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Making the Most of Commodity Trading Adviser Firms and Funds

Join the fray with training to be a commodity trading adviser

By Felicia R. Blue
There are certain steps you need to take to get a commodity trading adviser license. First, you must pass the Series 3 license. Then you must become a member of the National Futures Association. Finally, you will need to send your Disclosure Document to the National Futures Association/CTFC for registration.

Not only are you helping investors in buying and selling commodities, but as a commodity trading adviser, you will be a money manager. Because your position requires much responsibility, you must have a solid foundation of how the commodity market works. Here are three ways when it comes to making the most of commodity trading adviser firms and funds:

1. Get ready for the Series 3 by going to a commodity trading adviser school.

2. Get an internship at commodity trading firms.

3. Rely on commodity trading adviser newsletters for additional training.

 

Prepare for the series 3 by attending online commodity trading advisor schools

If your goal is to become a commodity trading adviser, then you'll have to pass the Series 3 exam. You will need to pass this exam in order to register with the National Futures Association. These schools offer flexible programs in that you can attend class in person, online, or prepare for Series 3 with books and CDs. The series 3 exam consists of market knowledge and rules.
Try: American Investment Training offers preparation for the Series 3 exam. You can study for this exam at home; the school provides the study materials. AgentBroker Training Center also offers Series 3 exam classes. You can attend the classes in person or take it online.

Get additional training by working at commodity trading firms

When it comes to making the most of commodity trading adviser firms and funds, this is your best value. You should consider working at a CTA firm. Better yet, why not inquire about getting an internship. An internship allows you to gather real-world experience. The commodity trading adviser can teach and show you how the commodity markets work in the real world. Acquire skills such as working with clients and understanding what their objectives are. You can also study both fundamental and technical analysis.
Try: Orion Futures is one of the leading online full service commodity trading firms. One of its objectives is to provide its clients the best service possible. Titan Commodities also offers full service, but at discount pricing. Unlike other CTA firms, Titan Commodities takes pride in providing the tools and education to help the novice.

Read commodity trading adviser newsletters

Use newsletters to obtain good information on commodity trading adviser firms and funds. You can get the latest on seminars or recent released books on hedge funds. Although newsletters may cover general topics, such as performance fees or taxes, you can find information on commodity trading funds. Analysts can contribute articles as to how hedge funds are performing.
Try: You’ll want to check out BarclayHedge Blog. BarclayHedge is a popular CTA firm that keeps track of hedge funds’ performances. The analysts base these commodity trading adviser funds on the sector. Attain Capital focuses on commodity firms. If you need more information on taxes, performance and management fees on futures, check the firm’s newsletter.

 

  • Consider taking some sales and customer services courses if you want to be a successful commodity trading adviser. After all, you'll be managing several clients' accounts simultaneously. It's important you build successful relationships with your clients.

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