niche Markets: If large firms are scarce in your region, focus on niche markets or smaller firms. For example, look into agricultural commodities, as Pakistan has a significant agricultural base. Building expertise in a niche can make you stand out.
Gain Relevant Experience: Internships or short-term roles in related sectors (e.g., shipping, freight, or procurement) can help you build a network and gain practical knowledge. Even a 2-week work experience can open doors.
Pursue Certifications or Further Studies: Consider certifications like the Global Association of Risk Professionals (GARP) Energy Risk Professional (ERP) program or studying commodity-specific courses. These can enhance your credibility and knowledge.
Cold Outreach: Since your region lacks a structured hierarchy, cold emailing or calling firms in nearby trading hubs or international markets can be effective. Tailor your message to show your interest and how your skills align with their needs.
Explore Support Sectors: Work with companies in support sectors like container shipping, trade finance, or sampling/verification firms (e.g., SGS, Bureau Veritas). These roles provide insights into the trading ecosystem and help you build connections.
Focus on Relationship Building: Physical commodity trading heavily relies on relationships. Start building trust and connections with suppliers, buyers, and logistics providers in your region.
Consider Relocation: If feasible, relocating to a trading hub like Dubai or Singapore could provide better opportunities to break into the industry.
By following these steps, you can gradually build your way into the commodity brokering business, even from a region with limited opportunities.
Sources: Physical Commodity Trading, A few questions on getting started in physical trading, Calling all Physical Commodity TRADERS: Benchmark indices and physical commodity trading risk, Books on Physical Commodity Trading, Physical commodities - how do you overcome the operations trap?
My advice is do not become a commodity broker, its a dying breed and all the guys making alot of money are seasoned guys who have been around a long time and made the right relationships. I would say your chances of making it big is worse than trying to become a trader. But at the end of the day if it does interest you, alot of times your going to have to start out in back office at a brokerage firm then work your way up from there.
Find this surprising, lots of guys I know in Commodity Broking are clearing pretty significant amount even at junior level
Well I understand but I just want to learn how physical commodities works for that I thought to start with brokerage so atleast I would get a fair idea of the market . Unfortunately , I don't think there are much brokerage firms in my country where I can start my journey ..Besides this I also have a plus point to trade commodities in landlock countries as many landlock countries is in my neighbours so I can fairly travel to these countries and make a good geal ...
That is a solid goal, and your accountancy background gives you a good foundation for it. Physical commodity brokering is relationship-driven, so start by understanding how trade flows, logistics, and financing work for commodities like metals, grains, or oil.
Here’s a simple roadmap:
It takes time, but once you build a few consistent trade relationships, opportunities grow fast in this field.
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