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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: High71% 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 crude oil trading brokers are XTB, eToro, FP Markets, and FXCM.
To choose the best brokers for trading crude oil, crude oil commissions, the methods of oil investment offered (such as spot or futures), the quality of the platform and service, and the overall trustworthiness of the broker are the most important criteria.
XTB is the best crude oil trading broker overall, with both oil spot CFDs and oil ETFs tradable with ultra-tight spreads starting from 0.03 pips on both WTI and Brent crude oil through the XTB platform.
eToro, FP Markets, and FXCM follow XTB as the best crude oil trading brokers for their flexible trading methods, competitive spreads, and strong platform features. eToro offers WTI oil trading as both spot and futures contracts, spreads from 0.05 pips, and the possibility to share opinions on the oil market with other traders. FP Markets offers spot and futures oil trading with spreads from 0.02 pips on WTI (0.04 on futures) and from 0.03 pips on Brent spot. FXCM provides trading on WTI and Brent as spot and futures contracts, with spreads starting at 0.04 pips and 0.07 pips respectively.
Round-up
| OIL BROKERS | OIL DERIVATIVES | MINIMUM WTI SPREAD | MINIMUM BRENT SPREAD | OIL ETFS |
|---|---|---|---|---|
| XTB | Spot | 0.03 pips | 0.03 pips | Yes |
| eToro | Spot, Futures | 0.05 pips | 0.05 pips | Yes |
| FP Markets | Spot, Futures | 0.02 pips | 0.03 pips | No |
| FXCM | Spot, Futures, Options | 0.04 pips | 0.07 pips | No |
| IC Markets | Spot, Futures | 0.02 pips | 0.03 pips | No |
| Vantage | Spot, Futures | 0.012 pips | 0.036 pips | No |
| Plus500 | Futures | N/A | N/A | No |
| FXTM | Spot | 0.04 pips | 0.05 pips | No |
| IG Markets | Spot, Futures | 0.02 pips | 0.02 pips | Yes |
| CMC Markets | Spot, Futures | 0.025 pips | 0.025 pips | Yes |
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.
Review
XTB
XTB allows trading crude oil as spot CFDs and ETFs. XTB offers five oil ETFs commission-free. XTB presents spreads starting from 0.03 pips. XTB provides leverage up to 67:1 for international traders.
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About XTB
XTB is a global forex and CFD broker founded in 2002 and headquartered in Poland. XTB offers trading on over 2,000 instruments including currencies, stocks, indices, commodities, and cryptocurrencies. XTB provides the proprietary xStation platform and is regulated by multiple authorities including FCA, CySEC, and KNF. XTB is listed on the Warsaw Stock Exchange and serves over 897,500 clients worldwide. The XTB CEO is Omar Arnaout since March 2017.
XTB Features
The features of XTB are listed below.
- With XTB you can trade crude oil not only as spot CFDs but also as ETFs.
- 5 different oil ETFs offered without commissions when buying the underlying asset.
- Leverage of 10:1 on CFD commodity Oil for EU traders and 67:1 for International traders.
- The spread starts from 0.03 pips on both WTI and Brent Oil.
XTB Pros and Cons
Advantages of XTB
The advantages of XTB are listed below.
- No minimum deposit
- Wide selection of assets
- Competitive trading costs
Disadvantages of XTB
The disadvantages of XTB are listed below.
- Small withdrawal fee
- No social or copy trading
- XTB demo account is limited to 30 days
eToro
eToro focuses on WTI oil. eToro allows trading as spot and futures. eToro features spreads starting from 0.05 pips. eToro offers a leverage limit of 10:1.
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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.
- eToro has a specific page for each type of crude oil, where you can interact with other users by sharing ideas, opinions, and news on crude oil.
- eToro offers only WTI oil, which can be traded as spot and futures.
- Spreads on WTI start from 0.05 pips.
- The maximum leverage is 10:1.
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
FP Markets
FP Markets permits trading oil as spot and futures. FP Markets starts WTI spreads from 0.02 pips. FP Markets trades Brent spot with spreads from 0.03 pips.
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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.
- You can trade oil both as spot and futures.
- Spreads start from 0.02 pips on WTI, but they are slightly higher when trading WTI futures (from 0.04 pips). Brent oil is tradable only as spot with spreads starting from 0.03 pips.
- Leverage of 10:1 on oil for CySEC and ASIC traders.
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
FXCM
FXCM allows spread betting on oil for UK clients. FXCM supports trading spot and futures on WTI and Brent. FXCM sets WTI spreads starting at 0.04 pips.
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About FXCM
FXCM is a global forex and CFD broker founded in 1999, offering trading on currencies, commodities, indices, stocks, and cryptocurrencies. FXCM provides MetaTrader 4 and proprietary trading platforms. FXCM is regulated by multiple authorities including FCA, ASIC, and CySEC. FXCM is known for competitive spreads, extensive educational resources, and copy trading services. FXCM recently launched a sister platform called Tradu. The FXCM parent company “Stratos Group” CEO is Brendan Callan.
FXCM Features
The features of FXCM are listed below.
- FXCM offers an Active Trader program for high-volume investors, which can reduce spreads on different markets including crude oil instruments.
- UK residents can open a spread betting account to trade oil.
- Spot and futures contracts on both WTI and Brent crude oil can be traded.
- Spreads on WTI start from 0.04 pips, while on Brent they start from 0.07 pips.
- Maximum leverage on crude oil is 10:1 for European, Australian, and UK traders, South African traders can open positions with up to 400:1 leverage.
FXCM Pros and Cons
Advantages of FXCM
The advantages of FXCM are listed below.
- Regulation and Trust
- Advanced Trading Tools
- Competitive Spreads for Active Traders
Disadvantages of FXCM
The disadvantages of FXCM are listed below.
- Limited Range of Instruments
- Average Pricing Structure
IC Markets
IC Markets provides oil CFDs both as spot and futures. IC Markets starts WTI spreads at 0.02 pips for futures. IC Markets offers leverage up to 100:1 to international traders.
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About IC Markets
IC Markets is a global forex and CFD broker founded in 2007 and based in Sydney, Australia. IC Markets offers trading on over 2,250 instruments including currencies, commodities, indices, stocks, and cryptocurrencies. IC Markets provides MetaTrader 4, MetaTrader 5, and cTrader platforms. IC Markets is regulated by multiple authorities including ASIC and CySEC. IC Markets is known for its ECN execution model and low spreads. The IC Markets CEO is Andrew Budzinski.
IC Markets Features
The features of IC Markets are listed below.
- IC Markets offers oil as a spot and future commodity CFD product.
- WTI spreads start from 0.02 pips when traded as futures, and 0.03 pips when traded as spot.
- Brent spreads start from 0.03 pips.
- Under CySEC and ASIC, the maximum crude oil leverage is 10:1, while international traders can trade with leverage up to 100:1.
IC Markets Pros and Cons
Advantages of IC Markets
The advantages of IC Markets are listed below.
- Low-latency trading environment
- Institutional level liquidity
- MT4, MT5, cTrader platforms are all available
Disadvantages of IC Markets
The disadvantages of IC Markets are listed below.
- Small amount of educational tools for new traders
- Small range of tradable assets compared to other CFD/Forex brokers
Vantage
Vantage offers WTI as future and spot products. Vantage sets WTI spreads starting from 0.012 pips. Vantage limits leverage to 100:1 for specific regulations.
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About Vantage
Vantage is a global multi-asset broker founded in 2009, offering trading on forex, CFDs, commodities, indices, shares, and cryptocurrencies. Vantage provides MetaTrader 4, MetaTrader 5, and proprietary platforms. Vantage is regulated by multiple authorities including ASIC, FCA, and CIMA. Vantage is known for fast execution, competitive spreads, and extensive educational resources. Vantage serves over 3 million registered users worldwide. The Vantage CEO is David Shayer.
Vantage Features
The features of Vantage are listed below.
- UK traders can open a Vantage spread betting account to trade oil.
- WTI Crude Oil is offered as future and spot, while Brent Crude Oil is provided as spot only.
- WTI spreads start from 0.012 pips, however, they are higher when traded as futures (0.016 pips).
- Brent spreads are higher than WTI starting from 0.036 pips.
- Leverage of 100:1 is available for CIMA, and VFSC traders, while 10:1 is available for ASIC, and FCA traders.
Vantage Pros and Cons
Advantages of Vantage
The advantages of Vantage are listed below.
- Competitive spreads and low commissions
- Strong range of asset classes
Disadvantages of Vantage
The disadvantages of Vantage are listed below.
- Not available to US traders
- Customer service could be improved
Plus500
Plus500 offers futures on crude oil with various contract sizes. Plus500 provides a daily margin requirement for standard contracts. Plus500 features competitive commissions on futures.
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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 in the USA offers 9 futures on energies, including crude oil.
- Futures on Plus500 are available on the Futures account (US exclusive only).
- Plus500 futures on energy and oil are available as standard, e-mini and micro contracts.
- Crude oil futures on Plus500 have a daily margin of $2,200 per standard contract.
- Plus500 commissions on futures start from $0.49 on micro contracts and from $0.89 on standard and E-mini contracts.
- Plus500 requires a minimum deposit of $100 for a live Futures account (US exclusive).
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
FXTM
FXTM delivers extremely high leverage on crude oil. FXTM sets WTI spreads from 0.05 pips. FXTM offers professional trading leverage up to 52:1 for Brent.
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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.
- FXTM offers very high leverage on crude oil under their global entity. This can range from 2,000:1 for trades smaller than 0.5 lots, down to 25:1 for trades with volumes above 80 lots.
- FXTM offers Brent and WTI crude oil as CFD Spot, with spreads from 0.04 pips and 0.05 pips respectively.
- Right now, FXTM only accepts professional traders in Europe, with a maximum leverage of 52:1 on Brent Oil and 49:1 on US Oil.
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
IG Markets
IG Markets enables trading oil with options and CFDs. IG Markets provides spread betting for UK investors. IG Markets starts spreads from 0.028 pips on spot instruments.
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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.
- With IG Markets you can trade oil in different ways, such as with barrier options, vanilla options, CFDs, and Futures.
- For UK traders, spread betting is also available.
- Spreads start from 0.028 pips on spot instruments, and 0.06 pips on futures.
- Leverage up to 10:1 for EU, ASIC, FCA, and FSCA traders, and up to 66:1 under the global IG entity. However, the higher the volume traded, the lower is the leverage offered. For instance, opening positions from 210 contracts will reduce the maximum leverage down to 6:1.
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
CMC Markets
IG Markets enables trading oil with options and CFDs. IG Markets provides spread betting for UK investors. IG Markets starts spreads from 0.028 pips on spot instruments.
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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.
- WTI and Brent offered as CFDs and Futures.
- The spread on spot instruments is 0.025 pips, while it starts from 0.040 pips on futures.
- CMC offers monthly cash rebates to high-volume traders, with spread discounts that can reach 20%.
- If you’re a British trader, you will be able to open a CMC Markets spread betting account.
- Leverage up to 1:10 for EU, ASIC, and FCA traders, and up to 1:133 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
How to choose a crude oil trading broker
In order to choose a crude oil trading broker go through these following steps.
First you need to ensure that the broker is regulated by a reputable authority. This ensures that they adhere to specific standards set to protect traders. Regulatory bodies like the Commodity Futures Trading Commission (CFTC) in the US, the Financial Conduct Authority (FCA) in the UK, and the Australian Securities and Investments Commission (ASIC) in Australia oversee broker activities in their respective regions.
Secondly, delve into the oil trading brokers’ offering as many of them offer different account tiers, each with its own set of features, minimum deposit requirements, spreads, and other terms. Ensure that the oil broker supports a range of secure and convenient deposit and withdrawal methods, like bank transfers, credit cards, e-wallets.
Lastly, check for any hidden or additional fees, such as overnight financing or inactivity fees.
Apart from crude oil, see what other commodities or financial instruments the brokerage firm offers if you plan to diversify your trading.
What are the platforms to trade crude oil?
A trading platform, in the context of a crude oil trading broker, refers to software provided by the oil trading broker that allows investors and traders to place and monitor trades in the market.
Considering the most popular trading platforms you can expect to find the following:
- MetaTrader 4 (MT4) for CFDs trading mostly;
- MetaTrader 5 (MT5) allows crude oil trading via futures and options;
- cTrader works mostly with CFDs and often provides Direct Market Access (DMA), meaning traders might get better order execution.
The broker’s trading platform should be user-friendly, stable, and equipped with the necessary tools and features to facilitate trading and analysis.
What are the best demo accounts for crude oil trading?
Two of the best demo accounts for trading oil come from XTB and eToro, which are industry leaders in this aspect. They provide you with an unlimited demo account as it does not expire with time coupled with a virtual balance over $10.000 which you can reset as needed.
(74-89% retail investor accounts lose money)An oil trading broker offering a demo account is beneficial, especially for beginner traders. It allows you to practice oil trading with virtual funds, helping you understand the platform and the oil markets without risking real money.
Traders should also consider the quality of the platform, the tools available, the accuracy of price feeds, and the overall user experience. Before committing to a live account, traders should try multiple demo accounts to find the platform and the oil broker that best aligns with their trading style and needs.
How does crude oil trading work?
Crude oil refers to unrefined petroleum and is a naturally occurring liquid fossil fuel. It is a global commodity, and its prices can influence economies, geopolitical relationships, and energy policies.
There are different ways to invest in crude oil:
- Spot Market: crude oil is traded for immediate delivery and payment. Prices on the spot market represent the current market value of crude oil.
- Futures Market: most crude oil trading happens in the futures market. A futures contract is an agreement to buy or sell a specific quantity of crude oil at a predetermined price on a specified future date.
- CFD Market: you can speculate whether the price of the oil CFDs rise or fall without owning the underlying asset.
- Option Markets: traders have the flexibility to devise strategies that consider both price and expiration time of the option. However, these options are based on crude oil futures contracts, not the actual oil.
The two primary markets for crude oil futures are the New York Mercantile Exchange (NYMEX) for West Texas Intermediate (WTI) crude oil and the Intercontinental Exchange (ICE) for Brent crude.
NYMEX is typically open to oil trading Sunday to Friday: 6:00 PM to 5:15 PM Eastern Time (ET) with a 45-minute break each day beginning at 5:15 PM ET. while the ICE goes from Sunday to Friday: 8:00 PM to 6:00 PM ET for the next day.
However, there are times of high volatility when other significant trading hours around the world overlap. Additionally, the oil markets are sensitive to geopolitical events, OPEC meetings, and U.S. crude oil inventory release times that make the price swing.
How does margin and leverage work in crude oil trading?
Margin is the amount of money that a trader must deposit with their broker to open a leveraged position. It acts as collateral or a security deposit against potential losses. This will determine how much capital you need to have in your account to hold a particular position.
Leverage allows traders to control a large position with a relatively small amount of capital. It’s expressed as a ratio, such as 10:1, 50:1, or 100:1, which indicates how many times larger the trader’s position is compared to their margin requirement.
Typically, as a retail trader, you can expect to have available leverage up to 10:1 while trading commodities such as crude oil.
So, if a trader wants to take a position in crude oil worth $10,000 and their broker offers a leverage of 10:1, they would only need $1,000 (the margin) to control that position.
While leverage allows traders to control a larger position with a smaller capital outlay, it also increases potential losses. Ensure you understand the implications and utilize appropriate risk management techniques.
What fees do crude oil trading brokers charge?
Here are some of the common fees associated with crude oil trading:
- Spread: this is the difference between the buying price (ask) and the selling price (bid) of the crude oil instrument. Brokers might offer fixed or variable spreads.
- Commission: some brokers charge a flat fee or a percentage of the trade value as a commission for executing a trade.
- Overnight Financing or Swap Fees: when you hold a leveraged position overnight, you may be charged a fee. This is because leveraged positions are effectively ‘borrowed’ and the fee represents the interest on that borrowed amount.
- Inactivity Fees: if a trader doesn’t trade for an extended period, some brokers charge an inactivity fee.
- Deposit and Withdrawal Fees: while many brokers offer free deposits and withdrawals, some might charge fees.
Fees can vary based on the broker, the type of trading platform, and the specific financial instrument being traded (e.g., futures contracts, CFDs, spot contracts). These can significantly impact your trading profitability.
When choosing a crude oil trading broker, it’s crucial to be aware of all potential fees and costs associated with trading. Always read the terms and conditions and fee schedules thoroughly, and consider testing with a smaller amount or a demo account first.
How do crude oil trading brokers make money?
Crude oil trading brokers employ several methods to generate revenue. These methods can be broadly categorized based on trading-related commissions/fees, non-trading fees, and the inherent business model they adopt.
Trading fees regard the opening and closing of trading positions where spreads and commissions take place. While non-trading fees relate to swap fees, inactivity fees and any deposit/withdrawal fees, if applicable.
Lastly, you have to consider the business model of the broker. Whether it takes the opposite side of a trade, or passes it to liquidity providers depends entirely on the broker. Some may also opt for a hybrid model offering different account types based on these models.
What are the best resources to trade oil?
Here are some of the best resources for crude oil traders:
- Broker Research and Analysis such as XTB and FXCM provide their own analysis for free.
- News websites such as Bloomberg and OilPricecom for up-to-date financial news and analysis.
- Economic calendars available on many financial news websites, providing dates for significant events that might impact the crude oil market.
- Training and courses like Coursera and Udemy or specialized trading education websites on crude oil.
- Books to give you an introduction to the oil market and an historical background such as “The Prize: The Epic Quest for Oil, Money, and Power” by Daniel Yergin or “Oil 101” by Morgan Downey.
- Podcasts and webinars are often hosted by brokers such as IC Markets or IG Markets covering topics on commodities and oil.
Especially for beginners, it’s beneficial if the broker offers educational materials like webinars, articles, tutorials, and more to help you understand the nuances of crude oil trading.
Market Research & Analysis Tools can provide insights into market trends, news, and other factors that can impact crude oil prices. Some brokers offer more in-depth analysis and insights than others.
Trading oil pros and cons
Pros:
- Oil is one of the most traded commodities globally, ensuring a high level of liquidity
- There is a range of instruments to choose from to invest in oil
- There is an abundance of resources, analysis, and news available
Cons:
- Oil prices can swing dramatically based on geopolitical events
- High Volatility Risks
- Complex market to understand for new traders