questions for commodity broker? it is livable to be on commision based?
my guy got a new job as commodity broker but on commision based after 3 months, the company cut off the basic pay. he said right now he has 7 clients and will bring more later on. but he told me that it is hard to get paid to survive especially he just started in this field and was learing to trade. He depends on his coworker to help trading and was learing and just started to trade himself. but it seems financially he did not get paid well so far as it merely to cover his expense. is that really true? how much a commodity broker make if everything went well? how they get paid? paid by weekly? or monthly? how they caculated?i mean in general? as he is in trouble and asking for my help financially in order to stay with this job until he can started making money and he is very confident with that… since i do not know how they get paid, just wondering if what he said is true???? please help..i really appreciated..
Being in commodities – well, that’s a tough market to be in period. You don’t get as much action as if you were on an equity or fixed income desk. But to answer your question, the reason why he stopped making a salary is that his company doesn’t want any fixed expenses and that he should have learned the ropes by then. I assume his job is taking calls from other brokers or cold calling people to get them to buy gold and stuff but the bottome line is he needs to expand his client base. He should attend a lot of meetings and other functions outside of work to build his network. he should also build his network by LinkedIn and Twitter and stuff too. If he’s accessible, he’s able to make a deal. it’s a tough job, but someone’s gotta do it.
Oh – I almost forgot. Commissions are charged when a trade occurs, sometimes up front, or on the round turn (a buy/sell transaction). Commissions are racked up and totalled – most likely they’re paid monthly. Some companies pay last month’s commissions over the following month (weekly or biweekly)- so it’s like a paycheck except the company makes more money in interest.
For you, as a wife/gf of a commodities guy, you need to be patient. In time, the money will be there, but it’s also how hard he works to get it as well. I wouldn’t be the least bit surprised to see a head trader get over 100K a year. Or more.
Good luck!
Being in commodities – well, that’s a tough market to be in period. You don’t get as much action as if you were on an equity or fixed income desk. But to answer your question, the reason why he stopped making a salary is that his company doesn’t want any fixed expenses and that he should have learned the ropes by then. I assume his job is taking calls from other brokers or cold calling people to get them to buy gold and stuff but the bottome line is he needs to expand his client base. He should attend a lot of meetings and other functions outside of work to build his network. he should also build his network by LinkedIn and Twitter and stuff too. If he’s accessible, he’s able to make a deal. it’s a tough job, but someone’s gotta do it.
Oh – I almost forgot. Commissions are charged when a trade occurs, sometimes up front, or on the round turn (a buy/sell transaction). Commissions are racked up and totalled – most likely they’re paid monthly. Some companies pay last month’s commissions over the following month (weekly or biweekly)- so it’s like a paycheck except the company makes more money in interest.
For you, as a wife/gf of a commodities guy, you need to be patient. In time, the money will be there, but it’s also how hard he works to get it as well. I wouldn’t be the least bit surprised to see a head trader get over 100K a year. Or more.
Good luck!
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