Commodity Dealing and Brokerage in the US
Revenue in the Commodity Dealing and Brokerage industry is driven by brokerage fees from facilitating the trade of commodities and commodity derivatives as well as earnings from buying and selling commodity derivative contracts. Revenue is projected to increase marginally over the five years to 2018. This seemingly temperate increase masks intermittent declines perpetuated by decreased brokerage fees and increased competition, which are restricting revenue growth for many industry operators. However, in the present economic environment of rising interest rates and inflation, commodities are an increasingly attractive investment vehicle as compared with equities and bonds. Over the five years to 2023, the Commodity Dealing and Brokerage industry is forecast to grow modestly.
This industry includes operators and individuals who trade commodity derivatives. Commodity derivatives, such as futures, forwards, swaps and options, are financial securities that offer returns based on the return of an underlying commodity, such as agricultural products, energy resources and foreign currency. Brokers execute buyers’ orders by arranging transactions on a commission or transaction-fee basis, while dealers buy and sell derivatives on their own accounts for profit.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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