Trading commodities is amongst the best way to make money from money. You can start trading in commodities with little capital and basic knowledge.
However, you need to open an account with a broker platform to trade in commodities. Many traders got confused at this stage. But not to worry. Market Investopedia is there to help you.
In this blog, we will learn about the top commodity trading companies and their key features. It will help you select the right one that fits your needs.
What is commodity trading?
Commodity trading is the buying and selling of commodities to make money from commodity price fluctuations.
Traders can trade in Gold, Silver, Oil, Natural Gas, Wheat, Rice and many other commodities and make money from their price movements.
The commodity market is amongst the largest financial markets with global participation. People never stop buying and selling commodities.
As a result, the commodities price saw a significant rise and fall. Traders can take advantage of these supply and demand dynamics and earn considerable money.
5 Best Commodity Trading Companies
Commodity trading companies are the firms that allow traders to buy and sell commodities without owning them. These platforms provide a range of facilities a trader needs to survive in the market.
Traders can get access to different commodity products and trade them online. Numerous commodities platforms are available to start commodity trading.
Selecting one ideal commodity broker out of so many options can be difficult. We have made this easy for you. Here are the top choices to start your commodity trading:
Pepperstone: Best Commodity trading companies in the UK :
Pepperstone is a leading platform for trading over 1350 CFD products and instruments. Traders can trade a range of products on the platforms, including commodities.
It is best known for trading commodities futures. Traders can trade agricultural commodity products such as coffee, cotton, orange juice, sugar, Lumber, Live Cattle, Lean Hogs, Gasoline, Corn and many others with the USDX.
The broker offers leverage of upto 1:50 for commodity futures trading. It has a licence from the Financial Conduct Authority (FCA), making it suitable for UK commodity traders.
A quick glance
On specialised commodity markets, commodity trading is the buying and selling of commodities in many forms including raw materials, agricultural products, energy resources, and precious metals. These exchanges allow participants to trade in standardised commodity contracts.
The most often traded commodities are gold and oil, which have somewhat close spreads beneficial for both day trading and swing trading. Oil has been somewhat erratic lately. Though Gold has been calm lately, we have seen some significant fluctuations in Gold over the last few years as well.
How do I start trading commodities? First, choose from 35 commodity markets, or commodity-linked stocks and ETFs. Next, select whether to speculate on market prices by going long or short. And finally, you’d need to open a live account with a service who supports commodity trading.
Crude Oil. Crude oil is the lifeblood of the global economy, powering transportation, heating, and energy generation while acting as a raw resource for many industrial and consumer products.
You can invest in commodities directly or indirectly through a brokerage. commodities Market: Similar to the stock or bond market, the commodities market trades raw and primary goods and products.
Beirman Capital: Best for Commodity CFD Trading:
Beirman Capital is one of the leading commodity trading companies that are suitable for CFD traders. Traders can trade a range of commodities, including crude oil, natural, gold, silver, platinum, palladium, and many others.
Traders can even trade commodity currencies, commodity ETFs, and commodity indices on the platform. The spreads and commissions are the lowest for trading commodities. Traders can get upto a leverage of 1:1000 and gain access to the global commodity market.
eToro Commodity Broker: Best for Trading Commodity ETFs:
eToro is an advanced commodity firm for traders that uses automated or copy trading strategies. Traders can get various apps, software, and tools to practice complex strategies. They can trade in commodities ETFs or CFDs; however, it does not offer commodity futures trading.
eToro offers the best educational content for traders at the Etoro Academy. So traders can learn commodity trading using it. The broker can be suitable for traders worldwide except the United States, as it does not accept US clients.
XM: Best for Commodity Copy Traders:
XM can be suitable for trading agriculture commodities and metal and energy products. It offers over 14 commodities, including cocoa, sugar, cotton, coffee, corn, soybeans, etc, for trading.
Traders can open an account with a minimum deposit of just $5. The brokers provide exclusive discounts and bonuses to new traders.
XM has a community of over 100,000 traders where traders share valuable insights and strategies. So, newbies can get trade ideas, and advanced traders will earn a commission for providing trade ideas on the platform.
FP Markets: Best for High Leverage Traders:
FP markets offer over 18 commodities, including metals, energies and agriculture products. The broker provides premium features such as VPS hosting, raw spreads, expert advisor integrations, fast execution, advanced technical analysis and risk management tools.
Traders can get upto 1:500 leverage, which is relatively high compared to the other commodity trading companies. The broker has a license from the top-tier institutions worldwide, including FSA, FSCA, ASIC and others.
FP Markets is famous for its customer support, which is available 24/7 in multiple languages. Also, the spreads are low, starting from 0.0 pips. The firm offers an excellent demo account facility, so you can try it before starting.
Bottom Line
Commodity Markets offer profitable opportunities for traders to expand and diversify their capital. Traders can trade a range of commodities using diverse strategies and analysis methods.
However, remember that the success of your trading journey will depend on the broker. Therefore, you need to analyze commodity trading companies to select the best.
An ideal firm will be well-regulated, with low spreads and commissions. A trader must compare firms based on educational resources, trading instruments, account types, available tools, speed, strategy friendliness, and other criteria.
It will help you select the right one that fits your needs. Market Investopedia can also help you in choosing the right platform. So, if you are still confused, contact us for assistance.
