FTN exporting Intermediary Broker FAQ 2018
We are unable to serve advice to the many inquires we get daily, as our position as the leading expert in the nature of business being defined, is a difficult one, in where; we are not able to offer a free advisory service. This is the reason why we provide added consult services to those who buy iBITE 2018; it tells us that the person wanting to make an attempt at trading in commodities, has at least made real effort to become informed.
Below is a list of the best FAQ sought in the last few year, as we still get emails asking such questions. I’ve intentionally added a little sarcasm to some of the answers,and as such, please treat the FAQ as personal opinions served by FTNX , without prejudice.
TRIBE Rules can be found at www.ftnxx.net unrestricted library
NEWEST QUESTIONS/ANSWERS ARE PLACED AT THE END
Q: SHOULD I OPEN A TRADING WEBSITE/USE TRADE SITES
A: No!, Unless you are prepared to spend heaps of money every month to promote your site, to out rank competitors. This is what its gotten to. Setting up a website is easy, maintaining is not. Get a cheap business website page going as a business profile and nothing more is the best initial approach because in our business personal efforts plays the main role. Further more because of this personal attribute of conducting business, joining trade sites, social sites and the likes and applyng such for use in this business is literally a huge waste of time. We do not know of a single person who has closed on related business via such sites; which FTNX has tested intently over many years–pre 2014. Using the internet, up to the offer stage is acceptable once contracts apply, the business reverts to the practice of hardcopy documents. In the 'golden old days' mail order business were big busines, today it's the internet. While millions of people are conducting successful private and 'appropriate ' business on the net every day, very few 'millionaires' are produced yearly. The selling and buying commodities for profit is a specialised business where 'instantanuous' contracts initially develop quickly, as a starting premise; in where the business of selling the actual deal, eventuates at a 'snails pace.' It's also a very private and personally applied business. Sourcing many suppliers online is easy ; securing one single valid offer for a worthy product is not; to do as much, personal attributes and abilities, knowledge and experience are needed, not websites and social/trade sites. One could get more postive replies sending personally written letters (via fax/post) to a hand full of suppliers or end buyers, than most could do using only the net, and much more effort.The internet is ideally used as 'educational' or high end reference tool.In this aspect "everyone has a supercomoputer at their finger tips." This is why the internet called the 'information highway.' One has to tread using the net for business( or socially) carefully as it's a dangerous place for the unwary user; and in where 'scammers' readily lurk. The art of 'stealing' is also huge internet inspired business practice. As for business of buying and selling commodities real knowledge and real skill is needed first.
Q: IS MY EMAIL ADDRESS SAFE
A: NO! EVERYONE WANTS A LOOK AT WHAT YOU ARE DOING! Get one email that you list openly, but use another email that is unlisted when dealing with suppliers or end buyers is the best aspect. All ‘the rubbish’ gets attracted to the listed email.Ensure a good strong name is apparent with all email addressess you use.
Q: WHAT IS THE MOST DIFFICULT ASPECT OF THIS BUSINESS
A: Closing a deal
Q: WHAT IS THE MOST IMPORTANT ASPECT OF THIS BUSINESS
A: Getting the starting premise up to the offer stage right
Q: WHAT IS THE MIST DIFFICULT ASPECT OF THE PROCESS
A: Sourcing and securing long term suppliers
Q: BUYER WILL NTO ACCEPT DLC PAYMENT PROCEDURES
A: Buyer is fishing around. Not really interested to buy to start with
Q: SI WANTS COMMISSION PAY ORDER
A: Give him one; he won't ask for a second one once he learns the process.
Q: HOW LONG DOES IT TAKE TO READ THE DOCTRINE
A: Study period is often between 2 and 4 months
Q: HOW LONG BEFORE I CLOSE A DEAL (IF?)
A: Anywhere between 6 months and 60 years.Really! How do I answer this?
Q: AM I ABLE TO STUDY IN ENGLISH BUT CLOSE DEALS IN MY LANGUAGE
Q: AM I ABLE TO CHARGE SERVICE FEES FOR SERVING ADVICE
A: Yes- If you feel proficient enough to do so
Q: WITH WHOM CAN I TEST KNOWLEDGE AND PROCEDURES WITH
A: China. Chinese based traders will entertain anyone for anything.
Q: HOW MUCH WILL I EVENTUALLY EARN
A: Who knows.You are looking for earnings guarantee.We are offering education.
Q: HOW MUCH HAS FTN EARNED
A: A lot .How does that help you? I offer education. No 'get rich quick scheme' offered.
Q: I GOT TO OFFER STAGE, 3 TIMES LAST YEAR, BUT NOT CONTRACT
A: You are doing really well. Keep on going.Do not give up trading now.
Q: I TRIED FOR 14 MONTHS TO GET ONE SUPPLIER.NO LUCK.
A: Forget about luck.Change your methods and approach more often
Q: BUYER BREACH OF CONTRACT AFTER FIRST DELIVERY
A: Did you make money?Let him go, If not, ask for compensation-perpetually
Q: HOW DO I START THE TRADING PROCESS AFTER STUDY IS FINISHED
A: You’ve missed everything.Read the doctrine again for another for 3 months.
Q: NOBODY WILL ACCEPT MY IN HOUSE DLC
A: Read and study the doctrine again.You’ve failed to comprehend the issue.
Q: A CLAIMED ‘MANDATED’ SI WILL NOT DEAL WITH ME
A: Dump the deal; move on. You will not deal with him is the correct stance.
Q: CAN I USE MY CASH TO BUY FCL OF CANNED TOMATOES
A: You want to act as a merchant, not intermediary.Same trading advice still prevails
Q: A MINE OWNER NEEDS FUNDS TO MAKE MINE OPERATIONAL
A: That’s Nice! Ask mine owner to call you when mine is operational.
Q: A MINE OWNER NEEDS DLC TO MAKE MINE OPERATIONAL
A: No it can’t be done. RED Credit clause type of deal cannot work for such .
Q: I WANT TO ASSIGN THE CREDIT
A: No, improper not allowed process; intermediary will be legally circumvented.
Q: I’M OFTEN ASKED TO SIGN A NCNDA
A: You often are being asked to waste your time.Sign it; NCNDA means nothing.
Q: D2 PRICES HAS COLLAPSED, CAN’T FIND BUYER!
A: SO NOBODY IS USING D2 ON THE PLANET.UNREAL!
Q: I’M OFTEN ASKED FOR A ICPO OR LOI
A: Me Too! Luckily; I have a spam button.
Q: SUBCONTRACTING ON A RESOURCE PROJECT.IS SUCH ALLOWED
A: NO! But please stick to commodities for ‘years’ before attempting JV projects.
Q: CAN I SELL A “GREENFIELD” PROJECT
A: A: NO! But please stick to commodities for ‘years’ before attempting JV projects.
Q: ROYALTIES TO OFFER ON MOU re: A RESOURCE PROJECT
A: 7% up to 14 %.Now drop the deal; stick to FOB deals
Q: AS AN INTERMEDIARY CAN I BECOME INVOLVED IN JV PROJECTS
A: YES! First close NBC FOB type deal . Have some finance/launch your attempt.
Q: I WANT TO CHARTER MY OWN SHIPS
A: Possible; not practical under UCP600 DLC rules as we need Shipowner BOL
Q: BUT MY BANK SAYS I CANNOT ‘TRANSFER’ A BOL
A: He is right you can only ‘ENDORSE’ such over to the buyer.Read doctrine again.
Q:AIRWAY BILL OF LADING AT FOB ALLOWED
A: No! We can deal in AWB as served at FCA, CPT or CIP delivery modes
Q: THE BEST WAY TO HANDLE A MTN
A: BY NOT TRADING IN SUCH INSTRUMENTS AS PER TRIBE RULES.
Q: WHAT IS THE CORRECT MIXTURE FOR PIZZA DOUGH
A: Flour, warm water, live yeast and a pinch of salt.Never add sugar! You are on the wrong site anyway.
Q: How long will it take me to close a deal, if I buy PITA/ iBITE 2016
A: Traders are buying an academic level, lawfully applicable self study application, made only for intermediaries on the assumption they can read in English to a reasonable level of comprehension. I can’t even ascertain this aspect when intermediary buys our doctrine. If you are looking for ‘guarantee’ of trading success, I can’t offer such, (never have from day one) because personal abilities skills are also important.
Q: I need to make money ASAP
Then your mid set is not for this study application. To have no job, no form of income , or support from family, in were the idea is to buy the “doctrine” and make money, is not the ideal thought one should be harbouring. One does not go to i.e: university to take up a study to become a lawyer, doctor.etc. to make money. One has to first spend 4 or 5 year studying to which they need to then pass an exam in where those who do make the grade, will still need years of experience before becoming a “specialist” in where the ‘big money’ can be found. With the FTNX doctrine how long should one study to become proficient in matters of banking and finance, negotiations, contract formation, rules and law ? I’ve made a four year formidable academic level learning process, that can be fully enacted upon in under 2 years? Even here if one “gives up trading as an intermediary” what was learned could be applied in many related industries or private business application; hence the big question is really-“do you want to learn about this business” because you want to trade or at least, make a good strong attempt to trade as an informed intermediary? Why are you taking up the study? If your first answer is to make money ASAP, then get a job as a labourer ; this will entertain to suit your specific requirement ASAP.
Q: I am fully employed can I study / trade in my spare time.
A: A lot of novice intermediaries, are hoping to “throw their current job in” one day, hence having an income is a good idea while studying and trading in your spare time.This means the below factor don’t count, in where many entities have attempted to trade on this causal platform for many years. If you are retired and “life seems to have slowed down”; this is also another period in ones time, which is ideal to take up the study and remain training over the longer period.
Q: How long does it take to study iBITE/ PITA 2016
A: One should give themselves, no more 6 months , then immediately starting trading slowly ’one step at a time, as per iBITE/PITA directives’ the rest happens over a one year period ; or so. This is when you’ll intently know if trading as an informed intermediary buying and selling commodities for profit is for you. Hence giving yourself 18 months to 2 years will delivery the idea if this business is for you. If it is not for you; take what you have learned and apply such in seeking employment in a related industry, or to apply in other entrepreneurial type of ‘big’ business.
Q: I’ve been at it for 4 year and cannot secure one single supplier
A: So what this say about the many who were attached to FTNX from 2005, who did, in a matter of months after learning the doctrine secure not one, but many suppliers all on their own, during its attachment period? How about the SMICE.net site pages from 2010-2013 when ITSI was released? All the goods we had disclosed online then, were all secured by a hand full of fully informed non mentored and mentored intermediaries.As stated I cannot advise on matters of personal skills, but usually when such an inquiry comes our way and we examine the work produced, we often find very poor application of the doctrine has been apparent. This is a complex business, and sophisticated business by nature. Don’t look at all those idiots online, ‘wheeling and dealing’ all day long–in what ? Peanuts! You cannot close a deal, dealing in ‘fresh air.’ Refine your work take a different approach.
Q:Why do I need to know so much “just to close a commodity deal”
A: You cannot even attempt to fix a broken engine, if you don’t even know what a spark plug is, let alone know how it operates. To “just close a commodity deal” already indicates that the intermediary asking such a question has no idea on just how complex and difficult these deals are to close. From the moment one starts a deal until it comes to a final conclusion, so many steps needs to be understood, and more importantly, many meandering aspects of finance, contract, rules and procedures, needs to be fully understood intently, to a “specialist” level ( if not as an expert) before a real deal will come your way that could be closed. From the many, practice and experience will come, until one day that one deal has finally arrives.This is the time to shine. The doctrine is not that hard to apply in the real sense; what’s hard is the amount of knowledge one has to attain and learn , over a short period of time.
Q: I’ve tested over 4 real end buyers and still could not close a deal
A: I (FTNX) tested over 120 real buyers, before I closed on one single contract in 1995 taking me 6 years to do so. From 1988 to 2015 I have heard every conceivable excuse, or heard every single possible scenario. I have no empathy whatsoever with anyone asking such questions. So! What is your point? 4 real end buyers tested , over 4 years ? A good informed intermediary, who has experience and knows what to look for, could test 4 ‘real’ buyers between breakfast and lunch on any good day, thanks to the doctrine. FTNX again had looked at some of the documents and application of procedures, supporting such claims made, in where; half were simply poorly applied anyway. To secure one real supplier means many end buyers have to be tested.To reach this level of proficiency, will take more between 10/14 months to arrive at coincidently which is the same time frame and current record, that one intermediary reading and studying the doctrine (from Canada) managed to close one large NBC deal about 7 years ago.
Q: How much commission can I make
A: What is really being asked is “how much has FTN made” from this business. When I say to the intermediaries that “they ought to mind their own business”–literally; some didn’t take such an answer to heart. It does not matter how much we have made, as it will simply give the wrong impression in making others believe they can do the same. I am offering the correct , legally defined, well tested way that an intermediary must act if such is contemplating to trade in commodities. I am offering nothing more. I am a teacher. I am offering education on the subject matter than many others, simply cannot do, because I have nearly 30 year experience to back up my legal finding and doctrine, which was created by me. Any supplier, banker, lawyers, accountant, doctor, end buyers, shipowners, exporters, factory worker, taxi driver, or first time novice trader can learn to apply our doctrine. Everyone starts on the same premise in this business. When it comes to learning about this business; one must study our doctrine, regardless of ones standing. Better minds than ours have complimented on our works over many years. Many lawyers world wide have indeed purchase our doctrine as well. If an intermediary could not close a deal because our procedures are flawed, we would have been discovered a long time ago by others, more so with the release of the best selling ITSI in 2010, which is still selling well today. If one is contemplating trading in commodities, then one must read our doctrine.Falling to do as much means trading on the wrong premises right form the start.
Q: Trading alone versus trading with attached PSI
A: Everyone takes up the study alone; then it speaks for itself that everyone should enter into the trading environment sometime there after-usually alone holding position of principals ( buyers/seller) In doing as much the “Principal” will meet along the way both ill informed and informed sourcing intermediaries, the latter being defined as a “Professional Sourcing Intermediary” (PSI) because such has also studied our doctrine but is not ready to take up the seller /buyer position. It is now that the principal ( PIA) also tests PSI for personal attachment in where most will simply not make the grade for the Principal to even consider such for short term attachment. Those who do pass the scrutiny of the principal, in where “sourcing” skills are apparent, becomes attached to PIA as his /her PSI.This is how a principal, develops a small highly informed private trading group; unless the principals has decided not to consider such attachment at all, from day one.( or much later after working alone for some time) Its all abut applying a “discipline”.The PIA learns the discipline intently, and secure PSI to do the same under his /her directives. When the right group is attached to the PIA , it is a great experience and a benefit for PIA and all PSI’s in that group. When an ill-informed PSI are attached; a worst case trading scenario is in effect; even ‘one bad apple’ within a group can do a huge amount of damage to the the PIA’s own position.FTNX know this to be very true; base over a long period of time, attaching and dismissing many from attachment.
Q: Trading learning while being mentored. Is it worth the extra expense.
A: The short answer is No! 3 out if every 5 mentored applicant don’t last long, once the nature of business have been tried alone, for a short period of time; and for a whole host of other reasons, including the main reason as stated pertaining to those “who gave up trading” within months of completing mentorship. The “mentored” applicant will learn a lot more in a shorter time if they secure one single supplier, while being mentored, because FTNX now bears responsibility and liabilities of the mentored applicants actions, in where together end buyers are tested. This is the first routine–the mentored applicant MUST secure one supplier first ( just like everyone else studying the doctrine must do) Mentorship specifically allows for a lot more “confidence” to be applied by the applicant. Those who have assets to protect would benefit greatly from mentorship, as they see first hand , how the process works while being attached to the mentor, without fearing legal repercussions because of mistake made. Mentorship is similar to the ideal, that the applicant has “taken out insurance.” It take a lot of time an effort to personally mentor an applicant who is really making genuine efforts; it’s a waste of money if the applicant gives up after; i.e: “2 months” after completing the mentorship period. One of the big ‘secrets” of this business is to be able to learn procedures intently in where the applicant remains testing such procedures over a long period of time measured in years. If you are chasing those big profits then one needs to show real efforts. Such profits is not going to come your way for “doing nothing’ except acting like a “clown amongst clowns” as often seen online via trading platforms.
Q: What does the term ‘informed’ intermediary mean.
A: One who know what they are doing.
Since the FTN doctrine is the first doctrine of its kind made specifically for intermediaries, then those who study and later apply the doctrine are defined as being informed traders.Informed traders do not conduct business with those who are ill informed , as discovered during the course of business, this includes end buyers and suppliers. ITSI did not really elaborate on this on any great lengths as ITSI is a formal study, and is mostly specified in our more casually applied beta in-house publications. The direct reference here is aimed at those traders who have studied nothing at all and continue to ply LOI, ICPO, NCNDA, ASWP, POP, etc unworkable and flawed procedures.These are ‘ill informed traders.’ You will come across many such traders at the start. Later as ‘ experience’ is obtained, you will refine processes to identify such traders quickly- and are dismissed accordingly. The nature of business is far too complex to enter into without being fully informed.In other words; the doctrine and procedure of trade can only be effectively applied by those who have studied such works intently, as it’s a complex study and thus, only those who are informed will know intently how to act with an inquiry made by a informed intermediary. This included other private traders , suppliers and end buyers. Those who not informed are often the type of traders who also, will argue with the informed traders about International rules , laws and procedures. If you are dealing with ill informed traders, drop the deal and move on.
So called NCND Agreements to do with commission payment to SI’s often used in the past long gone and has not been seen by us for many years has raised its head again. Such a document MUST not be used in support of releasing confidential information about a supplier or end buyers.If the PIA is the buyer/seller then the PIA attaches those who are worthy of the attachment which means the PIA advised such trader about commission payment ands directs such to TRIBE rules. Traders who are not informed asking for a NCNDA as a condition of stepping back are dumped. The NCNDA cannot be enforced even if a deal closes is assured and the SI who can’t close their own deal alone can’t ask for anything. A confidential agreement could be plied as part of the sales contract, but that is to do with matters of confidentiality applied to matters of contract. If an informed trader depends upon the virtues of NCNDA then except no deal to close and that circumvention is assured. It would be impossible to sue on the virtues of a NCNDA alone, and even after spending millions of dollars trying to do as much, getting the money out of one jurisdiction into another would also take you years.
We can’t stop idiotic or ill informed Si’s asking for a NCNDA,but the PIA can. We suggest that the SI has reappeared after years of not trading and is unaware of the mainstream doctrine as there are many traders who wake up one morning, to recommence trading and who have not studied our works.In short do no waste time with such request or traders. We do not just need supply information, the net is full of such, we also need an offer from such, something that most SI’s don’t have.
Crude oil deals.Can I offer my own price formulation
No, if you are offering such goods on behalf of a disclosed principal and “Yes” other wise. What is crucial in a secondary market deal is that all parties have access to a respectable price board to read fixed prices from, in where the basis now takes this prices in conduction with the formulation offered. the PIA must have a basis to work with.The only exception to this rule and the easier application to apply is when a great fixed price offer is given in where the sale price is also a fixed selling price. the often seen “Day before , Day on and Day after delivery” on average price applications is often applied for spot cargo deals which we do not trade in as we have to be financially able (RWA) long before loading.We deal in future date deliveries.
LNG Deal deals at FOB
FOB is not applicable to LNG sales, is best assumed from the start that CIF is the only buy/sell application in where contracts exceeding 7 years is also the norm in that the supplier has to provide and secure the ship and supervise loading is also assumed. An agreement (an MOU) is first signed. The MOU is leveraged to raise funds to buy the LNG out right in one hand year per year or used to support the purchase as a guarantee. The LNG is sold to another accordingly. Earnings to investors are paid from expected gains made. These type of deals are simply too complicated for most traders to master but is an allowed business application under TRIBR rules and those who have studied our limited investment supplement to IBITE (when available.) Also: As from 2017,securing a LNG carrier is nearly impossible; hence unless the intermediary can prove it can secure such a vessel no LNG supplier will entertain them
FTNX/SMICE does not enact on offers from "trade sites" and the likes for 2 reasons, the main reason is as follows. FTN exporting over many years has tested such sites and although in recent years some sites now apply more vigilance, such said sites do not serve the needs of the professional intermediary. Why such sites keep on growing, we have no idea! In the second instance, if everyone one can go to trade sites, then everyone could easily enact on deals-or so it seems; even suppliers and end buyer. This means such principals don't need to deal with us, nor entertain our offers - this is in effect produces false illusion. Every product on Earth "seems" to be available on such site.
There are many "export ready" suppliers and end buyers online sites in today , and such are very easily found within minutes. A professional trader must secure a genuine workable offer from a principal, which is the most difficult aspect to apply in this business. Even getting one formal workable offer for wanted goods, may take months to secure.
As per the FTN Doctrine of trade for buyers, sellers, and intermediaries, "A supplier must be secured first" means a lot of work has to apply to secure such. It takes great skill and effort to secure and then enact on one single offer provided by a genuine supplier who can enact on acceptable safe procedures in support of incoterms and UCP Banking rules.
FTNX only offer goods it has secured directly from suppliers under contract , and only offers goods to end buyers on a personal and confidential basis-on contract FTN Exporting has collated thousands upon thousands of supplier and principals over the years which have no bearing on our abilities to close a single NBC deal. "A suppliers in possession of export ready goods, who has goods ‘today’ to offer may not have such goods to offer tomorrow." To close a deal one needs experience, skill and knowledge as to rules laws and safe processes, as learned over many month and applied over many years. Once this part of process is perfected by our Agents , sourcing one single supplier at time is the enacted upon diligently.If you see FTN on a trade site from earlier days of testing the doctrine, it's long outdated.
FTN send out only 5 letters of introduction by “good old fashioned postal mail” in November 2014 for a website information found via the net. 1 supplier replied positively by post 9 weeks later .
The internet and especially generic e-mails no longer provide a safe private trading environment, everyone is tracking everyone.Spam mail does not work. Even Mobile phones now have solicitation of apps and strange notifications “every five minutes” all because we had made a call or used the internet of such. It’s a “dog eat dog” world out there; everyone wants to create a mailing list, everyone wants to steal information from another. Everyone is snooping around and lurking around emails addresses and websites to secure business and information. Everyone who has made the internet their main base business application is looking into private efforts piled by others especially marketing companies. Do not dismiss hard copy postal mail out every few months. In 2015 we can still confirm that such a private confidential manner of doing business beyond quotes is arguably far better than trying to do the same via the net. The internet offers a valuable tool for matter of due diligence;and attracting fake deal, as for actually closing a deal, good old fashioned total mail is ostensibly the stronger application; it’s also a more personal approach, albeit a lot slower as well.
WHEN DOES THE CIRCUS COME AROUND
FTNX spends all year getting rid of ill informed clowns, alas by years end usually during the Christian festive season mid December to the first weeks to January, many new ill informed traders appear.The whole process starts again
The inception of the deal is the most crucial time for any trader. Get the inception wrong and the whole deal will fall apart later rather than sooner. Imagine working a deal for 5 or 6 weeks only to collapse because a mistake was made at inception time. This is why getting inception right is crucial, not just for this business but any business. Whether it takes 5 weeks or 500 years to secure one supplier, the very first step of a creating a live deal cannot happen unless this aspect is first acted upon. To be able to secure one single supplier , who will support you with supply ‘ over the longer’ term, means that the intermediary can now source and test the intent of as many end buyers as it is able to do. The Intermediary must test buyers until all attempts have been exhausted. Once exhausted, the intermediary secures another supplier and processes the deal in the same manner once more. Not as a rule; the general overall consensus is that no deal will close for the first 2 suppliers secured, because the intermediary needs the experience at this period in time. By the third worthy supplier being secured, the intermediary should have reach contract stage. By the 5th supplier, the advent of a closing a deal becomes readily apparent. This is the time when the professional intermediary is set to shine. Thus for the first 10 up to 16 months study and practice is needed to arrive at a stage when a deal could be closed by a highly informed and experienced intermediary assuming that some support is available during this time,otherwise it could take up to two years or more to finally get to contract closing stage or even deal closing stage. It is imperative that the intermediary spends the time to study,and commence practising what they have learned in where the same routine becomes second nature. I call this aspect the ‘Pavarotti’ effect; as per a situation I had described in earlier editions. Luciano Pavarotti, one of the greatest tenors of our time started his career by singing scales. His mentor was not going to allow him to take the next step until Luciano became pitch perfect. A few years of practising nothing but scales; Luciano now a young teenager, asked his mentor when can be start singing ‘real ‘ songs. His mentor ask him to pick any song he likes, and start singing. This study applies the same virtues. Study, then practice, practice and more practice prevails, until you have come totally frustrated and ‘fed up’ at practising. Now is your time to start trading-for real.Don’t give up early, treat your approach as you would any business. Learn the ropes intently then start calling the shots. If you intend to purchase the doctrine with the aim of making a ‘big wad of cash’ within a short time there after; then you are wasting your time and money as your thoughts are wrong. You must be prepared to study and then practice before your aim becomes refined in chasing those big deals, in where the ‘fruits of your labour’ could delivery a huge ‘pay day’ for some. In essence you are testing a new business venture,and just like any well defined business ( Store, Mechanic, Restaurant, Cafe, Publisher, Agency, Law firm, Doctor etc..), it takes around 4 years to ascertain if such businesses are headed for success or not in where around 50% often fail before this period of time has arrived. Luckily this kind of business does not need a huge financial outlay, thus unlike most other businesses, you are aware of you total costs upfront. One way or another, the business minded entrepreneur with learn a lot about contracts, offers, money and big deals-or actually close a big deal. One way or another the true entrepreneur will benefit from the study one way or another over the longer term.Ideally this is why those who are employed , hoping to leave their job, ‘one day’ are ideal candidates to take up the study and practice in their spare time.Those who are looking for ‘a get rich quick’ scheme have come to the wrong place. It's a ' business' thats what you are intending to develope; we'll give you the unique legally defined basis, in laymen terms- that much we can do.
HOW TO SECURE A COMMODITY DEAL
We receive many enquiries carrying a single theme like, “how do I close an import export deal,” as if, the answer could be given in a simple email. Below defines the whole aspect. When we say that a supplier has to be secured first; there is a lot more to it, than simply stated. The below whole closing aspect may take for some 8 months, up to 16 months or more for most to learn.Once the learning process is over and some experience is in hand this is the time to start getting serious about the second part of the whole aspects-To make money. First we do the study, then we obtain practice, then we chase live deals intently.
THE MINIMUM GUIDING EXPECTATIONS OF CLOSING A DEAL ADVISED
FIRST 3 MONTHS
• Read /study the doctrine intently
NEXT 6 MONTHS OR MORE
• Practices the virtues of the doctrine to obtain experience
FROM AROUND THE 9TH MONTH
• Due diligence applied to secure one single supplier of a worthy NBC product at FOB
FROM THE 12TH MONTH
Assuming with a supplier now finally secured, and offer is made to test end buyers
FROM THE 13 MONTH
• Offers are returned from a number of tested end buyer as signed.All negative.
PRACTICE AND STUDY TIME IS OVER
BY THE 16th MONTH
• A more concerted effort is made to secure a number of suppliers
• As principal applicant may decided to form a string of his own members
• You have secured 2 worthy products of more
• You prepared offers to test many buyers alone or with a goods informed string
• You scrutinise all end buyer offers arriving as accepted.
• You issue a standard FTNX contract to one end buyer with good intent.
• Waiting for contract to return; you accept the suppliers ‘supply’ with an OTP
• OTP subject to final contracts.
• Contract from supplier is advised to YOU .It’s held but not signed
• Contract from the end buyer is returned and acknowledged.( legally binding)
• A DLC is lodged; the suppliers contract is signed by YOU and retuned.
• You are now legally bound by two contracts.
BY THE 19TH MONTH
• First delivery cleared. Ship is ready to slip moors port of loading
• All documents have arrived at, or passed through your bank
• The Issuing bank examines all documents and if cleanly presented collection applies
• The supplier receives his selling price
• The seller /Buyer ( YOU) receives your selling price.
• The difference between suppliers price and your price is YOUR profit
• You have made a gross profit from which;
• If applicable; commission is paid to those assisting you in a string .
• This in effect leaves you a NET profit for your benefit.
• Ship finally arrives at destination 25 days later.
• Assume goods arrived in goods order.( no potential dispute, compensation)
• YOU now prepare to accept the next delivery in a revolving deal (same basis)
• 12 months later your accumulated monthly net profit form a 12 month revolving deals, is nothing less the great.
You are now trading at an advance level. Offer, Contract, DLC, Delivery is your trading basis, on both sidesYou are now a Buyer/Seller (PTE) of commodities in your own name. You’ve started as an ill informed trade, became a Practising ISS and finally a PTE thereafter
There is no rush to secure another deal until the first deal has passed 3 consecutive revolving shipments without any issues, or even more. Each trader acts differently in relation to this matter. Whether less time or much more time needed for the above to eventuate; if you do not know what your are doing at every single stage of a complex deal; then you should not be trading. There is not even a remote chance to earn any commission pushing fakes deals around all day, as offered by ill informed others using unworkable SPA, FCO, LOI, ICPO, BCL, ASWP, NCNDA etc.etc; type of trading premise and routine. The industry is full of clowns in where such clowns offers mostly ’fake ‘ goods to other ill informed traders, in their own circle, who often pretend they have a ‘real buyer.’ We tested thousand of such ‘ buyers’ over 30 years in where every single one were falsely presented.Like wise with suppliers. Our intermediary trading procedures are legally defined and supported by many different attributes of local rules, and international law. Our ‘procedures’ can close legitimate import export deals and other kind of related deals, legally and lawfully; all other procedures described cannot, due to the fact that we created the first doctrine of trade that intermediaries can actually use effectively; unfortunately without study and practice, the true nature of this complex and sophisticated business venture cannot be entered into effectively. It’s that simple! We are called ‘intermediaries’ by name unfortunately such a name has no force nor respect in the industry because of the many stupid ill informed intermediaries that come and go every year ( for centuries) places we the informed, all in the same boat, “as seen in the eyes of the end buyer or supplier.’ For this reason, from 2017, we (the informed) are all defined as “International Sourcing Specialists “ (ISS). Those who are Certified by FTNX may also be defined as International Trade Specialist (ITS)
In closing; If you want to chase the big deals and big dollars, you need to become an ISS, ITS, PA (Primary Agent) or a Buyer /Seller and Principal trader outright, defined as a ‘Private Trader and Entrepreneur’ (PTE). All such informed traders work under the USCT banner if they wish or alone.
This is how private 'informed' traders closes an import export deal.
HOW TO SECURE A BUYER
With great personal efforts applying ! You cannot use trade sites. We use the internet to obtain details of the supplier or end buyers but each offer made MUST be made by the supplier or made to the end buyer PERSONALLY.
Let me run though the basics of an AU deal quickly.
Beside the issue of having a securities license to trade in gold bullion formally is often also needed;
(1) The proper delivery mode is incoterms CPT and we did not mention as much because we don’t deal in gold bullion for the very reason you have implied. In any case suppliers will not go for CPT.
(2) The gold seller in Uganda is meant to meet the PIA in an agreed neutral place i.e Bank in London that the PIA has an appointment with. The end buyer does the same.
Passports are handed over , parties enter into bank and finalise the transaction there and then . Title certificate are traded for cash/Wire transfer.This is the usual practice . The PIA directs the deal and direct its differential( profit) on the sell /buy price to its own bank account at the same time , as agreed upon between the parties to the deal hence its a' disclosed deal.’ We don’t like 'disclosed deals.'
Above is simply an unworkable scenario for many.
(3) CPT Incoterms : The Ugandan seller is selling Gold dust - even if its in bars, it needs to be re-assayed. He places the goods in a plane , he accompanies the gold to i.e London /USA refinery. He pays for everything at this time including security and delivering the gold to a smelter. The refinery provides an official quality assessment i.e; 22 carat fine gold and a receipt is given to the owner.The gold is paid for with a bank meeting and title document now belong to the buyer with the receipt being endorsed over as well. The Buyer at his expense now has to smelter the gold, assay it ,and have the gold hallmarked and certificates issued accordingly. The certificate now can be sold outright by the buyer via Bullion Certificates. The difference between international gold prices and dust price is around 30%- the buyer has to purify it to 99.9% , smelter it , assay it and store it - hopefully to make 5-10% for himself on the deal. For YOU to extract 5% for yourself is nearly impossible.
It’s a precarious trading deal when so many other kinds of 'real products’ can be traded upon. Thus under TRIBE rules of association - for good reason, the PIA could trade in "deep storage" gold bullion, but it is preferred that trader keep away from such deals i ( including alluvial gold from Uganda/ Mali region) as they are fraught with dangers and scams.You cannot go to the sellers country because it could become a personally dangerous business deal( proven).
You could try and convince the seller that a DLC will be advised and that the Gold is delivered to YOU.
The end buyer then comes to YOU and takes delivery ONLY what was offered.We’ve tried it many times is years past. You will not convince the seller to do as much.
Conclusion; No gold deals.
I've chased Gold deals from 1988 ( including Nazi gold) for ten years-all shifty, all with unworkable procedures. We get such offers still today every few months.
ADVANCED FTNX EDUCATIONAL SERIES
Broker Agent Intermediary
25 Sept 2017
We are all ‘informed intermediaries’ up to a point ; once a supplier has been sourced we become a principal trader there after, defined as “ Buyer/Seller,” (and specialist) acting on behalf of various undisclosed principals. In the IBITE 2018 doctrine the ‘Buyer Seller’ is defined as the PTE which stand for “Private Trader and Entrepreneur.” In pre IBITE editions of the doctrine, many would be familiar with the term ”the PIA” instead of the PTE. The PTE has gone from the position of a SI (*Sourcing intermediary) to become a principal once goods have been secured from a “disclosed supplier in possession of goods offered to the PTE.” (*SI is now replaced with ISS–International Sourcing Specialist ) The PTE can only trade once it has secured export ready goods from the owner of such goods.The PTE starts and closes the deal and signs the contract as principal, regardless if working alone or with other ‘brokers’ attached. To ensure that all like minded traders remain informed and are practising a base trading routine, and to identify those many online who are ill informed against those many traders online who have studied the doctrine, a peer to peer network of informed traders are readily identifiable, as per the USCT registration number provided by FTNX.Unified Society of Commodity Traders (USCT) members have all studied a FTN Exporting endorsed in house doctrine. To also ensure no confusion is apparent when peer to peer members cross each other pat, to join forces to become a string group; on a deal they are working on, TRIBE rules of association have also been provided by FTN Exporting to ensure uniformity of process remains on solid ground. In summary the difference between ‘us’ and those further described below, in part, are was follows.
- The PTE many only trade while acting for undisclosed other
- The PTE or ISS member could take upon work as a broker for a disclosed other
- The PTE may trade alone, once practising the iSS position has been completed
- Brokers (ISS) attached to the PTE are unable to trade alone.
- Brokers (ISS) invited to become attached to the PTE are only ‘assisting’ the PTE
- The PTE signs the contract.
- The PTE is both the Principal of Agency and “buyer/seller”
- All attached Broker must eventually hold their own position of PTE
- The PTE bears all liabilities and responsibilities of the whole transaction
- The PTE pays all its brokers a commission but only if a deal closes
- The PTE is his /her own boss
- The potential earning of the PTE is huge even if one NBC deal is eventually closed
A licensed financial broker for instance, is simply a person acting on behalf various disclosed financial institutions (Principals.) A PTE or ISS member could do the same , but such a piston is a much lower one that that of the PTE heading his own deals as principal acting for undisclosed others. Most entities could take up such position, once they have studied the FTNX doctrine,as the doctrine is based on a universal application, that may be found locally as well in many leading countries, but not many industry brokers could take up the position of the PTE, if the only training they have, is that related to their own industry. In general, a broker worthing for another entity, would take down details of the applicant looking to secure, lets say a ‘home loan’ press a few buttons on his computer, and processes the loan application within a few minutes. His disclosed principals all take a look at what has been offered by the Broker; in where the first financial institution ( i.e Bank) to take up the loan application, seals the transaction for the broker; allowing such to earn a a base wage or / and perpetual commission, of the monthly repayments made on the loan, for the life of the loan–for introducing a new customer to the bank.
Only good brokers who work extremely long hours have a chance to make great earning from this kind of business;and like our own business many who attempt to trade in the position of a broker or agent for another, don’t last long in the business. A real-estate Agent is just like a broker, except instead of the computer, the agent usually has a physical presence added to the nature of business, when once again she or he is representing their disclosed principal, usually the head of agency holding the Real-estate license. Just like the ‘finance’ or ‘stock’ broker, in boom times such agents could earn a great deal of money. The real-estate agent, the insurance or finance broker and the many others related business practices also have a secondary protocol, in that such entities when acting for a disclosed principal MUST convey every facet of the deal being entered into honestly, when dealing with the customer.In other words, the broker or agent must also look after the interests of the client as well. No matter what type of Certificate or Diploma such agents and brokers attain at University, all such entities will be required to take up in house training, to learn in house procedures pertaining to the industry they are working in, before being allowed to conduct business ‘on behalf of a disclosed principal.’ The principal pays all relevant expenses pertaining to employment of its broker or agents, who are not merely ‘assisting ‘ the principal but is formally employed by such.
Let assume that Professional FTNX informed International Trade Intermediaries do not have the money to issue a DLC let alone confirm a DLC or pay for transfer fees and the expenses therein, because the nature of our business involves high value contracts way beyond that found in the domestic market place, which in turn attract very high fees. We do not charter ships for the same reason; if we all could do as much, then we would be deemed to be ‘merchants’ and not intermediaries in where, many ill informed ‘merchants (ill informed intermediaries) would have lost their money anyway (Law books are full of such cases.)
The position of PTE is that; once the supplier has been secured, the principal of agency acts ‘on behalf of an undisclosed principal’, when selling the goods it has sourced from the supplier. This is where the road parts that separates the agent and broker from the position of “buyer / seller,” and ‘Principal of Agency’ (the PTE.) From this aspect we are no longer acting as a brokers, agent, nor intermediary-but specialised commodity traders in where the principal may also tenure the services of other to act as ‘broker for the disclosed principal.’ Unlike the tenured broker or agent who has the support of its own agency to pay for all associated expenses of doing business as established locally, the ‘Buyer /seller’ has no such support as such must work within the legal framework of local and international rules and laws alone or with other ISS members invited to become attached. The ‘Buyer / Seller’ and all those brokers seeking to attached themselves to the PTE (’Buyer/Seller) therefore have a very limited opportunity to trade in all kinds of commodities, and to do so in a manner which suits their position in where all expenses of doing business are for the expense of the supplier, or the end buyer , buying the goods from the “Buyer/Seller”( the PTE.)
A car salesperson acting for a disclosed dealership, offers a car at an advertised price, even though when selling the car, other ‘expenses’ pertaining the the sale are also collected from the buyer, which were not covered in the initial offered price.it’s no different with us, as we also have to ensure that our buyer cover our added expenses of doing business as well.
The Industry broker many only trade while acting for disclosed other
- Most Industry brokers could not take up the position of the PTE
- The Industry broker may not trade alone in his own name
- Industry Brokers are tenured by the principal after assessing the applicant.
- The Industry broker cannot sign the contract.
- The Industry Broker is neither Principal of Agency or a “buyer/seller”
- The Industry broker bears no liabilities and responsibilities of closed transactions
- The Principal pays all its industry brokers a wage/ retina and or small commission.
- The industry broker is not his /her own boss
- Industry brokers need a lot of sales to make huge commissions (cumulative)
In essence the PTE has to know all about the legal aspects of business arena it is transversing within, and ISS members must move from the position of ISS to PTE as soon as possible, once confidence level rise along with knowledge gained, and only after spending a few months learning and studying the FTN doctrine intently. Those ISS members who chose not to move into the PTE position must find other ISS members to form a string, who in turn, one such ISS member is able to connect their string with a PTE, when a real supplier is secured, or secure an PTE who is willing to attache the ISS member as their disclosed broker over a longer period of time. Alternatively , the ISS member could seek employment in a related industry, in where once accepted such =will still require to learn in-house process of the employer.
ADVANCED FTNX EDUCATIONAL SERIES
LOI: Letter of Intent
26 Sept 2017
LOI in international trade business stands for ‘Letter of Indemnity.’ In domestic business it may stand for ‘letter of Intent’ in some countries notably the USA and parts of Europe. Example of LOI use. A Politician is seeking to move a motion in lets say Parliament ,but before doing so, he asks his trusted colleagues to find out if he has the numbers within his own ranks, to win the motion, before lodging it formally. The numbers are very close, accordingly the politician privately ask a key senior member if he would back the motion, to ensure a win, knowing that the key member has many who will follow his lead. The key member states that he will back the motion positively. The Politician asks the key member if he could produce an LOI declaring as much ASAP. The Politician now seeking more support from other members formally and openly declares that a key member is ‘on board.’ He has an LOI stating as much, just in case, the key member later backs away from his initial support. The LOI stops others calling the Politician a liar, for stating that a key member was on board. The key member back away and changed his mind in supporting a motion at the last minute because what was proposed had slightly changed when presented on the floor.
Above scenario is a “long long way away,” from the idea that an end buyer in another country could provide a signed LOI to declare that it is Ready, Willing and Financially Able ( RWA) buy goods offered by the PTE in where the buyer now thinks he has the right to sight an offer let alone verifiable supply details; which is often asked for, all because an LOI was signed. The LOI may have some effect if the seller (PTE) and end buyer were located in the very same country and thus jurisdiction, but only after an offer declaring matter of price, terms and conditions is first agreed upon. An LOI issued one day, does not means a legally standing aspect is readily available. In international trade business, it means nothing to us.
NEW PETROLEUM TRADING CHANGES
30 September 2017
NEW RARE DOCTRINE INSIGHT/CHANGE
We now treat primary producers just like we would when dealing with secondary market suppliers; is the new aspect form 2018. If it’s an OPEC supplier you are dealing with, we call such an entity ’primary’ producers for purpose of identifying a particular supplier. Everyone else are deemed to be ‘secondary’ producers. Why? A shift has developed from 2016 in where more and more attached USCT members are reporting favourable response to our trading procedures from PRIMARY PRODUCERS. It’s only in recent times , that primary fuel producers are becoming more interested at our trading process. Something is stirring the petroleum industry. "We always suspected something was not right and I knew it wasn't to do with our procedures, and more to do with the attitude of primary producers.“ The industry thought we were trading just like all those other ill informed intermediaries found online, and shut us all out equally. They are now starting to notice that USCT traders are different–finally! The new edict is simply defined. Whether primary or secondary market supplier; only FTNX buying procedures will be accepted, and that primary producers may now be tested (AOS) just like one would a secondary supplier.USCT members please adjust your doctrine (and thoughts) accordingly.The light at the end of tunnel has become brighter. Common sense is starting to prevail amongst primary producers.