The Essential Guide

Commodity Brokers: Who Is the Best for Online Trading in 2021?

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Risk Warning: Your Capital is at Risk.

This commodity trading guide explores the basics of trading before you put your money on the line.

If you are already familiar with the basics, you can jump straight ahead to our list of regulated brokers in compared side-by-side.

By the time you finish reading this page, you will know how to make an informed decision on what you want to trade based on the type of asset and instrument to suit your needs.

You’ll also have an idea about different ways to trade your chosen instrument, like CFDs, stocks, or options.

Also, we simplify what margins and leverages are in trading and how this information can help you choose a regulated online trading platform with the right account type, fee structure, and trading features.

Here are some of the top online commodity brokers available in .

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. <b>Between 53.00%-89.00% of retail investor accounts lose money when trading CFDs.</b> You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

If you’re unfamiliar with what to look for when choosing a broker, you might want to see our seven factors to consider before choosing a broker.

What Do You Want To Trade?

When you decide that you want to trade commodities with a broker, there are two primary factors to become familiar with. These are:

  • The type of instrument you want to trade
  • The type of commodity categories you want to trade

The type of instrument you choose will depend on whether you want to take physical ownership of an asset (eg, bullion) or trade on its price movements — as well as the contract commitments you’re willing to undertake

As for the type of commodity, you need to research the asset classes offered by your potential brokers. Some may offer precious metals and agricultural commodities, others may offer energy commodities, or, some can have all three!

Ways To Trade Commodities

There are several ways to trade commodities and your choice of trading instrument type is largely determined by your answer to:

  • Do you want ownership of the commodity?
  • Do you want to trade physically or online?
  • Do you want to commit to a trade or have the choice to withdraw until a given time?

Here are 7 different ways to trade commodities with the above points taken into consideration, along with storage costs, ownership, contract expiry, and leverage.

IMPORTANT: CFDs are not available in the USA due to local regulation, and regulated brokers do not accept US citizens or US residents as clients.

Trading MethodOwnershipManagement CostsSecurity CostsExpiry DateMgmt CostLeverage
Bullion
CFDs
Futures
Options✅*
ETFs/Mutual Funds
Shares
*If executed

What Are Margins & Leverage?

When they start, traders are often confused about the difference between leverage and margins, so here is a simple explanation.

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. Margin trades allow a trader to put up a defined chunk of money to execute a larger trade.

Example of Margin:

A broker’s ‘margin requirement’ on a $1000 gold CFD trade is at 5%. The trader would need to deposit 5% of $1000 to open the trade, which comes to $50.

Leverage in trading is expressed as a ratio and is determined by the margin value. It shows the trade’s value in relation to the deposit amount.

Example of Leverage:

A 5% margin requirement on a $1000 would mean a $50 real-money deposit. This would give the trader a leverage of 1:20, meaning, the trade amount is 20x more than the initial money put forward.

Please note, this is an example trade – not a recommendation.

How To Choose A Commodity Trading Platform

When choosing an online broker, our golden checklist includes seven things to consider:

  1. ☑︎ Regulators: Brokers are regulated by organizations to protect consumers in . Regulators also determine the countries where the broker is allowed to operate. The more established the regulator, the stricter the guidelines are for a broker. The FCA and SEC are good examples of tough regulators.
  2. ☑︎ Account Type: Brokers offer different account tiers: most commonly ‘standard’ and ‘professional’ accounts. Standard accounts have simpler verification processes, while professional accounts require more trading experience and capital.
  3. ☑︎ Instruments and Products: Brokers offer different ways to speculate on trading instruments and different categories of products. Check to see that the broker offers what you want to trade.
  4. ☑︎ Fees: Broker fee structures vary. Some charge deposit and withdrawal fees, while others don’t. Inactivity fees are also common, and different payment methods may be cheaper to use than others.
  5. ☑︎ Leverage and Margin: If you want to open a higher value trade with a significantly lower deposit, you’ll need a broker with low margin requirements and high leverages.
  6. ☑︎ Platform Features: The quality of a trading platform is determined by its ease of use and the trading tools provided. Look for features like charting features, technical analysis tools, platform design, and educational resources that match your level of experience.
  7. ☑︎ Mobile: Does the platform offer a mobile app or in-browser mobile trading? Look for how rich the mobile experience is compared to the desktop platform.

Regulated Online Brokers

We listed our recommended online commodity brokers at the beginning of this guide. Now, we go a little deeper to compare them while keeping in mind the above checklist.

IMPORTANT: CFDs are not available in the USA due to local regulation, and regulated brokers do not accept US citizens or US residents as clients.

Please Note: Availability subject to regulations. Cryptocurrency CFDs are not available to UK retail traders.

Plus500 Has Hundreds Of CFDs for All Trading Levels

Regulated by 7 organizations with over 2,000 trading instruments available, Plus500 offers a free demo account for traders wanting to try out the platform.

Support is available via live chat and e-mail in more than 60 countries.

plus500 logo
  • Regulators: FCA, ASIC, CySec, FSA, MAS, FMA, FSCA
  • Account Types: Real Money and Professional
  • Instruments and Products: CFDs on Indices, Commodities, Forex, Cryptocurrencies*, Shares, Options, and ETFs
  • Fees: Overnight, currency conversion, inactivity, guaranteed stop orders (See details in our Plus500 Review)
  • Maximum Leverage: Up to 1:30 (Real Money), up to 1:300 (Pro)
  • Top Platform Features: Position management with advanced filters, a platform available in over 35 languages
  • Mobile: Android + iOS apps

Start Trading Now at Plus500

*

Disclaimer: Availability subject to regulations.
Between 53.00%-89.00% of retail investor accounts lose money when trading CFDs.

Forex.com Lets You Learn To Trade On The Go

Forex.com has been active for over 20 years in 140+ countries.

They offer detailed educational resources for all trading levels and 24/5 support via e-mail, live chat, and phone for all traders.

forex logo
  • Regulators: FCA, MiFID, ASIC, SFC, CIMA, IIROC, FSA, CFTC, NFA
  • Account Types: Standard, Commission, Direct Market Access (DMA), and Professional
  • Instruments and Products: Forex, Spot Gold & Silver, Futures, Options, CFDs on Indices, Shares, Commodities, Cryptocurrencies* (except Canada)
  • Fees: Commissions on Shares CFDs, Fees on currency conversions, overnight, inactivity, rollovers, same-day withdrawal, dividend adjustments, shorting (See details in our Forex.com Review)
  • Maximum Leverage: Variable (visit Forex.com for details)
  • Top Platform Features: MetaTrader 4 (MT4) compatible, trading tutorials, advanced technical indicators
  • Mobile: Android + iOS apps

Start Trading Now at Forex.com

*

Disclaimer: Availability subject to regulations.
Between 53.00%-89.00% of retail investor accounts lose money when trading CFDs.

Fortrade Has An Interactive Platform Tutorial

More than 300 instruments traded as CFDs, including precious metals, energy, and agricultural commodities.

Fortrade offers traders a practical interactive tutorial to get started on the platform.

fortrade logo
  • Regulators: FCA, ASIC, CySec, NBRB, CIPF, IIROC
  • Account Types: Standard, Professional, and Islamic
  • Instruments and Products: CFDs on Indices, Forex, Shares, Commodities, ETFs, and US Treasuries
  • Fees: Wire transfer withdrawal fee, overnight funding fee, dormancy fee (See details in our Fortrade Review)
  • Maximum Leverage: Variable (visit Fortrade for details)
  • Top Platform Features: MetaTrader 4 (MT4) compatible, interactive startup tutorial
  • Mobile: Android + iOS apps

Start Trading Now at Fortrade

AvaTrade Offers Generous Leverages And 10+ Cryptocurrency CFDs

AvaTrade offers a variety of CFDs, forex pairs, and options with a choice of six desktop trading platforms and two mobile applications.

This broker offers enough variety that’s feature-packed for an advanced trader and simple enough for all trading levels.

avatrade logo
  • Regulators: FSA, ASIC, FFAJ, FSCA, ADGM, BVIFSC, ISA, UKNF
  • Account Types: Retail and Professional
  • Instruments and Products: Forex, Options, CFDs on Indices, Shares, Commodities, Cryptocurrencies, ETFs, and Bonds
  • Fees: Inactivity fee and overnight fee (See details in our AvaTrade Review)
  • Maximum Leverage: Up to 1:30 (1:400 for traders outside the EU, except Australian traders)
  • Top Platform Features: AvaTrade Go and AvaOptions specialist mobile apps, choice of six desktop platforms, easy-to-use analytics, eBooks, and educational video series
  • Mobile: Android + iOS apps

Start Trading Now at AvaTrade

eToro Is A Mobile-Centered Social Trading Platform

etoro logo

eToro is known as the ‘social trading platform’ since traders can track the performance of other traders and copy them directly.

Traders have access to several categories of CFDs with a user-friendly mobile application on iOS and Android.

  • Regulators: FCA, ASIC, CySec, FinCEN
  • Account Types: Standard, Professional, and Islamic
  • Instruments and Products: CFDs on ETFs, Stocks, Indices, Commodities, Cryptocurrencies*, and Forex
  • Fees: Inactivity fee and overnight fee, withdrawal fee, cryptocurrency fees, conversion fee, wallet fee (See details in our eToro Review)
  • Maximum Leverage: Up to 1:30 (higher for Professional Accounts)
  • Top Platform Features: Social trading to duplicate trades, social trading news feed, interactive analytics, and market sentiment tools
  • Mobile: Android + iOS apps

Start Trading Now at eToro

*

Disclaimer: Availability subject to regulations.
Between 53.00%-89.00% of retail investor accounts lose money when trading CFDs.

Markets.com Lets You Personalize Your Platform

Markets.com offers five choices of trading platforms, including Marketsx exclusively for real stock trading.

The broker accepts a range of payment methods like PayPal and Skrill.

markets.com logo
  • Regulators: CySec, FSCA, FCA, ASIC, FSC
  • Account Types: Retail and Professional
  • Instruments and Products: Stocks, CFDs on Bonds, Commodities, Cryptocurrencies*, Forex, Indices, ETFs, Blends, and Shares
  • Fees: Overnight fee, rollover fee, currency conversion fee (See our Markets.com Review for details)
  • Maximum Leverage: 1:30 (1:300 for Professional accounts)
  • Top Platform Features: Close to 100 color-coded technical analysis indicators, very low minimum withdrawals, and social trading sentiments
  • Mobile: Android + iOS apps

Start Trading Now at Markets.com

*

Disclaimer: Availability subject to regulations.
Between 53.00%-89.00% of retail investor accounts lose money when trading CFDs.

City Index Is A Mobile Award Winner That Offers Spreadbetting

With a detailed ‘Getting Started Guide’ and an advanced trading platform with ample tutorials, City Index caters to all levels of traders. They offer CFDs across eight different asset classes.

city index logo
  • Regulators: FCA, ASIC, MAS, MiFID
  • Account Types: Standard and Professional
  • Instruments and Products: Spreadbetting, CFDs on Forex, Cryptocurrencies*, Shares, Indices, Commodities, Bonds, Interest Rates, and Options
  • Fees: Equity commission, currency conversion, overnight, inactivity, same-day withdrawals, guaranteed stop orders, CFD borrowing for shorting (See details in our City Index Review)
  • Maximum Leverage: 1:200 in UK, 1:30 in Australia; 1:50 in Singapore (1:400 for Professional accounts)
  • Top Platform Features: Mobile chart and technical analysis with over 60 indicators, MT4 and AT Pro compatible, and live webinars
  • Mobile: Android + iOS apps

Start Trading Now at City Index

*

Disclaimer: Availability subject to regulations.
Between 53.00%-89.00% of retail investor accounts lose money when trading CFDs.

Trading212 Is the UK’s Top Mobile Trading Platform

Trading212 has a reputation as a popular mobile trading platform due to its user-friendly design. It is a broker with a transparent account and fee structure offering CFDs and real stocks on over 3,000 global markets.

trading212 logo
  • Regulators: FCA, FSC
  • Account Types: Professional account and 3 standard account types (CFD, Invest, and ISA – see details here)
  • Instruments and Products: Stocks, ISAs, CFDs on Forex, Shares, Indices, Commodities, and Indices
  • Fees: Overnight fee and currency conversion fee (See details in our Trading212 Review)
  • Maximum Leverage: 1:30 for Standard accounts (1:500 for Professional accounts)
  • Top Platform Features: Customizable, color-coded technical indicators on mobile and desktop, user-friendly visual dashboard, and social sentiments
  • Mobile: Android + iOS apps

Start Trading Now at Trading212

*

Disclaimer: Availability subject to regulations.
Between 53.00%-89.00% of retail investor accounts lose money when trading CFDs.

easyMarkets Lets You Cancel and Reverse Trades

easyMarkets 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.

easyMarkets Logo

Support is available via email, phone, fax and live chat in more than 150 countries.

  • Regulators: ASIC, CySec, FSA, BVIFSC, and FSA Seychelles.
  • Account Types: Retail and professional
  • Instruments and Products: CFDs on Indices, Commodities, Forex, Cryptocurrencies, Shares
  • Fees: None (See details in our easyMarkets Review)
  • Maximum Leverage: Up to 1:30
  • Top Platform Features: 3 ways to trade on mobile apps, dealCancelation, Forward deals
  • Mobile: Android + iOS apps, MT4 mobile

Start Trading Now at easyMarkets

FXCM Has Custom Baskets And Multiple Platforms

fxcm logo

FXCM offers CFDs , baskets, and spreadbetting on forex, indices, commodities, cryptos*, and stocks.

Traders try out the FXCM platform with a free demo account that comes with £50,000 play money.

Support is available via phone, SMS, live chat, and e-mail 14 languages.

  • Regulators: FCA, ASIC, FSCA, BaFIN, ACP, and CONSOB
  • Account Types: Retail, active trader, and professional
  • Instruments and Products: CFDs and spreadbetting on Indices, Commodities, Forex, Cryptocurrencies*, Shares, and baskets
  • Fees: Overnight fee, inactivity fee, wire withdrawal fee, currency conversion fee, and negative balance fee (See details in our FXCM Review)
  • Maximum Leverage: Up to 1:30
  • Top Platform Features: Customizable trading platform with add-on apps, NinjaTrader, streamlined mobile app
  • Mobile: Android + iOS apps, MT4

Start Trading Now at FXCM

*

Disclaimer: Availability subject to regulations.
Between 53.00%-89.00% of retail investor accounts lose money when trading CFDs.

HYCM Boasts Over 40 Years Experience With Both MetaTrader Platforms

HYCM offers over 200 forex and CFD instruments trading on forex, indices, commodities, stocks, ETFs, and cryptocurrencies. Registered clients can use a free demo account to practice trades.

hycm logo

Support is available via email, phone, fax, and live chat in 12 languages.

  • Regulators: FCA, BaFIN, CySec, CIMA, DFSA
  • Account Types: Fixed, Classic, Raw, and a demo account
  • Instruments and Products: CFDs on Indices, Commodities, Forex, Cryptocurrencies*, Shares, and ETFs
  • Fees: Commissions on Raw accounts, fees on some withdrawal methods, overnight fee, guaranteed stop orders have wider spreads (See details in our HYCM Review)
  • Maximum Leverage: Up to 1:30 (major forex)
  • Top Platform Features: Offers MetaTrader 4 & 5, fast execution
  • Mobile: Android + iOS apps

Start Trading Now at HYCM

*

Disclaimer: Availability subject to regulations.
Between 53.00%-89.00% of retail investor accounts lose money when trading CFDs.

Pepperstone Is One Of The World’s Largest Forex Brokers

pepperstone logo

Pepperstone is regulated by 7 organizations with over 180 trading instruments available. Traders can get a free demo account to try out the platform for 30 days.

Support is available via phone, live chat, and e-mail in languages.

  • Regulators: FCA, ASIC, CySEC, BaFIN, CMA, DFSA, SCB
  • Account Types: Standard, Razor, and Islamic
  • Instruments and Products: CFDs on Indices, Commodities, Forex, Cryptocurrencies*, Shares
  • Fees: Overnight fee, markup on raw spreads, commissions on Razor account (See details in our Pepperstone Review)
  • Maximum Leverage: Up to 1:30 for other retail accounts
  • Top Platform Features: cTrader, MT4, MT5, cAlgo integration, Facebook and Google sign-in, Autochartist, Smart Trader tools
  • Mobile: Android + iOS apps

Start Trading Now at Pepperstone

*

Disclaimer: Availability subject to regulations.
Between 53.00%-89.00% of retail investor accounts lose money when trading CFDs.

XM.com Features No Re-Quotes And No Rejections

XM has more than 3.5 million clients in almost 200 countries with access to trading 1,000+ instruments. Traders can have up to 5 unlimited demo accounts.

xm logo

Support is available via email, phone, call back, and live chat in 19 languages.

  • Regulators: CySEC, IFSC, FCA, ASIC, DFSA, ACPR, AFM, BaFIN, CNMV, CONSOB, FI, FIN-FSA, UKNF, HNB
  • Account Types: Standard, Micro, and XM Zero
  • Instruments and Products: CFDs on Equity Indices, Commodities, Forex, and Shares
  • Fees: Overnight fee and inactivity fee (See details in our XM Review)
  • Maximum Leverage: Up to 1:30
  • Top Platform Features: XM Trader and MetaTrader 4 & 5, personal account managers, free daily forex webinars
  • Mobile: Browser or Android + iOS apps

Start Trading Now at XM.com

XTB Is A European Broker Offering Cash Back On Trading Volume

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.

xtb logo

Support is available via live chat, phone, and email in more than 100 countries.

  • Regulators: FCA, CySEC, ASIC, FSCA, BVIFSC
  • Account Types: Retail and Pro
  • Instruments and Products: CFDs on Indices, Commodities, Forex, Cryptocurrencies*, Shares, and ETFs
  • Fees: Inactivity, Deposit, Withdrawal, Penalty interest, Italian CFDs (See details in our XTB Review)
  • Maximum Leverage: Up to 1:30, depending on product and country
  • Top Platform Features: XStation 5, market sentiment heat maps, trader’s calculator, market order depth in 17 languages
  • Mobile: Android + iOS apps

Start Trading Now at XTB

*

Disclaimer: Availability subject to regulations.
Between 53.00%-89.00% of retail investor accounts lose money when trading CFDs.

Robinhood Has Streamlined Stocks and Cryptos For US Traders

Robinhood is a US-only broker that offers trading on thousands of international stocks, over 1,900 ETFs, and cryptocurrencies.

robinhood logo

Support is available via email and social media.

  • Regulators: SIPCS, FINRA, SEC
  • Account Types: Instant, Gold, and Cash
  • Instruments and Products: Shares (including fractional shares), ETFs, Options, Gold, and Cryptocurrencies
  • Fees: Regulatory fee, trading fee, fees on foreign stocks and transfers, Gold account monthly fee
  • Maximum Leverage: None
  • Top Platform Features: Simple platform, primarily on mobile.
  • Mobile: Android + iOS apps

Start Trading Now at Robinhood

Libertex Features One Platform For All Devices

Headquartered in Cyprus, Libertex offers traders 200+ trading instruments available in 27 countries, as well as a free demo account with no expiry for traders wanting to try out the platform.

libertex logo

Support is available via live chat, phone, and ticket in 4 languages.

  • Regulators: CySEC, CIF
  • Account Types: Standard and professional
  • Instruments and Products: CFDs on Indices, Commodities, Forex, Shares, and ETFs
  • Fees: Overnight fee and transaction fee
  • Maximum Leverage: Up to 1:30 (1:600 for pro accounts)
  • Top Platform Features: One platform for all devices, MetaTrader 4, instant withdrawals, no spreads
  • Mobile: Browser-based

Start Trading Now at Libertex

FAQs

How do commodity brokers make money?

Some commodity brokers charge a commission on trades, although most ‘no-commission’ brokers make money on a traded product’s spread. A spread or ‘pip’ is the difference between the price markers of opening a short position and a long position. Spreads and pips can be fixed or variable, but mostly they’re the latter.

Which broker is best for commodity trading?

The best broker for commodity trading depends on your individual needs and preferences as a trader. Things that will shape your decision include what you want to trade, how you want to trade it, and which brokers are regulated in your country of residence.

Other factors to consider are margins and leverages, platform features and device compatibility, and whether you can afford the fees charged by the broker.

What is the minimum amount required for commodity trading?

The minimum amount to trade commodities is determined by the minimum deposit requirement of a commodity broker. Fortrade is a broker with a minimum deposit requirement of just $1 while other brokers like eToro and FXCM set a minimum deposit of $50.

Traders can get started with other regulated brokers like Plus500 and Forex.com with a $100 initial deposit.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. <b>Between 53.00%-89.00% of retail investor accounts lose money when trading CFDs.</b> You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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Plus500 is not available in the US

Legitimate CFD brokers, like Plus500, cannot accept US clients by law

US traders welcome at these brokers:

Cryoptocurrencies:

  • Trade 14+ major crypto coins
  • Includes Bitcoin, Ethereum & Ripple
  • Super simple setup

Accepts traders in the USA

Start Trading at eToro

Forex, Gold & Silver:

  • Trade gold and silver
  • Trade over 90+ currencies
  • Major US broker

Accepts traders in the USA

Start Trading at Forex

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