Best Commodity ETF for 2020

We found 11 online brokers that are appropriate for Trading Commodity ETF.

Best Commodity Etf Guide

Best Commodity ETF

ETF is short for exchange traded fund and commodity ETF refers to an ETV investment made in physical commodities like precious metals, natural resources and agricultural goods.

Investors aim to buy the best commodity ETFs so that the returns are on their investments are high.

The best commodity ETF can be either a single commodity or investment made in futures contracts.

Lately, there has been a sharp increase in demand for many commodities. This is due to an increase in globalization causing trade barriers to have minimized. New investors in great numbers have stepped into commodity ETF trading, aiming to profit on the volatility price movements of commodities like oil and gas.

Best Commodity ETF Explained

When an investor makes an investment in commodities, the investment made is in buying raw materials which are either consumed directly or used in the production of other goods or services.

Directly consumed raw materials like coffee, sugar and vegetables which are used to produce other products include plastic, copper, tin and natural gas.

Those who are new to the market or are non-professional investors should look at educational resources offered by brokerages regarding commodity ETFs, before trading.

Which Commodities to Invest In

Below are some of the best commodities which one can invest in :

Precious metals

Gold, silver, copper and other such precious metals are good to invest in. These metals are widely sold in the financial markets for different purposes like gold jewellery.

Agricultural products

Cotton and cocoa are two of the most traded products in the commodity markets across the world. Cotton is used in the production of thread and thereafter clothes.

Cocoa is used in the chocolate industry. Other products traded on the best commodity ETF are corn, wheat, soybeans, rice and sugar.

Energy

Coal, crude oil and natural gas are some of the most used energy products used to create energy. These are the best options in the commodity markets across the world to make money.

Livestock

Live cattle, as well as cuts of meats, are both in high demand universally. This is the reason the products are well traded on the commodity market.

Qualities of Best Commodity ETFs

It is good to invest in ETFs that have a high number of assets instead of a lower number as this indicates more investors have gotten into the particular ETF.

Most experienced investors prefer high liquidity products due to the ease of buying and selling. New investors are advised not to trade in low liquidity products which are not bought and sold frequently.

Compared to mutual funds, the fee of ETFs is significantly lower. Hence, it is suggested to go for such ETFs which charge a very low fee, even less than 1% of the total volume traded.

The Best Commodity ETFs That You Can trade in 2020

If you are not sure about getting involved in the individual commodities, you are not alone.

In fact, even the experienced traders still think twice when they are about to trade individual commodities. But thanks to the exchange-traded funds or ETFs, trading the commodities has been much simpler than before.

The risks with ETFs are considered lower.

As we know, individual commodities tend to be more volatile. We are deep into 2020.

2019 market conclusions have shown us the huge volatility of some commodities. Therefore, we cannot underestimate market risk when getting involved with the ETFs.

ETFs can be a real opportunity for every class of investor.

Normally, you would use the commodities to hedge against the inflation. Adding ETFs to your portfolio will help you to diversify your investment portfolio.

ETFs unlike individual commodities, offer a lot of opportunities and options. ETFs track a collection of commodities and funds that concentrates on a single type of commodity. Soft agricultural or metals for example.

When deciding upon ETFs, you will want to pick the most prospective ones. This year, there are three top ETFs that we would like to recommend to you.

DBC - Invesco DB Commodity Trading

The DBC tracks 14 commodities indexes by making use of the futures contracts for the exposure.

It caps energy commodities at 60% to give the space for the others like gold and silver. The liquidity of this financial product is strong thanks to large funds.

BCM - iPath Pure Beta Broad Commodity

First Trust Global Tactical Commodity Strategy ETF

But when it comes to ETF behaviour, there is one thing you should know.

ETF prices can be greatly affected by oil supply and demand.

A piece of advice before placing your first ETF orders

Before placing orders for a specific ETF, consider the tips below.

What does it mean?

The wider spreads will inevitably take place. And then the volatility of the ETF will be much higher than before.

To alleviate this, you can conduct the order 30 minutes before the windows closed.

Monitor the volatile times

The success of ETF investments can depend on the volatility of the market.

The ETF values can change in reaction to news and market sentiment.

The bid or ask can spread wider in volatile times.

If you proceed at times like these, you will need to prepare for the worst. It is much better to play safe and avoid trading during volatile days, although some professionals speculated during market volitility.

Choose the best ETFs

If you have just started, you cannot risk losing all your money blindly. Many people chose the wrong ETF and ended up in losing. But then, they would not want to come back again.

To make it a safer and sounder experience for you, you could consider to select an ETF which has a good trading volume.

Consider taking full advantage of all educational resources made available by your broker. Have a good understanding of research tools and understand the trading platforms well.

Commodity ETF Verdict

ETFs can be a good way to make money in the financial markets and due to immense globalization, its demand has increased. Depending on your investment strategy, opt for ETF products that change hands frequently.

We've collected thousands of datapoints and written a guide to help you find the best Best Commodity ETF for you. We hope this guide helps you find a reputable broker that matches what you need. We list the what we think are the best Commodity ETF brokers below. You can go straight to the broker list here.

Reputable Commodity Etf Checklist

There are a number of important factors to consider when picking an online Commodity ETF trading brokerage.

Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.

Our brokerage comparison table below allows you to compare the below features for brokers offering Commodity ETF Brokers.

We compare these features to make it easier for you to make a more informed choice.

Top 15 Commodity ETF Brokers of 2020 compared

Here are the top Commodity ETF Brokers.

Compare Commodity ETF Brokers min deposits, regulation, headquarters, benefits, funding methods and fees side by side.

All brokers below are Commodity ETF brokers. Learn more about what they offer below.

You can scroll left and right on the comparison table below to see more Commodity ETF brokers that accept Commodity ETF clients

Broker eToro XTB City Index Trading212 Plus500 XM AvaTrade Forex.com Markets.com SpreadEx Admiral
Rating
Regulation Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC) Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC), Monetary Authority of Singapore (MAS) Financial Conduct Authority (FCA), Financial Supervision Commission (FSC) Plus500UK Ltd authorized & regulated by the FCA (#509909), Plus500CY Ltd authorized & regulated by CySEC (#250/14), Plus500AU Pty Ltd (ACN 153301681), ASIC in Australia AFSL #417727, FMA in New Zealand, FSP #486026 and Authorised Financial Services Provider in South Africa FSP #47546 International Financial Services Commission(IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investment Commission (ASIC) Central Bank of Ireland, Australian Securities and Investment Commission (ASIC), Financial Services Authority (FSA), Financial Stability Board (FSB), British Virgin Islands Financial Services Commission (BVI) Financial Conduct Authority (FCA), Cayman Islands Monetary Authority (CIMA), Investment Industry Regulatory Organization of Canada (IIROC), National Futures Association (NFA) Cyprus Securities and Exchange Commission (CySEC), Financial Sector Conduct Authority (FSCA), Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC) Financial Conduct Authority (FCA) Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC)
Min Deposit 200 No minimum deposit 25 1 100 5 250 100 250 1 200
Funding
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
Used By 12,000,000+ 200,000+ 14,000+ 14,000,000+ 15,500+ 70,000+ 200,000+ 150,000+ 10,000+ 10,000+ 10,000+
Benefits
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Guaranteed stop loss
  • Offers Negative Balance Protection
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Guaranteed stop loss
  • Offers Negative Balance Protection
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Guaranteed stop loss
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Guaranteed stop loss
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Guaranteed stop loss
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
Accounts
  • Demo account
  • Standard account
  • Islamic account
  • Pro account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Islamic account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Managed account
  • Demo account
  • Demo account
  • Standard account
  • Islamic account
  • Demo account
  • Micro account
  • Standard account
  • Zero spread account
  • Islamic account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Islamic account
  • Demo account
  • Mini account
  • Standard account
  • ECN account
  • Islamic account
  • Demo account
  • Mini account
  • Standard account
  • Islamic account
  • Demo account
  • Standard account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • ECN account
Spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
Platforms Web Trader, Tablet & Mobile apps MT4, Mirror Trader, Web Trader, Tablet & Mobile apps MT4, Web Trader, Tablet & Mobile apps Web Trader, Tablet & Mobile apps Web Trader, Tablet & Mobile apps MT4, MT5, Mac, Web Trader, Tablet & Mobile apps MT4, Mac, Mirror Trader, ZuluTrade, Web Trader, Tablet & Mobile apps MT4, MT5, WebTrader, Advantage Trader Pro, TradingView, Tablet and mobile apps MT4, MT5, Web Trader, Tablet & Mobile apps Web Trader, Tablet & Mobile apps MT4, MT5, Mac, Web Trader, Tablet & Mobile apps
Support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
Learn More Sign Up with
etoro
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xtb
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cityindex
Sign Up with
trading212
Sign Up with
plus500
Sign Up with
xm
Sign Up with
avatrade
Sign Up with
forexcom
Sign Up with
marketscom
Sign Up with
spreadex
Sign Up with
admiralmarkets
Risk Warning 75% of retail investor accounts lose money when trading CFDs with this provider. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. 74% of retail investor accounts lose money when trading CFDs with this provider CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Your capital is at risk 79% of retail investor accounts lose money when trading CFDs with this provider 73% of retail investor accounts lose money when trading CFDs with this provider 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Losses can exceed deposits Losses can exceed deposits
Demo eToro
Demo
XTB
Demo
City Index
Demo
Trading 212
Demo
Plus500
Demo
XM
Demo
AvaTrade
Demo
Forex.com
Demo
Markets.com
Demo
SpreadEx
Demo
Admiral Markets
Demo
Excluded Countries IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, ZW, ET, GH, TZ, LY, UG, ZM, BW, RW, TN, SO, NA, TG, SL, LR, GM, DJ, CI, PK, BN, TW, WS, NP, SG, VI, TM, TJ, UZ, LK, TT, HT, MM, BT, MH, MV, KZ, GD, FJ, BB, BM, BS, AG, AI, AW, LB, SV, US, PY, HN, GT, PR, NI, VG, AN, US, IN, PK, BD, NG , ID, BE US, CF, TD, CG, CG, CI, CU, GN, ER, GN, FR, GW, HT, IR, IQ, KR, LB, LR, LY, MM, NZ, NG, SL, SO, SD, SY, TM, UZ, VE, EH, YE, ZW US BE, US, CA, CN, ID, PH, TG, NG, DO, MA, ZW, PR, TZ, TN, UG, BW, AO, AE US, CA, IL, KR, IR, MM, CU, SD, SY BE, BR, KP, NZ, TR, US, CA, SG BE RU, BR, CH, ZA, SG, JP, US, CA, BE, IL, TR, NZ, MY, SY, TH, ID, IR, IQ, HK, PH, PR US, TR US, CA, JP, SG, MY, JM, IR, TR

All Commodity ETF brokers in more detail

You can compare Commodity ETF Brokers ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.

We also have an indepth Top Commodity ETF Brokers for 2020 article further below. You can see it now by clicking here

We have listed top Commodity ETF brokers below.

Best Commodity Etf List

eToro
(4/5)
Min deposit : 200
eToro was established in 2006 and is used by over 12000000+ traders. 75% of retail investor accounts lose money when trading CFDs with this provider. eToro offers Stocks, Commodities, Forex, CFDs, Social Trading, Indices, Cryptocurrency

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC)
XTB
(4/5)
Min deposit : 0
XTB was established in 2002 and is used by over 200000+ traders. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. XTB offers Forex, CFDs, Cryptocurrency

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Mirror Trader, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego
City Index
(4/5)
Min deposit : 25
City Index was established in 1983 and is used by over 14000+ traders. 74% of retail investor accounts lose money when trading CFDs with this provider City Index offers Forex, CFDs, Spread Betting

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC), Monetary Authority of Singapore (MAS)
Trading212
(4/5)
Min deposit : 1
Trading 212 was established in 2006 and is used by over 14000000+ traders. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Trading 212 offers Stocks, Forex, Commodities, Indices

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Financial Supervision Commission (FSC)
Plus500
(4/5)
Min deposit : 100
Plus500 was established in 2008 and is used by over 15500+ traders. 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Plus500 offers CFDs


Plus500 offer a 100% Free and Unlimited Demo account 0 Commissions Tight Spreads

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Plus500UK Ltd authorized & regulated by the FCA (#509909), Plus500CY Ltd authorized & regulated by CySEC (#250/14), Plus500AU Pty Ltd (ACN 153301681), ASIC in Australia AFSL #417727, FMA in New Zealand, FSP #486026 and Authorised Financial Services Provider in South Africa FSP #47546
XM
(4/5)
Min deposit : 5
XM was established in 2009 and is used by over 70000+ traders. Your capital is at risk XM offers Forex, CFDs

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, Mac, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by International Financial Services Commission(IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investment Commission (ASIC)
AvaTrade
(4/5)
Min deposit : 250
AvaTrade was established in 2006 and is used by over 200000+ traders. 79% of retail investor accounts lose money when trading CFDs with this provider AvaTrade offers Forex, CFDs, Spread Betting, Social Trading

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Mac, Mirror Trader, ZuluTrade, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Central Bank of Ireland, Australian Securities and Investment Commission (ASIC), Financial Services Authority (FSA), Financial Stability Board (FSB), British Virgin Islands Financial Services Commission (BVI)
Forex.com
(4/5)
Min deposit : 100
Forex.com was established in 1999 and is used by over 150000+ traders. 73% of retail investor accounts lose money when trading CFDs with this provider Forex.com offers Forex, Indices, Commodities, Equities, Cryptocurrencies

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, WebTrader, Advantage Trader Pro, TradingView, Tablet and mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Cayman Islands Monetary Authority (CIMA), Investment Industry Regulatory Organization of Canada (IIROC), National Futures Association (NFA)
Markets.com
(4/5)
Min deposit : 250
Markets.com was established in 2008 and is used by over 10000+ traders. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Markets.com offers Forex, CFDs and Spread Bets. Spread Bets are only available to UK customers

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Cyprus Securities and Exchange Commission (CySEC), Financial Sector Conduct Authority (FSCA), Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC)
SpreadEx
(4/5)
Min deposit : 1
SpreadEx was established in 1999 and is used by over 10000+ traders. Losses can exceed deposits SpreadEx offers Forex, CFDs, and spread betting

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA)
Admiral
(1/5)
Min deposit : 200
Admiral Markets was established in 2001 and is used by over 10000+ traders. Losses can exceed deposits Admiral Markets offers Forex, CFDs

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, Mac, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC)