High School

Although there are no formal educational requirements for becoming a broker, a high school diploma and a college degree are strongly recommended. Commodities brokers need to have a wide range of knowledge, covering such areas as economics, world politics, and sometimes even the weather. To begin to develop this broad base of knowledge, start in high school by taking history, math, science, and business classes. Since commodities brokers are constantly working with people to make a sale, take English classes to enhance your communication skills. In addition to this course work, you might also consider getting a part-time job working in a sales position. Such a job will also give you the chance to hone your communication and sales skills.

Postsecondary Training

The vast majority of brokers have a college degree. While there is no "commodities broker major," you can improve your chances of obtaining a job in this field by studying economics, accounting, finance, or business administration while in college. Keep in mind that you should continue to develop your understanding of politics and technologies, so government and computer classes will also be useful. Some commodities brokers also go on to earn master’s degrees in business administration. Brokers also receive intensive on-the-job training from their employers after they are hired.

Brokerage firms look for employees who have sales ability, strong communication skills, and self-confidence. Commodities is often a second career for many people who have demonstrated these qualities in other positions.

Other Education or Training

The Center for Futures Education and the Financial Industry Regulatory Authority provide futures education courses and workshops. Contact these organizations for more information. 

Certification and Licensing

To become a commodities broker, it is necessary to pass the National Commodities Futures Examination (the Series 3 exam) to become eligible to satisfy the registration requirements of federal, state, and industry regulatory agencies. The test covers market and trading knowledge as well as rules and regulations and is composed of multiple choice questions. Registration for the exam is through the Financial Industry Regulatory Authority (http://www.finra.org). Preparation materials are available through a number of sources, such as the Institute for Financial Markets (http://www.theifm.org). Brokers must also register with the National Futures Association.

To gain experience, work as a clerk at a brokerage firm. 

To be a successful broker, you must possess a combination of research and money management skills. You need to be attentive to detail and have a knack for analyzing data. Strong communication and sales skills are important as well, as brokers make money by convincing people to let them place their trades. An interest in and awareness of the world around you will also be a contributing factor to your success in this field, as commodities are influenced by everything from political decisions and international news to social and fashion trends. You also must be a disciplined hard worker, able to comb through reams of market reports and charts to gain a thorough understanding of a particular commodity and the mechanics of the marketplace. Strong, consistent, and independent judgment is also key. 

If you work in a setting where the open outcry format is still used, you must also be emotionally stable to work in such a volatile environment. You need to be persistent, aggressive, and comfortable taking risks and dealing with failure. You also need to be outspoken and assertive and able to yell out prices loudly and energetically on the trading floor and to command attention.