Strongest Banks for Commodities in London?

Based on the most helpful WSO content:

Strongest Banks for Commodities in London:

• Goldman Sachs: Known for its deep involvement in physical commodities, particularly in metals and oil.
• Morgan Stanley: Has significant assets in the oil space and is often referred to as a "Wall Street refiner."
• Macquarie: Recognized as a leader in physical commodities trading.

Banks Involved in Physical Commodities:

• Goldman Sachs: Competes with major players on most commodity-grade deals, though involvement in more esoteric commodities depends on the experience of the desk head.
• Morgan Stanley: Engages in physical trading, especially in large, liquid markets like oil.
• Other Banks: Generally, banks are involved in the very liquid end of the market, such as aluminum and copper. Regulatory factors have reduced their involvement in metals, with the London Metal Exchange (LME) playing a significant role in this reduction.

Additional Insights:

• Payment Terms: Banks often have favorable payment terms, such as giving shorts 120 days to pay.
• Commodity Derivative Sales: This area is very lucrative and can pay well quicker than physical trading shops.
• Trade Financing: Many banks are involved in trade financing across the commodity spectrum, even if selling these commodities as collateral is not their primary strength.

For more detailed discussions and opinions, you can refer to the full article on Wall Street Oasis: https://www.wallstreetoasis.com/forum/trading/physical-trading-part-1-w…</a">Physical Trading (Part 1): What it is and What it isn’t.

Sources: Physical Trading (Part 1): What it is and What it isn’t, Physical Trading (Part 1): What it is and What it isn’t, Physical Commodity Trading, Calling all Physical Commodity TRADERS: Benchmark indices and physical commodity trading risk, Books on Physical Commodity Trading