What distinguishes brokers from traders in the commodity market?

Brokers in the commodity market primarily act as intermediaries who facilitate trades between buyers and sellers. Their main role is to execute trades on behalf of clients rather than making independent investment decisions. This means that brokers rely on the instructions and needs of their clients to place trades, rather than trading based on their own analysis or strategies.

Traders, on the other hand, actively engage in the buying and selling of commodities, often making decisions based on market analysis, price movements, and other factors. While brokers can provide valuable insights and recommendations, their primary responsibility is to ensure that trades are executed as instructed by their clients.

The choice indicating that brokers do not make investment decisions themselves accurately reflects the fundamental distinction between the roles of brokers and traders in the commodity market. This division of responsibilities highlights the unique functions within the trading ecosystem, where brokers act as facilitators and traders operate as decision-makers in the market.