What is a Trade House?
Trade houses are business firms that work with the physical commodities that are traded on the open market. Unlike a brokerage house that focuses on the buying and selling of securities, the trade house takes the process one step further. This type of business will not only buy and sell a commodity, but also provide storage when necessary. One of the easiest ways to understand how a trade house operates is to look at the activity surrounding one physical commodity. Silver is a commodity that is physical in nature. When working through a trade house, the investor has the chance to purchase silver commodities by executing orders through the firm. In the event that the investor chooses to hold onto those commodities for a period of time, the trade house can also provide storage for the actual silver. The silver can remain in the possession of the trade house until the investor chooses to sell off the investment. At that time, the new owner may choose to continue housing the commodity with
