How To Become a Precious Metals Broker

There has never been a better time to enter the precious metals market as a commodities broker dealer than right now. With the price of gold and other precious metals at historical highs, the need for commodity brokers has never been greater.

Typically, when people think about commodities brokers, they think of those that deal with the futures market. However, there are also independent brokers that deal with the actual buying and selling of physical precious metal commodities.

Every commodity broker that deals with futures trading is required to be licensed and registered with the National Futures Association (NFA).

You would also need to take and pass the Series 3 examination. The Series 3 exam is not to be confused with the Series 7 exam, which is what stock brokers are required to have.

The Series 3 exam consists of two parts.

The first section tests you on general futures market knowledge, futures contracts, options, hedging, orders, and just about everything else involved in trading precious metals.

The other section of the Series 3 exam tests your knowledge of rules and regulations. This portion of the exam should not be taken lightly as it deals with the issues of "treating the customer properly".

You will also need to complete an 8-R form with the NFA. This form is used by the NFA to do a complete background check with the FBI before a temporary license is issued. The 8-R form will include your last 10 years of employment history and your residential history for the last five years. It also covers your criminal history as well as any disciplinary actions if you have been licensed in any other financial professions.

As an independent commodities broker that deals with the buying and selling of physical precious metals, there are no licensing requirements and no need to be registered with the NFA.

Instead, you would only need to be connected with a precious metals clearing firm.

When looking for a clearing firm to work with, you will want to find one that offers full training, ongoing mentorship, and complete back-office support in order to help you maximize your earnings potential.

Even though there is no regulation when it comes to buying and selling physical commodities, you will want to work with a clearing firm that is an advocate of the regulation process and promotes all of the compliance practices of a regulated business.

To learn more on how to become a commodities broker dealing physical commodities and how to receive full training, ongoing mentorship, and back-office support, visit Lloyds Commodities, a leading precious metals clearing firm that not only is an advocate for the regulation process but actively promotes doing the right thing on principle not just regulation.