Best Commodity Trading Guide
Commodity Trading
If a trader wants to consider something other than traditional securities, commodity trading is the best alternative either to park cash for a shorter period or invest in the long term.
In fact, commodity trading is perfect for diversifying portfolios as it moves opposite to equities and is driven typically by demand and the supply of commodities.
Commodity Trading Types
There are four basic types of commodity trading and those are metals, energy, livestock and agriculture.
The most traded metals are gold, silver, copper and platinum while natural gas, gasoline, heating oil and crude oil are in high demand in the energy sector of commodity trading.
Livestock commodities includes pork, cattle, bellies and hogs. Meat of the animals too is traded on commodity exchanges.
Traders also prefer agricultural products like wheat, rice, soybeans, sugar, cotton, coffee, cocoa and corn.
Commodity Trading and Investment
There is more than one way open to trade commodities. Commodities can be traded as futures, ETFs and options.
Futures contracts are popular. A futures contract is a deal between a buyer and seller to buy or sell an asset in the future but at a set price. There are basically two types of traders in futures. Speculators and commercial users of the commodity assets.
Traders can trade stocks of firms related to a commodity like refineries and drillers which deals in oil. Usually, the stocks of such companies are highly liquid.
ETFs are like stocks and traders take part in the price fluctuations of commodities but without making any investment in futures contracts.
Commodities Exchanges
There are many commodities exchanges all over the world.
Some are dedicated to a single segment while others provide a platform for the all the commodities to be bought and sold.
One good example of a single category is the London Metal Exchange, which only deals in metal.
Commodity trading on these exchanges provides standard agreement and traders execute orders with confidence without any visual inspection of the product.
A couple of other commodity exchanges to name here are the New York Mercantile Exchange, the Kansas City Board of Trade and the Intercontinental Exchange in Atlanta.
Commodity Trading and the Market
The basic formula under which the commodity trading is driven is lower supply drives up the demand and vice versa.
Sometimes disruptions in the supply chain results in increasing the price of the commodity.
Commodity Trading History
Traditionally, commodity trading dates back beyond the invention of stocks and bonds.
Civilizations traded several commodities and then the so-called commodity trading was an important part of any business.
Why Commodity Trading
Commodity trading has gained in popularity and to many consider it better than stocks and bonds. Commodity trading is good for traders who want to diversify portfolios.
However, among the types of commodity trading the ETF is most popular. Among the many factors to consider when dealing with commodity trading is to check the demand.
We've collected thousands of datapoints and written a guide to help you find the best Best Commodity trading 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 trading brokers below. You can go straight to the broker list here.
Reputable Commodity Trading Checklist
There are a number of important factors to consider when picking an online Commodity Trading trading brokerage.
- Check your Commodity Trading has a history of at least 2 years.
- Check your Commodity Trading has a reasonable sized customer support of at least 15.
- Does the Commodity Trading fall under regulation from a jurisdiction that can hold a broker responsible for its misgivings; or at best play an arbitration role in case of bigger disputes.
- Check your Commodity Trading has the ability to get deposits and withdrawals processed within 2 to 3 days. This is important when withdrawing funds.
- Does your Commodity Trading have an international presence in multiple countries. This includes local seminar presentations and training.
- Make sure your Commodity Trading can hire people from various locations in the world who can better communicate in your local language.
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 Trading Brokers.
We compare these features to make it easier for you to make a more informed choice.
- Minimum deposit to open an account.
- Available funding methods for the below Commodity Trading Brokers.
- What you are able to trade with each brokerage.
- Trading Platforms offered by these brokers.
- Spread type (if applicable) for each brokerage.
- Customer support levels offered.
- We show if each brokerage offers Micro, Standard, VIP and Islamic accounts.
Top 15 Commodity Trading Brokers of 2020 compared
Here are the top Commodity Trading Brokers.
Compare Commodity Trading Brokers min deposits, regulation, headquarters, benefits, funding methods and fees side by side.
All brokers below are Commodity trading brokers. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more Commodity trading brokers that accept Commodity trading clients
| Broker |
eToro
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Trading212
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XTB
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Plus500
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AvaTrade
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XM
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City Index
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Forex.com
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Admiral
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SpreadEx
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| Rating | ||||||||||
| Regulation | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), Financial Supervision Commission (FSC) | 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 | 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 | 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) | International Financial Services Commission(IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investment Commission (ASIC) | Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC), Monetary Authority of Singapore (MAS) | Financial Conduct Authority (FCA), Cayman Islands Monetary Authority (CIMA), Investment Industry Regulatory Organization of Canada (IIROC), National Futures Association (NFA) | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA) |
| Min Deposit | 200 | 1 | No minimum deposit | 100 | 250 | 5 | 25 | 500 | 200 | 1 |
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| Used By | 12,000,000+ | 14,000,000+ | 250,000+ | 15,500+ | 200,000+ | 70,000+ | 14,000+ | 40,000+ | 10,000+ | 10,000+ |
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| Platforms | Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, Mac, Mirror Trader, ZuluTrade, Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | MT4, Web Trader, Tablet & Mobile apps | MT4, MT5, WebTrader, Advantage Trader Pro, TradingView, Tablet and mobile apps | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps |
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| Learn More |
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Up with etoro |
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Up with trading212 |
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Up with xtb |
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Up with plus500 |
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Up with avatrade |
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Up with xm |
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Up with cityindex |
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Up with forexcom |
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Up with admiralmarkets |
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Up with spreadex |
| Risk Warning | 75% 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. | 80% 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. | 80.5% 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. | 79% of retail investor accounts lose money when trading CFDs with this provider | Your capital is at risk | 74% of retail investor accounts lose money when trading CFDs with this provider | 72% of retail investor accounts lose money when trading CFDs with this provider | Losses can exceed deposits | Losses can exceed deposits |
| Demo |
eToro Demo |
Trading 212 Demo |
XTB Demo |
Plus500 Demo |
AvaTrade Demo |
XM Demo |
City Index Demo |
Forex.com Demo |
Admiral Markets Demo |
SpreadEx Demo |
| Excluded Countries | US, IR, KP, BE, CA, JP, SY, TR, IL, HK | US | US, IN, PK, BD, NG , ID, BE | BE, US, CA, CN, ID, PH, TG, NG, DO, MA, ZW, PR, TZ, TN, UG, BW, AO | BE, BR, KP, NZ, TR, US, CA, SG | US, CA, IL, KR, IR, MM, CU, SD, SY | 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 | BE | US, CA, JP, SG, MY, JM, IR, TR | US, TR |
All Commodity trading brokers in more detail
You can compare Commodity Trading 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 Trading Brokers for 2020 article further below. You can see it now by clicking here
We have listed top Commodity trading brokers below.
Commodity Trading Table of Contents
- Commodity Trading Explained
- 6 Factors to Consider when Choosing Commodity Trading
- Are Your Commodity Trading Trusted And Established?
- Are The Commodity Trading World Leading?
- What are the Commodity Trading Commissions and Fees?
- What are the Commodity Trading Funding and Withdrawl Methods?
- Find Commodity Trading with Round-the-clock support?
- Make sure the Commodity Trading Offer Comprehensive Trader resources?
- Why do Commodity Trading need to be regulated?
- Commodity Trading FAQ
- What are the best Commodity trading brokers?
- What is the best Commodity trading broker?
- Related Commodity Trading Reviews
- Related Commodity Trading Alternatives
- Related Commodity Trading Comparisons
Commodity Trading Explained
Trading the financial markets with Commodity Trading when conditions are volatile can be difficult, even for experienced traders.
Apart from the educational and other resources made available online, another important factor for traders to consider when looking for Commodity Trading is the platform that a Commodity Trading offer.
Choose Commodity Trading that's at the forefront of innovation and generally considered an industry-leader.
To gain access to the financial markets, you'll need Commodity Trading that you can rely on.
6 Factors to Consider when Choosing Commodity Trading
Follow these five rules for selecting a broker that's right for you:
Are Your Commodity Trading Trusted And Established?
Look for a broker that has a good track record/longevity in the market so that your strategy is your primary concern for navigating the markets. The top rated Commodity Trading broker is eToro. Established in 2006, and in operation for 12 years eToro have a head office in Cyprus, UK.
eToro is regulated. This means eToro are supervised by and is checked for conduct by Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC) regulatory bodies.
Another top rated broker is Trading 212.
Trading 212 was established 2006, and in operation for 14 years Trading 212 have a head office in UK.
Trading 212 is regulated. This means Trading 212 are supervised by and is checked for conduct by Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC) regulatory bodies.
| Broker |
eToro
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Trading212
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XTB
|
Plus500
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AvaTrade
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XM
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| Year Established | 2006 | 2006 | 2002 | 2008 | 2006 | 2009 |
| Head Office | Cyprus, UK | UK | Poland | Israel | The British Virgin Islands | Cyprus |
| Regulation | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), Financial Supervision Commission (FSC) | 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 | 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 | 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) | International Financial Services Commission(IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investment Commission (ASIC) |
| Used By | 12,000,000+ | 14,000,000+ | 250,000+ | 15,500+ | 200,000+ | 70,000+ |
| Negative balance protection | No | Yes | Yes | Yes | No | Yes |
| Guaranteed Stop Loss | No | Yes | No | No | No | No |
| Learn More | Visit eToro | Visit Trading 212 | Visit XTB | Visit Plus500 | Visit AvaTrade | Visit XM |
| Risk Warning | 75% 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. | 80% 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. | 80.5% 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. | 79% of retail investor accounts lose money when trading CFDs with this provider | Your capital is at risk |
Are The Commodity Trading World Leading?
Choose a broker that's at the forefront of innovation and generally considered an industry-leader. eToro Segregates clients funds and offers over 100 instruments. eToro offers both an online trading platform as well as a mobile platform giving clients easy access to markets.
In addition, eToro supports many popular third-party trading platforms enabling access to a variety of markets worldwide that can be traded with the assistance of expert advisors or a customizable automatic trading strategy. eToro is a world-leader when it comes to innovation and they are always looking at ways to improve and to maintain their competitive advantage.
Another good choice when looking for Commodity Trading is Trading 212 . Trading 212 Segregates clients funds and offers over 3000 instruments.
| Broker |
eToro
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Trading212
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XTB
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Plus500
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AvaTrade
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XM
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| Instruments Available | 100 | 3000 | 1,500 | 2,000 | 250 | 100 |
| Platforms | Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, Mac, Mirror Trader, ZuluTrade, Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps |
| Excluded Countries | US, IR, KP, BE, CA, JP, SY, TR, IL, HK | US | US, AU, CA, JP, KR, KP, SG, MU, IL, TR, IN, PK, BA, ET, UG, CU, SY, BD, NG, ID, BE, LY, MO, KE, YE, VU, GY, CD, CG, AF, LA, MZ, IQ, IR | BE, US, CA ,CN, SG, ID, PH | BE, BR, KP, NZ, TR, US, CA, SG | US, CA, IL, KR, IR, MM, CU, SD, SY |
| Forex pairs offered | 50 | 177 | 50 | 100 | 80 | 80 |
| Forex pairs offered | 50 | 177 | 50 | 100 | 80 | 80 |
| Major forex pairs | Yes | Yes | Yes | Yes | Yes | Yes |
| Minor forex pairs | Yes | Yes | Yes | Yes | Yes | Yes |
| Exotic forex pairs | Yes | Yes | Yes | Yes | Yes | Yes |
| Cryptocurrencies | Yes | Yes | Yes | Yes | Yes | No |
| Commodities Offered | 0 | 14 | 21 | 17 | 16 | 15 |
| Metals | Yes | Yes | Yes | Yes | Yes | Yes |
| Energies | Yes | Yes | Yes | Yes | Yes | Yes |
| Agricultural | Yes | Yes | Yes | Yes | Yes | No |
| Stocks Offered | 957 | 1731 | 1696 | 1816 | 99 | 160 |
| UK Shares | Yes | Yes | Yes | Yes | Yes | No |
| US Shares | Yes | Yes | Yes | Yes | Yes | No |
| German Shares | Yes | Yes | Yes | Yes | Yes | Yes |
| Japanese Shares | Yes | Yes | Yes | Yes | Yes | Yes |
What are the Commodity Trading Commissions and Fees?
Ensure that your broker is transparent with fees and those dues are competitive.
The best rated Commodity Trading broker eToro offers competitive offers for Stocks, Commodities, Forex, CFDs, Social Trading, Indices, Cryptocurrency. eToro minimum deposit is 200.
Another top rated Commodity Trading broker Trading 212 offers Stocks, Forex, Commodities, Indices. Trading 212 minimum deposit is 1.
| Broker |
eToro
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Trading212
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XTB
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Plus500
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AvaTrade
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XM
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| Min Deposit | 200 | 1 | 0 | 100 | 250 | 5 |
| Withdrawl Fees | Yes | No | varies | No | No | No |
| Inactivity Fees | Yes | No | No | Yes | No | Yes |
| Deposit Fees | No | No | No | No | No | No |
| CFD Commission Fees | No | No | Yes | No | No | No |
What are the Commodity Trading Funding and Withdrawal Methods?
When dealing with Commodity Trading having convenient funding and withdrawl facilities makes the trading process and your trading experience smoother.
| Broker |
eToro
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Trading212
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XTB
|
Plus500
|
AvaTrade
|
XM
|
| Bank transfer | Yes | Yes | Yes | Yes | Yes | Yes |
| Credit Cards | Yes | Yes | Yes | Yes | Yes | Yes |
| Paypal | Yes | Yes | Yes | Yes | Yes | No |
| Skrill | Yes | Yes | Yes | Yes | No | No |
| Payoneer | Yes | No | Yes | No | Yes | No |
| Neteller | Yes | No | Yes | No | Yes | Yes |
Find Commodity Trading with Round-the-clock support?
Customer service is very important when dealing with Commodity Trading.
When investing and dealing with brokers customer support can be a range of customer services to assist customers in making cost effective and correct use the brokers services. It can include assistance in installation, training, troubleshooting, upgrading, and cancelation of a product or service.
Commodity Trading customer support can include Phone answering services, Live chat support and Email customer service support.
eToro support a wide range of languages including English, German, Spanish, French, and Italian
Trading 212 support a wide range of languages including English, Deutsch, Nederlands, Espanol, Francais, Italiano, Polski, Srpski, Norsk, Svenska, Cesky, РУССКИЙ, Romana, Turkce, العربية, 中文
eToro and Trading 212 offer support where clients are able to call or contact the helpdesk via email or a chat service.
| Broker |
eToro
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Trading212
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XTB
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Plus500
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AvaTrade
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XM
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| Support |
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| Languages | English, German, Spanish, French, and Italian | English, Deutsch, Nederlands, Espanol, Francais, Italiano, Polski, Srpski, Norsk, Svenska, Cesky, РУССКИЙ, Romana, Turkce, العربية, 中文 | English, Spanish, Czech, Chinese, German, French, Italian, Polish, Portuguese, Romanian, Slovenian, and Turkish | English, French, Italian, Spanish, Portuguese, German, Dutch, Polish, Arabic, Hebrew, Danish, Norwegian, Czech, Slovak, Bulgarian and Chinese | English, Italian, German, French, Greek, and Hebrew | Arabic, Chinese, English, French, German, Greek, Hindi, Hungarian, Indonesian, Italian, Japanese, Korean, Malay, Polish, Portuguese, Russian, Spanish, Swedish, Thai, and Turkish |
| Learn More | Visit eToro | Visit Trading 212 | Visit XTB | Visit Plus500 | Visit AvaTrade | Visit XM |
| Risk Warning | 75% 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. | 80% 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. | 80.5% 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. | 79% of retail investor accounts lose money when trading CFDs with this provider | Your capital is at risk |
Make sure the Commodity Trading Offer Comprehensive Trader resources?
Make sure your broker offers free resources like analysis, education and risk-management tools. With a wealth of knowledge from top analysts, eToro and Trading 212 work together to bring the latest news and insights to traders.
For most traders, the first – and sometimes only – concern is pursuing their 'edge'. While that is surely important, along with sound money management habits, to navigating the markets; that step alone does not represent the full preparation. As each trader dives into this important venture, it is important not to forget the most rudimentary yet crucial steps such as selecting the best broker to access the markets.
Why do Commodity Trading need to be regulated?
A regulated Commodity Trading broker lowers your risk.
Broker regulation protects consumers. Too little broker regulation can lead to poor services and possibly financial harm.
Commodity Trading brokers are regulated to stop fraud. The agent's working capital and clients funded account have to be separated. This amounts to fraud if client money is used to conduct the business. Regulation is required to make sure this does not happen.
Commodity Trading List
Funding methods
Bank transfer Credit Card PaypalPlatforms
Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
MT4, Mirror Trader, Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
MT4, Mac, Mirror Trader, ZuluTrade, Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
MT4, MT5, Mac, Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
MT4, Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
MT4, MT5, WebTrader, Advantage Trader Pro, TradingView, Tablet and mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
MT4, MT5, Mac, Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account