Pepperstone also allows you to choose the type of account that suits you from two account types -Standard and Razor. Pepperstone is also a safe, fast, and reliable commodity broker at which you don’t need desk intervention to close deals. XTB also gives you access to 22 commodities for commodity CFD trading.

https://trading-market.org/ allow for ease of trading because they are purchased like stocks, provide diversification, are not traded on margin like futures are, and typically have low expense ratios. Another option, just as you would for crude, is to go through the futures contract. If the price rises, investors will profit; however, if the price drops, the investor stands to lose their money.

• Any rates, terms, products and services on third-party websites are subject to change without notice.
• Investors could also decide to invest in metal commodities as a hedge in times of inflation.
• These derivatives are volatile and complex, and futures trading can expose regular investors to unfamiliar risks.

EightCap offers one of the lowest forex fees in comparison to most forex brokers. This is especially true for clients that choose to open a Raw account. With this account, USD/EUR account fees are low with a $3.5 commission; yielding an average spread during peak trading hours of 0.1 pips. EightCap’s trading portfolio is limited but includes CFDs such as cryptocurrencies, commodities, and shares, as well as forex trading with 47 currency pairs. XM Group clients can trade popular soft commodity, energy, and metals futures CFDs.

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Silver often trades similarly to gold, but with a gold/silver price ratio that fluctuates over time. Similarly, demand from developing nations such as China and India—whose economies are still growing—is also pushing up prices. Tensions in the Middle East, where much of the world’s oil is produced, can send oil prices skyrocketing. One thing to keep in mind is that commodities tend to be much more volatile than other kinds of investments, especially funds that track a single commodity or a specific sector of the economy. Investing in commodities can provide investors with diversification, a hedge against inflation, and excess positive returns.

However, the broker charges a $10 inactivity fee and also charges an overnight funding fee. Just like crude oil, when there’s an increase in demand, the same happens to the price of gold. Furthermore, prices are affected when central banks—which hold gold—decide to diversify their monetary reserves by buying more gold. Oil prices were once greatly influenced by the producer cartel OPEC, made up mainly of Middle-East countries. In the early 21st century, the development of new technology, particularly hydro-fracturing , created a second U.S. energy boom, largely decreasing OPEC’s importance and influence. Today, the U.S. is the largest net producer of crude oil in the world.

There are plenty of choices out there, but the best commodities broker for you, will depend on what your own financial goals are. Some of the key things to look out for are regulation, safety, funding, instruments, fees, platforms, tools, resources and support. That being said, a trading platform is where you will be buying and selling commodities. It is therefore important to make sure the platform is easy to use and has all of the tools you need to analyse the commodities market. Whilst some brokers have their own proprietary platforms, the MetaTrader platform is a popular choice for trading commodities.

What Is A Commodities Broker?

IG is a world-leading online trading provider that gives you access to opportunities across thousands of financial markets, including Forex and CFDs. However, CFDs are complex instruments and come with some special risks that can make retail investor accounts lose money, even the entire trading capital. Consider whether you understand how CFDs work before trading them because your capital is at risk — you can lose money when trading CFDs. Pepperstone is another commodity broker that offers an award-winning commodity trading platform.

For example, FX spread for a standard account is 0.5 while a Pro account spread is 0.1. XTB also charges a commission of $3.50 per lot for trades on the Pro account. XStation is another one of the most robust, reliable, and innovative trading platforms that accompanies numerous remarkable features. EToro enables you to trade on commodity CFDs as well as other financial instruments like stocks, forex, ETFs, cryptocurrencies, and CFDs on a single innovative platform. You can also access trading platforms from any type of device you have including PCs, Android, or iOS devices. It’s used in jewelry, technology, by central banks, and investors, giving rise to its market at different times within the global economy.

Apart from this, clients get access to professional trading platforms and cutting-edge proprietary technologies. RoboMarkets multilingual customer support works 24/7 and is ready to serve you at any time. With IG, you can trade commodities anywhere, anytime on their award-winning platforms. They have a good range of energy markets including popular oils such as Brent Crude and US Crude. You can speculate on the price of precious and base metals including gold and silver. There are over 20 types of soft commodities that you can take a position on.

Margin requirements and leverage

We provide broker reviews and ratings to help users find a suitable broker according to their own needs. However, you must do your own due diligence and make your own decisions when choosing a broker. This compensation should not be seen as an endorsement or recommendation, nor shall it bias our broker reviews. Any rates, terms, products and services on third-party websites are subject to change without notice.

At the end of the contract, you don’t transfer the physical goods, but you close out your contract by taking an opposite position through the spot trading market. So in this example, when the futures contract reaches its expiration date, you would close out the position by entering another contract to sell 10,000 barrels of oil at the current market price. Commodity ETNs, or exchange-traded notes, are debt securities that promise a return based on an underlying commodity index and trade like commodity ETFs but have credit risk similar to bonds. To achieve this objective, USL invests in crude oil futures contracts as well as other oil-related futures. The fund buys front-month futures contracts plus contracts for the following 11 months, hence the 12-month oil name. Since they offer low correlations to other asset classes, precious metals also provide an excellent source of portfolio diversification.

But the top 10 futures brokers should also have advanced features to also be useful to the more experienced traders. In addition to facilitating trading transactions, a trading platform should also provide research, analytic tools, education, and sometimes, news feed. While the highest consumption of hard commodities is in industry, the financial sector uses precious metals as a store of value and a hedging tool.

• But the platform should also have advanced features to also be useful to the more experienced traders.
• In this article we discuss commodity broker jobs and how to find the best fit for your financial needs.
• He has 15 years of experience in the financial sector and forex in particular.

This makes trading commodities accessible to anyone with an internet connection. Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. The majority of participants in the futures markets are commodities producers or consumers who trade futures to maximize the value of their assets and reduce the risk from price volatility.

Invesco DB Oil ETF (DBO)

Brokers are regulated by financial organizations or institutions to protect customers. A wide variety of futures and futures options including metals and energy products. EasyMarkets offers copper and 12 other commodities for traders to trade on. EToro’s Virtual Portfolio gives you the opportunity to learn to trade and gain experience without risking your money. Whereas, the Social Trading feature allows you to capitalize on the benefits of social trading and the combined wisdom of the social community.

Traders can benefit from commodity brokers, since they improve the trading process through technology, experience, and monitoring regulations. Trading CFDs, FX, and cryptocurrencies involves a high degree of risk. All providers have a percentage of retail investor accounts that lose money when trading CFDs with their company. You should consider whether you can afford to take the high risk of losing your money and whether you understand how CFDs, FX, and cryptocurrencies work. Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework.

A commodity broker helps investors with trading commodities and facilitates such trades. Commodity broker jobs may also include other features and resources to help trade commodity futures, though these may vary between the different commodity brokers. Similar to this is the Commodity Pool Operator, which is a person or platform that operates a pool fund for trusts, syndicates, and other funds.