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 have conducted extensive research and analysis on over multiple data points on Commodity Futures to present you with a comprehensive guide that can help you find the most suitable Commodity Futures. Below we shortlist what we think are the best Commodity Futures after careful consideration and evaluation. We hope this list will assist you in making an informed decision when researching Commodity Futures.
Selecting a reliable and reputable online Commodity Futures trading brokerage involves assessing their track record, regulatory status, customer support, processing times, international presence, and language capabilities. Considering these factors, you can make an informed decision and trade Commodity Futures more confidently.
Selecting the right online Commodity Futures trading brokerage requires careful consideration of several critical factors. Here are some essential points to keep in mind:
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
When choosing a broker for Commodity Futures trading, it's essential to compare the different options available to you. Our Commodity Futures brokerage comparison table below allows you to compare several important features side by side, making it easier to make an informed choice.
By comparing these essential features, you can choose a Commodity Futures broker that best suits your needs and preferences for Commodity Futures. Our Commodity Futures broker comparison table simplifies the process, allowing you to make a more informed decision.
Here are the top Commodity Futures.
Compare Commodity Futures brokers for min deposits, funding, used by, benefits, account types, platforms, and support levels. When searching for a Commodity Futures broker, it's crucial to compare several factors to choose the right one for your Commodity Futures needs. Our comparison tool allows you to compare the essential features 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.
Broker | IC Markets | Roboforex | eToro | XTB | XM | Pepperstone | AvaTrade | FP Markets | EasyMarkets | SpreadEx | FXPro |
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Regulation | Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) | RoboForex Ltd is regulated by the FSC, license 000138/437, reg. number 128.572. RoboForex Ltd, which is an (A category) member of The Financial Commission, also is a participant of its Compensation Fund | FCA (Financial Conduct Authority) eToro (UK) Ltd (FCA reference 583263), eToro (Europe) Ltd CySEC (Cyprus Securities Exchange Commission), ASIC (Australian Securities and Investments Commission) eToro AUS Capital Limited ASIC license 491139, CySec (Cyprus Securities and Exchange Commission under the license 109/10), FSAS (Financial Services Authority Seychelles) eToro (Seychelles) Ltd license SD076 | FCA (Financial Conduct Authority reference 522157), CySEC (Cyprus Securities and Exchange Commission reference 169/12), FSCA (Financial Sector Conduct Authority), XTB AFRICA (PTY) LTD licensed to operate in South Africa, KPWiG (Polish Securities and Exchange Commission), DFSA (Dubai Financial Services Authority), DIFC (Dubai International Financial Center), CNMV (Comisión Nacional del Mercado de Valores), KNF (Komisja Nadzoru Finansowego), IFSC (Belize International Financial Services Commission license number IFSC/60/413/TS/19) | Financial Services Commission (FSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), 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 | Australian Securities and Investments Commission (ASIC), ASIC (406684), Financial Services Authority (FSA), South African Financial Sector Conduct Authority (FSCA), Financial Stability Board (FSB), The Financial Services Agency (JAPAN FSA), Financial Futures Association of Japan (FFAJ), Abu Dhabi Global Markets (ADGM), Financial Regulatory Services Authority (FRSA), Polish Financial Supervision Authority (KNF), Israel Securities Association (ISA), British Virgin Islands Financial Services Commission (BVI), BVI (SIBA/L/13/1049), Central Bank of Ireland | Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), FSCA (FSP Number 50926), Capital Markets Authority (CMA), Securities Commission of the Bahamas (SCB) | Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), British Virgin Islands Financial Services Commission (BVI) | Financial Conduct Authority (FCA) | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Financial Sector Conduct Authority (FSCA), Securities Commission of the Bahamas (SCB) |
Min Deposit | 200 | 10 | 100 | No minimum deposit | 5 | 200 | 100 | 100 | 100 | 1 | 100 |
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Used By | 180,000+ | 1,000,000+ | 30,000,000+ | 1,000,000+ | 10,000,000+ | 400,000+ | 300,000+ | 10,000+ | 142,500+ | 10,000+ | 1,866,000+ |
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Platforms | MT4, MT5, Mirror Trader, Web Trader, cTrader, Windows, Mac, iOS, Android | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | MT4, MT5, TradingView, DupliTrade, myFXbook, Mac, Web Trader, cTrader, Tablet & Mobile apps | Web Trader, MT4, MT5, AvaTradeGo, AvaOptions, DupliTrade, ZuluTrade, Mobile Apps, ZuluTrade, DupliTrade, MQL5 | MT4, MT5, cTrader, IRESS, Mac, Web Trader, Tablet & Mobile apps | MT4, MT5, Web Trader, TradingView, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, MT5, cTrader, Tablet & Mobile apps |
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Risk Warning | Losses can exceed deposits | Losses can exceed deposits | 76% of retail investor accounts lose money when trading CFDs with this provider. | 76-85% 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. | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.89% 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. | 74-89 % of retail investor accounts lose money when trading CFDs | 71% of retail investor accounts lose money when trading CFDs with this provider | Losses can exceed deposits | Your capital is at risk | Losses can exceed deposits | 75.78% of retail investor accounts lose money when trading CFDs and Spread Betting with this provider |
Demo |
IC Markets Demo |
Roboforex Demo |
eToro Demo |
XTB Demo |
XM Demo |
Pepperstone Demo |
AvaTrade Demo |
FP Markets Demo |
easyMarkets Demo |
SpreadEx Demo |
FxPro Demo |
Excluded Countries | US, IR, CA, NZ, JP | AU, BE, BQ, BR, CA, CW, CZ, DE, ES, EE, EU, FM, FR, FI, GW, ID, IR, JP, LR, MP, NL, PF, PL, RU, SE, SJ, SS, SL, SI, TL, TR, DO, US, IT, AT, PT, BG, HR, CY, DK, FL, GR, IE, LV, LT, MT, RO, SK, CH | ZA, ID, IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, SA, 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, MG, MK, KZ, GD, FJ, PT, BB, BM, BS, AG, AI, AW, AX, LB, SV, PY, HN, GT, PR, NI, VG, AN, CN, BZ, DZ, MY, KH, PH, VN, EG, MN, MO, UA, JO, KR, | US, IN, PK, BD, NG , ID, BE, AU | US, CA, IL, IR | AF, AS, AQ, AM, AZ, BY, BE, BZ, BT, BA, BI, CM, CA, CF, TD, CG, CI, ER, GF, PF, GP, GU, GN, GW, GY, HT, VA, IR, IQ, JP, KZ, LB, LR, LY, ML, MQ, YT, MZ, MM, NZ, NI, KP, PS, PR, RE, KN, LC, VC, WS, SO, GS, KR, SS, SD, SR, SY, TJ, TN, TM, TC, US, VU, VG, EH, ES, YE, ZW, ET | BE, BR, KP, NZ, TR, US, CA, SG | US, JP, NZ | US, IL, BC, MB, QC, ON, AF, BY, BI, KH, KY, TD, KM, CG, CU, CD, GQ, ER, FJ, GN, GW, HT, IR, IQ, LA, LY, MZ, MM, NI, KP, PW, PA, RU, SO, SS, SD, SY, TT, TM, VU, VE, YE | US, TR | US, CA, IR |
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 2024 article further below. You can see it now by clicking here
We have listed top Commodity Futures below.
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