We found 11 online brokers that are appropriate for Trading Commodity Futures.
A Commodity future contract means the contract or agreement of selling or buying predetermined quantities of particular commodities at specific prices and dates in the future.
Investors can use commodity futures to secure or hedge the position of the investment. On the other hand, you can use it to anticipate underlying asset movements.
When it comes to commodity futures contracts, the holder is not passive but active. They must act based on the contract, whether buying or selling the commodity on the predetermined quantity and price when the contract has expired. Holders cannot avoid this obligation with the exception of when they release the futures contract before expiry.
The Commodity futures contract has the expiration date that refers to the date where they would be netted or closed out. The physical delivery of the underlying asset is not necessary as its cash settled. The differences between the predetermined price and real price in closing are settled with cash. Underlying assets may include gold, silver, corn, wheat, crude oil, natural gas, and so forth.
The future contracts would end or close in the expiration month. For example, December’s futures contract is the agreement ending in December. Meanwhile, the price of the underlying asset could be volatile and fluctuating. At the end of the contract, you can potentially obtain big gains or big losses depending on the actual price when the contract has expired.
Many speculators use commodity futures contracts to speculate on the directional price movement of the underlying assets. At this point, investors can take a position as a buyer or seller of the commodity.
Setting the total amount of contract is not necessary for commodity futures as they use high leverage. Depending on the broker and underlying commodities, the amount of leverage would vary. Brokers who handle the account would take care of small parts of the total trade.
Commodity future contracts are mostly cash-settled where the brokerage account is used to settle the gain and profit of the trades. This means that the investors would receive cash for their share instead of the physical form of the underlying assets.
However, there are also commodity futures contracts where the underlying assets or the actual commodities need to be delivered for processing or manufacturing.
The high amount of leverage used in commodity futures trading makes the speculation so risky. The commodity’s price movement may result in large gains or losses based on the predetermined price and the original margin. The risk tolerance of commodity futures is low as they can make investors win or lose big.
Generally speaking, commodity futures trading is not for inexperienced investors due to the high leverage. The obligation of buying or selling the underlying commodities requires an accurate closing on the trading position. Brokers may use margin calls whenever the futures contract is amplifying great losses and currently losing money.
Despite betting on the price, many businesses use future contracts to hedge/control and to lock the price of the underlying commodities. Hedging with futures contracts aims to prevent unbearable losses due to extreme price fluctuation on the underlying contract.
Experienced traders would prefer hedging rather than speculating with commodity futures contracts. However, the hedging decision also depends on the commodities including manufacturing products, oils, livestock, farming commodities, and so forth. The businesses that use the commodities would have the highest interest in hedging with futures contracts.
Let’s say you are running a food & beverage factory; you can use commodity futures contracts to lock the prices of the materials and ingredients for the production at particular due months in the future. Even though these commodities are not fluctuating much like natural gas, locking the price for future production would flex your business operation and finance. Besides which , you may never know the actual price movement of these commodities in the meantime.
Even though hedging the commodity with futures contracts is preferable to speculating, there are risks you should calculate. The contract locks the hedged price of the commodities which means you can expect favorable directional price movement at the expiration date.
If you over-hedge the commodity price and fail to calculate your actual needs, you can barely avoid losing more profit over the higher market price when you sell the commodities in the future.
If the market price of the commodity at the expiry date is lower than the hedged price, businesses or investors would gain profit from the differences. However, they’d not be able to gain the additional profit over the hedged commodity if the price becomes higher at the expiry date.
In general, businesses have used commodity futures contracts to secure the pricing of the underlying asset for a particular period in advance. The contract expiration can last from weeks to years depending on the commodities and investors requirements. Whether they’re farmers, manufacturers, miners, or other business owners, they can lock their selling price for a particular amount of underlying commodities at several months or years to come.
We've collected thousands of datapoints and written a guide to help you find the best Commodity Futures 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 Futures below. You can go straight to the broker list here.
There are a number of important factors to consider when picking an online Commodity Futures 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.
We compare these features to make it easier for you to make a more informed choice.
Here are the top Commodity Futures.
Compare Commodity Futures min deposits, regulation, headquarters, benefits, funding methods and fees side by side.
All brokers below are Commodity Futures. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more Commodity Futures that accept Commodity Futures clients
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eToro
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IC Markets
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XTB
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AvaTrade
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FP Markets
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Trading212
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Plus500
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Pepperstone
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EasyMarkets
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XM
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FXPrimus
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Regulation | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID), Australian Securities and Investments Commission (ASIC) | Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), 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, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG) | Central Bank of Ireland, Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), South African Financial Sector Conduct Authority (FSCA), Financial Stability Board (FSB), Abu Dhabi Global Markets (ADGM), Financial Regulatory Services Authority (FRSA), British Virgin Islands Financial Services Commission (BVI) | Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC) | 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 | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Federal Financial Supervisory Authority (BaFin), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of the Bahamas (SCB) number SIA-F217 | Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | International Financial Services Commission (IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID) |
Min Deposit | 200 | 200 | No minimum deposit | 250 | 100 | 1 | 100 | 200 | 100 | 5 | 100 |
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Used By | 17,000,000+ | 180,000+ | 250,000+ | 200,000+ | 10,000+ | 14,000,000+ | 15,500+ | 10,000+ | 142,500+ | 70,000+ | 10,000+ |
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Platforms | Web Trader, Tablet & Mobile apps | MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | Web Trader, MT4, MT5, AvaTradeGo, AvaOptions, Mac, Mobile Apps, ZuluTrade, DupliTrade, MQL5 | MT4, MT5, IRESS, Mac, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, ZuluTrade, Web Trader, cTrader, Tablet & Mobile apps | MT4, Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | MT4, Mac, Mirror Trader, Web Trader, Tablet & Mobile apps |
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Learn More |
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Up with etoro |
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Up with icmarkets |
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Up with xtb |
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Up with avatrade |
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Up with fpmarkets |
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Up with trading212 |
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Up with plus500 |
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Up with pepperstone |
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Up with easymarkets |
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Up with xm |
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Up with fxprimus |
Risk Warning | 67% of retail investor accounts lose money when trading CFDs with this provider. | Losses can exceed deposits | 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. | 72% of retail investor accounts lose money when trading CFDs with this provider | Losses can exceed deposits | 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. | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.3% 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 | Your capital is at risk | Your capital is at risk | Losses can exceed deposits |
Demo |
eToro Demo |
IC Markets Demo |
XTB Demo |
AvaTrade Demo |
FP Markets Demo |
Trading 212 Demo |
Plus500 Demo |
Pepperstone Demo |
easyMarkets Demo |
XM Demo |
FXPrimus 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, | AF, GN, SL, BW, IR, SY, MM, IQ, TG, KH, LS, YE, CI , LR, ZW, CU, LY, TZ, CG, ML, BO, LR, NE, AO, GM, NG, AG, GH, KR, KG, GN, SN, NA | US, IN, PK, BD, NG , ID, BE | BE, BR, KP, NZ, TR, US, CA, SG | US, JP, NZ | US | MY, BE, US, CA, CN, ID, PH, TG, NG, DO, MA, ZW, PR, TZ, TN, UG, BW, AO, AE | BR, KR, IR, IQ, SY, JP, US | US | US, CA, IL, KR, IR, MM, CU, SD, SY | AF, CI, CU, IQ, IR, LY, MM, KR, SD, PR, US, AU, SY, DZ, JP, EC. |
You can compare Commodity Futures 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 Futures for 2021 article further below. You can see it now by clicking here
We have listed top Commodity Futures below.