Industry Analysis & Industry Trends
Regardless of bull or bear markets, the industry has received a boost from the increased use of commodities. Traditionally used as a hedge against inflation, commodities have become a valuable diversification tool. Use of commodities has increased because of strong returns generated by speculators. These strong returns and diversification benefits have led to an increase in the use of commodities in pension funds and hedge funds. In addition, the introduction of commodity exchange-traded funds has helped industry revenue as another form of commission... purchase to read more
Industry Report - Starting a New Business Chapter
High competition, heavy regulation and increasing technology changes affect the ease of entry into the industry. The large scale and scope of the top four major industry players' commodities operations combined equals about 41.6% of industry revenue. Run under the Fixed Income, Currency and Commodities division, these firms have intercompany resources from which they can draw. With such a large market presence and established OTC trading markets, it will be very difficult for new entrants to acquire market share.
Heavy regulation and the associated costs are also barriers to entry in the industry. Brokers need to pass the National Association of Securities Dealers Series 3 exam... purchase to read more