Commodity Trade

[bsssboy]

Hi guys..

I was on a job hunt for last few months, Recently i came a cross some companies who claim to be doing Commodity Trading. They offer very high returns to your investment.

a job seeker has to go through a 2-3 months training for trading in NY stock exchange. after successful completion of training, you will have to find an Investor with very large amount (500,000 or equ). In return, they offer you very high commission and earnings from trade. Investor is also promised with a very high ROI.

I do not understand if this is for real o something fishy. i would like to know If any of you have heard about it or it is legal.

I know commodity trading is a good business but how can you offer such a big returns.

Thank you for your answers.

Regards

jk

[bonobo]

Commodity trading is very real, and lots and lots of money is made and lost. One bad storm can ruin an orange crop, driving up the prices in only one day. But losses can be equally huge. (So any firm which promises high ROI's is not reputable, in my opinion.)

However, cold-calling for commodity investments is hard work. My dad did it part time for years, and it was tough going. On the other hand, most of the big investment houses steer clear of commodities, I think because they are so hard to forecast. So for the gambling type of investor who wants them, there are fewer options as tow here he or she can make the buys.

[Moonrakers]

a job seeker has to go through a 2-3 months training for trading in NY stock exchange.

If the training is in the exchange itself, I doubt very much it's a scam. I doubt very much the exchange will have anything to do with any company that wasn't 100% legit.

I know commodity trading is a good business but how can you offer such a big returns.

High risk, high returns.

Investor is also promised with a very high ROI.

Promised??? Are you sure they 'promised'

If so, then it is without doubt a scam. Perhaps they didn't use that particular word though?

[chooch7]

commodit trading is very legit.

but what op describes is a complete hoax. you have to get investor with 500,000. ....................pleassssssseeeeeeeeeeee!

[manarak]

On the other hand, most of the big investment houses steer clear of commodities, I think because they are so hard to forecast.

Not so.

The reasons are twofold:

- first, the commodities markets are much smaller than equities or rates/bonds/fx and cannot accomodate the huge capital flows of the big players' customers.

- second, the investment scumbags have a more difficult time to hide the fees, because everyone has access to commodity prices, so the commissions become apparent (often at criminal levels like 1% to 2%), and selling hedge funds to private investors (where commissions can be conveniently hidden) is a very regulated and restricted activity in many countries.

...

and about the OP's question, I agree that this is not a sound business proposal.

Of course, you could take the training and find a loaded investor and trade for him.

That's what the big investment houses are doing too and it isn't a scam in itself.

But I have problems with the wording used, i.e. "been promised big returns". That puts it into the "fraud" category.

Edited February 25, 2011 by manarak

[chooch7]

On the other hand, most of the big investment houses steer clear of commodities, I think because they are so hard to forecast.

...

and about the OP's question, I agree that this is not a sound business proposal.

Of course, you could take the training and find a loaded investor and trade for him.

what are the cahnces of finding a loaded investor to trade for .. sorry i couldnt resist...........btw the rest of your post very good .

[bonobo]

On the other hand, most of the big investment houses steer clear of commodities, I think because they are so hard to forecast.

Not so.

The reasons are twofold:

- first, the commodities markets are much smaller than equities or rates/bonds/fx and cannot accomodate the huge capital flows of the big players' customers.

- second, the investment scumbags have a more difficult time to hide the fees, because everyone has access to commodity prices, so the commissions become apparent (often at criminal levels like 1% to 2%), and selling hedge funds to private investors (where commissions can be conveniently hidden) is a very regulated and restricted activity in many countries.

...

and about the OP's question, I agree that this is not a sound business proposal.

Of course, you could take the training and find a loaded investor and trade for him.

That's what the big investment houses are doing too and it isn't a scam in itself.

But I have problems with the wording used, i.e. "been promised big returns". That puts it into the "fraud" category.

OK, that could be the reason (although they push investment in stocks, where the stock prices are just as transparent as are their fees.)

All I know is that my business partner is a big time investor who has regular meetings with his two very major investment firms who particularly cater to "high net-worth" individuals. And for some reason, he likes to have me attend meetings with him (I got a free trip to Hong Kong last fall to get wined and dined, and I get a free lunch at the Grand Hyatt next week, so I am not complaining if he wants to use me as a sounding board).

When they keep stressing to him that he needs a diversified portfolio, I have mentioned commodities to both firms, and the agents get glassy-eyed and get quiet, saying they don't know much about them, even though they can spout on and on about some really rather unique and custom-made vehicles. At best, they can recommend some funds which have some play in commodities.

They can't "not know" about them given their breadth of knowledge about investment vehicles. It is obvious that both of these huge global firms just don't want to get involved with them.

[clinique]

commodit trading is very legit.

but what op describes is a complete hoax. you have to get investor with 500,000. ....................pleassssssseeeeeeeeeeee!

Maybe not. Many jurisdictions have offers, normally without the neeed for a Prospectus or Information Memorandum, that are available only to 'high net worth' or 'professional' investors, and the authorities set a floor limit of, say, $500,000- from such investors which then puts them, supposedly, in this high net worth or professional category.

[lannarebirth]

The terms "trading" and "guaranteed return" do not go together. If someone claims they can give you one by engaging in the other it's bullshit.

[AyG]

The New York Stock Exchange does not trade commodities.

Are you being asked for a fee to cover the training? I suspect that's where the scam is. Take your money, then kick you out at the end of the training. Very few people have the ability to be successful commodities traders. It's a very tough business. Remember that in every single transaction, both sides think they have got a decent deal. They can't both be right.

[swissie]

The terms "trading" and "guaranteed return" do not go together. If someone claims they can give you one by engaging in the other it's bullshit.

Amen to that: Guaranteed return and commodity-trading do not go together. And: If that Company can not find wealthy investors itself (guaranteed return) and needs free-lance sales-blokes like the OP, then there is definitely something wrong with "the Company" ! I assume "the Company" makes it's money by asking hefty "Training Fees" from people like the OP.

= Funny, but it comes to mind: A lot of language-schools offer English-Teachers-Courses and gladly thake the money of their "Farang-Students" (TEFL etc), knowing in advance that a good part of their "Graduates" will (for various reasons) never hold a Teaching-Job in Thailand.

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And: A well known fact by now: Short term traders (be it commodities or other investment vehicules) loose money in the long run. The buy and hold guys like Warren Buffet made the money, at least in the past 50 years.

Cheers.

[Luke06]

My two pennies worth...its a scam.

Why?

From what you have written you show no special knowledge of financial trading...yet they offered you a job.

You have to find an investor with 500,000 to invest with a guy who has 2-3 months training....or possibly that is to complete your 2-3 months training. How many people with that money to play would be willing to do that?

Did you ask them what the pay was....I would hazard a guess its commission only/nothing.

They promise high ROI...how?

Why is it trading on the NY stock exchange, and don't you not need a license to provide financial advice to people?

I appreciate that you cannot put the company name, but I would put my neck on a block and say that within 24 hours, with the name of the company, I could find a lot more reasons to not go near them. Depending on where they are do a google search on their name, see how long they have been around and what is being said about them by other people - but, from experience, make sure you spell the name correctly, you might find they have a name very similar to some well established and legitimate company.

[manarak]

It is obvious that both of these huge global firms just don't want to get involved with them.

I am a former employee of a big Swiss wealth management firm ranking in the top ten of global banks - my job was to look after the trading needs of clients with assets in excess of 50 million with the bank.

Please contact me if you would like me to put you in touch with people knowledgeable about commodities.

[bsssboy]

Thank you all for your inputs. it was helpful

They did not ask for a fee for training. but to get the job after training, you will have to find a customer

yes there was no fixed salary.. you will get a commission according to your performance in the market ( it was mentoined that you could earn upto 50,000 + as a beginner)

There was no WP given

The New York Stock Exchange does not trade commodities????

i forgot to mention that Gold and Oil are also there as commodities and traded in this firm.

They have offices in Silom and CTW .

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This is the part of one email i got

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Quote

Many of you ask about salary as well you should. This is a 100% commission based position (to give you an exemple : Most of the beginner after training , start to earn a minimum of 2500 usd. per month and per account. You can earn much more ; all depends of your skill and your procductivity ). We train you for free.

We allow you to use our resources for free. In return we ask only of your time.

We have 3 types of employees:

1. Analysts: They control accounts that they do not own. They earn commissions on trades.

2. Investors: They own their own accounts and thus they take their own profits and commissions.

3. Business Development Manager/Staff: They develop the new market and enjoy the commissions from the new market they have developed. I am all of the above choices. I have clients where I manage their accounts for commission and I also manage my own portfolio, besides; I have developed my own market.

I do not know of your personal situation with family and career, but I believe that if there is nothing ventured, then there is nothing gained. I have given you an extremely brief summary of our company and our process.

I hope to hear from you soon if this is of any interest to you.

Sincerely

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unquote

Thank you all

[samran]

It is a boiler room scam.

AVOID AVOID AVOID.

[bonobo]

It is obvious that both of these huge global firms just don't want to get involved with them.

I am a former employee of a big Swiss wealth management firm ranking in the top ten of global banks - my job was to look after the trading needs of clients with assets in excess of 50 million with the bank.

Please contact me if you would like me to put you in touch with people knowledgeable about commodities.

I am going to a lunch/presentation by a "big Swiss wealth management firm ranking in the top ten of global banks" tomorrow. And while someone at that firm has to know about commodities, I get the glassy stares and hemming and hawing whenever I bring up the subject. (This despite the fact that they have some very innovative and beneficial vehicles developed for their investors, some in which I, as a "not high net worth" investor would love to be able to participate.)

For high net worth investors who have a high risk acceptance, then I personally think commodities are a valid place to put a portion of their investment portfolio.