Step One: Choosing a Broker

The broker you choose should be a member of the exchanges you wish to trade in. Other than this, one should keep the following factors in mind while choosing a broker:

Competitive edge provided by the broker.



Broker's knowledge of commodity markets.



Credibility of the broker.



Experience of the broker.



Net-worth of the broker.



Quality of broker's trading platforms.



The relationship between the broker and the client is long-term. Thus there must be a strong rapport, and mutual trust between the client and the broker. Further, the client must communicate clearly to the broker his needs and objectives for trading in commodities, whether they are for the purpose of hedging, investment, etc. Further, your objectives for entering the market provide you with a valuable parameter to judge whether a broker fits your needs.

In order to keep your investment decisions and objectives in check, it is important to choose the right certified Commodities Broker, it is important to learn about the process of depositing margin for commodity trading and why it is necessary to deposit margin with the broker.

In the next chapter we will learn about the process of depositing margin for commodity trading and why it is necessary to deposit margin with the broker.


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