Definition of Trading House

A trading house is defined as a certain type of business entity. It is a corporation that offers its sales, services and international trading expertise in a variety of ways and in various forms to those who need or seek them.


A trading house is involved in the import, export or trading between third countries in products that are manufactured by other companies. Trading companies also buy and sell products, goods and services for their own accounts. They are also purchasing agents that supply foreign countries with commodities. Trading houses work on commission.


Trading houses play a very important role for manufacturers and foreign countries in moving goods. They have a significant place in the global economy and they provide strong competition on both domestic and international markets.


Trading houses find a market, buyers and sellers and they also negotiate terms of a transaction. They also handle paperwork involved, protect their clients from all export related risks, provide promotional services and follow up on deals. Trading houses are efficient, tailor their services to those who need them and manage risk on all levels.