Best Forex Brokers for Oil Trading

logomark Filippo Ucchino calendar Last Updated: November 2021 timer 15 min read
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At InvestinGoal, we adhere to strict standards to ensure an unbiased review process. We conduct our reviews by examining each broker’s offering and performance across 4 key categories. A final rating is produced for each forex broker based on a total of 187 data points. Learn more about our review process and methodology.

Oil is one of many assets that can be traded as a CFD online. It means you can buy or sell at the price of oil markets wherever and whenever you want. You don’t have to buy or sell barrels of oils, you just have to speculate what will be the direction of oil.

But where to trade oil?

While there are plenty of oil trading brokers, you should only opt for the best oil brokers.

Luckily, we have compiled a list of the best forex brokers for trading oil, so you don’t have to waste your precious time.

Table of contents

Top 10 Best Forex Brokers for trading Oil (2021)

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73% of retail investor accounts lose money

1. XTB

XTB has been in business since 2002 and has come a long way since then.

XTB supports a wide range of assets in order to cater to a wide range of traders. There are over 3,000 markets available to trade with the broker, including FX, commodities, stocks, and indices.

Popular commodities such as oil, silver, and gold are also offered. For oil trading, there are no overnight holding fees, 24-hour trading, minimal transaction costs, and high volatility.

The XTB Standard Account is one of the most popular XTB account types among traders. In most circumstances, there is no minimum deposit required, though this will vary depending on the country from which you trade.

The demo account at XTB is completely functional and valid for 30 days. However, you can easily open a demo account after this period.

XTB’s award-winning platform is xStation 5. It is easy to use and offers fast execution speeds.

When it comes to spreads, XTB only provides floating spreads. The spreads for oil trading starts at 0.3 pips, which is lower compared to other brokers.

82
Rated: Excellent
Security 95
Cost 76
Trading 75
Education 72

Platforms: Mirror Trader, Proprietary Desktop Platform, Proprietary Web Platform, MAC Platforms Regulations: FCA, MIFID-ESMA, FSCA, CYSEC, Offshore Minimum Deposit: 0
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74-89% of retail CFD accounts lose money

2. FP Markets

FP Markets is an Australian CFD and forex broker that was launched in 2005.

FP Markets provides over 50 FX currency pairings, five commodities including oil, over 10,000 shares from around the world, and five cryptocurrencies.

At FP, forex is traded through the ECN, while CFD products like oil are traded as DMA.

Standard accounts, raw spread accounts, IRESS standard accounts, IRESS platinum accounts, IRESS premier accounts, MAM/PAMM accounts, and an Islamic account are all available from FP Markets.

The FP Markets Metatrader Raw Spreads Account is a great alternative if you want lower spreads and more platform flexibility. You can use either the MT4 or MT5 trading platforms and make the minimum investment of $100.

A demo account is also available from FP Markets. You will have $100,000 in virtual funds to trade with when you open a demo account.

FP Markets provides traders with the MT4/MT5 trading platforms as well as the IRESS trading platform. The principal equities trading platform is the IRESS trading platform. It is only available for Australian clients.

When talking about oil spreads, the broker spreads start from 0.03 pips. Remember that, the spreads can vary according to your account types.

85
Rated: Excellent
Security 93
Cost 64
Trading 100
Education 47

Platforms: MT4 Dekstop, MT4 Web, MT5 Desktop, MT5 Web, Proprietary Desktop Platform, MAC Platforms Regulations: ASIC Minimum Deposit: 100
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67% of retail investor accounts lose money

3. FXCM

FXCM aka Forex Capital Markets is a well-established broker founded in 1999 in New York.

Besides 39 forex pairs, FXCM provides thirteen index CFDs, nine commodity CFDs, and one bond CFD.

FXCM has four types of trading accounts: standard, active trader, Islamic, and spread betting. FXCM also offers an Islamic account with no swap cost. Additionally, FXCM provides an unlimited demo account. This is perfect for experimenting with new approaches.

If you want to try your hand at spread betting, the FXCM spread betting account is suitable. The account is currently only available to FXCM traders residing in the United Kingdom and Ireland. There are more than 39 instruments to choose from. UK traders can start trading with as little as £300 at FXCM.

You can trade with FXCM on several platforms, including MT4, NinjaTrader, TradeStation, and TradingView.

FXCM NinjaTrader provides a high level of charting tools as well as an exceptional depth of Algo-trading.

Tradingview is a third-party application offered by FXCM. The broker does an excellent job of providing you with the premium version of the service for free for a full year. Tradingview software is useful for research and can help you identify market patterns.

Spreads are typically lower than other brokers are, with oil spreads starting from 0.04 pips.

81
Rated: Excellent
Security 94
Cost 73
Trading 73
Education 83

Platforms: ZuluTrade, MT4 Dekstop, MT4 Web, Proprietary Desktop Platform, Proprietary Web Platform Regulations: FCA, ASIC, FSCA Minimum Deposit: 50
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74-89% of retail CFD accounts lose money

4. IC Markets

IC Markets is an Australian CFD broker that was founded in 2007.

To attract scalpers and automated trading solutions, IC Markets focuses on the most liquid assets and a diverse variety of seven asset types. More than 60 currency pairs, 120 equities, 19 commodities, 17 indices, 10 cryptocurrencies, 8 bonds, and 4 futures markets are available through the broker.

IC Markets offers four different account types: cTrader raw spread, raw spread, standard, and Islamic.

All assets, including trading platforms and approaches, are supported by the demo account. You can get a taste of what IC Markets has to offer without taking any risks or making any financial commitments.

IC Markets provides three trading platforms: MT4, MT5, and cTrader. One of the key reasons why some traders favor cTrader over other platforms is because it offers better charting capabilities and straight-through processing (STP) features.

The cTrader raw spread account type makes use of the company’s own cTrader software, which is designed to handle big volume forex CFD trading. Account spreads begin at zero pips.

As we are talking about spreads, the oil spreads start from 0.035 pips, which is far lower than its counterparts.

92
Rated: Excellent
Security 93
Cost 91
Trading 100
Education 66

Platforms: cTrader desktop, cTrader web, Mirror Trader, ZuluTrade, MT4 Dekstop, MT4 Web, MT5 Desktop, MT5 Web Regulations: ASIC, CYSEC, Offshore Minimum Deposit: 0
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74-89% of retail CFD accounts lose money

5. Vantage FX

Vantage FX is another Australian broker on our list and was founded in 2009.

The asset selection at Vantage FX is adequate yet limited. This broker offers 41 currency pairs, 20 commodities traded as CFDs, including precious metals such as gold, silver, and copper, with gold and silver trading against the US Dollar and the Australian Dollar.

There are over 200 equities available from major exchanges in the EU, US, Hong Kong, and Australia.

Vantage FX offers three types of trading accounts: standard STP accounts, raw ECN accounts, and Pro ECN accounts. The standard account is easy to use and provides access to over 150 instruments, and has a minimum deposit of $200.

You’ll be glad to know that Vantage FX offers an unlimited demo account that you can use at any time.

Vantage FX offers the MT4 and MT5 trading platforms. There is a desktop version that can be downloaded, as well as a web trader and a mobile version.

When talking about trading oil at Vantage FX, you can trade from 0.01 lot size. This means you control 10 barrels of oil.

The spread on oil trading starts from 12 pips, which is the highest so far in our list.

76
Rated: Excellent
Security 93
Cost 74
Trading 67
Education 57

Platforms: ZuluTrade, MT4 Dekstop, MT4 Web, MT5 Desktop, MT5 Web, MAC Platforms Regulations: FCA, MIFID-ESMA, ASIC, Offshore Minimum Deposit: 200
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72% of retail investor accounts lose money

6. Plus500

Plus500 is yet another CFD broker, which was established in 2008.

Plus500 is a highly regulated broker with licensing from FCA (Financial Conduct Authority)

With Plus500, you can more than 60 forex pairs, 1200 stocks, three commodities (gold, oil, and natural gas), 28 indices, 14 cryptos, 90 ETFs, and 100 futures options.

Plus500 offers three account types, standard, professional, and MAM/PAMM accounts. The standard account is Plus500’s signature and most popular. You can begin trading with as little as $100. Besides, Plus500 provides an endless demo account.

Trading on Plus500 is only available through its proprietary web platform. In comparison to other trading platforms, the Plus500 web trading platform is incredibly user-friendly and simple to get started with. It has both dark and light themes and a variety of charting and analyzing capabilities.

There is also a mobile app for Plus500. The app includes all of the features of desktop web traders.

The spreads on Plus500 are completive all around. On the standard account, you get 0.6 pips for EUR/USD. The spreads on oil start from 0.04 pips.

74
Rated: Excellent
Security 96
Cost 70
Trading 66
Education 37

Platforms: Proprietary Web Platform Regulations: MAS, FCA, MIFID-ESMA, ASIC, FMA, CYSEC, ISA, Offshore Minimum Deposit: 100
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81% of retail investor accounts lose money

7. FXTM

FXTM aka Forex Time is a brokerage firm that started its operations in 2011. The company has grown in recent years with most of its focus on Asian and African clients.

FXTM allows you to trade forex, metals, commodities, and stocks. Furthermore, the company has introduced 11 new dynamic currency and stock basket indexes, divided into six forex indices and five stock indices.

There are four account options to choose from: standard, Cent, ECN, ECN Zero, Pro, and stock CFDs account.

The account types vary depending on the countries in which they are available, the pricing, the minimum deposit, the trading platform provided, and the items that can be traded.

For instance, the standard account has the lowest minimum deposit, which requires a $10 deposit to open.

You also have a choice of opening a demo account.

FXTM has three trading platforms: FXTM native platform, MT4, and MT5. In comparison to MT4 and MT5, the FXTM native platform has a superior user interface.

Spreads and commissions on FXTM are only accessible as floating spreads. The minimum spread available is zero pips. For oil trading, spreads start from 0.04 pips.

80
Rated: Excellent
Security 94
Cost 71
Trading 71
Education 80

Platforms: MT4 Dekstop, MT4 Web, MT5 Desktop, Proprietary Web Platform Regulations: FCA, MIFID-ESMA, FSCA, CYSEC, FSC (Mauritius) Minimum Deposit: 10
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68% of retail investor accounts lose money

8. eToro

You must have come across eToro in one way or the other. The broker is well-known among the trading community and was founded in 2007.

With eToro, you can trade 47 forex pairs, 13 commodities, over 900 stocks, 145 ETFs, and 17 cryptocurrencies.

eToro has one type of account for retail traders; a standard account. This account type comes with a minimum deposit of $200. If you are from the US, then the cost comes down to $50. Professional traders can choose from MAM/PAMM and eToro Pro accounts. As an eToro professional trader, you will be entitled to a number of extra privileges, including a dedicated account manager.

The broker also provides a limitless demo account.

When trading with eToro, you will see that they only provide one type of platform. This is their native proprietary trading platform. It has earned a reputation for being incredibly intuitive and user-friendly over the years.

eToro spreads are only available in variable form. This broker does not offer fixed spread options. Spreads on eToro may appear to be marginally higher than all the brokers we mentioned in this list.

When trading oil, you get spreads from 0.05 pips.

78
Rated: Excellent
Security 94
Cost 71
Trading 69
Education 63

Platforms: Proprietary Web Platform Regulations: FCA, CFTC, MIFID-ESMA, ASIC, CYSEC Minimum Deposit: 200
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76% of retail CFD accounts lose money

9. IG Markets

IG Markets, a division of the IG Group, was founded in 1974 in London. As a result, they are one of the industry’s oldest forex brokers.

IG Markets offers around 17000 assets, though this varies depending on where you are located. The broker offers 80 forex pairs, 14 commodities, 80 indices, over 12000 stocks, bonds, cryptocurrencies, and thousands of exchange-traded funds (ETFs).

At IG Markets, you can open an IG trading account, a limited risk account, a spread betting account, an options account, a turbo trading account, a share dealing account, a swap-free account, or a select account. You may also sign up for a demo account.

Most traders use the IG Markets trading account, which is also the broker’s basic trading account. This type of trading account is available globally, with a minimum deposit of $250.

You can use either IG’s web trading platform or MetaTrader 4. The IG Markets web trader is a well-known trading platform that is a proprietary trading platform for the broker that offers all traders great trading conditions.

As a provider of oil trading, IG Markets spreads start from 2.4 pips.

90
Rated: Excellent
Security 98
Cost 62
Trading 100
Education 84

Platforms: Proprietary Web Platform, MAC Platforms Regulations: FSA, MAS, FINMA, FCA, CFTC, MIFID-ESMA, ASIC, FMA, FSCA, DFSA Minimum Deposit: 300
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80% of retail CFD accounts lose money

10. CMC Markets

With over 30 years of financial servicing, CMC Markets is one of the pioneers of the industry.

CMC has an asset class of over 10,000. It includes 330 pairs, almost 5000 stocks, 11 commodities, 5 cryptocurrencies, 50 bonds, and 30 indices.

CMA Markets also has an array of account options like a CFD account, corporate account, stockbroking account, spread betting account, and a professional account. There is also an option to join the endless demo account.

The CFD account is the most popular account type with no minimum deposits, and you can trade 10,000 assets.

The CFD Next Generation platform, available as a webtrader, is CMC’s proprietary platform.  The platform is known to be exceptionally user-friendly and intuitive, as well as offering a large range of tools and features for a great trading experience.

CMC also provides an MT4 platform, which comes with 50 technical indicators and charting tools.

The broker only offers floating spreads and doesn’t provide you with zero spread trading like most brokers on our list. The spread starts from 0.3 pips on all account types for forex pairs.

The spread on oil starts from 2.5 pips.

80
Rated: Excellent
Security 95
Cost 61
Trading 75
Education 81

Platforms: Proprietary Web Platform Regulations: MAS, FCA, MIFID-ESMA, ASIC, IIROC, FMA, CBRC Minimum Deposit: 0

Comparison among the best Oil Trading Forex Brokers

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

Brokers Oil CFD Oil Spot Oil Futures Oil Options Oil ETFs
XTB Yes No No No Yes
FP Markets Yes No No No No
FXCM Yes Yes Yes Yes No
IC Markets Yes Yes Yes No No
Vantage FX Yes No Yes No No
Plus500 Yes No Yes Yes Yes
FXTM Yes Yes No No No
eToro Yes No No No Yes
IG Markets Yes No Yes No Yes
CMC Markets Yes No Yes No Yes

Ways to trade Oil: type of Oil asset

Oil Spot: Oil Spot is the current price of oil. In this type, transactions end almost instantly.

Oil CFD: CFDs are derivative instruments, which allows you to speculate on the price fluctuations. The good thing about Oil CFDs are you can profit from upward and downward markets. Your profit is based on the difference between the opening price and the closing price.

Oil as Futures: In Oil Futures, you trade on predetermined prices. As the name suggests, your trading contract is settled for the future date.

Oil as Options: In Options trading, you have the right to go long or short. In other words, you can take put or call positions. In Options, you are not required to settle the contract

Oil as ETF: In ETFs, you buy a bunch of oil stocks rather than buying a single oil CFD

It is a great way to buy a diversified portfolio since it allows you to buy multiple oil stocks

Oil as Shares industry: When trading oil as shares, you acquire shares of oil and drilling companies like the normal stocks. Your profits and losses are based on the value of the company.

Oil Trading Exchanges

There are three main Oil trading exchanges in the world; CME, NYMEX, and the ICE.

CME aka Chicago Mercantile Exchange is the world-leading and most diverse oil trading exchange.

The NYMEX (New York Mercantile Exchange) is part of CME and is the second leading oil exchange.

The ICE is a European oil trading exchange. It has an electronic commodity exchange and has no trading floors.

How to choose an Oil Broker

If you are looking to choose an oil broker, here are a few things you should consider:

Firstly, check the broker’s regulations.

Just in case oil isn’t your only trading choice, you should look for a broker that has an array of tradable products.

The costs of the broker are another important aspect. You need to look for broker’s spreads, trading commissions, and any other cost associated with trading.

Value of Oil in trading history

Known as the black gold, Oil trading has been operational since the 18th century. The oil market saw a boom in the late 19th century when the first commercial cars were introduced.

With further technological advancements, oil trading skyrocketed during the 20th century.

As we mentioned above, there are various ways to trade oil. The most common methods involve CFDs and Futures contracts.

The US has the biggest oil reserves since founding WTI after the Second World War.

Why invest in Oil?

Crude oil is one of the most precious commodities in the world. It is considered the backbone of the world’s economy.

When you refine oil, you get several other precious minerals like gasoline and petrochemicals. When trading oil, contracts are based on 1000 barrels against the USD.

WTI Crude Oil vs Brent Crude Oil?

The West Texas Intermediate (WTI) comes from the fields in the US, and that’s why it is traded in the US only.

The Brent oil came from a field in the North Sea.

Both WTI and Brent are ideal for refining gasoline.

Brent is preferable around the world; however, WTI is used in the US.

Thanks to technological advancements, WTI has become a lot cheaper.

The prices of Brent and WTI are influenced by geopolitical events. The WTI is less influenced because of the US economic situation.

Pros:

  • Oil is one of the most precious commodities in the world
  • It is a valuable source for refining and energy sectors

Cons:

  • Geopolitical events have a major role in the pricing of oil

About the Author

Filippo Ucchino

Co-Founder - CEO - Broker Expert
Filippo is the co-founder and CEO of InvestinGoal.com. He has 15 years of experience in the financial sector and forex in particular. He started his career as a forex trader in 2005 and then became interested in the whole fintech and crypto sector.
Over this time, he has developed an almost scientific approach to the analysis of brokers, their services, and offerings. In addition, he is an expert in Compliance and Security Policies for consumers protection in this sector.
With InvestinGoal, Filippo’s goal is to bring as much clarity as possible to help users navigate the world of online trading, forex, and cryptocurrencies.

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