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MAby u/mateo_andersson·1dQuestion

Brokerage setup for physical commodity exposure – dealing with KYC for larger trades

Been looking into broadening my exposure to physical commodities, not just futures. Specifically, I'm thinking about the logistics of moving past typical retail brokerage limits for something like direct oil or larger agricultural contracts. The onboarding process and KYC requirements for the institutional side seem like a different beast entirely. Anyone here have experience navigating that landscape, especially concerning payout reliability and fee structures for more substantial, less liquid positions? The spread differences alone could eat into margins quickly.

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2 Comments

MDu/mariam.demir·1d

Yeah, that's a whole different ballgame once you start looking at direct physical commodities. Have you considered whether a specialized commodities broker, rather than a general brokerage, might simplify some of those KYC hurdles for larger positions?

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ASu/astoicaRomania·1d

For direct physical commodities, beyond futures, you're often looking at specialized trading desks or firms, not your typical retail brokerage. The KYC is indeed a different beast, more akin to institutional or wealth management onboarding, focused heavily on source of funds and regulatory compliance for high-value transactions.

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