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Beyond having
professional qualifications as a specialist in oils, a broker must also be able to
guarantee complete independence of all participants in the market. Thus, a broker
can provide reliable and unbiased information to buyers and sellers and help set
prices. Based on this information, the broker negotiates deals by looking at supply and
demand throughout the market and establishing an agreement between the parties which is
confirmed in writing (fax or telex plus correspondence).
Once a deal is signed, the broker is involved in its execution and will intervene if
there are any disputes concerning contract terms, delivery deadlines, logistics, or
quality of merchandise.
Sellers pay the customary brokerage fee, which is disclosed to all parties. The fee
covers the broker's work in:
• information,
• negotiation, and
• execution. |
