CURRENCY AND COMMODITY BROKERS

A wholesale comedy of errors





it is unbelievable, my friend, what brokers in the gold, platinum,
silver, diamonds, oil and currency secondary markets are doing to
themselves.



Some of these people have labored for years and have learned little.

Every transaction is between two principals. Smart brokers,
understanding this, will quickly get out of the way.

Young apprentices in this business need to know that people work all
their lives to make a couple million dollars. In this business, however,
many of these people hardly are conversant with buyer or his
representative. Many never negotiate or document anything. They are just
part of a group that has made a pact to include each other if a
transaction is done. While there may be some advantages in this pooling
of talent and willingness to share the profits,



There are huge disadvantages.



Large groups often require a large split of fees to make everyone

happy. This never rubs the gentlemen or ladies coming from the other
side in a good way. This person may have done all the work him or
herself and is expecting a big payday just to find out that they must
share the pie with 10 people they don't know and whom could not
possibly have done anything real to make the transaction viable.



More importantly they are generally unrealistic about fee amounts.

They literally think they deserve to make as much money as the
principals. They honestly do. So they divide up the fees and even
have a set template that they say MUST be followed.

A transaction does not work that way. Whatever pleases both buyer and
seller will make the transaction. Not demands from brokers. So they end
up with nothing, because they think as a collective, if the buyer makes
½ billion, they darn well better also. SO SILLY!

Tell me what other business does the broker; his friends and family
make as much money as the principle?

Some Corporations have set up a protocol that allows REAL major fees to
brokers. They can make it happen by doing many transactions and not by
just one big one, where all brokers get paid as much as the principles
involved.

Do they indeed know that is why many buyers and sellers end up chucking
a contract and starting over without so many brokers?

They do not understand that their methods do not work. An NCND is good
but it doesn't help if no transaction is done or you don't know if one
has been done.

NO principal can be held to an IMFPA where there is NO CONTRACT to which
it references. And guess what, the reason there is no contract, are
misguided brokers, who thinking they are protecting themselves, refuse
to immediately get an agreement signed by both sides. They think they
are securing their pay by hiding their seller or in fewer cases buyer.
The truth is they are letting the principals off the hook.



RELATIONSHIP



Among the brokers their must be someone with a real relationship with
their buyer or seller. Not just email address or phone number.
Otherwise, it is difficult to do a REAL professional transaction.



A buyer or seller who is a professional wants to know with whom they are
dealing. To whom shall I issue the LOI? To whom shall I issue the FCO?



RIGHT THERE!

If you cannot do this, you likely have moved away from the professional
to the unprofessional side and you are not going to close a transaction.

Understanding that the brokers are caught in this MATRIX-LIKE catch 22,
here are the first things I try to do:


1. Have the brokers give me the seller's name with a seller's code,
if LOI is needed. I supply FREELY all information needed to issue the
FCO.


2. FOR any FCO or different offer. I ask them to add an IMFPA along with
seller's code, transaction no. and hopefully signature of seller.

That way, at least they would have the name of seller (better to have
his signature) but the brokers send sanitized documents. (A mistake)
The IMFPA is meaningless without a signed .contract. There is no
protection.



Sanitized documents, without the name of seller (or his signatory
representative) and his signature does not constitute a legal offer.

It is therefore unenforceable.

But I will sign off on a document with seller's name and especially
signature. Add my buyer's code and all of a sudden a meaningful
and enforceable document emerges.



Since brokers have often worked hard to find a partner for their buyer
or seller, why is it that the brokers for the seller so often refuse to
show that the seller actually have what the buyer is looking for? Many
times they will ask the buyer to show his money first.



Yea, you walk into a Mercedes dealership to buy that new car and the
salesman walks over to you and kindly tells you that in order for him to
show you a car you must first prove you actually have money. Got to make
you feel warm and fuzzy, right?



You most likely will go elsewhere!

FEAR is the broker's "World War Three" and the brokers are
suffering too many casualties.

by Bill Sullivan



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