Commodity broker
firm or an individual who executes orders to buy or sell commodity contracts on behalf of the clients and charges them a commission
A commodity broker is a firm or an individual who executes orders to buy or sell commodity contracts on behalf of the clients and charges them a commission. A firm or individual who trades for his own account is called a trader. Commodity contracts include futures, options, and similar financial derivatives. Clients who trade commodity contracts are either hedgers using the derivatives markets to manage risk, or speculators who are willing to assume that risk from hedgers in hopes of a profit.
History
Historically, commodity brokers traded grain and livestock futures contracts. Today, commodity brokers trade a wide variety of financial derivatives based on not only grain and livestock, but also derivatives based on foods/softs, metals, energy, stock indexes, equities, bonds, currencies, and an ever growing list of other underlying assets. Ever since the 1980s, the majority of commodity contracts traded are financial derivatives with financial underlying assets such as stock indexes and currencies. Since the implementation of the Volcker rule in 2014, the number of commodity trading houses and individual brokers has dwindled.
Types
Firms and individuals who are often collectively called commodity brokers include:
Floor Broker/Trader: an individual who trades commodity contracts on the floor of a commodities exchange. When executing trades on behalf of a client in exchange for a commission he is acting in the role of a broker.
Begin with the source’s own compact description: “Commodity broker” is firm or an individual who executes orders to buy or sell commodity contracts on behalf of the clients and charges them a commission. The dossier treats that line as a proposition to test through Commodity, broker and firm, not as a finished interpretation.
Why this record matters
The phrase “firm or an individual who executes orders to buy or sell commodity contracts on behalf of the clients and charges them a commission” supplies a clear boundary for inquiry. It also exposes the unanswered questions: who defined that boundary, when it became stable and which sources sit outside it.
The citation trail is more important than the brevity of the summary: it shows where individual claims can be examined in context. The source revision retrieved here is dated Jun 17, 2026. The linked authority identifier is Q5153156. None of the 0 selected statements returned an explicit reference. The first chronological checks are 2014.
Overview language is designed for orientation and should not be treated as a substitute for the evidence cited beneath it. The lead is largely declarative, so disagreement and counter-evidence require a deliberate search beyond the opening account. Authority statements aid reconciliation but still require their own references, qualifiers and ranks to be checked.
How to read it
Use the entry as an orientation point, then follow its citations and revision history. Names, dates and institutional relationships should be checked against the original record.
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This entry incorporates text from “Commodity broker” on English Wikipedia. Contributors are listed in the page history. Text is available under the Creative Commons Attribution-ShareAlike 4.0 License. Selected authority identifiers and statements are retrieved from Wikidata under CC0; their references and qualifiers remain part of the verification path.