This guide explains how and where to trade crude oil.
We list regulated brokers in your country, explain why traders choose oil, and offer practical market tips.
In a hurry? Here are recommended online oil brokers available in :
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View real-time oil stock charts and read market news before trading oil & energy securities through the mobile-first trading platform. (We are an affiliate of Robinhood and receive compensation from their links.)
Understanding Oil Trading
Despite renewable energy growth, oil remains the leading global energy source.
The oil market is highly volatile. Traders should use technical analysis tools to understand trends and manage risks.
How Can I Trade Oil?
Online brokers offer several ways to speculate on oil prices:
- Oil company shares
- Contracts for Difference (CFDs)
- Exchange-Traded Funds (ETFs)
- Futures
- Options
Your choice of instrument should consider:
- Margin and leverage
- Contract expiry
- Management fees
- Security and delivery costs
Trading Oil CFDs
CFDs allow traders to speculate on oil price movements without owning physical oil.
Oil CFDs typically involve smaller contract sizes (e.g., 25 barrels) than standard futures (1,000 barrels).
IMPORTANT: CFDs are not available in the USA.
Example of Oil CFD Trade
Please note, this is an example – not a recommendation.
- You buy 10 oil CFDs at $60.50 with a 3% margin, depositing $1,815.
- Your trade controls $60,500 worth of oil.
- If the price rises to $62.75, your position is worth $62,750, profiting $2,250.
- If it drops to $58.25, you lose $2,250 – more than your initial margin.
Trading oil company stocks is simpler. Prices generally correlate with oil, but risks like oil spills or pandemics can cause sharp declines.
| Company | Current Price | Overview | Listings |
|---|---|---|---|
 | British-Dutch multinational headquartered in The Netherlands | London (LSE), Amsterdam (Euronext), New York (NYSE) | |
 | Multinational oil company based in Saudi Arabia | Tadawul | |
 | Headquartered in London but the USA houses the lion share of its operations | London (LSE), Frankfurt (FWB), New York (NYSE) | |
 | American multinational oil and gas corporation | New York (NYSE) |
Data last reviewed:
Please note, this is an example – not a recommendation.
Oil ETFs
Leveraged oil ETFs amplify market movements:
| Standard Leveraged | Inverse Leveraged | |
|---|---|---|
| Effect | Amplifies index performance. | Amplifies inverse index performance. |
Oil Futures
Futures involve agreements to trade 1,000 barrels at a specified price and date. They’re complex, require high margins (about 10%), and involve physical delivery.
Oil Options
Options grant the right (not obligation) to trade oil futures contracts, priced based on market volatility.
Where Can I Trade Oil?
Compare regulated oil brokers available in :
| Broker | Details | Sign up |
|---|---|---|
 | User friendly platform and leading risk management tools. | Open Account Now Plus500 Review |
 | Social trading to copy leading traders. | Open Account Now eToro Review 61% of retail CFD accounts lose money. You should consider whether you can afford to take the high risk of losing your money. |
 | No minimum deposit mobile platform with stocks and options. | Open Account Now Robinhood Review |
 | Options contracts trading fees from $2.09 on thousands of global stocks. | Open Account Now |
Data last reviewed:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 50.00%-86.00% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Why Trade Oil?
- Pros: High volatility offers potential large profits.
- Cons: Significant risks and competition from renewable energy.
Important: This is not investment advice. The arguments presented here for and against investing in this commodity are informational only. Always consult a professional advisor before making any investment decisions.
- Diversification – Adds volatility to portfolios.
- Speculation – Profit from frequent large price swings.
Update history
This page was revised 52 times between August 2019 and April 2025.
Restructured oil trading guide with improved clarity: simplified volatile market explanation, reorganized instrument selection criteria, replaced CFD mechanics section with clearer example format, added ETF leverage comparison table, and condensed futures/options descriptions.
Restructured and condensed oil trading guide by simplifying language, reorganizing sections with clearer headings, adding practical trade examples with specific numbers, and replacing verbose explanations with concise bullet-point comparisons.
Updated broker comparison table to include eToro CFD disclaimer.
Reformatted list items for improved readability by separating previously concatenated list entries onto individual lines.
Reformatted list items throughout multiple sections for improved readability, separating previously concatenated bullet points into distinct entries.
Corrected grammar by changing "buy equities" to "trade equities" and updated liquidity description for accuracy.
Refined two phrases in Oil Shares and Tips sections for improved clarity and accuracy.
Replaced "simplest" with "least complicated" and changedsubheading for more professional tone.
Replaced "simplest" with "least complicated" and reworded futures section heading for improved clarity.
Removed affiliate links from six related resource items in the navigation section.
Removed external Commodity.com attribution links from all six items in Further Reading section.
Added stocks and ETFs to the list of oil trading instruments covered, simplified one link label, and removed outdated update attribution.
Added stocks and ETFs to the list of available oil trading products, simplified a link title, and removed outdated date reference from credits.
Added new related resource link about highest-paying jobs in the oil and gas industry.
Added new resource link about highest-paying jobs in oil and gas industry to Further Reading section.
Added introductory text for live crude oil price charts, replaced one internal link title, and fixed spacing in a list item.
Added explanatory text about live and historical oil price charts, removed outdated chart title, and inserted new link to Crude Oil Price Guide in Further Reading section.
Updated crude oil price chart to reflect current data through December 2021 and adjusted time period from 30 years to July 2018 baseline.
Replaced outdated 30-year historical chart with recent Brent Crude data spanning July 2018 to December 2021, and simplified the chart title.
Added link to article about largest oil-producing US states.
Added new reference link to oil producing states resource in Further Reading section.
Rewrote multiple sections for clarity and conciseness, including simplified energy statistics, streamlined CFD explanations, and tightened introductory passages.
Rewrote introduction to split into two sentences, refined energy statistics for clarity, improved phrasing across six sections including Oil CFDs heading and multiple grammar enhancements.
Simplified heading and expanded description to clarify the types of oil trading products covered in the broker reviews.
Simplified section heading and expanded description to clarify the range of oil trading products available.
Refined guide introduction by clarifying broker listings and improving wording around market understanding.
Rewrote introduction to specify "brokers and platforms" and clarify focus on understanding rather than just trading the oil market.
Added image attribution to MacroTrends in Oil Shares section.
Restructured "How Can I Trade Oil?" section to replace comparison table with bulleted list of six key trading factors and simplified introductory sentence.
Added introductory guide content including explanation of five oil trading instruments, CFD examples with calculations, ETF comparison table, futures widget, broker recommendations section, and trading tips.
Removed outdated 2020 verdict section and a paragraph on CFD commission structure, then streamlined three headings for conciseness.
Updated introduction to clarify regional broker availability by country.
Removed two external references from Further Reading and updated article revision date to October 2020.
Rewrote subheading in "How to Trade Oil CFDs" section for improved clarity and SEO relevance.
Rewrote multiple paragraphs in "The Basics" and "Pros and Cons" sections for conciseness and clarity, removed a broker reference tag, and refined risk language throughout.
Added explanatory content on oil trading basics, futures mechanics, and options pricing; expanded FAQ with detailed guidance on CFDs and oil benchmarks; updated verdict section with 2020 market context.
Added substantial new content across multiple sections including oil market fundamentals, beginner guidance, broker comparison framework, and trading strategies with technical analysis tools.
Removed four broker listings (Plus500, Markets.com, City Index, HYCM) and streamlined introductory sentence for conciseness.
Removed promotional content and replaced with generic broker table, while updating risk warnings to cover all brokers.
Replaced inline risk warning text with a standardized template tag for consistent risk disclosure formatting.
Replaced static risk warning text with dynamic risk warning component in two sections for improved data maintenance.
Added quick-start broker recommendations, removed outdated demand note, rewrote introduction for clarity, and adjusted phrasing throughout Understanding Oil Trading section.
Removed 2 boxes from "How CFDs Work" section and updated 2 call-to-action buttons with oil-specific messaging and green color scheme.
Removed asterisk footnote marker from CFDs reference and corrected grammar in Complexity bullet point.
Corrected grammar in 6 locations (including "it's/its," "ways in which/how," punctuation in heading), simplified example figures, and clarified transition phrase in risk analysis section.
Added clarifying phrase to introduce City Index example in Oil ETFs section.
Added substantial new content including risk disclaimers, broker selection criteria, four beginner-focused market factors, and detailed explanations of oil trading methods (shares, ETFs, futures).
Updated retail trader loss statistics from 76.4% to 80.5% and expanded risk warning language in two sections.
Added new content across nine sections covering oil trading methods, CFD mechanics, risk warnings, and beginner guidance, plus byline crediting author and May 2020 updates.
Added introductory sections covering oil trading basics, pros and cons, CFD mechanics, and trading strategies with detailed explanations and examples.
Added extensive new educational content covering oil trading fundamentals, pros/cons analysis, trading rationale, CFD mechanisms, and risk management strategies.
Removed entire "4 Reasons To Trade Oil" section and substantially condensed "How to Trade Oil" section, eliminating detailed explanations of diversification, safe haven, inflation hedging, and speculation strategies.
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