13 Best Commodity Brokers & their Trading Platform Reviewed

Plus500 opens the door to commodity CFD trading opportunities on 22 commodities. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Investopedia does not include all offers available in the marketplace. Futures markets are regulated by the Commodity Futures Trading Commission . Futures also come with their own set of unique risks that must be managed independently of the underlying commodity.

• Before making any trades, you need to carefully understand the commodity price charts and other forms of research.
• With the buying or selling of these futures contracts, investors make bets on the expected future value of a given commodity.
• CTA’s can also act with power of attorney over client accounts on behalf of the client and according to the client’s trading objectives.
• Upon conclusion of each of our broker reviews, we have assigned each broker with a rating.

With a detailed ‘Getting Started Guide’ and an advanced trading platform with ample tutorials, City Index caters to all levels of traders. Futures trading is as profitable as other assets and 100% dependent on traders, their understanding of commodity markets, and their strategies. Traders must start with a comprehensive education covering all required parameters that move price action. Deciding which commodities to trade and how to do so must precede the commodity broker selection to ensure the required trading instruments are available. Before traders decide to start commodity trading, they should invest in their education.

How to Invest in Commodities

Easyhttps://trading-market.org/s offers CFDs, Vanilla Options, Forwards, and other derivatives on forex, commodities, indices, cryptocurrencies, and shares. They offer a free 7-day demo account that becomes permanent with a funded account. Fortrade offers traders a practical interactive tutorial to get started on the platform. They offer detailed educational resources for all trading levels and 24/5 support via e-mail, live chat, and phone for all traders. Margin in trading is expressed as a percentage and defines the fraction of the full trading amount that a trader needs to provide to open a position.

Mobile application is another defining aspect that directly influences trading. Hence, a broker offering a fully functional mobile application suits you better. Because it allows you to trade on the go from anywhere in the world.

Unlike crude oil, investors can take possession of the physical commodity. Investors who want to hold the physical commodity can do so by purchasing gold bullion bars or coins. But this means having to pay to store it in a deposit box, vault, or another safe place. Investing in physical crude oil isn’t as easy as investing in other commodities; you can’t just buy a barrel of oil. As an investor, you may consider futures; the most direct method of owning the commodity outright. And they also require a great deal of knowledge, so it’s not really a good option for novice investors.

“Commodity ETFs truly democratized the commodities trading game to all investors—they are low cost, readily accessible and highly liquid,” says Giannotto. Investors in the commodity market aim to profit from supply and demand trends or reduce risk through diversification by adding different asset classes to their portfolios. You can also buy the stock of companies that produce, transport and store commodities.

Commodity Brokers: Questions to Ask Before Signing Up For Your First Trade

The abrdn Physical Palladium Shares ETF aims to track the price of physical palladium, less expenses. The fund is fully transparent, with the number of bars posted daily on abrdn’s website, and the metal stored in a J.P. Our Customer Care Team members are expert users of ImportGenius and are ready to help maximize your experience.

EToro is the best commodity broker available today, with a strong and long-standing reputation in the industry, well-regulated, and a wide selection of commodities CFDs. Dave used to teach his professional traders how to use his trading algorithms. He has 15 years of experience in the financial sector and forex in particular. He started his career as a forex trader in 2005 and then became interested in the whole fintech and crypto sector.

Commodity Trading Advisor (CTA)

Commodities options are traded on exchange-like futures and can be used for physical trading or speculation. Commodities options differ from commodities futures in that you are trading the right to a certain amount of a commodity at a certain point in the future, not the obligation. With a small investment, you can gain access to a much larger range of commodities than if you tried to build the portfolio yourself. However, you’ll need to pay an additional management fee to the commodity fund over what it might cost if you had made the investments yourself. In addition, depending on the fund’s approach, it may not perfectly track the commodity price.

There are also speculators who are attempting to profit from price changes in futures contracts. Interactive Brokers’ futures offering scores among the highest in our analysis, thanks to the broker’s flexible low pricing and professional-level trading platforms and tools. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities. Salaries for this type of job are quite good; brokers typically make a commission based on the profit they bring to the firm. The firm will also pay accounting services and other support roles to lessen the risk to investors, but the investor does not pay the trader directly.

XTB offers traders 1,500+ trading instruments, as well as a free 4-week demo account with 100,000 in play money for traders wanting to try out the platform. AvaTrade offers a variety of CFDs, forex pairs, and options with a choice of six desktop trading platforms and two mobile applications. While some believe gold is an important investment that hedges against inflation, it isn’t without its risks.

Margin requirements and leverage

The SaxoTraderGo platform is robust enough for institutional traders and provides a wide range of advanced order execution options. Trade over 35 commodities or a range of commodity stocks and ETFs as a CFD or spread bet on spot prices or with an undated contract. Commodity trading spreads are from just 2.8 points on Brent Crude and 0.3 on gold and you can also attach a guaranteed stop to limit your risk, even in the most volatile market conditions. In addition, you have more time to make trades with commodities because markets are open nearly 24/7. With stocks you primarily make trades during normal business hours, when the stock exchanges are open.

• Thus, you can trade CFDs on stocks, commodities, Forex, indices, options, ETFs, and cryptocurrencies.
• Finding a commodity trading platform is the first step for any commodity trader.
• Currently, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by less than a basis point to 3.566 percent.
• Overall there are 20+ commodities you can choose from including metals, energies, and soft commodities.
• Commodities are a hedge against inflation, so buying before periods of high inflation is a good investment strategy; however, predicting when inflation will occur can be tough.

Finally, opening and funding a trading account is a necessary final step before starting commodity trading. A commodity broker is an individual or company that places trades on exchanges on behalf of clients. A floor broker or floor trader trades commodities contracts on the floor of a commodities exchange.

Traders can get a free demo account to try out the platform for 30 days. This broker offers enough variety that’s feature-packed for an advanced trader and simple enough for all trading levels. When you trade commodities as financial derivatives instruments, they’re officially classed as ‘securities’.

Energy

top 10 futures brokers trading may not be as widespread as equity, index, or Forex trading, but it continues to gain traction. It serves as an excellent portfolio diversification tool, providing hedging opportunities, and remains a favorite alternative to currency trading. Commodity markets are attractive to speculators as they are susceptible to dramatic changes in supply and demand. The most traded Commodities are those which have an established market of buyers and sellers. This translates to high levels of liquidity and lower trading costs – two of the main attractions when trading Commodities CFDs. This can also impact, and cause, price fluctuations of the commodities.

An in-depth comparison of the features that make them stand out compared to alternative commodities trading platforms. TradingBrokers.com is for informational purposes only and not intended for distribution or use by any person where it would be contrary to local law or regulation. We do not provide financial advice, offer or make solicitation of any investments. Here you will find our best commodity brokers, based on thousands of hours of extensive research, testing and analysis across hundreds of brokers. Upon conclusion of each of our broker reviews, we have assigned each broker with a rating.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74%-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. You should consider whether you can afford to take the high risk of losing your money. RoboMarkets is a multi-asset broker offering 8 asset types and more than 12,000 instruments for trading.

The iShares GSCI Commodity Dynamic Roll Strategy ETF seeks to replicate the investment results of the S&P GSCI Dynamic Roll Index, which tracks a very broad range of commodity futures. Abrdn’s Bloomberg All Commodity Longer Dated Strategy ETF tracks the total return version of the Bloomberg Commodity Index . The index tracks the futures market for a diverse range of physical commodities, and it attempts to represent the entire commodities trading market. This is the regulatory board that ensures broker agencies follow the rules and regulations set aside by the government to protect investor accounts. As listed above, employees that are a commodity broker can expect to make around $107,000 salary per year.

Exquisite educational resources, free-market data, and many other similar features are also provided by the broker. The broker provides fully customizable charts, advanced order management, a market scanner, and many other enticing features. TD Ameritrade supports electronic bank deposits, wire transfers, checks, and account transfers from another firm. Pepperstone offers the lowest spread rates such as Spot Gold ($) costs 0.05 and 0.13 minimum and average spread respectively.