commodity brokers

How Do Commodity Brokers Operate?

Commodity brokers operate by placing trades on behalf of their clients through exchanges such as the Chicago Mercantile Exchange (CME) or the New York Mercantile Exchange (NYMEX). They charge a commission for their services, which can be a flat fee or a percentage of the trade value. Brokers must be licensed and are often regulated by governmental bodies such as the Commodity Futures Trading Commission (CFTC) in the United States.

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