Commission-based brokers � This is the most accessible type of trading business to

start and operate. Your job is to match buyers and sellers, and, along the way,
take a commission each time you complete a transaction or trade. In this business,
you rely on your contacts and your market knowledge. If you learn that an exporter
needs to move 50,000 tons of wheat and you know that Russia had a weak harvest due
to bad weather, you should have no trouble finding a buyer for the wheat in Russia.
You are not responsible for the exporter getting paid, but you have an interest in
the transaction because the seller will pay your commission upon completion of the
transaction.
Retainer brokers � In some instances, an exporter will ask a trader to assist in
the sale of a product or commodity that is difficult to sell or for which there is
a small market. The trader will agree to find buyers on an ongoing basis and earn a
monthly or quarterly retainer (or advance) against future commissions that are due
when a transaction closes.
Principal or Distributor � A principal or distributor operates in the import/export
business when they buy a product or commodity for the sole purpose of reselling the
goods at a profit. In this case, in addition to using their network and market
knowledge, they also use their capital. For example, a plumbing supply distributor
in Des Moines, Iowa knows of a substantial construction water and sewer project
coming up early next year. He believes that he will have a competitive advantage in
winning the bid for the pipe if he buys the pipe now when prices are at their
recent lows. He purchases plastic pipe manufactured in China in bulk.