Can You Really Make Money Trading Commodities Online? 1/10th of 1% Commission is $50,000!
So let's say that you've just worked out a contract for a zillion tons of urea. The total fair market value of the shipment is $51 million dollars. The seller is willing to let go of the shipment today for a quick deal because he needs the cashflow and the economy sucks so most of his usual clients are no longer answering their phones, have their fax machines disconnected, and all the emails are bouncing back from the Mailer Daemon... for a mere $50,000,000. Such a deal! Now you start scouring the planet to find a buyer who is willing right now to buy the urea for $50,050,000. All you have to do is to convince the potential buyer that it's the deal of the century. You make the connection and guess what? You have fifty grand left over. Who gets it? You do! Not bad for exchanging a few emails, huh?
And neither the seller nor the buyer are going to make an issue out of your fifty grand. After all, it's one tenth of one percent of the total value of the deal. If they are seasoned buyers and sellers (try not to deal with anyone other than professionals) they realize that they have to pay a tiny chunk to the person who does the footwork to make the deal. It's part of the game. Everyone in the business knows the rules. If someone acts as a middleman to connect the potential buyer with the potential seller, then no one is going to cry and scream about paying them a token compensation. And yes, a token compensation of one one-thousandth of $50 million is fifty large. Nice!
Why don't they find their own deals? 99% of the time they do. But in some cases they don't have the time to spend dozens of hours chasing up blind alleys and engaging in wild goose chases. Many have their own staffers constantly fetching prospective deals. However, there are some buyers and sellers who don't for whatever reason. When you find these, you've struck paydirt.
The best thing about this form of trading is that you are making a commission. You are not investing anything but your time and your electrons. There is no upfront money required. Absolutely zero. Just put on your best lucky propeller beanie, crack your knuckles, and start scouring the net for huge Commodity deals you can stick your nose into.
So how do you know that the buyer and seller you've just hooked up won't go behind your back and do a hundred more deals without you even catching a whiff of it? Because you've tied them up with a legal document! Yes, you're going to need an:
Exclusive Product Brokerage Non-Circumvention/Non-Disclosure Confidentiality Agreement (NCNDA or simply NDA).
Try saying that three times fast!
This is an extremely complex form. Naturally each and every NDA will vary, but this is a proven document that should satisfy almost all commodity legal requirements. As I stated previously, after each phrase sequence I'll give you the translation from legalese into layman's English so that you understand what exactly is going on here. Take a very deep breath... here we gooooooooooooo...