Commodity Broker Reviews

  1. What is Commodity Trading Broker?
  2. Best Commodity Brokers
  3. Who is Licensed Commodity Broker?
  4. Commodity Trading Brokers List

What is Commodity Trading Broker?

Commodity Trading Brokers offer to trade various Commodities included in their portfolio, where Commodity means an economic good or service while most of them are either raw materials, basic resources, or agricultural products.

At all times commodities were items of value produced in large volumes by various manufacturers and further traded in exchange. Modern Online trading of commodities can be very efficient since the division into pools matches the demands, thus markets respond quickly and trader gains passive exposure. Read about Commodity Market on Wikipedia.

💰 FeesSpread basis for CFDs or Commission basis for Futures and Options
📈 LeverageYes
📉 PositionsSell and Buy
💰Contract sizeMicro Lot, Standard Lot (Depending on the broker)

What is Commodity Trading Platform?

Each Trading Instrument’s availability depends on the broker’s offering range. There is no need to search for a particular platform for Commodity trading, you only need to check if commodity trading is listed in the broker’s instrument range and start trading through its platforms. Here are some of our points and notes on commodity trading as well as the pros and cons:

  • The commodity market is split into the categories of Soft Commodities and Hard Commodities like the most popular Gold Trading and Silver, Metals, Oil, Coffee, Cacao, Orange Juice, Sugar, etc, while the derivatives trading using spot prices, forwards, futures and options.
  • Originally commodity derivatives were traded by the over-the-counter OTC Forex or formal exchanges, yet currently increasing figures are traded via clearinghouses and ETFs that are based on non-owning trading.
  • For now most popular is simplified speculation on the Commodity CFDs where the trader does not own the instrument but speculates only on its price movements, most Forex brokers and CFD brokers offer Commodity CFD trading.
  • Brokers for the Safe trade of Real Commodities should hold a necessary registration or be an authorized company and follow necessary operational guidelines. Otherwise, if a company is not eligible and not regulated, it may just fake its access to commodity trading.
Commodity Trading AdvantagesCommodity Trading Disadvantages
Allowing to speculate on price movementHigh Volatility
Now Coommodities tarding popular on CFD basis so speculation on price movement onlyNo suitable for all Traders or Investment
Ability to go long and shortNot diversification friendly
Leveraged Trading
Flexible Lot size including Micro, Nano lots
Protection against Inflation

Top 5 Best Commodity Brokers

Here is our selection of Best Commodity Trading Forex Brokers selected best by category who provide commodity market live trading and are recommended by us, yet mainly offering Commodity CFD trading, so speculation on the price movement only. Also, the brokers are highly regulated and considered a safe trade:

  • HFM – Best Overall Commodity Broker 2022
  • BlackBull Markets – Best MT4 Commodity trading Broker 2022
  • FP Markets– Best Low Spread Commodities Broker 2022
  • Pepperstone – Best Platforms Commodity Broker 2022
  • BDSwiss – Best Commodity CFDs Broker 2022

Who is a Licensed Commodity Broker?

Commodity Brokers are divided into types that are built as levels, the first type is the Floor Broker, or an individual that trades on behalf of the client, Futures Commission Merchant – a company that accepts orders for contracts and holds clients’ funds’ to margin, which are for Real Commodityy Trading. For Forex Commodity Trading traders mainly can sign with CFD Broker and speculate on price movement only.

How to start Commodity Trading?

Firstly you need to select a reliable broker and decide if you would like to trade real commodities, which requires specifically licensed brokers and a more complicated process. Or just speculate on the price movement of commodities by choosing CFD Broker.

Do commodities traders make money?

Commodity traders often speculate to make a profit from minor market movements in commodity prices. By investing with futures contracts, these speculators take a long position when they think the price is increasing and short if expecting it to drop all while aiming for maximum profits!

Commodity Trading Brokers List

This is the complete list of regulated brokers who offer Commodity Trading mostly based on CFD bases and are regulated platforms. The brokers are reviewed and verified by our experts:

Broker Detail
HFM
Min. Deposit: 5 US$
Max. Leverage: 1:30 | 1:1000
Trading Platforms: MT4, MT5
Regulation: CySEC, FCA, DFSA, FSCA, FSA, CMA
1
HFM Review
FPM logo FP Markets
Min. Deposit: 100 US$
Max. Leverage: 1:30
Trading Platforms: IRESS, MT4, MT5
Regulation: ASIC, CySEC, St. Vincent and the Grenadines
2
FP Markets Review
Pepperstone Review Pepperstone
Min. Deposit: 200 US$
Max. Leverage: 1:30 to 1:400
Trading Platforms: MT4, MT5, cTrader, TradingView
Regulation: ASIC, FCA, DFSA, SCB, CMA, CySEC, BaFIN
3
Pepperstone Review
BlackBull Markets logo BlackBull Markets
Min. Deposit: 0 US$
Max. Leverage: 1:500
Trading Platforms: MT4, MT5
Regulation: FMA, FSA
4
BlackBull Markets Review
BDSwiss Review BDSwiss
Min. Deposit: 100 US$
Max. Leverage: 1:500
Trading Platforms: MT4, MT5, BDSwiss Webtrader and App
Regulation: FSC, FSA
5
BDSwiss Review
Axiory
Min. Deposit: 10 US$
Max. Leverage: 1:777
Trading Platforms: MT4, MT5, cTrader
Regulation: FSC
Axiory Review
FBS
Min. Deposit: 1 USD
Max. Leverage: 1:3000
Trading Platforms: MT4, MT5, FBS trader
Regulation: CySEC, FSC, FSCA, ASIC
FBS Review
Eightcap
Min. Deposit: 100 US$
Max. Leverage: 1:500
Trading Platforms: MT4, MT5, TradingView
Regulation: ASIC, SCB
Eightcap Review
Orbex Review Orbex
Min. Deposit: US$100
Max. Leverage: 1:500
Trading Platforms: MT4
Regulation: MFSC
Orbex Review
FXCC Review FXCC
Min. Deposit: No minimum deposit
Max. Leverage: 1:30 | 1:500
Trading Platforms: MT4
Regulation: CySEC, SVG FSA
FXCC Review