AccountancyISCO 3324

Commodity broker

A commodity broker is a person who arranges deals between buyers and sellers of goods and property — raw materials, livestock, land and buildings — and takes a commission on each transaction that goes through.

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Rate 5 of the 13 essential skills of this occupation (European ESCO data). No account needed.

analyse energy market trends

analyse market financial trends

perform financial risk management in international trade

review investment portfolios

analyse economic trends

About commodity broker

Day to day, the work starts with research. The broker studies market conditions for the particular goods they handle and reports what they find to clients, so a seller knows what a cargo is worth and a buyer knows what to pay. From there the broker finds the other side of the deal, negotiates the price and the terms of sale, places bids, and calculates the full cost of the transaction, including fees and the commission itself. Clients holding positions in several markets also ask the broker to review their investment portfolios and advise them on financial matters.

Most of the work sits between producers and end users, and much of it crosses borders, which means handling the financial risk that comes with international trade: currency movements, payment terms, and a counterparty in another jurisdiction.

The commodity broker skills that matter most are analytical and commercial. Reading economic trends, understanding how financial markets set prices, assessing financial risk, and negotiating a sale without giving away the client's margin all belong to the job. Because market conditions have to be researched one commodity at a time, brokers usually build experience in a single group of goods — grain, metals, energy or property — before taking on others.

Key Work Functions

Core areas of responsibility for a commodity broker.

Market research and analysis

Research market conditions, price trends, and supply-demand dynamics for specific commodities
Monitor global economic indicators, geopolitical events, weather patterns, and policy changes affecting commodity prices
Analyze price movements and prepare market reports for clients to inform their trading decisions

Client sourcing and relationship management

Identify and qualify potential buyers and sellers of commodities through market networks and business development
Build and maintain strong relationships with producers, traders, end-users, and financial institutions
Manage client portfolios, understand their commodity needs and risk preferences, and provide tailored advice

Negotiation and contract management

Negotiate price, quantity, delivery terms, payment conditions, and other key aspects of commodity transactions
Prepare detailed contracts, bid offers, and confirmation documents reflecting agreed transaction terms
Ensure all transaction documentation complies with legal requirements and industry standards

Cost calculation and transaction management

Calculate transaction costs including broker commissions, handling fees, insurance, and logistics expenses
Prepare cost breakdowns and pricing proposals that clearly show margins and value to clients
Monitor transaction execution and settlement, ensuring timely completion and payment processing

Risk management and regulatory compliance

Advise clients on hedging strategies and risk management approaches to protect against price volatility
Ensure all transactions comply with commodity exchange regulations, securities laws, and international trade requirements
Maintain detailed records of all transactions, correspondence, and client interactions for regulatory audit purposes

European Skills Framework

Skills and knowledge areas required for this occupation based on European classification.

Essential (13)

economicseconomicsEconomic principles and practices, financial and commodity markets, banking and the analysis of financial data.financial marketsfinancial marketsThe financial infrastructure which permits trading securities offered by companies and individuals govern by regulatory financial frameworks.commercial lawcommercial lawThe legal regulations that govern a specific commercial activity.analyse energy market trendsanalyse energy market trendsAnalyse data influencing the movement of the energy market, and liaise with the important stakeholders in the energy field in order to make accurate predictions and perform the most beneficial actions...analyse market financial trendsanalyse market financial trendsMonitor and forecast the tendencies of a financial market to move in a particular direction over time.perform financial risk management in international tradeperform financial risk management in international tradeEvaluate and manage the possibility of financial loss and non-payment following international transactions, in the context of foreign exchange market. Apply instruments like letters of credit.review investment portfoliosreview investment portfoliosMeet with clients to review or update an investment portfolio and provide financial advice on investments.analyse economic trendsanalyse economic trendsAnalyse developments in national or international trade, business relations, banking, and developments in public finance and how these factors interact with one another in a given economic context.advise on financial mattersadvise on financial mattersConsult, advise, and propose solutions with regards to financial management such as acquiring new assets, incurring in investments, and tax efficiency methods.negotiate with stakeholdersnegotiate with stakeholdersNegotiate compromises with stakeholders and strive to reach the most beneficial agreements for the company. May involve building relationships with suppliers and customers, as well as ensuring product...apply technical communication skillsapply technical communication skillsExplain technical details to non-technical customers, stakeholders, or any other interested parties in a clear and concise manner.negotiate sale of commoditiesnegotiate sale of commoditiesDiscuss client's requirements for buying and selling commodities and negotiate their sale and purchase in order to obtain the most beneficial agreement.analyse financial riskanalyse financial riskIdentify and analyse risks that could impact an organisation or individual financially, such as credit and market risks, and propose solutions to cover against those risks.

Optional (19) — show

financial productsfinancial productsThe different types of instruments that apply to the management of cash flow that are available on the market, such as shares, bonds, options or funds.banking activitiesbanking activitiesThe broad and continuously growing banking activities and financial products managed by banks ranging from personal banking, corporate banking, investment banking, private banking, up to insurance, fo...financial forecastingfinancial forecastingThe tool used in performing fiscal financial management to identify revenue trends and estimated financial conditions.international commercial transactions rulesinternational commercial transactions rulesPre-defined commercial terms used in international commercial transactions which stipulate clear tasks, costs and risks associated with the delivery of goods and services.statisticsstatisticsThe study of statistical theory, methods and practices such as collection, organisation, analysis, interpretation and presentation of data. It deals with all aspects of data including the planning of ...modern portfolio theorymodern portfolio theoryThe theory of finance that attempts to either maximise the profit of an investment equivalent to the risk taken or to reduce the risk for the expected profit of an investment by judiciously choosing t...actuarial scienceactuarial scienceThe rules of applying mathematical and statistical techniques to determine potential or existing risks in various industries, such as finance or insurance.financial jurisdictionfinancial jurisdictionFinancial rules and procedures applicable to a certain location, whose regulatory bodies decide on its jurisdiction.trace financial transactionstrace financial transactionsObserve, track and analyse financial transactions made in companies or in banks. Determine the validity of the transaction and check for suspicious or high-risk transactions in order to avoid mismanag...protect client interestsprotect client interestsProtect the interests and needs of a client by taking necessary actions, and researching all possibilities, to ensure that the client obtains their favoured outcome.maintain records of financial transactionsmaintain records of financial transactionsCollate all the financial transactions done in the daily operations of a business and record them in their respective accounts.negotiate sales contractsnegotiate sales contractsCome to an agreement between commercial partners with a focus on terms and conditions, specifications, delivery time, price etc.negotiate pricenegotiate priceArrange an agreement on price of products or services provided or offered.operate financial instrumentsoperate financial instrumentsWork with financial instruments such as stocks, bonds, mutual funds and derivatives.build business relationshipsbuild business relationshipsEstablish a positive, long-term relationship between organisations and interested third parties such as suppliers, distributors, shareholders and other stakeholders in order to inform them of the orga...provide financial product informationprovide financial product informationGive the customer or client information about financial products, the financial market, insurances, loans or other types of financial data.forecast economic trendsforecast economic trendsGather and analyse economic data in order to predict economic trends and events.negotiate buying conditionsnegotiate buying conditionsNegotiate terms such as price, quantity, quality, and delivery terms with vendors and suppliers in order to ensure the most beneficial buying conditions.handle financial transactionshandle financial transactionsAdminister currencies, financial exchange activities, deposits as well as company and voucher payments. Prepare and manage guest accounts and take payments by cash, credit card and debit card.

Related Occupations

Occupations that need many of the same essential skills, so the move between them is shortest.

commodity trader9 shared essential skills foreign exchange broker9 shared essential skills foreign exchange trader7 shared essential skills futures trader7 shared essential skills securities broker7 shared essential skills stock broker7 shared essential skills securities analyst6 shared essential skills asset manager5 shared essential skills

Frequently asked questions

What does a commodity broker do?

Commodity brokers act as intermediary between buyers and sellers of movable and immovable property such as raw materials, livestock or real estate. They negotiate prices and receive a commission from the transactions. They research market conditions for specific commodities in order to inform their clients. They make bid offers and calculate the cost of transactions.

What skills does a commodity broker need?

A commodity broker needs 13 essential skills, including economics, financial markets, commercial law, analyse energy market trends, analyse market financial trends.

Will AI replace commodity broker jobs?

The AI disruption score for commodity broker is 77/100 (very high risk). Skills most exposed to automation: maintain records of financial transactions, trace financial transactions, financial forecasting. Most resilient: negotiate with stakeholders, negotiate price, build business relationships.

AI Replacement Risk

77/ 100

Very High Risk

Low riskHigh risk

Skills most at risk from AI

maintain records of financial transactions trace financial transactions financial forecasting

Skills resilient to automation

negotiate with stakeholders negotiate price build business relationships

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Quick Facts

SectorAccountancy

ISCO GroupBusiness and administration associate professionals

Essential Skills13

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