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7 Best Commodity Trading Brokers and Platforms for 2024
Searching for the top forex broker for trading commodities? Based on our hands-on analysis, we’ve identified the 7 best options tailored to various trading needs. Practical tips from our experts are included.
By:
Reviewed By:
Updated: Nov 21, 2024
List of Top Commodity Trading Brokers and Platforms
Best brokers for US traders
24 commodity futures contracts. Standard and micro contracts available. Low intraday margin and fees. Comprehensive Futures Trading Academy.
Best brokers for international traders
30+ commodities (energy, agriculture, metals). Spot and Futures CFDs. Commodity ETFs. MT4 and MT5, cTrader. Suits high-volume traders, scalpers, and EAs.
17 commodities. Competitive fees for commodities. MT4 and MT5, AvaTradeGO app. Automated and copy trading available.
Over 3,600 real US shares. 23 commodities and 1,971 share CFDs from Europe and the US. Feature-rich proprietary xStation 5 platform. Up to 4.9% interest on unused funds.
22 CFD commodities (energy, precious metals, soft). 8 commodity-related ETFs. Feature-rich proprietary WebTrader Platform. Innovative +Insights tool. Regulated by multiple top-tier regulators.*
18 commodities (energy, metals, agriculture). VPS hosting, raw spreads, EAs. MT4 and MT5, IRESS platform. MAM/PAMM accounts.
Public company listed on Swiss exchange. Multiple account types. MT4 and MT5 auto-trading capabilities.
*82% of retail CFD accounts lose money.
Key Benefits of Commodity CFD Trading
Trading commodity CFDs offers notable advantages such as the ability to leverage, allowing for larger positions with less capital, and the flexibility to speculate on both rising and falling markets. Unlike traditional commodity trading, there’s no need for physical delivery, simplifying the process. Traders gain access to a diverse range of markets, can hedge against other investments, and enjoy cost efficiencies like lower transaction fees.
Additionally, commodity CFDs provide price transparency, high liquidity for easy market entry and exit, and a more straightforward trading process compared to futures trading. However, it’s crucial to be aware of the risks, particularly those associated with high leverage.
How did FXEmpire choose the Best Brokers for Commodity Trading?
We carefully considered the needs of commodities traders and focused on the points that benefit this group the most.
- We reviewed the range of commodities available, including CFDs on spot commodities, commodity futures, and ETFs.
- We’ve assessed the quantity and diversity of the commodity offerings provided by brokers.
- We measured the spreads for trading commodities and preferred brokers with tight spreads, which helps to keep trading costs minimal for commodity traders.
- We researched how each broker is regulated and assessed its level of trustworthiness, financial strength, and reliability.
- We reviewed the available software for trading commodities, focusing on platforms with robust charting, diverse order types, an intuitive interface, and automated trading capability.
- We examined the maximum available leverage for trading commodities at each broker.
Our team of experts has identified each broker’s strengths and weaknesses using FXEmpire’s comprehensive methodology. Here’s how we test.
Now let’s go through the selected brokers.
Best Overall
4.5
Trading Forex and CFDs carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Forex and CFDs may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
- $200Min Deposit
- 2245Tradable Instruments
- LowFees
Why We Picked It
Founded in 2007, IC Markets is a veteran of the forex and CFD industry. With over 180,000 active clients worldwide and US $1.2 trillion in trading volume (according to the broker’s website), it has emerged as a market leader.
The Sydney, Australia-based broker provides access to trading in CFDs on currency pairs, commodities, indices, shares, ETFs, futures, and cryptocurrencies. While researching trust and stability signals, I confirmed that IC Markets is regulated by multiple authorities, including top-tier ASIC and CySEC.
Commodity Trading Features:
- Commodity-based Assets: 30+
- Metals: Gold, Silver, Platinum, Palladium
- Gold Pairs: XAU/USD, XAU/EUR, XAU/CHF, XAU/GBP, XAU/AUD
- Silver Pairs: XAG/USD, XAG/EUR, XAG/CHF, XAG/GBP, XAG/AUD
- Energies: WTI Crude Oil, Brent Crude Oil, Natural Gas
- Softs: Cocoa, Coffee, Corn, Cotton, Orange Juice, Soybeans, Sugar, Wheat
- CFDs on Commodity Futures: Yes
- Maximum Leverage: 1:1000 (Global Entity), 1:20 (EU Entity) 1:20 (ASIC Entity)
My research revealed that IC Markets offers over 30 commodity-based assets for trading. Gold and silver can be traded against five different currencies, and there is an exciting range of soft commodities. Various CFDs on commodity-related ETFs, such as the iShares Gold Trust, are also available. Traders can access CFDs on both spot commodities and commodity futures.
The MetaTrader 4, MetaTrader 5, and cTrader platforms provide advanced charting and sophisticated order types for commodity trading. In my hands-on tests using a Standard Account, I recorded highly competitive spreads of 3 pips in WTI crude oil and 10 pips in gold.
Pros and Cons
Pros
- Excellent range of tradable commodities.
- Rock bottom spreads.
- Robust platforms and tools.
- 24/7 support.
- $1M insurance via Lloyds of London (offshore entity).
Cons
- Trading platforms may take time to master.
Best Low Spreads
4.6
Trading CFDs and FX Options entail risk and could result in the loss of your capital.
- $100Min Deposit
- 853Tradable Instruments
- MediumFees
Why We Picked It
AvaTrade was founded in 2006, making it an early mover in the forex and CFD industry. The Dublin-based broker has grown tremendously since then and now provides services to 400,000 traders. Regulated by multiple agencies globally, including, FCA, CySEC, and ASIC, AvaTrade scored highly in our trust category.
Commodity Trading Features:
- Commodity-based Assets: 17
- Metals: Copper, Gold, Silver
- Energies: Brent Crude Oil, WTI Crude Oil, Gasoline, Heating Oil, Natural Gas
- Softs: Cocoa, Coffee, Corn, Cotton, Palladium, Platinum, Soybeans, Sugar, Wheat
- CFDs on Commodity Futures: No
- Maximum Leverage: 1:200 (Global Entity), 1:20 (EU Entity) 1:20 (ASIC Entity)
In my assessment, I recorded spreads of 3 pips for WTI crude oil and 29 pips in gold. Spreads in other assets are also competitive; for example, I experienced spreads of 0.9 pips in EUR/USD.
AvaTrade has a wide variety of commodity-related CFD instruments, including ETFs such as Market Vectors TR Gold Miners. Advanced MetaTrader 4&5 platforms provide access to robust charting, advanced order types, and automated trading. The proprietary WebTrader platform offers an intuitive and user-friendly alternative.
Pros and Cons
Pros
- Tight spreads in crude oil.
- 1,250+ tradable instruments overall.
- Versatile account types.
- Great range of trading platforms.
Cons
- Inactivity fee.
Best for Share CFD Trading
4.5
75% of retail investor accounts lose money when trading CFDs with this provider.
- $0Min Deposit
- 2134Tradable Instruments
- LowFees
Why We Picked It
Founded in 2002 in Poland, XTB is a globally regulated broker, which is listed on the Warsaw Stock Exchange (WSE:XTB) and offers over 2,300 CFD instruments and 3,600 real US shares from its flagship xStation 5 platform.
Commodity Trading Features:
- Commodity-based assets for trading: 23
- Metals: Aluminium, Silver, Gold, Palladium, Platinum, Copper, Nickel, Zinc
- Energies: WTI Crude Oil, Brent Crude Oil, Low Sulphur Gas Oil, Natural Gas, Carbon Emissions
- Softs: Cattle, Cocoa, Coffee, Corn, Cotton, Lean Hogs, Soybeans, Soybean Oil, Sugar, Wheat
- CFDs on Commodity Futures: Yes
- Maximum leverage for commodities: 1:20 for retail traders; 1:200 for professional traders
On top of an excellent range of metals, XTB offers an impressive selection of other markets. There are over 1,971 share CFDs to trade long or short, covering European and US stock exchanges. Furthermore, over 3,600 real US shares are available to invest in. A standout feature is the ability to earn 4.9% interest on any uninvested funds, ensuring your capital is always growing.
The broker’s proprietary xStation 5 platform, which is well-designed and offers a robust range of built-in tools and features such as performance statistics, watchlists, and price alerts, offers the full range of markets.
Another outstanding feature of the platform is the stock and ETF scanner. This allows users to filter stocks and ETFs based on various fundamental criteria such as dividend yield, market capitalization, earnings per share growth, price/earnings ratio, and more. However, during our live fee tests, I found the spreads on Apple and Tesla share CFDs to be higher than the industry average.
Pros and Cons
Pros
- Stock and ETF scanner
- Large range of share CFDs and real shares
- Feature-rich xStation 5 platform
- Earn interest
Cons
- Share CFD spreads are higher than the average
Best Commodity Trading Platform
4.3
CFD Service, 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
- $100Min Deposit
- 2047Tradable Instruments
- MediumFees
Why We Picked It
Originally hailing from Israel, Plus500 is a powerhouse in the world of CFD trading and has left a mark with its drive toward innovation. The broker was founded in 2008 and now offers services in over 50 countries worldwide. Plus500 is regulated by multiple top-tier regulators, including FCA, CySEC, and ASIC, and is a publicly-traded company listed on the London Stock Exchange.
Commodity Trading Features:
- Commodity-based Assets: 30
- Metals: Silver, Gold, Palladium, Platinum, Copper
- Energies: WTI Crude Oil, Brent Crude Oil, Heating Oil, Low Sulphur Gas Oil, Natural Gas, Gasoline
- Softs: Sugar, Coffee, Corn, Wheat, Lean Hogs, Live Cattle, Soybeans, Cocoa, Feeder Cattle, Cotton
- CFDs on Commodity Futures: Yes
- Maximum Leverage: up 1:20 CFD Commodities
Plus500 has invested heavily in its proprietary WebTrader platform. For many, this is a significant improvement on the dated look and feel of the widely used MetaTrader platform. Beginners and casual traders can appreciate its intuitive yet feature-rich interface (*beginners have access to an unlimited demo account where they need to start their trading experience with Plus500).
Plus500 has built some great research tools into the platform. The +Insights tool provides unique data like most traded instruments and most profit-making positions among Plus500 clients. During my tests, I experienced spreads of 41 pips in gold and 4 pips in WTI oil.
Pros and Cons
Pros
- User-friendly and intuitive trading platform.
- Over 2,500 available CFDs.
- Innovative research tools.
- Fast-responding 24/7 chat support.
Cons
- No phone support.
Best for Professional Traders
4.6
Contracts for Difference (CFDs) are leveraged over-the-counter derivative products and carry a high level of risk to your capital. You should only risk capital that you can afford to lose. In certain circumstances, due to fluctuations in market value you may not get back your initial investment amount. You may not only lose your initial investment but you may incur a liability to pay a further amount to cover losses. This means you can lose more money than you have invested.
- $100Min Deposit
- 8977Tradable Instruments
- LowFees
Why We Picked It
Sydney, Australia-based FP Markets was founded in 2005 and has entities regulated by top-tier CySEC and ASIC. With over 10,000 CFD instruments across stocks, indices, forex, commodities, and cryptocurrencies, traders can work with an exciting range of markets. Three advanced platforms are available: MetaTrader 4, MetaTrader 5, and cTrader.
Commodity Trading Features:
- Commodity-based Assets: 18
- Metals: Gold, Silver, Platinum, Palladium
- Gold Pairs: XAU/USD, XAU/EUR, XAU/AUD
- Silver Pairs: XAG/USD, XAG/EUR, XAG/AUD
- Energies: WTI Crude Oil, Brent Crude Oil, Natural Gas
- Softs: Corn, Cocoa, Soybeans, Coffee, Wheat
- CFDs on Commodity Futures: Yes
- Maximum Leverage: 1:500 (Global Entity), 1:20 (EU Entity) 1:20 (ASIC Entity)
Getting in and out of trades fast is made possible with low latency trade execution delivered from the Equinix NY4 facility server cluster. Thanks to VPS hosting, scalpers and algorithmic traders can be more confident in having a stable trading environment.
FP Markets also provides MAM/PAMM technology, which enables money managers to trade client funds via a master account. In addition to CFDs on spot commodities and commodity futures, FP Markets offers commodity-related ETFs, like the SPDR Gold Shares ETF. While testing FP Markets fees, I recorded spreads of 25 pips in gold and 4 pips in WTI crude oil.
Pros and Cons
Pros
- Extremely tight spreads.
- Fast order execution.
- Advanced platforms.
- VPS hosting.
Cons
- No proprietary platform.
Best for Beginners
4.4
Trading involves risks. Products and services of Swissquote are only intended for those permitted to receive them under local law.
- $1000Min Deposit
- 506Tradable Instruments
- MediumFees
Why We Picked It
Swissquote is a leading bank offering various financial services, including forex and CFD brokerage. The Gland, Switzerland-based bank is listed on the SIX Swiss Exchange, and its entities are regulated by multiple authorities over the globe, including FCA, FINMA, and CySEC.
Commodity Trading Features:
- Commodity-based Assets: 26
- Metals: Gold, Silver, Platinum, Palladium
- Gold Pairs: XAU/USD, XAU/AUD, XAU/CHF, XAU/EUR, XAU/GBP
- Silver Pairs: XAG/USD, XAG/AUD, XAG/CHF, XAG/EUR, XAG/GBP
- Energies: WTI Crude Oil, Brent Crude Oil, Natural Gas
- CFDs on Commodity Futures: No
- Maximum Leverage: 1:50 (FINMA), 1:20 (FCA), 1:20 (CySEC)
Swissquote shines in platforms, educational resources, and customer support. The Advanced Trader Platform is both user-friendly and feature-rich. Beginner traders can take advantage of impressive educational offerings, including detailed courses, live webinars, and downloadable ebooks.
While testing Swissquote, I experienced reliable customer support via live chat, phone, and email. Spreads for commodities came in at 5 pips in WTI crude oil and 57 pips in gold.
Pros and Cons
Pros
- Great educational resources.
- Professional platform and handy supporting tools.
- Fast order execution.
- Regulated by multiple top-tier authorities.
Cons
- High minimum deposit.
Best Commodity Futures in the US
4.5
Trading with leverage comes with a high risk and may not be suitable for everyone.
- $100Min Deposit
- 52Tradable Instruments
- LowFees
Why We Picked It
Founded in 2008, Plus500 is regulated worldwide and listed on the London Stock Exchange. In 2022, the broker launched its Futures Trading App for U.S. residents. The intuitive app offers a wide range of futures markets with competitive fees.
Commodity Trading Features:
- Commodity-based Assets: 24
- Metals: Gold, Copper, Micro Gold, Micro Copper, Platinum, E-mini Gold, Silver
- Energy: Micro WTI Crude Oil, Brent Crude Oil, Heating Oil, Natural Gas, E-mini
- Natural Gas, RBOB Gasoline, E-mini Crude Oil, Micro Natural Gas
- Agriculture: Soybean Meal, Corn, Soybean, Wheat, Live Cattle, Soybean Oil, Feeder Cattle, Lean Hogs
- CFDs on Commodity Futures: No
- Lowest Margin: $20 per contract
The Plus500 Futures Trading App is a breeze to use. It offers easy access to commodity futures and forex, crypto, interest rates, and equity indices futures. I found a good range of standard and micro contracts with competitive commissions – micro contracts at $0.49 and standard contracts at $0.89 per contract.
Overall, costs are very competitive as there are zero platform, routing, data, deposit, withdrawal or inactivity fees. The Plus500 Futures Trading Academy is also an excellent resource of high-quality educational materials. A library of articles and videos covers the basics of futures trading, commodity markets, and some futures trading strategies to get started with.
Pros and Cons
Pros
- Intuitive futures trading app.
- Low intraday margin and fees.
- Wide range of commodity futures.
- Extensive educational resources.
Cons
- No phone support.
How to choose a broker for commodity trading?
When looking for a broker for commodities trading, you should pay special attention to the following points.
Can I trust the broker?
To be authorized and regulated, brokers must undergo audits, meet capital requirements, and provide segregated accounts and negative balance protection. You can search the regulator’s website to confirm the broker’s status and check for any disciplinary action. The broker’s size and operating history are also worth considering. You can usually find these on the company’s LinkedIn page. If you are working with an offshore broker entity, you should be especially cautious.
Read more about Best regulated forex brokers.
Are the fees competitive?
Working with a broker that keeps spreads and commissions to a minimum can make the difference between profit and loss at the end of the day. This is a crucial point for day traders. In our broker review methodology, we consider spreads of less than 35 pips as competitive in gold and less than 3 pips as competitive in WTI crude oil. Also, don’t be caught off guard by miscellaneous account-related fees, such as inactivity and withdrawal fees.
Check out our guide on Best lowest spread forex brokers.
What is the minimum deposit?
The minimum deposit required by CFD brokers can vary depending on the broker and the specific account type. Generally, the minimum deposit can range from as low as $100 to several thousand dollars. For example, among our list of best brokers for commodities trading, they range from $100 in the case of Plus500 to $200 with Vantage.
What account types are available?
A broad range of account types helps a broker cater to different trader profiles. For example, a simple STP account may be the best for beginners in the markets, while an ECN/raw spread account can help sophisticated, active traders keep their costs to a minimum. Here are some most popular account types offered by CFD brokers:
- Demo accounts are used for practice without risking real money. Such accounts should be used by novice traders making their first steps in markets. Discover more about brokers with demo accounts.
- Spread-based accounts typically charge spreads and swap/rollover fees. These accounts are usually a good choice for traders whose trading volume is expected to be relatively modest.
- Commissions-based accounts charge commissions in addition to spreads and swap/rollover fees. Usually, spreads are tight in such accounts. These accounts are suitable for traders whose trading volume is expected to be high.
- On Islamic accounts, swap/rollover fees are not charged to insure compliance with Sharia law. Find out best brokers with Islamic accounts.
- Professional accounts usually have a high minimum deposit and offer access to high leverage that most professional traders are looking for.
Read more about Best STP forex brokers and Best ECN forex brokers.
What platforms are available?
An intuitive, easy-to-navigate platform will allow you to launch into the trading world with minimal hitches. The most user-friendly platforms are typically browser-based platforms created by the broker. Look for easy-to-implement features such as watchlists, trading from the chart, search, news, and a customizable interface. The MetaTrader 4 and 5 platforms have additional features like backtesting, automated trading, and a wider range of order types – but are less user-friendly.
Explore Best MT4 brokers and Best MT5 brokers.
Commodity markets are highly volatile and especially sensitive to global events. Browser-based proprietary platforms can cater to commodities traders, but sophisticated and high-volume commodity traders may do better using the advanced features of platforms such as MetaTrader and cTrader which offer advanced order types, 1-click trading, market depth, and news feeds.
Check out our dedicated guide on Best forex trading platforms.
Is customer support reliable?
Having solid support on hand is essential. Check the hours of availability, for example, whether help is on hand 24/7 or only during business hours. Chat support is the most convenient, so look for an easy-to-access chat window built into the broker platform. In the case of a platform outage, it is also important to be able to contact support via phone.
What kinds of commodities can I trade with a CFD broker?
As CFDs (Contracts for Difference) are derivative instruments, they allow you to trade a wide range of commodities without owning the underlying asset. The types of commodities that you can trade as CFDs include:
- Precious Metals: CFDs enable you to trade popular precious metals such as gold, silver, platinum, and palladium.
- Base Metals: CFDs provide access to base metals like copper, aluminum, nickel, zinc, and lead. Check Best metal trading forex brokers.
- Energy Commodities: You can trade energy commodities such as crude oil (Brent and WTI), natural gas, heating oil, and gasoline as CFDs. Check Best energy trading forex broker.
- Agricultural Commodities: CFDs allow you to trade agricultural commodities like wheat, corn, soybeans, coffee, cocoa, sugar, cotton, and more.
- Soft Commodities: Soft commodities that can be traded as CFDs include products like coffee, cocoa, sugar, and cotton. Check Best soft commodities forex brokers.
- Livestock: CFDs also cover livestock commodities such as cattle and hogs.
It’s important to note that the availability of specific commodities as CFDs may vary depending on the broker you choose. Therefore, it’s advisable to check with your broker or trading platform to determine the exact range of commodity CFDs they offer.
Uncover more insights about Best gold trading brokers and Best oil trading brokers.
How to avoid forex and CFD scams?
A common scam in the forex and CFD industry involves vendors offering a trading strategy that guarantees an outlandishly high return in little time. These may involve automated trading using bots or a signal service where trades are shared via chat or social media. Nobody can guarantee returns with certainty, and it is more likely that such strategies will lose money. When assessing strategy or signal providers, you should look for a live track record audited by a third party, and also be conscious that past performance does not guarantee future results.
Traders should also be cautious about opening an account with an unregulated offshore broker. Such brokers may offer a straightforward account opening process, bonuses, and high levels of leverage but client funds are typically not protected. Meanwhile, brokers regulated by top-tier authorities must undergo regular audits and are held accountable for misconduct. Traders can also benefit from having their funds held in segregated accounts, negative balance protection, and a compensation fund in the event of broker insolvency.
Our Methodology
In selecting the best commodity trading brokers, we used the results of our advanced proprietary methodology. All of the brokers listed were among the leaders in our tests.
FXEmpire has been reviewing brokers since 2011 and has pioneered the in-depth evaluation of CFD brokers. Our process has taken years to refine and involved hundreds of reviews. We’ve gone to a granular level – with over 250 data points in our analysis of each broker – so you can feel confident in selecting the right platform.
To provide the most comprehensive view, we break down the brokers according to nine different categories:
- Trust
- Fees
- Platforms and tools
- Tradable instruments
- Customer service
- Deposit and withdrawal
- Account types
- Research
- Education
In our individual broker reviews, we explain complex areas like regulatory status, so you can easily understand the safety of your funds and the benefits you are guaranteed.
Data is gathered through live testing, research, detailed questionnaires, and in-person broker demonstrations. An account is opened with each broker, focusing primarily on the services of one entity and testing using the most standard account type and platform. We conduct live tests of spreads and measure overnight swap fees and account-related costs.
Our side-by-side analysis reveals whether a broker is competitive in relation to the industry as a whole. Trading platforms take time to master, but we have already done the legwork for you, and our evaluations highlight their important features and usability.
FXEmpire abides by strict guidelines for editorial integrity. Scoring is based on objective criteria and mostly measurable data, so our reviews cannot be swayed by individual preferences or biases. The review process is independent and follows a strict protocol. In addition, all facts are carefully checked and rechecked, as reviews are continually updated. Read more about our review process here.
For this guide, we evaluated brokers’ commodity offerings, focusing on variety and quantity. We selected brokers with high regulatory standards and a strong industry track record. Cost efficiency was key; we chose brokers with tight spreads to reduce trading costs. We assessed trading software, prioritizing platforms with advanced charting, diverse order types, user-friendly interfaces, and automated trading features. Additionally, we considered the maximum leverage each broker offers for commodities, catering to various risk preferences and strategies.
Meet Our Writers
The team of forex and CFD analysts and editors at FXEmpire is composed of trading industry professionals and seasoned financial journalists. Our experts have been published on leading financial websites such as Investopedia and Forbes. In addition, they all have extensive trading experience.
Get to Know Our Authors
Dan BlystoneBroker Analyst
Dan Blystone began his career in the trading industry in 1998 on the floor of the Chicago Mercantile Exchange. Later Dan gained insight into the forex industry during his time as a Series 3 licenced futures and forex broker. He also traded at a couple of different prop trading firms in Chicago. Dan is well-equipped to recommend the best forex brokers due to his extensive experience and understanding of the brokerage industry.
Jitan SolankiBroker Analyst
Jitan Solanki is a professional trader, market analyst, and educator. He day trades major currency and index markets and focuses on swing trading US equities and commodities. A qualified Market Technician, Jitan also works with trader education and brokerage companies on various projects. These include market analysis, live trading events, and broker reviews. As an experienced trader and educator, Jitan brings all his qualities in action when reviewing and recommending brokers.
Plamen StoyanovBroker Analyst
Having been a retail trader since 2013, Plamen has gained an in-depth understanding of the challenges that novice traders face today. His expertise is swing trading and day trading with a heavy emphasis on psychological and fundamental analysis. Plamen’s favourite trading instruments include FX majors and gold. He earned a Bachelor's degree in Economics and International Relations. Plamen's broad experience has equipped him with the expertise to recommend the best forex brokers.
Vladimir ZernovBroker Analyst
In more than 15 years of trading in the financial markets, Vladimir dealt with a wide range of brokers and financial instruments. His career as a day-trader at a proprietary trading firm goes back to 2007. Later, Vladimir turned to longer time frames and became an independent trader and analyst managing his own portfolio. Using his experience, he helps traders find the best broker in his reviews.
What is commodity trading?
Commodity trading refers to the buying and selling of physical commodities or commodity derivatives in financial markets. Commodity traders speculate on price movements and aim to profit from fluctuations in commodity prices. These trades can be conducted through various methods, including futures contracts, options, ETFs, and CFDs.
What commodities are traded in the CFD market?
With CFDs, you can trade a wide range of commodities, including precious metals (gold, silver, platinum), base metals (copper, aluminum), energy commodities (crude oil, natural gas), agricultural commodities (wheat, corn, coffee), soft commodities (cocoa, sugar), and livestock (cattle, hogs). The specific availability of commodity CFDs may vary depending on the broker.
What are the ways to trade commodities?
The commodities market can be accessed via various financial instruments, including CFDs, futures, options, physical assets, stocks, ETFs, ETNs, and mutual funds.
What is the difference between buying commodities and trading commodity CFDs?
The main difference between buying commodities and trading commodity CFDs is ownership. When you buy commodities, you own the physical asset, whereas trading commodity CFDs involves speculating on price movements without owning the underlying asset.
What’s the difference between commodity futures and commodity CFDs?
Commodity futures involve contracts for the physical delivery of the underlying asset at a predetermined future date, while commodity CFDs are derivative instruments that allow speculating on price movements without owning the asset or requiring physical delivery. Commodity futures have standardized contract sizes and expiration dates, while commodity CFDs offer more flexibility in contract sizes and expiration dates, making them accessible to retail traders with smaller capital.
Can I trade commodities in the US?
Yes, it is possible to trade commodities in the US via the futures markets and ETFs.
Which broker has the lowest spread for commodities?
We rated AvaTrade as having the lowest spreads for trading commodities. We recorded spreads of 3 pips for WTI crude oil and 29 pips in gold.
What is the best commodities trading platform?
We judged that Plus500’s proprietary WebTrader platform is the best commodities trading as it is intuitive and feature-rich and is accessible via web browsers, Windows 10 apps, tablets, and smartphones.
Can I trade commodities on MetaTrader?
Yes, many CFD brokers offer commodities trading via the MetaTrader 4 and MetaTrader 5 platforms.
What is the best commodities trading broker for beginners?
We judged Swissquote to be the best commodities broker for beginners due to its intuitive trading platform and impressive educational offerings.
What is the best commodities trading broker for professionals?
We judged FP Markets to be the best commodities trading broker for professionals as it provides low-latency trade execution, VPS hosting, and MAM/PAMM options.
Can I trade commodities without a broker?
No, you generally cannot trade commodities without a broker. Brokers act as intermediaries between traders and the financial markets, providing access to trading platforms, executing trades, and facilitating the necessary transactions. They are responsible for handling orders, maintaining account balances, and providing market data and analysis. Whether you trade commodities through physical markets or derivatives like futures or CFDs, you will need to engage the services of a broker to participate in commodity trading.
About the Author
Dan BlystoneBroker Analyst
Dan Blystone began his career in the trading industry in 1998 on the floor of the Chicago Mercantile Exchange. Later Dan gained insight into the forex industry during his time as a Series 3 licenced futures and forex broker. He also traded at a couple of different prop trading firms in Chicago. Dan is well-equipped to recommend the best forex brokers due to his extensive experience and understanding of the brokerage industry.
Why you can trust FX Empire
At FXEmpire, we strive to provide unbiased, thorough and accurate broker reviews by industry experts to help our users make smarter financial decisions.
Why you can trust FX Empire
Table of Contents
- List of Top Commodity Trading Brokers and Platforms
- How did FXEmpire choose the Best Brokers for Commodity Trading?
- Best Overall
- Best Low Spreads
- Best for Share CFD Trading
- Best Commodity Trading Platform
- Best for Professional Traders
- Best for Beginners
- Best Commodity Futures in the US
- How to choose a broker for commodity trading?
- Our Methodology
- Meet Our Writers
- FAQ