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Rated: HighTrading in futures and options carries substantial risk of loss, clients may lose more than their original investments and is not suitable for every investor. -
Rated: High70% 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. -
Rated: High78% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider.
The best commodity trading brokers, according to our research, are:
- eToro
- AvaTrade
- Plus500
- IG Markets
- FXTM
- FP Markets
- Pepperstone
- CMC Markets
- City Index
- Interactive Brokers
A “commodity trading broker” is a brokerage firm that provides traders and investors with a platform to buy and sell commodities and commodity derivatives.
Commodity trading brokers are also often referred to as “commodity trading platforms”.
Commodities refer to basic goods used in commerce that are interchangeable with other goods of the same type, such as agricultural products (like wheat, corn, soybeans), energy resources (like oil, natural gas), and precious metals (like gold, silver).
Commodity derivatives are financial instruments whose value is derived from the price of an underlying commodity. These include futures, options, and Contract For Differences (CFDs).
In this top ten you will find commodity trading platforms mainly for CFD trading.
These kinds of products are divided into three different types:
- Hard Commodities: This includes gold, silver, copper, platinum, palladium;
- Soft Commodities: This includes common agricultural products including wheat, corn, sugar, coffee, soybeans, and generally what grows;
- Energies: This includes crude oil, heating oil, and natural gas.
Round-up
Below is a comparison of the broker’s minimum spreads and the total number of commodity assets offered:
| COMMODITY BROKERS | TOTAL COMMODITIES | MINIMUM SPREAD ON WTI | MINIMUM SPREAD ON GOLD |
|---|---|---|---|
| eToro | 30+ | 0.05 pips | 0.45 pips |
| AvaTrade | 15+ | 0.03 pips | 0.29 pips |
| Plus500 | 20+ | $0,49 per contract | $0,49 per contract |
| IG Markets | 45+ | 0.06 pips | 0.6 pips |
| FXTM | 5 | 0.05 pips | 0.3 pips |
| FP Markets | 10 | 0.02 pips | 0.3 pips |
| Pepperstone | 30+ | 0.02 pips | 0.05 pips |
| CMC Markets | 100+ | 0.025 pips | 0.3 pips |
| City Index“ | 20+ | 0.015 pips | 0.03 pips |
| Interactive Brokers | 135+ | 0.25 USD | 0.015% |
Warning
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% 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.
What are the best brokers and platforms for commodity trading?
Below is our curated list and review of the best brokers and platforms for commodity trading, with features and characteristics.
eToro
eToro trades 30+ commodities as CFDs and futures. eToro offers spreads from 0.45 pips on Gold. eToro provides leverage up to 20:1 on Gold for EU, FCA, and ASIC-regulated traders.
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About eToro
eToro is a global multi-asset investment platform founded in 2007, offering trading on stocks, ETFs, Crypto CFDs, commodities, and forex. eToro provides a proprietary web and mobile platform with social trading features. eToro is regulated by multiple authorities including FCA, ASIC, and CySEC. eToro is known for its user-friendly interface, copy trading functionality, and commission-free stock trading. eToro serves over 30 million users worldwide. The eToro CEO and co-founder is Yoni Assia.
eToro Features
The features of eToro are listed below.
- 30+ commodities traded as CFDs, including futures on assets like Platinum, Aluminum, Nickel, and Crude Oil.
- Spreads start from 0.45 pips on Gold and from 0.05 pips on WTI Oil.
- eToro offers leverage up to 20:1 on Gold and 10:1 on other commodities for ASIC, FCA, and EU-regulated traders.
- Through eToro’s social trading platform, you can interact with and learn from other commodity traders.
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eToro is considered one of the best broker for commodity trading for beginners
eToro Pros and Cons
Advantages of eToro
The advantages of eToro are listed below.
- Great copy trading and social trading features
- Wide range of asset classes
- It allows to buy fractional stocks from $10
Disadvantages of eToro
The disadvantages of eToro are listed below.
- The eToro spreads can be high
- Offers only USD accounts
- Transferring cryptocurrencies to other platforms can be hard
AvaTrade
AvaTrade accesses 15+ commodities. AvaTrade offers fixed spreads of 0.29 pips on Gold. AvaTrade provides 20:1 leverage on Gold for EU, ASIC, and CySEC clients.
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About AvaTrade
AvaTrade is a global forex and CFD broker founded in 2006 and headquartered in Dublin, Ireland. AvaTrade offers trading on currencies, commodities, indices, stocks, bonds, ETFs, and cryptocurrencies. AvaTrade provides proprietary platforms alongside MetaTrader 4 and 5. AvaTrade is regulated by multiple authorities including CySEC, ASIC, and FSA. AvaTrade serves over 300,000 clients worldwide. AvaTrade is known for competitive spreads and extensive educational resources. The AvaTrade CEO is David Dryzin since 2016.
AvaTrade Features
The features of AvaTrade are listed below.
- Access to 15+ commodities including metals and energies.
- Fixed spread of 0.29 pips on Gold and of 0.03 pips on WTI Crude Oil.
- Leverage of 20:1 on Gold and of 10:1 on other commodities.
- Spread betting available for UK and Irish traders on different assets, including commodities.
AvaTrade Pros and Cons
Advantages of AvaTrade
The advantages of AvaTrade are listed below.
- Tight fixed spreads from 0.6 pips (0.9 pips for retail traders)
- The mobile apps are well designed
- Can be connected to ZuluTrade and Duplitrade
Disadvantages of AvaTrade
The disadvantages of AvaTrade are listed below.
- High inactivity fees
- The demo account is limited to 30 days
Plus500
Plus500 trades commodities with futures contracts in the US. Plus500 offers micro-futures on Gold. Plus500 provides a $0.49 fee for micro contracts.
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About Plus500
Plus500 is a global fintech company founded in 2008, offering online Futures trading services in different markets such as Agriculture, Cryptocurrencies, Metals, Commodities, Forex, Interest Rates, Energy and Equity Indices. Plus500 provides proprietary web and mobile trading platforms. Plus500 is regulated by multiple top-tier authorities including FCA, ASIC, and CySEC. Plus500 is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. The Plus500 CEO is David Zruia since April 2020.
Plus500 Features
The features of Plus500 are listed below.
- Plus500 offers commodity trading with futures contracts in the US (NFA ID 0001398).
- US traders at Plus500 can trade over 20 commodities in total, including agricultural, metal and energy futures contracts.
- Plus500 also offers micro-futures on Gold, Copper and Natural Gas, while mini-futures are available on Gold, Crude Oil and Natural Gas.
- Plus500 traders can start trading commodities with as little as $100.
- Fees at Plus500 start from $0,89 for Standard and e-mini contracts, while it’s $0,49 for micro contracts.
Plus500 Pros and Cons
Advantages of Plus500
The advantages of Plus500 are listed below.
- Well-regulated Futures provider
- Wide range of Futures instruments
- Unlimited demo account offered
Disadvantages of Plus500
The disadvantages of Plus500 are listed below.
- Advanced technical analysis tools not available
- Doesn’t support automated trading options
- No Negative Balance Protection
IG Markets
IG Markets offers 45+ tradable commodities. IG Markets provides future spreads from 0.06 pips on WTI Oil. IG Markets offers leverage up to 20:1 on Gold for EU traders.
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About IG Markets
IG Markets is a global online trading provider founded in 1974, offering access to over 17,000 financial markets including forex, stocks, indices, commodities, and cryptocurrencies. IG Markets provides proprietary trading platforms alongside MetaTrader 4 and ProRealTime. IG Markets is regulated by multiple top-tier authorities worldwide, including the FCA and ASIC. IG Markets is known for competitive spreads, extensive educational resources, and innovative features like weekend trading. The IG Markets’ parent company “IG Group” CEO is Breon Corcoran.
IG Markets Features
The features of IG Markets are listed below.
- Over 45 tradable commodities.
- With IG Markets you can trade commodities in different ways including through Barrier options, Vanilla options, CFDs, and Futures.
- Spot spread starts from 0.028 pips on Spot WTI Oil and from 0.3 pips on Spot Gold.
- Future spread starts from 0.06 pips on Future WTI Oil and from 0.6 pips on Future Gold.
- Leverage of 20:1 on Gold and 10:1 on other commodities is available for EU, ASIC, FCA, and FSCA traders. For international. traders, leverage may vary depending on the volume of the trade. This can change from 6:1 to 200:1.
IG Markets Pros and Cons
Advantages of IG Markets
The advantages of IG Markets are listed below.
- Low spreads from 0.6 pips on Forex
- Wide range of financial instruments
- 40 years of experience in the Forex industry
Disadvantages of IG Markets
The disadvantages of IG Markets are listed below.
- No copy trading features
- No social trading features
FXTM
FXTM accepts European professional traders. FXTM trades five commodities including Spot Gold. FXTM provides 0.3 pips spread on XAUUSD.
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About FXTM
FXTM, also known as ForexTime, is a global forex and CFD broker founded in 2011. FXTM offers trading on currencies, commodities, indices, stocks, and cryptocurrencies through MetaTrader 4, MetaTrader 5, and proprietary platforms. FXTM is regulated by multiple authorities including CySEC, FCA, and FSC Mauritius. FXTM is known for low spreads, fast execution, and extensive educational resources. FXTM serves over 2 million clients worldwide. The FXTM CEO is Nicholas Defteras.
FXTM Features
The features of FXTM are listed below.
- Right now FXTM only accepts professional traders in Europe.
- The maximum leverage for professional EU traders is 52:1 on Brent Oil, 49:1 on US Oil, and up to 300:1 on metals. Under the global entity of the broker, traders can trade commodities with leverage up to 2,000:1 depending on the volume traded.
- Five commodities to trade in total. Spot Gold, Spot Silver, Spot Brent Oil, Spot WTI Oil, Spot US Natural Gas.
- Spreads from 0.3 pips on XAUUSD.
FXTM Pros and Cons
Advantages of FXTM
The advantages of FXTM are listed below.
- User-Friendly Platform
- Fast Customer Support
- Low Minimum Deposit
Disadvantages of FXTM
The disadvantages of FXTM are listed below.
- Withdrawal Fees
- Limited Product Range
- Inactivity Fees
FP Markets
FP Markets offers 11 commodities. FP Markets spreads start from 0.02 pips on WTI. FP Markets provides leverage up to 20:1 on Gold for ASIC and CySEC clients.
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About FP Markets
FP Markets is an Australian-based global forex and CFD broker founded in 2005. FP Markets offers trading on over 10,000 instruments including forex, stocks, indices, commodities, and cryptocurrencies. FP Markets provides MetaTrader 4, MetaTrader 5, and proprietary platforms. FP Markets is regulated by multiple authorities including ASIC, CySEC, and FSA. FP Markets is known for tight spreads, fast execution, and extensive educational resources. The FP Markets CEO is Craig Allison.
FP Markets Features
The features of FP Markets are listed below.
- 11 commodities to choose from including four different metals (Gold, Silver, Palladium Cash, and Platinum Cash), five soft commodities, and two energies.
- The spread on WTI starts from 0.02 pips when traded as spot, and 0.04 pips when traded as futures. On the other hand, Gold is traded with an average spread of 0.3 pips.
- Leverage of 20:1 on Gold and 10:1 on other commodities for ASIC, and CySEC clients.
FP Markets Pros and Cons
Advantages of FP Markets
The advantages of FP Markets are listed below.
- Broad Instrument Offering
- Competitive Spreads
- Multiple Trading Platforms
Disadvantages of FP Markets
The disadvantages of FP Markets are listed below.
- High Fees for International Withdrawals
- Outdated Platform Design
Pepperstone
Pepperstone accesses 30+ commodities. Pepperstone spreads start from 0.05 pips on Spot Gold. Pepperstone provides leverage up to 20:1 on commodities.
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About Pepperstone
Pepperstone is a global forex and CFD broker founded in 2010 in Melbourne, Australia. Pepperstone offers trading on currencies, commodities, indices, stocks, and cryptocurrencies through MetaTrader and cTrader platforms. Pepperstone is regulated by multiple authorities including ASIC, FCA, and CySEC. Pepperstone is known for competitive spreads, fast execution, and extensive educational resources. Pepperstone serves clients in over 160 countries worldwide. The Pepperstone CEO is Tamas Szabo.
Pepperstone Features
The features of Pepperstone are listed below.
- Access to 30+ commodities, including metals, energies, and soft commodities.
- With Pepperstone, it’s also possible to spread bet on commodities for UK residents.
- Spread start from 2 pips on Spot Crude Oil and 0.05 pips on Spot Gold.
- The leverage offered on commodities is up to 20:1, with the exception of international traders trading under SCB that can access leverage of up to 200:1.
Pepperstone Pros and Cons
Advantages of Pepperstone
The advantages of Pepperstone are listed below.
- Stable raw spreads (0,09 pips on EUR/USD on average)
- Caters for algorithmic trading
- Has won over 30 Forex industry awards
Disadvantages of Pepperstone
The disadvantages of Pepperstone are listed below.
- The demo account is not unlimited
CMC Markets
CMC Markets trades 100+ commodities. CMC Markets offers spreads from 0.3 pips on Gold. CMC Markets provides leverage up to 20:1 on Gold for EU, ASIC, and FCA clients.
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About CMC Markets
CMC Markets is a global online financial trading company founded in 1989 and headquartered in London. CMC Markets offers trading on forex, indices, commodities, cryptocurrencies, and shares through CFDs and spread betting. CMC Markets provides proprietary and MetaTrader platforms for desktop, web, and mobile. CMC Markets is regulated by multiple authorities including FCA, ASIC, and BaFin. CMC Markets is listed on the London Stock Exchange. The CMC Markets CEO is Lord Peter Cruddas.
CMC Markets Features
The features of CMC Markets are listed below.
- Earn monthly cash rebates by trading CFD commodities depending on the level you qualify for. Monthly trade volume of $5M is required for a 5% spread discount At level 4, a $30M+ monthly volume will get a 20% spread discount.
- CMC Markets’ UK traders can also open a spread betting accountto trade commodities.
- You will find 100+ commoditiesthat include Futures and Spot Brent Oil, WTI Crude Oil, Silver, and Gold. Different soft commodities are offered, too. Commodities Indices are also available.
- Spreadfrom 0.3 pips on Gold and from 0.025 pips on WTI Oil.
- Leverageof 20:1 on Gold, and 10:1 on other commodities for EU, ASIC, and FCA-regulated clients. Leverage of 23:1 on Gold for Canadian traders, and up to 200:1 for NZ traders.
CMC Markets Pros and Cons
Advantages of CMC Markets
The advantages of CMC Markets are listed below.
- Regulatory Trust
- Low Trading Costs
- Extensive Trading Platform
Disadvantages of CMC Markets
The disadvantages of CMC Markets are listed below.
- Complex Fee Structure
- Limited Funding Options
City Index
City Index accesses spread betting for UK traders. City Index offers 20+ commodities. City Index provides spreads from 0.03 pips on Gold.
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About City Index
City Index is a global forex and CFD broker founded in 1983, offering trading on currencies, indices, commodities, cryptocurrencies, and stocks. City Index provides proprietary platforms alongside MetaTrader 4. City Index is regulated by multiple top-tier authorities including FCA, ASIC, and MAS. City Index is known for competitive spreads, extensive research tools, and educational resources. City Index is part of the NASDAQ-listed StoneX Group. The City Index’s parent company “StoneX Group Inc.” CEO is Sean O’Connor.
City Index Features
The features of City Index are listed below.
- UK traders trading with City Index can access spread betting.
- Commodities Options are also available.
- Around 20 commodities available traded as CFDs and Futures.
- WTI spreads start from 0.015 pips for spot trading and from 0.04 pips for Futures trading.
- Spreads on gold start from 0.03 pips.
- Leverage of 20:1 on Gold, and 10:1 on other commodities for EU, UK, and ASIC-regulated traders. Leverage of 5:1 on every commodity for Singaporean traders.
City Index Pros and Cons
Advantages of City Index
The advantages of City Index are listed below.
- Regulatory Trust
- Advanced Trading Tools
- Diverse Market Access
Disadvantages of City Index
The disadvantages of City Index are listed below.
- Limited MetaTrader Options
- Educational Content Gaps
- Customer Support Issues
Interactive Brokers
Interactive Brokers supports 135 commodities. Interactive Brokers offers futures and options. Interactive Brokers provides 0.015% CFD commission on Gold trades.
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About Interactive Brokers
Interactive Brokers is a global electronic broker founded in 1978, offering trading in stocks, options, futures, forex, bonds, ETFs, and cryptocurrencies across 150 markets in 33 countries. Interactive Brokers provides advanced trading platforms, low commissions, and access to a wide range of financial instruments. Interactive Brokers is known for its sophisticated technology and serves both retail and institutional clients. Interactive Brokers is regulated by multiple top-tier authorities worldwide. The CEO of the Interactive Brokers Group is Milan Galik.
Interactive Brokers Features
The features of Interactive Brokers are listed below.
- Interactive Brokers supports 135 commodities in total including energies, hard commodities, soft commodities, and Futures on 30+ markets.
- Options trading is also available when trading metals.
- Futures commissions range from USD 0.25 to USD 0.85 per contract.
- CFD commissions on Gold is 0.015% per trade.
- Options commissions range from USD 0.15 to 0.65 per US option contract.
Interactive Brokers Pros and Cons
Advantages of Interactive Brokers
The advantages of Interactive Brokers are listed below.
- Low Trading Fees
- Advanced Trading Tools
- Wide Market Access
Disadvantages of Interactive Brokers
The disadvantages of Interactive Brokers are listed below.
- Not user-friendly
- No MetaTrader Support
- Additional Fees
How to choose a commodity broker
Choosing the right commodity broker is vital to your success in commodity trading. Here’s what you should look out for:
- Look for a regulated commodity broker: Always opt for a broker regulated by a reputable regulatory body, such as NFA (National Futures Associations), FCA (Financial Conduct Authority) or ASIC (Australian Securities and Investments Commission) to name a few. This ensures the broker operates under the stringent regulations that protect your investment. These include data protection policies, security protocols, and financial transparency.
- Prefer low commission brokers: Lower commission rates can greatly impact your returns in the long run. However, keep in mind that low-cost brokers might not offer the same level of service or resources as those charging a higher commission. Nowadays there are multiple brokers on the market that offer low fees on gold, such as 1.5 pips or lower when trading the commodity as CFD, or 1$/contract when gold is traded as options and futures.
- Check the type of commodity broker: Different brokers specialize in different commodities and offer varying types of commodity derivatives. If you’re interested in a specific derivative type, ensure your chosen broker provides it. For instance, if you’re into agricultural commodities, choose a broker that specializes in this area.
What are the most traded commodities?
As per 2021 data, the top traded commodities were:
- WTI Crude Oil: With 248 million contracts, it is the most traded commodity. The popularity stems from its ubiquitous use in various industries.
- Natural Gas: This saw 97 million contracts traded, reflecting its increasing importance in the global energy market.
- Corn: It racked up 86 million contracts, signifying its essential role in both the food industry and biofuel production.
- Gold: Despite being fourth on the list with 58 million contracts, gold remains a top choice for traders due to its status as a safe-haven asset.
- Soybean: This rounded up the top five with 53 million contracts, thanks to its diverse applications in food, feed, and industrial use.
What are the exchanges where commodity are traded the most?
Commodities are traded in exchanges that specialize in certain types of commodities. Here are some of the major exchanges where commodities are traded the most:
- Chicago Mercantile Exchange (CME) Group: The CME Group, incorporating the Chicago Mercantile Exchange and the Chicago Board of Trade (CBOT), is the largest commodities futures exchange in the world. It trades a wide variety of commodities, from agricultural products to energy and metals.
- New York Mercantile Exchange (NYMEX): Now a part of the CME Group, NYMEX is primarily known for trading energy products, particularly crude oil, heating oil, and natural gas.
- Intercontinental Exchange (ICE): Headquartered in Atlanta, ICE operates global exchanges and clearing houses, and provides information and connectivity services. Its most well-known commodity contract is the Brent Crude futures contract.
- London Metal Exchange (LME): The LME is the world’s leading exchange for non-ferrous metals trading, including aluminum, copper, and zinc.
- Dalian Commodity Exchange (DCE): This is one of the major commodity exchanges in China, trading in commodities like soybeans, corn, and steel.
- Multi Commodity Exchange of India (MCX): The MCX is India’s largest commodity futures exchange and ranks among the top global commodity exchanges in terms of the number of futures contracts traded. It offers futures trading in bullion, ferrous and non-ferrous metals, energy, and a number of agricultural commodities.
How to trade commodities
Commodity trading can take place in several ways:
- Spot Market: In this market, commodities are traded at their current price for immediate delivery. Physical commodity trading typically takes place in the spot market.
- Futures Market: Here, commodities are bought and sold through contracts that specify the future price of the commodity. These are essentially agreements to buy or sell a specific quantity of a commodity at a predetermined price and time.
- CFD Market: Contract for Difference (CFD) allows traders to speculate (also with leverage) on the price of commodities without owning the actual commodity. You can make a profit by correctly predicting whether the price will rise or fall.
- Options Market: Similar to the futures market, the options market operates based on future pricing, but traders have the option (not obligation) to buy or sell the commodity at the agreed price on the due date.
Pros and cons of commodity brokers
Pros:
- Wide Range of Tradable Assets
- Flexible Trading Environment
Cons:
- Limited Commodities
- Costs and Fees