1
SELECT A DMF
Identify an LCFE accredited dealing member firm (DMF) of choice and open a
client account with them.
2
APPLICATION FOR ONBOARDING ON LCFE
Your chosen DMF will collate your company’s documents and apply for onboarding
on LCFE. If you own your warehouse your DMF will apply for onboarding of your
warehouse.
3
TRADING ACCOUNT
Upon approval by LCFE, your DMF will open a CSCS/trading account on your behalf.
This account will be linked to your warehouse.
4
WAREHOUSE DEPOSIT
You deliver approved commodities to the registered warehouse which will reflect
automatically at the exchange.
5
MANDATE INSTRUCTION
You give a mandate (instruction) to your DMF to sell your commodity at chosen
price and quantity. Your broker sells on your behalf to another client through
their broker on the exchange.
6
SETTLEMENT
Once the transaction has been concluded on the exchange your account will be
credited in 3 days and the buyer can pick up their commodities from the
warehouse.
1
Identify an LCFE accredited dealing member firm (DMF) of choice and open a client account with them.
2
Dmf will open a cscs/trading account on your behalf.
3
You give a mandate (instruction) to your DMF to buy commodities on your behalf at your chosen price, quality and quantity. Deposit the total value of the commodity you want to buy in your brokers trading bank account.
4
Your broker buys on your behalf from another client through their broker on the exchange.
5
Once the transaction has been concluded on the exchange your money will be moved from your broker’s bank account to the seller’s account.
6
The seller’s Commodities now belong to you. You can now pick up your commodity at the storage facility or choose to resell on the exchange for a profit.
