In order to be able to do a good online trading with raw materials in a satisfactory way, it is necessary as a first step to choose an excellent broker that allows you to manage this portion of the market in a reliable and safe way. Specifically, by relying on a prepared broker, we can benefit from a series of tools optimized for this type of market.
On the other hand, raw materials are also to be considered the most important assets for their trading volume; their effectiveness is dictated by the way they are used in Forex and commodity trading by professional brokers. In selecting a good broker for raw materials must take into account a number of criteria, including the amount and type of marketable commodities, as well as understand what are actually the trading conditions for the various instruments offered.
In this regard, we must start from the assumption that raw materials can be traded with different methods of intervention: from CFDs to the possibility of trading with Futures contracts up to the choice of binary options. Consequently, when we go to choose the broker suitable for our needs, we must also take into account this effective underlying versatility so that we can trade on contracts for difference, futures, or binary options according to the needs of the individual moment.
In general, every self-respecting broker has a group of commodity assets at their disposal, including oil, corn, flour, natural gas, silver, and gold, but those who are able to make a difference are the brokers who have an asset package – more varied and international with a much wider range of commodities on which to trade online. This variety of the portfolio can be considered an excellent evaluation criterion.
What are commodities, and why should we invest in them?
The raw materials or commodities are not only easy to negotiate but not even lose their value over time, with the possibility of being always subject to an increase for several reasons, including the increase in world population and land use. On this wavelength, they, therefore, stand as volatile financial instruments suitable for trading available for 5 different categories:
- Metals: gold, silver and platinum, palladium, copper, cobalt, titanium, nickel, etc.
- Energy sources: natural gas, oil, coal, etc.
- Agricultural: wheat, corn, rice, soy, oats, etc.
- Colonial: coffee, sugar, orange juice, cocoa, cotton, wood, etc.
- Meat: beef, horse, pork, etc.
What are the Best Brokers for Trading on Commodities?
1. eToro
eToro is a broker, active since 2010, suitable for all levels of experience, and integrates a series of interesting features, in particular, aimed at social trading. It is, in fact, possible to trade in a shared mode, benefiting from the advice and experience of high-performing investors. Through the eToro Copy Trading feature, investors can have a personal social profile on a dedicated platform so that they can communicate with other members and also copy, in a simple and automatic way, the operations carried out by the best Traders.
The eToro Trading Demo version is a free service, very useful for practicing on the financial markets: there is no need to pay sums of real money, and it allows you to invest in all available markets, without any time limit and without having any restrictions.
Excellent, therefore, especially for beginners, to gain experience with trading. But eToro is one of the best brokers even for those who have already accumulated experience. Among other things, being eToro, one of the brokers among the largest providers of CFDs (contracts for difference) in the world, allows you to trade through a very large number of Assets.
2. ForexTB
ForexTB allows, through its platform, to use over 270 financial assets for its investments in the form of contracts for difference (CFDs). The broker provides a demo trading account to allow new users to simulate stock market investments without any real risk. Ideal, therefore, especially for beginners, the ForexTB demo account is free, and no cash payment is required. Registering for the demo account is also very simple and requires only name and surname, an email address, and a mobile number.
As regards costs and commissions, the main item is made up of spreads and swap rates, to which is added the gain of ForexTB on the current spreads of the financial market. Additionally, by offering CFD instruments, ForexTB makes a profit on holding open positions for multiple days or weekends. By choosing to hold your position for multiple days, ForexTB will apply a swap rate for the trade, although leverage contracts for differences are usually products to be traded intraday.
3. Capital.com
Capital.com offers a very wide assortment of stocks and has the characteristic of having the analysis controlled by artificial intelligence, which allows you to automatically analyze your portfolio in search of any errors. As with other brokers, here too, it is possible to test a free demo account, with the possibility of trying the platform having an unlimited balance of virtual capital. Excellent for beginners and in particular for those who want to invest in commodities, it offers a useful trading manual that is a real training course in the sector.
4. IQ Option
With Iq Option, it is possible to start trading online with an initial capital of only 10 euros, and also the minimum capital on each operation is really low (1 euro): it is, therefore, an excellent solution in particular for those who work as a beginner in this sector. Furthermore, with the demo mode of Iq Option, it is not necessary to make any deposit, and therefore, it is possible to operate to practice and learn this type of financial markets in a totally free way, without constraints of any kind of limitations.
Iq Option uses CFD (contract for difference) as a financial instrument, which can be used to carry out online trading operations on numerous financial assets: Stocks, Cryptocurrencies, ETFs, Forex currencies, Commodities, and Indices.
5. Trade.com
This broker allows you to operate as a CFD broker, i.e., through contracts for difference, but also for trading in DMA, therefore ideal for those who want to buy securities directly (pure shares) without resorting to CFDs. Through Trade.com, it is possible to invest and operate on a variety of markets: on Forex, on stocks, commodities, bonds, cryptocurrencies, and indices.
It is possible to choose between different account levels starting from the basic one, designed for those who want to start from the minimum investment of only 100 euros, then arriving at the most advanced accounts: Silver, Gold, Platinum, and Exclusive. It is possible to sign up for a free demo to evaluate and test the functionality of the platform. It is important to underline that the spreads offered by Trade.com are among the lowest among those offered by various brokers.
6. IC Markets
The conditions offered by this broker in question prove to be optimal to be able to trade with commodities between energy, agricultural, and metals Spot and Futures, with a maximum leverage up to 1: 500. Keeping in mind one of its historical advantages, such as very competitive spreads as low as 0.0 pips.
7. Admiral Markets
This broker is structured in such a way that trading for commodities turns out to be an almost automatic practice in the face of practical and functional operation. On this wavelength, it can boast a complete and transparent offer, especially for trading on commodities including gold, platinum, palladium, silver, and copper among metals, oil, and natural gas among energy, coffee, cocoa, cotton, orange juice, and sugar among farmers. Of course, with a very competitive spread system and with the opportunity to trade micro-lots, it is also easier to manage the repercussions of the market, always leaving it with excellent results commensurate with the size of your deposit.
