Commodities brokers let you trade and invest in the commodities markets through their commodity trading platforms via futures, CFDs, spread bets. or ETFs. We have ranked, compared and reviewed some of the best commodities brokers and trading platforms in the UK regulated by the FCA.

Best Commodities Brokers Compared

Our picks for the best commodities brokers are based on over 7,000 votes in our annual awards, our own experiences testing the accounts as well as an in-depth comparison of the features that make them stand out compared to alternatives.

City Index

City Index Commodities Trading

Best for trading ideas and signals

Trade over 20+ different commodity markets with spread betting and CFD spreads from just 0.06pts. In business for 40 years, City Index is a trusted market leader that’s authorised and regulated by the Financial Conduct Authority (FCA). Exclusive to City Index, get trading ideas and post trade analysis to improve your trading performance.

Commodities:

20

Minimum Deposit:

£100

Account Types:

CFDs, Spread Betting, Forex

69% of retail investor accounts lose money when trading CFDs with this provider

Interactive Brokers Commodities Trading

Best for on-exchange commodities trading

With IBKR you can tade commodities on owerful, award-winning trading platforms as a CFD, ETF or on exchange futures and options. Executue commoditie trades in over 100 order types from limit orders to complex algorithmic trading.

Commodities:

20

Minimum Deposit:

£1

Account Types:

CFDs, Forex, DMA, Investing

60% of retail investor accounts lose money when trading CFDs with this provider

CMC Markets

CMC Markets Commodities Trading

Best range of commodity markets

Spread bet and trade commodity CFDs and spread betting with leverage on 100+ instruments within our global commodity markets, including Gold, Silver, Brent and West Texas Crude Oil plus commodity indices, on an award-winning platform. With tight spreads, lightning-fast execution and some of the the highest customer satisfaction in the industry.

Commodities:

100+

Minimum Deposit:

£1

Account Types:

CFDs, Spread Betting, Forex

76% of retail investor accounts lose money when trading CFDs with this provider

Pepperstone

Pepperstone Commodities Trading

Best for trading on MT4 & MT5

Trade commodity CFDs or spread bet on Gold, Silver, Crude, Natural gas with razor sharp pricing, low spreads and fast execution, without worrying about physical delivery, ownership and rollovers.

Commodities:

32

Minimum Deposit:

£1

Account Types:

CFDs, Spread Betting, Forex

74% of retail investor accounts lose money when trading CFDs with this provider

IG Commodities Trading

Best for larger traders

Trade over 35 commodities or a range of commodity stocks and ETFs as a CFD or spread bet on spot prices or with (exclusive to IG) an undated contract. Commodity trading spreads are from just 2.8 points on Brent Crude and 0.3 on gold and you can also attach a guaranteed stop to limit your risk, even in the most volatile market conditions.

Commodities:

35

Minimum Deposit:

£250

Account Types:

CFDs, Spread Betting, Forex, DMA, Investing

73% of retail investor accounts lose money when trading CFDs with this provider

Saxo Markets Commodities Trading

Best for direct market access

Trade a wide range of commodities as CFDs, futures, options, spot pairs or exchange traded commodities (ETCs) with tight spreads, integrated Trade Signals, news feeds and innovative risk-management features.

Commodities:

25

Minimum Deposit:

£500

Account Types:

CFDs, Forex, DMA, Investing

70% of retail investor accounts lose money when trading CFDs with this provider

Markets.com

Markets.com Commodities Trading

Good trading tools

Markets.com has an advanced platform to trade metals, energy and soft commodities as a CFD or spread bet with market-leading spreads and a suite of integrated risk management and analysis tools. Institutional-grade liquidity means commodity spreads as 0.3 points on gold, plus Marktes.com now offer Brent and WTI oil contracts with no fixed expiries.

Commodities:

30+

Minimum Deposit:

£100

Account Types:

CFDs, Spread Betting, Forex

77% of retail investor accounts lose money when trading CFDs with this provider

Spreadex Financials

Spreadex Commodities Trading

Good for customer service

Voted by traders for ‘Best for Efficiency of Taking Trades’ in the Investment Trends Awards trade over 20 commodities including Gold from only 0.4pts as a spread bet or CFD.

Commodities:

20

Minimum Deposit:

£1

Account Types:

CFDs, Spread Betting, Forex

69% of retail investor accounts lose money when trading CFDs with this provider

XTB

XTB Commodities Trading

Good for trading tools

Trade commodities with competitive spreads, transparent rollovers visible directly on the chart and leverage up to 500:1. XTB’s award-winning xStation 5 offers 24 hours commodity trading on PC, Tablet & Smartphone.

Commodities:

22

Minimum Deposit:

£1

Account Types:

CFDs, Spread Betting, Forex

77% of retail investor accounts lose money when trading CFDs with this provider

eToro

eToro Commodities Trading

Good for social and copy trading

At eToro, trading commodities is straightforward. eToro’s platform is easy to use and enables traders and investors to trade a wide range of commodities. You also get the benefit of being able to set your own leverage when trading commodity CFDs, so you can reduce your risk by increasing your margin rates.

Commodities:

15

Minimum Deposit:

$10

Account Types:

CFDs, Forex, Investments

77% of retail investor accounts lose money when trading CFDs with this provider

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.

Different ways to trade commodities:

Futures

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 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.

CFDs

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

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.

ETFs

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.

What is commodities trading?

Commodities trading is speculating on the price of commodities such as frozen concentraded orange juice, soybeans, gold or Oil.

What are commodities?

Commodities then are raw ingredients, the basic building blocks of our modern way of life, they help to feed and clothe us and provide us with energy, shelter and transportation.

“A raw material or primary agricultural product that can be bought and sold, such as copper or coffee” and “A useful or valuable thing”

When we talk about something being commoditised we mean that it is freely available or ubiquitous and though that’s true of some commodities, such as milk or salt, there are other commodities are really quite scarce indeed, and they undertake quite a journey to reach the end consumer.

That brings us to another interesting facet of many commodities they are consumables that are eaten or consumed in a manufacturing or chemical process, often on a single-use basis.

Many commodities have a finite supply and our continued use of these diminishes that supply, which will in some cases eventually run out. Unsurprisingly then commodity prices are often driven by concerns around their supply and demand, their markets are often cyclical in nature and subject to factors such as the weather and climate, which makes them of great interest to traders around the world.

Where can you trade commodities?

To trade commodities you need a commodities trading platform. The most common way to trade commodities is:

  • Commodities futures trading
  • Commodity CFDs (contracts for different)
  • Commodities ETFs (exchange-traded funds)
  • Commodities options trading

What are the best commodities to trade?

That’s quite a complex question but then I suppose it’s fitting that it should be because the commodity markets themselves can appear complicated to the uninitiated. Unlike stocks and shares or FX, many commodities trade in more than one form. For example, there are a large number of varieties of coffee and crude oil and they are all traded somewhere around the world.

For our purposes, however, we will concern ourselves with those commodities that are exchange-traded in standardised contracts or lots, as futures. Futures are a type of forward contract that allows traders to speculate on the price of an instrument or commodity out to a known point in the future. They can also be used by consumers and producers to fix their prices or hedge their costs, through the sale and purchase of say, sugar or heating oil, for the next year or two.

One place to start, when trying to decide what the best commodities to trade are, is liquidity. After all, the ability to enter and exit out of trade cleanly is a crucial component of successful trading or investing. The table below is a snapshot of the ten most actively traded commodity futures in early September 2019. As we can see there are a wide variety of commodity types in the table with entrants from energy, metals, and grains.

US crude oil and gold were the most actively traded commodities, however, it’s notable that there were also three food-related commodities in the table alongside the precious metals and energies.

Here is how to trade commodities if you want a strategy to get started.

Contract NameLast PricePrev Vol in Lots Traded
Crude Oil WTI (Oct ’19)54.36679,847
Gold (Dec ’19)1,540.10320,657
Corn (Dec ’19)368-6149,585
Crude Oil WTI (Nov ’19)54.13119,652
Natural Gas (Oct ’19)2.321116,584
Silver (Dec ’19)18.615112,887
Crude Oil WTI (Dec ’19)53.79104,804
Wheat (Dec ’19)460-485,252
Soybean (Nov ’19)866-681,645
Gasoline RBOB (Oct ’19)1.476567,838

Source Barchart.com

Gold and crude oil have coincidentally both performed well over 2019 to date as we can see in the chart below. At the time of writing gold (in green) was up just under +20% year to date whilst US Crude or WTI was higher by +20.6%.

Crude Versus Gold Chart

Source Investors Intelligence

Gold and crude oil often act as gauges of geopolitical and economic tensions.

Gold has continued to make gains, due to these concerns. Crude oil, however, sold off from recent peaks, over summer 2019, on worries about global growth and demand.

Are major commodities best for commodities trading?

I think the answer to this for most traders, and particularly those that are new to space will be an emphatic yes. Commodity markets can be full of idiosyncrasies and the more specialised you get the less obvious these maybe. With that in mind, even experienced traders will stick to those commodities that are highly tradeable or liquid, and which tend to trend.

Metals such as gold, silver and copper, alongside, the soft commodities of coffee, cocoa and sugar, as well as crude oil and natural gas are among the most consistently traded commodity contracts.

That said it’s worth bearing in mind that all commodity markets can be prone to gaping.

That is a sharp price movement in either direction, that takes a price out of the range seen during the previous session or period.

That can be beneficial if the gap acts in your favour i.e. it the price moves in the direction of your trade, but it can be equally painful if the gap moves the price sharply against you.

The chart below is of rough rice (a lesser traded commodity) and we highlight four separate gaps in its price action during the six-month lifetime of the chart.

Rough Rice Chart

Source Investors Intelligence

The best commodities for trading

As we have noted already liquidity is an important consideration when deciding which commodities, we should trade. We should also think about factors that can influence commodity prices. These range from weather reports to the strength of the US dollar in which the vast majority of commodities are priced, and traded in. A stronger US dollar tends to depress commodity prices, while a weaker dollar can often provide a boost to the commodity markets.

The relationship with the dollar could be considered as the beta of the commodity markets that is the anticipated move that commodities should undergo, relative to a change in the value of a benchmark or index, in this case, the US dollar.

As well as the beta or market-related return we can look for alpha that is the return produced by an instrument, that is unrelated to a benchmark or index and is unique to the underlying instrument or commodity.

The chart below plots the Alpha exhibited in selected commodities over the prior 52 weeks.

The precious metals produced the highest levels of unique returns or alpha whilst the laggards included agricultural commodities such as lean hogs, corn and Soya, in all three variants.

These negative readings tell us that these commodities underperformed the expected or market return.

Commodities Alpha

Source Good Money Guide research / Barchart.com

Those countertrend moves could have been profitable for traders, however, for example, high-grade copper traded as high as $2.88 in September last year and as low as $2.499 in August this year, that’s a range of around -13%.

The best commodities to trade at night

The major commodities trade around the clock but as with other markets, the later in the trading day the thinner the underlying markets can be. Simply due to a reduction in the number of participants when Europe and the US are asleep. However, some of the biggest consumers of commodities are in Asia, led by China. So, events and news flow in the far east can certainly move commodity prices. Once again, the big three commodities, oil, gold and copper are likely to be the most sensitive to Asian data and news flow and to offer the best overnight liquidity though as we have already noted even these markets can and do gap in overnight trade.

The best commodities to have traded in the past

The best commodities to have traded in 2018 will have been those that had the biggest return or price moves the table below (part of the periodic table of annual commodity returns compiled by USfunds.com) shows us the major movers in the world of commodities during 2018.

Topping the table is Palladium, a precious metal similar to Platinum, which is used as a catalyst, that gained more than +18.5% in 2018. Wheat gained +17.86% and another grain, Corn, was up by +6.91%. The biggest losers were industrial metals like Nickel, Lead, Copper and Zinc. All of which saw sharp double-digit percentage price falls during 2018.

Commodities Heat Map

The best commodities to trade 2019

The table below shows the returns or percentage changes among leading commodities and benchmarks year to date. Precious metals are once again the biggest gainers Palladium enjoying a +29.60% gain up until the time of writing. Cotton and natural gas are among the biggest loser year to date in 2019. It has also been a poor year for agricultural commodities and foodstuffs alongside industrial and base metals. It’s also interesting to note the rather pedestrian performance of the general commodity ETF and the CRB commodity index. Two instruments that track the performance of a basket of widely used and consumed commodities.

Commodities Performance 2019

Source Good Money Guide Research/ Investors Intelligence

 

Which commodities are the most profitable to trade

Once again the answer to this will depend on how we approach the question as we have seen above precious metals, Platinum and Palladium have enjoyed large price swings during 2018 and 2019 to date. so one could argue that these have been the most profitable commodities. However in the grand scheme of things neither of these metals has a particularly liquid underlying market that might not be an issue for positional traders or investors who have long term time horizons, but for those trading over the short to medium term that could be an issue.

The +21.0% rally, in gold year to date, makes a very good case for the yellow metal, and given the level of uncertainty in the markets in Q4 2019 it seems likely that the price of gold will continue to fluctuate into the year ended providing us with plenty of trade opportunities.

It will also be hard to ignore crude oil in final stages of 2019 both the WTI and Brent contracts have fallen sharply in the last calendar year though more recently their prices have rallied China and America are still trying to find a resolution to their ongoing trade war. While OPEC, the oil-producing countries trade body, are scheduled to meet in Vienna in early December. Saudi Arabia OPEC’s most influential member is already shuffling its pieces on the chessboard ahead of that meeting, with a view to limiting supply and maintaining recent oil price gains if it can.

What are the most predictable commodities?

The commodity markets and predictability don’t usually go together. Even a market such as US natural gas which has been in a long-term downtrend (thanks to an ever-increasing supply from the shale/fracking booms in the USA) has undergone price spikes over recent years which we can see in the chart below.

Nat Gas

Source Investors Intelligence

If we are trading or investing in commodities, I think we would be lulling ourselves into a false sense of security if we started to think about their prices being predictable. Yes, there is often a cyclical element to the movements in commodity prices and commodities often trend as a result of that, but those trends can end abruptly, without warning. The spike in natural gas seen in late 2018 is a prime example (see above). So be warned complacency could prove to be very expensive when you’re trading commodities.

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
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