Today when I was surfing in some big trading site I v fount a very good situation asked by trader (site member) looking for help from member or site moderator, unfortunately no replay and help was done.
I decided to try to give my view about this problem that can face any trader in our days.
Problem is as below:
“Broker M has a buyer B wants to buy a commodity, so M contacted exporter E for supply, since the volume is big, exporter E wants to interview (by telephone) buyer B to make sure that the buyer has the fund. Before proceeding further, M and E signed NCNDA, but it turned out that the buyer B is exporter E’s existing client.”

Many traders know that NCNDA -Non-Circumvention, Non-Disclosure and Working Agreement is designed to protect the rights of brokers (middleman); However in today’s world, many people are well -informed and well-connected, due to this fact many trader lose their deal and benefit.
I faced this problem in the past when I was just a newbie trader and lost many deal as I was left down by seller or buyer (no difference as in the 2 case your benefit is lost and you are out of deal). I started in that time looking for the best way to secure myself ,first problem that faced is that I haven’t registered trading company I was just a freelancer working by myself.sow first step was registering company.
With my registered company I hoped that all done and I m in the deal. My signed NCNDA will secure my rights
(Company rights) but what I v found , as soon as buyer or seller finds that they know each other and worked in the past (all company coordinate are known from the 2 side) they conclude the deal without me.
The best solution that I v found is to be in the middle between them and all banking payment and working paper go only through my company as seller and buyer in the same time (for the end seller I’m the goods buyer and for the end buyer I m seller)
Technique that was used by me is transferable L/C method; you can read about this in my post:
How to secure commission by the use of transferable L/C? (Just click the text to be redirected)
So for me with my wasted time and accumulated experience I can say that in our days NCNDA is good thing but its not enough to secure and protect brokers (middleman) rights.

About The Author