Best Brokers for Commodity Trading in 2024

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Best Commodities Broker - RoboForex

Your capital is at risk.

The best commodities brokers in 2024 are:

  • RoboForex - provides a range of trading options for commodities

  • Exness - offers competitive spreads for commodity trading

  • eToro - offers commodity trading through CFDs or by investing in ETFs

  • IC Markets - allows to trade over 22 popular commodities including energy, agriculture, and metals

  • Admirals - over 500 CFDs on indices, metals, energies, stocks, and ETFs available for trading with up to 1:500 leverage

  • Tickmill - offers a small selection of commodity CFDs

  • Interactive Brokers - trading commodities on powerful, trading instruments such as a CFD, ETF, futures, and options

  • eOption - access to trade stocks, bonds, ETFs, options, and fixed-income instruments

  • XM Group - provides access to a variety of tradable instruments, including commodities

  • AvaTrade - offers exposure to commodities by trading relevant CFDs

Commodity trading is still an exciting option for investors looking for diversification in 2024, even though it is not as popular as Forex trading. Our team of experts has carefully analysed the best commodity brokers that offer some of the best investment options, account features, educational resources, and fees for commodities traders. In this article, you will learn about the conditions and how to trade commodities.

  • How do I choose a commodity broker?

    Select a regulated broker for transparency. Verify whether they provide your desired products, easy-to-use platforms, and affordable fees. Give brokers who offer educational materials top priority if you want to improve your market expertise.

  • How risky is commodity trading?

    Commodity trading carries inherent risks due to price volatility, leverage, and global market factors. Managing risks is crucial, considering sudden price swings influenced by supply-demand dynamics, geopolitical events, and weather conditions.

  • Can you trade commodities without a broker?

    Yes, while direct physical trading exists (e.g., buying gold bars), most traders use brokers. Brokers facilitate access to futures contracts, options, and financial instruments, expanding trading opportunities beyond direct physical transactions.

  • Are commodities riskier than stocks?

    Commodities are prone to sudden price swings driven by weather events, geopolitics, and supply disruptions. On the other hand, stocks provide a greater degree of stability due to company-specific factors that reflect the state of the economy and market sentiment.

Comparison of the best commodity brokers

TU experts have compared the best commodity brokers for beginners in the comparison table below

Broker commodity variety
(ETFs, CFDs. etc)
Minimum deposit XAG USD spread Trading Fees

RoboForex

CFDs, Futures, Stocks, ETFs

$100

0.5 pips

Competitive

Exness

CFDs, Futures

$1

0.3 pips

Low

eToro

CFDs, Stocks, ETFs

$50

N/A

Zero commission

IC Markets

CFDs, Futures

$200

0.2 pips

Low

Admirals

CFDs, Futures

$25

0.4 pips

Competitive

Tickmill

CFDs, Futures

$100

0.2 pips

Low

Interactive Brokers

Futures, Options

$50

Varies

Competitive

eOption

Options

$500

N/A

Low

XM Group

CFDs, Futures

$5

0.6 pips

Low

AvaTrade

CFDs, Futures

$100

0.7 pips

Competitive

Best commodities brokers and trading platforms

The following commodities brokers and trading platforms highlighted by TU experts offer some of the best investment features

Roboforex

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Your capital is at risk.

RoboForex is an online financial brokerage company that provides a range of trading options for commodities. R StocksTrader is RoboForex’s proprietary trading platform designed for commodity trading. More than 150 commodities are available for trading on R StocksTrader, such as gold, silver, platinum, palladium, copper, aluminium, nickel, zinc, tin, natural gas, ethanol, cocoa, coffee, corn, wheat, soybeans, sugar, cotton, and crude oil (WTI and Brent). The minimum deposit to start trading on R StocksTrader is $100 and can go as low as $10, with a leverage of up to 1:300 depending on the type of account you want to trade with.

Commodity-based assets for trading Commodities trade as Minimum deposit Leverage

Energy Commodities

CFDs, Futures, stocks of energy companies

$100

Up to 1:100

Metals (gold, Silver)

CFDs, ETFs, stocks of gold companies

$100

Up to 1:100

Agriculture

ETFs, Futures

$100

N/A

Exness

Open an account
Your capital is at risk.
You can lose your money.

Exness offers competitive spreads for commodity trading, even during high-impact market news and economic events. Exness users can leverage up to 1:400 when trading commodities with a minimum deposit of $1 and $500 for professional accounts. Exness also offers competitive spreads, and they vary based on the account type and market conditions..For example, on the Zero account, spreads on major commodities remain fixed at 0.0 pips for 95% of the trading day, and change only at the opening/closing of trading sessions or market force majeure. Please note - some assets (e.g. "gold" XAU/AUD, XAU/GBP, XAU/EUR) have spreads/commissions on all account types - please check the terms and conditions on the website. For other account types, the average spreads vary depending on the specific metal pair. For example, gold and silver have spreads ranging from 0.01 to 0.3 pips.

Commodity-based assets for trading Commodities trade as Minimum deposit Leverage

Metal (Gold)

CFDs

$1

Up to 1:100

Energy (Crude Oil)

CFDs

$1

Up to 1:20

Agriculture

Stocks, CFDs

$1

Up to 1:400

eToro

Open an account
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest.

eToro’s services are geared towards those interested in social and copy trading, but eToro also offers commodity trading through contracts for difference (CFDs) or by investing in commodity-based exchange-traded funds (ETFs). While eToro provides access to popular commodities like oil, it’s essential to note that their range is more limited compared to other brokers. eToro offers a limited range of about 32 commodities. Users can take positions in commodities such as gold, silver, crude oil, natural gas, and more with a minimum deposit of $50. 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. The spread for gold is 0.9, and for oil, it is 1.4 pips.

Commodity-based assets for trading Commodities trade as Minimum deposit Leverage

Metals

CFDs, ETFs, Gold Mining Stocks

$50

Up to 1:20 (depends on the local regulation)

Energy

CFDs, Stocks, ETFs

$50

N/A

Agriculture

CFDs, ETFs

$50

N/A

IC Markets

Open an account
Your capital is at risk.
Up to 75.93% of the broker’s non-professional clients incur losses when trading CFDs.

IC Markets Global offers a flexible and convenient way to engage in commodity CFD trading. The broker allows you to trade over 22 popular commodities from around the world, including energy, agriculture, and metals. IC Markets combines tight pricing and flexible conditions to provide a powerful product for traders. You can trade spot energy contracts such as crude oil, Brent, and natural gas against the US dollar. Trading energy contracts as a spot instrument is advantageous for investors focused on price speculation. Trade the spot price for metals like gold, silver, platinum, and palladium against major currencies with leverage up to 1:500. IC Markets offers a range of soft commodity products, including corn, soybeans, sugar, cocoa, coffee, and wheat as CFDs. These come with low spreads of 0.01 pips and leverage up to 1:100.

Commodity-based assets for trading Commodities trade as Minimum deposit Leverage

Metals

CFDs

$200

1:500 (depends on the local regulation)

Energy

CFDs

$200

1:100

Agriculture

CFDs, Futures

$200

1:100

Admirals

Open an account
Your capital is at risk.

There are over 500 CFDs on indices, metals, energies, stocks, and ETFs available for trading with up to 1:500 leverage on Admiral's trading platform. With Admirals commodity CFDs, you can buy or sell tiny quantities of metals, crude oil, natural gas, and other agricultural commodities with a minimum deposit of $25 and spreads as low as 0 pips. Admirals offer Trade.MT5 accounts that allow traders to speculate on commodity prices using CFDs. With a Trade.MT5 account, clients can trade CFDs on many of the most traded commodities. To begin trading CFDs on commodities, register for a Trade. MT5 account and access the dashboard. In market watch, look for the commodity you wish to trade, then drag it onto the chart to view its price history. To place an order with the market, select a new order at the top of the screen, enter the trade volume, and then trade.

Commodity-based assets for trading Commodities trade as (CFDs, Futures, ETFs, Options, Stocks) Minimum deposit Leverage

Metal (Gold)

CFDs

$25

1:30

Energy

CFDs, Futures

$25

1:10

Agriculture

CFDs, ETFs

N/A

N/A

Tickmill

Open an account
Your capital is at risk.

Tickmill offers a small selection of commodity CFDs, although it’s worth noting that Tickmill’s portfolio is somewhat limited compared to other brokers reviewed in this article. Tickmill boasts some of the lowest spreads in the industry, starting at 0.0 pips. Spreads for metals like gold have a spread of about 0.09 pips. Tickmill also offers leverage up to 1:500 for some commodity CFDs and a minimum deposit of $100.

Commodity-based assets for trading Commodities trade as (CFDs, Futures, ETFs, Options, Stocks) Minimum deposit Leverage

Metal (Gold)

CFDs, Futures

$100

1:12

Energy (NATGAS)

CFDs, Futures

$100

1:50

Agriculture

CFDs, Futures

$100

1:50

Interactive Brokers

Interactive Brokers is a popular choice for commodity traders due to its advanced execution, robust trading platforms, and competitive pricing. With IBKR, you can trade commodities on powerful, trading instruments such as a CFD, ETF, futures, and options. Users can execute commodity trades in over 100 order types, from limit orders to complex algorithmic trading, with a minimum deposit of $50 and $2,000 for margin trading.

Commodity-based assets for trading Commodities trade as (CFDs, Futures, ETFs, Options, Stocks) Minimum deposit Leverage

Energy

CFDs, ETF

$50

N/A

Metals

CFDs, Futures

$50

N/A

Agriculture

ETF, Futures

$50

N/A

eOption

Open an account
Your capital is at risk.
Via eOption's secure website.

Clients of eOption Broker have access to trade stocks, bonds, ETFs, options, and fixed-income instruments. Please note: the broker does not offer CFDs on commodity assets, only futures and options. The broker provides expert analytics, cutting-edge trading platforms, and the lowest option commissions. eOption stands out for its low option contract fee of $0.10 per contract. Users can trade individual stocks of companies related to commodities (e.g., oil companies and mining companies). eOption also provides access to futures contracts, which allow you to buy or sell commodities at a predetermined price on a future date. To get started, you’ll need a minimum deposit of $1 and $500 for some instruments. eOption also allows margin trading, but the specific requirements may vary based on your location.

Commodity-based assets for trading Commodities trade as (CFDs, Futures, ETFs, Options, Stocks) Minimum deposit Leverage

Metals

Futures, Options

$500

N/A

Energy

Futures, Options

$500

N/A

Agriculture

Options

N/A

N/A

XM Group

Open an account
Your capital is at risk.
77.74% of retail investor accounts lose money when trading CFDs with this provider.

XM Group is a well-regarded broker. XM Group caters to traders of varying skill levels and offers a range of account types, educational resources, and diverse tradable assets. XM Group provides access to a variety of tradable instruments, including commodities. XM Group allows you to trade commodity CFDs. You can speculate on both rising and falling prices of commodities such as gold, silver, oil, and agricultural products. Precious metals like gold, silver, crude oil through CFDs. XM Group offers leverage of up to 1:500 for certain instruments, including commodities. XM Group operates with variable spreads, which means the spread can vary based on market conditions. The minimum deposit requirement varies based on the account type you choose. For the Micro and Standard accounts, the minimum deposit is $5. For the XM Ultra Low account, the minimum deposit is $50.

Commodity-based assets for trading Commodities trade as (CFDs, Futures, ETFs, Options, Stocks) Minimum deposit Leverage

Metals (Gold)

CFDs

$5

1:100

Energy (WTI Oil)

CFDs

$5

1:100

Agriculture

CFDs

$5

N/A

AvaTrade

Open an account
Your capital is at risk.
71% of retail investor accounts lose money when trading CFDs with this provider.

You can trade a wide range of markets, from metals to energies and more, through CFDs with AvaTrade. AvaTrade offers varying leverage levels depending on the asset class. For major instruments, leverage can go up to 1:30 for retail clients, and the minimum deposit to open an account with AvaTrade is $100. This broker offers exposure to commodities by trading relevant CFDs. While not strictly commodities, indices such as the S&P 500 and Dow Jones Industrial Average can be traded as CFDs.

Commodity-based assets for trading Commodities trade as (CFDs, Futures, ETFs, Options, Stocks) Minimum deposit Leverage

Energy

CFDs

$100

1:30

Metals

CFDs

$100

1:30

Agriculture

CFDs

$100

N/A

How to choose the best commodity trading brokers

There are a number of things to keep in mind to ensure you not only choose a legitimate, reputable broker but also that the broker is offering the best possible conditions and tools to help you get the best trading results. According to TU experts, some things to consider include;

  1. Reputation: Look for brokers with a solid reputation, transparent practices, and regulatory compliance. Read reviews and check their track record.

  2. Trading platform: Ensure the broker offers a user-friendly platform with essential tools for analysis, order execution, and risk management.

  3. Commissions and fees: Compare commission structures, spreads, and other fees.

  4. Customer support: Reliable customer service is crucial. Test their responsiveness before committing.

  5. Educational resources: Select brokers that provide educational content, webinars, and tutorials to enhance your trading knowledge.

  6. Demo accounts: Practice with a demo account to understand the platform and test strategies risk-free. Most reliable brokers provide users with a demo account to test their platform.

Commodities available for trading

Commodities available for trading can be broadly classified into two main categories, hard commodities and soft commodities. These classifications are based on the nature of the underlying asset and its physical characteristics.

  1. Hard commodities: Hard commodities refer to tangible and naturally occurring resources that are typically mined or extracted from the earth. They include metals, energy resources, and other raw materials. Some examples of hard commodities include metals like gold, silver, copper, platinum, palladium, aluminium, and energy resources like crude oil, natural gas, coal. Hard commodities are often used in industrial processes, construction, and manufacturing, making them crucial for economic development.

  2. Soft commodities: Soft commodities on the other hand, consist of agricultural products and other perishable goods. These commodities are generally grown rather than mined, and they play a significant role in the food and beverage industry. Examples of soft commodities include agricultural products like wheat, corn, soybeans, rice, cotton, coffee, cocoa, sugar. Soft commodities are influenced by factors such as weather conditions, crop diseases, and geopolitical events, making them susceptible to price volatility.

The most traded commodities can vary based on market conditions, geopolitical events, and economic trends. However, historically, some commodities have consistently ranked among the most traded. Some of the most traded commodities include crude oil like WTI and Brent crude oil. They serve as key energy resources and are vital for various industries. Another commodity is gold, a precious metal and is widely traded as a safe-haven asset and for its use in jewelry and electronics. Similar to gold, silver is a precious metal with applications in various industries, including electronics and photography. Copper is another heavily traded commodity due to its use in construction, electronics, and manufacturing. Soybeans, corn, cocoa and coffee are examples as well.

How to invest in commodities?

Investing in commodities can be done through various financial instruments. Here's an overview of some common options, along with their features and advantages highlighted by TU experts below:

  1. CFDs (Contracts for Difference): CFDs are derivative products that allow investors to speculate on the price movements of commodities without actually owning the underlying asset. Traders enter into a contract with a broker, and the profit or loss is determined by the difference between the entry and exit prices. Leverage is often available, allowing investors to control a larger position with a smaller amount of capital.

    Advantages:

    1. Flexibility: CFDs provide flexibility in terms of short and long positions, allowing investors to profit from both rising and falling markets.

    2. Leverage: The use of leverage can amplify potential returns, but it also increases risk.

    3. No ownership: Investors do not need to physically own or store the commodity.

  2. ETFs (Exchange-Traded Funds): ETFs are investment funds that are traded on stock exchanges, representing a basket of commodities or commodity-related assets. ETF provide diversification across multiple commodities within a single investment. Investors buy and sell ETF shares on the stock exchange, similar to stocks.

    Advantages:

    1. Diversification: ETFs offer exposure to a range of commodities, reducing the risk associated with the performance of a single commodity.

    2. Liquidity: ETFs are traded on stock exchanges, providing liquidity and ease of buying and selling.

    3. Accessibility: Investors can buy and sell ETF shares through brokerage accounts.

  3. Stocks: Investing in commodity-related stocks involves buying shares in companies involved in the production, exploration, or distribution of commodities. Companies in sectors such as mining, energy, or agriculture can be influenced by commodity prices.

    Advantages:

    1. Dividends: Some commodity-related stocks pay dividends, providing additional income to investors.

    2. Equity ownership: Investors become partial owners of the company and can benefit from overall company performance.

    3. Diversification: Investors can diversify within the stock market while still gaining exposure to commodities.

  4. Futures: Futures contracts are agreements to buy or sell a specified quantity of a commodity at a predetermined price on a future date. Futures are commonly used by producers and consumers to hedge against price fluctuations and can be traded on organized futures exchanges.

    Advantages:

    1. Hedging: Futures contracts provide a way for producers and consumers to manage price risk.

    2. Standardization: Futures contracts are standardized, making them transparent and easily tradable on organized exchanges.

  5. Copy commodities trading: Copy trading involves replicating the trades of experienced and successful commodity traders. Investors can allocate funds to follow the trades of a chosen trader automatically. Trading platforms that support copy trading facilitate the copying process.

    Advantages:

    1. Accessibility: Allows less experienced investors to benefit from the expertise of successful commodity traders.

    2. Passive investment: Investors can participate in commodity markets without actively managing their own trades.

    3. Diversification: Copying multiple traders can provide diversification across different trading strategies.

Is commodity trading profitable?

Yes, commodity trading presents a potential for profitability, but it's accompanied by inherent risks. Here are some essential tips highlighted by Tu experts for beginners looking to engage in this market:

  1. Learn the basics: Understanding fundamental aspects such as supply and demand dynamics, market trends, and the impact of geopolitical events is crucial for making informed decisions.

  2. Risk management: Implementing stop-loss orders is vital to limit potential losses. Diversifying your portfolio can also help mitigate risks associated with individual commodities.

  3. Stay informed: Keep a close eye on global events, weather patterns, and economic indicators as they can significantly influence commodity prices.

  4. Start small: Commence your trading journey with a well-researched strategy and gradually increase exposure as you gain experience and confidence.

  5. Discipline: Maintaining discipline is paramount. Stick to your trading plan and avoid making emotional decisions, as impulsiveness can lead to unnecessary risks.

Pros and cons of commodity trading

Commodity trading has proven to be profitable but it carries risk. TU analyst have highlighted some of the pros and cons of commodity trading for you below:

👍 Pros:

Inflation hedge: Commodities can serve as a hedge against inflation, preserving value during economic uncertainties.

Geopolitical hedge: They act as a safeguard during geopolitical tensions, offering a safe haven for investors.

High leverage: Futures and options provide substantial leverage, allowing traders to control larger positions with a smaller capital outlay.

Diversification: Commodities exhibit low correlation with stocks, offering diversification benefits to a well-balanced portfolio.

👎 Cons:

Volatility: Prices can be highly volatile due to factors like supply and demand imbalances, making the market unpredictable.

Lack of income: Unlike stocks, commodities generally don't generate regular income in the form of dividends.

Risk of loss: The high leverage inherent in commodity trading can amplify losses, posing a significant risk to investors.

Is commodity trading safe?

Although commodity trading offers opportunities but requires knowledge and discipline, don’t forget commodity trading carries inherent risks, including:

  1. Leverage: High leverage can result in significant gains, but it also exposes traders to substantial losses.

  2. Market volatility: Commodity prices can experience rapid fluctuations, requiring constant vigilance from traders.

  3. Macro factors: The market's dependence on global economic conditions adds an additional layer of uncertainty.

Methodology for compiling our ratings

Traders Union applies a rigorous methodology to evaluate brokers using over 100 both quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.

Key aspects of the assessment include:

  • Regulation and safety. Brokers are evaluated based on the level/reputation of licenses and regulations they operate under.

  • User reviews. Client reviews and feedback are analyzed to determine customer satisfaction levels. Reviews are fact-checked and verified.

  • Trading instruments. Brokers are evaluated on the breadth and depth of assets/markets available to trade.

  • Fees and commissions. A comprehensive analysis is done of all trading costs to analyze overall cost to clients.

  • Trading platforms. Brokers are assessed based on the variety, quality and features of platforms offered to clients.

  • Other factors like brand popularity, customer support, education resources are also evaluated.

Summary

In conclusion, while commodity trading offers diverse opportunities, success in this market requires a solid foundation of knowledge, effective risk management, and unwavering discipline. Choose your approach wisely, stay informed, and navigate the world of commodity trading with a strategic mindset.

Team that worked on the article

Winnifred Emmanuel
Contributor

Winnifred Emmanuel is a freelance financial analyst and writer with more than 4 years of experience working with financial websites and businesses. Commodities, Forex, stock markets, and cryptocurrency are Winnie's areas of expertise. In 2022, she started writing for the Traders Union website. At Traders Union, Winnie is involved in thorough assessment of brokerage firms, and creating instructive articles on finance while also analyzing trading methods and indicators. Additionally, Winnie conducts in-depth analysis of the stock, cryptocurrency, and Forex markets.

Winnie believe anything is possible.

Dr. BJ Johnson
Dr. BJ Johnson
Developmental English Editor

Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.

The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.

Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.

Mirjan Hipolito
Cryptocurrency and stock expert

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.