Best Commodities Brokers 2022

What is a commodities broker?

A commodities broker enables traders and investors to speculate on the price of commodities markets such as gold, oil, and corn through financial products like futures, options, CFDs, financial spread betting and ETFs.

How does a commodities broker work?

A commodities broker will set up a trading account so you can trade on commodities direct on a commodities exchange like CME (Chicago Mercantile Exchange) or LME (London Metal Exchange) using their exchange membership or via OTC derivatives products like CFDs or financial spread bets.

The different types of trading a commodities broker will offer are:

• Futures
• Options
• CFDs
• Spread Betting
• ETFs

Futures Commodities Trading

Commodities futures are used by agricultural firms and speculators. Commodities futures allow traders to buy or sell a specific amount of a commodity at a specific date in the future. A farmer may use them to lock in the current market price and sell a harvest of corn before it has been grown, whereas a trader may use them to speculate on the price of corn moving higher or lower in the hope of making a profit.

A commodities futures broker will provide access through futures trading to commodities exchanges such as the CME or CBOT. Our guide on how to trade futures explains the risks and rewards of futures trading.

Options Commodities Trading

Commodities options are traded on exchange-like futures and can be used for physical trading or speculation. Commodities options differ from commodities futures in that you are trading the right to a certain amount of a commodity at a certain point in the future, not the obligation. Here’s how options trading works.

CFD Commodities Trading

Trading commodities via CFDs enables traders to speculate on the price of commodities with leverage. Leveraged trading enables traders to enter into a “contract for difference” based on the opening and closing prices of a trade. The user of margin means that traders only need to deposit a small percentage of the value of the commodities they are trading through a commodities broker which increases their exposure to the market.  Commodities CFDs are an OTC (over the counter) derivatives product which means that traders never actually own the underlying commodities, they are simply speculating on the price.

Financial Spread Betting on Commodities

Spread betting on commodities is another form of OTC margin speculation and allows traders to bet on the price movement of commodities. The key advantages over CFDs are that in the UK there is no capital gains tax on spread betting profits. Because of this commodities spread betting is unique to the UK. Commodities spread betting should not be confused with futures spread trading which is speculating on the divergence between different monthly futures.

ETF Commodities Investing

Trading commodities through ETFs can be done through most stockbrokers and investment platforms.  Commodity ETFs are traded on stock exchanges like shares and can be held in normal accounts, ISAs and SIPPs. The price of commodities ETFs tracks the price of underlying commodities so provide a simple way for investors to get exposure to commodity markets without having to enter into traditional derivatives contracts.

Commodities Broker Reviews

Our commodities broker trading platform reviews are a combination of expert testing, data analysis, CEO interviews, product and feature comparison as well as a survey of thousands of traders proving their opinion on what they think is the best commodities trading platform in the UK.

You can read reviews of UK commodities brokers and commodities trading platforms here:

• Read our full IG review
• Read our full CMC Markets review
• Read our full Pepperstone review
• Read our full City Index review
• Read our full Markets.com review
• Read our full Spreadex review
• Read our full Saxo Markets review
• Read our full Capital.com review
• Read our full Interactive Brokers review

Best overall commodities broker

IG is the best overall commodities broker as it offers 38 commodities to trade, as well as investment ISA and SIPP accounts.  Here we have ranked the best commodities brokers based on how many commodities they offer:

1. IG – 38
2. CMC Markets – 33
3. Capital.com – 28
4. City Index – 25
5. Pepperstone – 23
6. Spreadex – 21
7. Saxo Markets – 19
8. Markets.com – 10

Best CFD commodities broker

Saxo Markets is the best commodities brokers for trading CFDs based on which broker won “best CFD broker” in our awards. The previous winners for best commodities CFD broker have been:

• 2021: Saxo Markets
• 2020: Saxo Markets
• 2019: Saxo Markets
• 2018: Saxo Markets

Best spread betting commodities broker

CMC Markets is the best financial spread betting broker for trading commodities based on which broker won “best spread betting broker” in our awards. The previous winners for best commodities spread betting broker have been:

• 2021: CMC Markets
• 2020: IG
• 2019: Spreadex
• 2018: IG

Best futures commodities broker

Saxo Markets is the best futures broker for trading commodities based on which broker won “best futures broker” in our awards. The previous winners for best commodities futures broker have been:

• 2021: Saxo Markets
• 2020: Interactive Brokers
• 2019: Saxo Markets
• 2018: Saxo Markets

Best options commodities broker

Saxo Markets is the best options broker for trading commodities based on which broker won “best options broker” in our awards. The previous winners for best commodities options broker have been:

• 2021: Saxo Markets
• 2020: Interactive Brokers
• 2019: Saxo Markets
• 2018: Saxo Markets

Best commodities broker for Oil

IG is the best commodities broker for trading oil as based on our rankings of oil spreads IG offers the best rate, plus the most account types which include, CFDs, spread betting, investing and DMA for professional clients. Here you can see the best commodities brokers for trading oil ranked by their oil spreads

1. IG – 0.28
2. CMC Markets – 0.3
3. City Index – 0.3
4. Spreadex – 0.3
5. Pepperstone – 0.5
6. Saxo Markets – 0.5

Best commodities broker for Gold

IG is the best commodities broker for trading gold as based on our rankings of gold spreads IG offers the best rate, plus the most account types which include, CFDs, spread betting, investing and DMA for professional clients. Here you can see the best commodities brokers for trading gold based on their gold spreads:

1. IG – 0.3
2. CMC Markets – 0.3
3. City Index – 0.8
4. Spreadex – 0.4
5. Pepperstone – 0.5
6. Saxo Markets – 0.6

Best commodities broker for ETFs

IG is the best commodities broker featured in on commodities trading comparison tables as they offer an investment account for buying and selling the underlying ETFs as well as derivatives products such as CFDs and financial spread betting on commodity ETFs.

Commodities Brokers FAQ:

Can you make money trading commodities?

Yes, if you call the market correctly you can make money trading commodities. However, commodities trading is a high-risk, but some are easier to trade than others. We’ve assessed the different types of commodities and helped identify the best commodities to trade for profits each day.

How do you trade commodities?

Here’s how to trade commodities for insights into trading strategies and methods for both new and existing traders.

Which are the best commodities brokers?

Use our commodities broker comparison table to compare the market access and commodity trading products offered by commodities brokers to find appropriate commodities brokers.

Is commodities trading regulated?

Yes, as a financial instrument in the UK commodities trading is regulated by the FCA.

What are the most popular commodities to trade?

The top three traded commodities are Oil, Gold & Gas. We cover why these are so popular in our how-to-trade commodities guide.

How do commodities brokers make money?

Commodities brokers make money through fees and financing charges. Commodity broker costs can be broken down depending on how a commodity is traded.

The different types of commodities broker make money and charge clients thus:

• Futures – commission charge on a per lot basis
• Options – commission charged on a per lot basis
• CFDs – the bid/offer spread is widened and overnight interest is charged on positions
• Spread Betting – the bid/offer spread is widened and overnight interest is charged on positions
• ETFs – commission charge on buys and sells, plus an account maintenance charge