I am new in this trading business, I have a client that wants to buy some building material of worth 40mil. What is the going rate of comissions at this time. I am only acting as an agent of finding a buyer for my client. And how does the commision works, who would pay me? and when?

Thanks,

Replying to [RookieTrader]:

Usually the commision is 3--8% against invoice value varied in different orders. The smaller the order is, the better commision will be.

If you represent the seller and protect Seller's interests, then you should be paid by the Seller, if you represent and protect buyer's interests, you should be paid by the Buyer.

Replying to [RookieTrader]: Before closing the deal, it would be advisible to discuss the same with your buyer. After finalizing the commission percentage, enter into a formal legal agreement with your buyer, so that there are no hassles going forward. It should help you a lot considering the huge amount involved in the deal.
Hope this helps !

Replying to [RookieTrader]:For building material ask for a commission/metric tonne.1US$/mt maximum 2US$ is a decent commission and your Client will agree to pay it.But take care to sign a Commission Agreement.

Replying to [RookieTrader]:The commission in this trade varies 1% to 3% paid by supplier when payment documents like L/C or BG is established

Replying to [RookieTrader]:in my own opinion,the percentage of your commission as an agent would be lesser to that of your client but neverthelss your commission would be basic if you discusse the deal with your buyer what ever deal you could make by dealing with your buyer would be yours and other incentives that you will receive from your client.
thanks
chuks

3-4% in my opionion.

Replying to [RookieTrader]:It all depend on how long will you have to work for your client to complete the deal remember 1% of 40mil is alot of money, so is the project will take how much of your time. Consider you average anual income and if the commission is equal or 1.5 time of your anual income is the best you could charge your clients. Even if your charge is 1% of 40mil that 400K. I'm very sure that your client would not pay to you that kind of commission, with that money they can hire 4 people to do the work that you do and still don't have to pay that much. So really seat down and think what do you want to charge before you lose your chance of make that commission.
Just my 2 cents worth.

Replying to [RookieTrader]:
It all deponds on the worth of service provided by you and the benifit obtained by the customer because of this transaction. In what way you have helped...negotiation of price, quality check,inspecting the goods and so on. In the same manner.. if the buyer has calculate the benifits because of you and also find teh market value % of commission in your place. Anyhow it is better to deal all before the finalisation.

Replying to [partsman]:

What your talking about is a wage not a commission. Would you pass on a 40 million dollar deal just because a third party is getting a measly 400k out of your net profit? In larger deals though you are right it may be less than 1% but its usually based on USD per barrel or USD per Metric Ton (usually from .5 to 2USD) instead of a % of the price payed. Anyways yeah i agree with everyone else on around 2-4%

Replying to [vxglobal]:Maybe I'm not understand Rookie Trader question right, but as he state (Quote: I have a client want to buy 40mil worth of construction material).

Now, if you are a buyer with 40mil to spend on buying what ever. Would you hire 3-4 people to work for you in your purchase department and pay them 75G each a year, or are you going to pay one person 2-4% commission to do all the purchase for you? On one shot deal?

I would understand that kind of commission if Rookie Trader work as a selling agent. To sell 40mil worth of material he would have to be a super saleman to do that in a year so 2-4% would be fair.

Be realistic, average American with a BS degree and 10 years experient in there field of work making 60K a years and that consider a good job.