n any business, knowledge is power. In the international trading business, knowledge is survival.
-June Hollister.
Most of you know that I started my brokerage service to domestic and international clients for Physical Commodity Trading less than a year ago with the primary goal of establishing a long-term business relationship that’s beneficial to stakeholders and helping small businesses and myself reach the global marketplace and I’m in NO way or shape consider myself a Subject Matter Expert (SME), in fact, I learn every day from some of you that I truly consider an SME and there is no shame of learning from others especially If they are younger than you.
It is indeed my personal opinion that most intermediaries are not trained and trying to honestly trade, but they end up being prey for scammers. They follow the practices of their predecessors and blindly walk in the shadow or footsteps of the intermediaries before them, and the ones before, and so on, without proper knowledge, or even reading while using flawed documents that cannot be enforced and probably never will. Scammers know that and they take advantage of this lack of knowledge and entice people with the promise of success and quick money. We’ve all been tempted by such promises, and scammers know it.
To survive in the International trading business as an intermediary, you must have sufficient knowledge of your international counterparts – the buyers, sellers, and intermediaries themselves. This is why a comprehensive understanding of the proper procedures, rules, and policies is not just helpful, but an absolute necessity to outsmart the common enemy shared by all parties: SCAMMERS.
If you fail to adhere to the proper trading protocols, you will not be able to successfully close a deal. Therefore, it is essential to have a set of guidelines to follow. Your proficiency in the international trading arena is contingent on comprehending the documentation and procedures involved in finalizing a transaction.
Intermediaries in the trading process handle documents rather than physical products. Therefore, intermediaries must work with well-defined documents. Even though the updated Incoterms rules have minimal impact on intermediaries, it is still essential for them to be aware of their limitations and capabilities to ensure that payments can be efficiently collected.
