Where can you buy oil futures in America?
There are a number of firms that offer exposure to oil futures today. Some reputable firms include:
- Interactive Brokers – Interactive Brokers access to a range of oil futures, including futures on WTI Crude Oil (symbol: CL) and Micro WTI Crude Oil (symbol: MCL). Micro WTI Crude Oil futures allow for smaller contract sizes, providing a more accessible entry point for traders starting out or those with less capital.
- Plus500 – With Plus500, you can trade a range of different oil futures including WTI Crude Oil, Brent Crude Oil, and Micro WTI Crude Oil. And you start with as little as $100.
| Name | Logo | Futures Commission | Minimum deposit | GMG Rating | Customer Reviews | CTA | Feature | Expand |
|---|---|---|---|---|---|---|---|---|
 | Futures Commission $0.25 to $0.89 | Minimum deposit $2,000 | GMG Rating | Customer Reviews | Account Types:
| Interactive Brokers Futures Trading Review: Best Futures Broker 2025 Account: Interactive Brokers Futures Trading Description: Interactive Brokers offer one of the best futures trading platforms in the UK for both simple and complex trading strategies. Overall, Interactive Brokers is the cheapest major brokerage offering futures trading so is suitable for traders looking for discount execution from a well-established and capitalised company. Can you trade futures on Interactive Brokers (IBKR)? Yes, Interactive Brokers are one of the best (if not the best) futures brokers in our comparison matrix. IBKR offer very cheap futures trading on global exchanges for experienced clients. Interactive Brokers won “best futures broker” in our 2023, 2024 and 2025 awards as they provide very low trading costs, and institutional-grade futures trading platform and wide market access. Interactive Brokers offer one of the best futures trading platforms in the UK for both simple and complex trading strategies. Overall, Interactive Brokers is the cheapest major brokerage offering futures trading so is suitable for traders looking for discount execution from a well-established and capitalised company. Pros
Cons
Overall4.8 | ||
| | Futures Commission $0.49 to $0.89 | Minimum deposit $100 | GMG Rating | Customer Reviews | Visit Platform Trading in futures involves the risk of loss. | Account Types:
| Plus500 US Futures Trading Review: DMA access to US futuresAccount: Plus500 US Futures Trading Description: In 2023, Plus500 launched its online trading platform in the US. Through the platform, those in the US can trade futures on a range of instruments including equity indexes, crypto-assets, currencies (forex), and commodities. Is Plus500 a good futures broker? Yes, Plus500 is an online trading company that operates in over 50 countries worldwide and in the US, its platform allows you to trade futures on a range of assets. Plus500 also offers a range of features designed to help traders capitalize on opportunities in the markets including charting tools and real-time news feeds. There is a demo account for those looking to learn how to trade futures before committing real money, but one downside is that there are some platforms that offer more futures markets than Plus500. Pros
Cons
Overall4.5 |
How do you trade oil futures?
Trading oil futures is relatively straightforward. Let’s say that you believe that oil prices are going to rise. In this scenario, you would buy a futures contract (or “go long”). If prices were to increase, you could sell the futures contract for a profit.
Alternatively, let’s say that you predict that oil prices are going to fall. In this scenario, you would sell a futures contract (“go short”). If prices were to fall, you would be able to close out the contract for a profit.
Is now a good time to trade oil in the USA?
Michael Brown, Chief Market Strategist at Pepperstone, told us that market participants have been pricing a substantially higher risk premium for some time now, given that US military intervention in the Middle East was looking likely, though said premium has ratcheted higher still since the weekend, after kinetic action begun.
Of course, many are now questioning whether we could trade to $100bbl in Brent, though such a view seems hyperbolic for now, barring a prolonged blockage of the Strait of Hormuz, or significant damage to energy infrastructure in the Gulf, neither of which have yet taken place.
From a macroeconomic perspective, key will be the length of any conflict, and subsequent rally in crude benchmarks, with a more prolonged military operation likely leading to Brent remaining north of $80bbl for the foreseeable, in turn bringing with it notable inflationary implications, which could delay central banks like the BoE from delivering rate cuts in the short-term. Signals that both sides of the present conflict may be prepared to take ‘off ramps’ and de-escalate the situation would clearly be a positive signal, and see some degree of risk premium priced out.
What are oil futures?
Futures are financial contracts in which two parties agree to exchange a financial asset (e.g. an index or a commodity) at a fixed price and time in the future. They can be an effective way to gain exposure to a specific asset or asset class because you only have to pay a fraction of the full price of the contract upfront (what you pay upfront is known as “margin”).
With oil futures, you agree to buy or sell a specific quantity of crude oil at a predetermined price on a designated future date, depending on your view of where oil prices are heading. If your view turns out to be correct, you will realize a profit as the oil price moves in your anticipated direction.
Oil futures are highly standardized by exchanges such as the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE). This standardization includes the quantity of oil (oil futures are typically 1,000 barrels for a standard contract) and delivery dates.
Note that while futures contracts can involve physical delivery of a commodity, the vast majority of oil futures contracts are cash-settled. This means that at expiration of the contract, instead of actual barrels of oil changing hands, the difference between the agreed-upon futures price and the prevailing spot market price is paid to the relevant party.
What are the risks?
While trading oil futures can be profitable, it also comes with substantial risks. Some of the main risks to be aware of include:
- Price movements – Oil prices are notoriously volatile and can be influenced by a range of factors including geopolitical events, economic data, and weather patterns. Unexpected news can cause prices to swing around wildly, leading to rapid losses for futures traders.
- Leverage risk – With futures, you can often control a large contract value with a relatively small amount of money. This “leverage” can magnify your losses if the market moves in the wrong direction. So, you need to be careful using it and have robust risk management processes in place. Without risk management strategies, you could face large losses (you can lose more than your initial investment).
- Margin calls – If oil prices move in the wrong direction, your broker may issue a “margin call,” requiring you to deposit additional funds into your account to maintain your position. If you don’t meet the margin call, the broker may close your position (potentially at a loss).
How do oil futures compare to oil options?
Oil futures and oil options are both derivative instruments that can be used to speculate on the price of oil. However, they differ in their mechanics and risk profiles. An oil futures contract is a legally binding agreement to buy or sell a specific quantity of crude oil at a predetermined price on a designated future date. By contrast, an oil option contract gives the holder the right, but not the obligation, to buy or sell a specific oil futures contract (or sometimes the physical commodity itself) at a predetermined price on or before a specified expiration date.
Other oil investments
If you’re not so keen on trading futures but still want exposure to oil, there are plenty of other options to consider. These include:
- Oil stocks – Oil stocks such as Chevron, Exxon, BP, and Shell tend to move higher when oil prices are rising. That’s because their profits and cash flows are directly related to oil prices.
- Oil exchange-traded funds (ETFs) – Oil ETFs are funds that track the price of oil or an index of oil stocks. Somes examples of oil ETFs include the United States Oil Fund (USO), the iShares US Oil & Gas Exploration & Production ETF (IEO), and the Vanguard Energy ETF (VDE).
- Oil exchange-traded notes (ETNs) – ETNs do not own an underlying portfolio of assets, and instead are made up of derivative instruments. Some examples include the iPath Series B S&P GSCI Crude Oil Total Return Index ETN (OIL) and the Credit Suisse X-Links Crude Oil Shares Covered Call ETN (USOI).
- Leveraged ETNs – These provide leveraged exposure to oil prices or oil stock prices. An example is the UCO Ultra Bloomberg Crude Oil (UCO), which provides two times (2x) the daily performance of the Bloomberg Commodity Balanced WTI Crude Oil Index.
FAQ
What is the ticker for oil futures?
The symbol for WTI Crude Oil futures – the most actively traded crude oil futures contract – is “CL.” The primary ticker for Brent Crude Oil futures is “B.”
Where are oil futures traded?
WTI Crude Oil futures are traded on the New York Mercantile Exchange (NYMEX). Meanwhile, Brent Crude Oil futures are primarily traded on the Intercontinental Exchange (ICE).
How does margin work with oil futures?
When you trade oil futures, you don’t pay the full value of the contract upfront. Instead, you put down a relatively small amount of money known as “margin.” This margin allows you to control a much larger notional value of oil. For example, you may be able to control $70,000 worth of oil with just $5,000. The benefit of margin is that it can magnify your profits. On the downside, however, it can also magnify your losses.
What factors influence oil prices?
Factors that impact oil prices include:
- Supply and demand – Production levels and global economic growth are major variables here.
- Geopolitical events – Wars, political instability, and sanctions in oil-producing regions can disrupt supply and cause price spikes.
- Weather – Disruptive weather events such as hurricanes can impact oil production and refining capacity.
- Alternative energy developments – Advances in renewable energy can influence long-term demand expectations.
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
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