What is an introducer or a mandate?

A way into the trade

Many people enter commodity trade without goods or capital, by bringing buyers and sellers together. The roles go by several names, and the lines between them are not always sharp. What matters is that each person knows exactly what they are doing in a given deal and what they will be paid for.

Introducer

An introducer brings one party to another. The service is the introduction. Payment, if any, is agreed in advance, often as a share of the commission or a fee per ton if a deal results. An introducer usually does not negotiate for either side and does not take the goods. Because the contribution is a contact, written confirmation of the arrangement is especially important.

Broker

A broker acts between buyer and seller, often negotiating terms and helping with documents and logistics. A broker is usually paid a commission by one or both parties, and does not take title to the goods. Professional brokers in some trades are regulated or belong to associations.

Mandate holder

A mandate is written authority from the owner of goods, or from a buyer, for another person to find a counterparty on stated terms. The holder acts for the owner, for a defined period and under defined conditions. A mandate can be exclusive or non-exclusive, and it can be passed on only if it says so. Mandates sometimes pass through several hands, which weakens each link, so ask for the chain.

What a good mandate says

• The parties: the owner, the holder and the legal names and registration details of each.
• The product, specification, quantity and any price floor or reference.
• The delivery terms, such as Incoterm and place, and the payment terms that the owner accepts.
• The territory or the buyers the holder may approach.
• The duration, and what happens when it ends.
• Whether it is exclusive, and whether it can be passed to others.
• The commission or fee, who pays it and when.
• Signatures of authorised persons, with a date.

How to confirm a mandate

Because a mandate is only a piece of paper until the owner confirms it, a buyer should ask to verify it. Contact the owner using details you found independently, ask whether the person named has authority, and ask for the terms. A genuine owner understands why. If the answer is that the owner cannot be contacted, treat the mandate as unverified. Holders should expect such checks and welcome them, because verified authority makes a buyer more willing to act.

Being honest about your role

A plain statement of role costs nothing and builds trust that lasts beyond a single deal.

• Say whether you own the goods, hold a mandate or are introducing a party.
• Name the chain, or say that you will name it after an agreement is in place.
• Do not present a position you do not have, such as calling yourself the seller when you are an introducer.
• Keep a record of every message that shapes the arrangement.

Building credibility without capital

Learn one product deeply, keep a short list of verified buyers and sellers, and be the person who gives clear specifications and answers quickly. Share what you have verified, and say what you have not. Post on Tonport with your role stated, introduce yourself in the Deal Room and use the glossary for the vocabulary. Reputation in this trade accumulates slowly and is easy to lose.

Frequently asked questions

Does a mandate transfer ownership of the goods?

No. It gives permission to find a buyer or seller on stated terms. Title to the goods stays with the owner until a sale is completed.

Can I sub-mandate to others?

Only if the mandate allows it. Otherwise, check with the owner before passing it on.

Is an introducer paid even if I deal directly later?

That depends on the written agreement. Without one, it is difficult to establish. Agree the terms before the introduction.

How long does a mandate last?

As long as the document says. Many are for weeks or months and are renewed or lapse. Check the end date.