The global economy is driven by the imports and exports of raw, natural resources and this asset class has become increasingly popular in financial markets over the years.
There are 4 main types of commodities:
Hard Commodities: (mined or extracted from the ground)
- Metals: (also called precious metals) includes silver, gold, platinum, palladium, copper, tin, zinc, iron ore and aluminium
- Energies: includes oil, coal, ethanol, uranium, natural gas, solar power and wind power
Soft Commodities: (grown and harvested)
- Livestock: primarily cattle
- Agricultural goods: cocoa, sugar, wheat, rubber, cotton, palm oil
There are 2 ways you can trade commodities:
- Commodity stocks: where you will buy stocks or shares in companies that distribute natural resources, farms, mining companies, refineries etc.
- Commodity ETFs: funds that will track instruments that will sometimes be used to buy underlying instruments
Many traders use commodities to diversify their portfolios and with the prices of these goods fluctuating constantly, there is always an opportunity to make a profit.
AvaTrade facilitates the trading of Bonds, Forex, Crypto Stocks, Commodities, ETFs and Indices.
The minimum deposit at AvaTrade is 100 USD and accounts can be funded using EUR, CHF, GBP, AUD or USD.
This broker has more than 300,000 clients and is regulated by FSA, FFAJ, ADMG, FRSA ASIC, FSCA, BVI and MiFID.
Pros and Cons of AvaTrade:
|Suitable for beginners||No US clients|
|5+ regulations||Inactivty is penalised|
|Multiple account types|
Blackbull Markets offers Commodities, Indices, Forex, Metals and Energies, and can be used with the MetaTrader 4 and 5 platforms.
This broker requires 200 USD as a minimum deposit and supports several base currencies, including GBP, NZD, ZAR, AUD, EUR, USD, SGD, JPY and CAD.
Blackbull Markets offers demo accounts and swap-free accounts, and clients benefit from a referral program and 3 types of accounts with competitive trading conditions.
Pros and Cons of Blackbull Markets:
|Commission-free accounts||Not available to US|
|Tight spreads||Fixed spreads not offered|
|5+ base currencies||Minimum deposit is high|
HotForex provides its clients with 5 account types, as well as the option to use demo accounts and Islamic accounts.
With this broker, you can trade Energies, Stocks, ETFs, Indices, Shares, Commodities, Forex, Metals and Bonds, and use the MT4 and MT5 trading platforms.
HotForex is regulated by FCA, FSCA, DFSA and FSA, and has been rated one of the top 100 companies in world finance.
Pros and Cons of HotForex:
|Low minimum deposit||4 base currencies|
|Several regulations||Inactivity fees|
|VPS services||High trading fees|
If you are interested in trading CFDs, we highly recommend opening an account with FP Markets.
This broker was founded over 15 years ago and is regulated by ASIC and CySEC.
With FP Markets, tight spreads are guaranteed and you can use the MetaTrader platforms or the [rp[rietary FP Markets app to trade Forex, Shares, Commodities, Metals and Indices.
Pros and Cons of FP Markets:
|10,000+ CFDs||Fixed spreads not offered|
|Tier-1 regulations||No trading bonuses|
|More than 10 base currencies|
With FBS, you can start trading with as little as 1 USD (using EUR or USD to fund your account) and you will be able to trade Stocks, Energies, Indices, Forex, Metals and Crypto.
This broker offers a total of 5 unique trading accounts and is compatible with MetaTrader 4 and 5, FBS Trader and the CopyTrade app.
FBS is trusted by millions of traders worldwide and has received many rewards since 2009.
Pros and Cons of FBS:
|Suitable for copytrading||2 funding currencies|
|Low minimum deposit|
IC Markets is an ASIC and CySEC-regulated ECN broker that offers its clients 3 types of accounts, as well as demo accounts and swap-free accounts.
A minimum deposit of 200 USD is required and your account can be funded using NZD, HKD, CHF, JPY, EUR, GBP, USD, SGD, CAD or AUD.
You can trade Forex, Indices, Crypto, Commodities, Bonds, Stocks, Futures with IC Markets and we recommend this broker if you are considering trading for the very first time.
Pros and Cons of IC Markets:
|1,700+ instruments||No US clients|
|5+ base currencies||No trading bonuses|
OANDA requires no minimum deposit from its clients and offers 2 unique proprietary platforms, as well as MetaTrader 4 compatibility.
OANDA is regulated by NFA, MAS, CFTC, IIROC, ASIC and FCA, and clients of the Muslim faith can use swap-free accounts.
OANDA offers demo accounts and a wide range of trading tools for advanced charting, technical analysis, algorithmic trading and more.
Pros and Cons of OANDA:
|5+ regulations||No crypto|
|Active trader account||Live chat is not available|
|Many trading tools|
Vantage FX is an ASIC-regulated broker that facilitates the trading of CFDs Soft Commodities, Indices, Forex, Metals and Energies.
This broker requires a minimum deposit of 200 USD and supports several base currencies, including SGD, JPY, CAD, EUR, HKD, NZD, GBP, AUD and USD.
Vantage FX is compatible with MetaTrader 4 and 5, and you can also trade on the Vantage app and Protrader.
Pros and Cons of Vantage FX:
|More than 5 currencies for funding||High minimum deposit|
|4 trading platforms|
Swissquote is a great option for professional and institutional traders and is regulated by MAS, FCA, SFC, DFSA, MFSA and FINMA.
With this broker, you can trade Crypto Commodities, Bonds, Forex, Indices and Stocks, and you can use MT4 and 5, and the Advanced Trader app.
Swissquote provides 4 unique trading accounts, as well as a crypto wallet, and clients have access to many advanced trading tools and over 300 trading instruments.
Pros and Cons of Swissquote:
|10+ base currencies||Minimum deposit is very high|
|Highly regulated broker||Inactivity fee|
|Many advanced trading tools||Not recommended for beginners|
City Index offers one flexible account that can be used with MetaTrader 4 and the City Index app to trade Indices, Bonds, Shares, Forex, Commodities, Options and Metals.
With this broker, you can fund your account using HUF, PLN, JPY, CHF, GBP, AUD, USD or EUR, and the minimum deposit is reasonably low.
City Index offers access to more than 12,000 markets and provides a wide range of advanced trading tools and trading courses for beginners.
Pros and Cons of City Index:
|Low minimum deposit||Inactivity fees|
|ASIC-regulated||High fees on stocks|
|5+ base currencies|
FXTM is a CySEC and FCA-regulated forex broker that offers a well-developed proprietary platform, as well as compatibility with MetaTrader 4 and 5.
This broker requires a minimum deposit of only 10 USD and accepts GBP, NGN, USD and EUR as funding currencies for accounts.
This broker is perfect for copy traders, either as strategy providers or followers, and more than 5,000 strategies are currently available.
Pros and Cons of FXTM:
|Low minimum deposit||Not available in US|
|High maximum leverage||Inactivity fees|
CMC Markets facilitates the trading of Commodities, Crypto, Shares, ETFs Forex, Treasuries and Indices, and accounts can be funded using NZD, SGD NOK, SEK, EUR, AUS, PLN, USD, GBP or CAD.
As a CMC Markets client, you will be able to choose between 3 accounts and we recommend this broker if you have never traded before.
Pros and Cons of CMC Markets:
|300+ currency pairs||Not many regulations|
|Low spreads guaranteed||No trading bonuses|
|FCA-regulated||Inactivity is penalised|
Tickmill is regulated by CYSEC, FCA, ESMA, FSCS, FSA and MiFID, and has won many awards over the years.
This broker is suitable for beginners and a wide range of tools for analysis, charting and research are provided.
This broker offers negative balance protection on accounts and clients have access to Autochartist and accurate news updates.
Pros and Cons of Tickmill:
|Beginner-friendly||No US clients|
|MetaTrader support||No fixed spreads|
|Many regulations||No crypto trading|
|Variety of trading tools||3 base currencies|
As a Forex.com client, you will benefit from cash rebates and free deposits and withdrawals.
This broker is regulated by several entities, including IIROC, FCA, ASIC and CFTC, and requires a minimum deposit of 50 USD to activate a live trading account.
Forex.com not only offers a wide range of advanced trading tools for performance analytics, charting and more, but is also a great option for beginners who are seeking educational resources.
Pros and Cons of Forex.com:
|Suitable for high-volume traders||No swap-free accounts|
|4,000+ shares||Inactivity fees|
You can start trading with XM by depositing only 5 USD to activate your live trading account. This broker accepts CHF, EUR, RUB, GBP, AUD, JPY, HUF, USD and PLN as funding currencies and a maximum leverage of 1:888 is available.
XM offers trading bonuses and a signup bonus and more than 1,000 instruments can be traded using this broker.
Pros and Cons of XM:
|5mil+ clients||No fixed spreads|
|Great product offering||No US clients|
|Negative Balance Protection||Inactivity fees|
Pepperstone is regulated by several entities, including CySEC, BaFIN, FCA and ASIC.
This broker requires a minimum initial deposit of 200 USD and accounts can be funded using AUD, HKD, EUR, NZD, USD, CHF, SGD, GBP or JPY.
As a Pepperstone client, you will be able to trade Forex, Commodities Crypto, Indices, ETFs and Shares on the MetaTrader platforms and cTrader.
Pros and Cons of Pepperstone:
|Multiple regulations||Minimum deposit is high|
|MetaTrader and cTrader support|
|No inactivity fees|
Exness is regulated by FCA, FSCA, SFSA and CySEC, and facilitates the trading of Forex, Energies, Commodities, Stocks, Cryptocurrencies, Shares and Metals.
Exness offers a trading academy for beginners, but it is on a different website, and demo accounts are provided.
This broker is compatible with MetaTrader 4 and 5, and hedging and scalping are allowed.
Pros and Cons of Exness:
|Minimum deposit is low||No promotional offers|
|5+ base currencies|
ETX Capital is an FCA-regulated broker that offers more than 5,000 CFDs and 24/7 customer support on live chat.
This broker offers one account that can be used to trade Shares, Forex, Commodities, Crypto Indices on Traderpro and MetaTrader 4.
ERX Capital is based in London and has been around since the 1960s.
Pros and Cons of ETX Capital:
|Free withdrawals||3 funding currencies|
|5,000+ Stock CFDs|
|Variety of trading tools|
XTB offers its own intuitive trading platform called xStation 5 and facilitates the trading of ETFs, CFDs, Stocks, Indices, Forex, Crypto and Commodities.
This broker gives clients the option to use demo accounts and swap-free accounts, and accounts can be funded using PLN, HUF, GBP, USD or EUR.
We recommend XTB for traders with all levels of experience.
Pros and Cons of XTB:
|Large client base||Inactivity fee|
|2,000+ instruments||No US clients|
|No minimum deposit|
Alpari was founded many years ago and this broker is trusted by millions of clients.
We recommend Alpari to anyone who is interested in copy trading, and it is also a suitable option for clients of the Muslim faith.
Alpari clients can benefit from a referral program and this is also a great option for clients who are new to trading.
Pros and Cons of Alpari:
|Trading bonuses||4 base currencies|
HYCM is a beginner-friendly broker that is regulated by DIFC, CIMA, CySEC and FCA.
With HYCM, you can trade Commodities, Stocks, Indices, ETFs, Cryptocurrencies and Forex on the MetaTrader platforms and a variety of trading tools are provided.
HYCM also has a great VIP program, as well as account managers, analytics tools and more.
Pros and Cons of HYCM:
|300+ instruments||Not available in US|
|Many classes of assets||Inactivity fees|
|Negative Balance Protection|
OctaFX is a great option for beginners and provides plenty of guides, videos and trading courses.
The minimum deposit requirement at OctaFX is 100 USD and accounts can be funded using EUR or USD.
This broker is regulated by FSA and SVGFSA, and is available in more than 100 countries.
Pros and Cons of OctaFx:
|MetaTrader support||High minimum deposit|
|Low spreads||Only 2 currencies can be used to fund accounts|
This broker offers 2 types of accounts for trading and you will have access to many markets in Indices, Forex, Metals, Commodities and Shares.
At least 200 USD is required to begin trading with GO Markets and you can use NZD, CHF, EUR, AUD, USD, HKD, CAD, SGD or GBP to fund your account.
Pros and Cons of GO Markets:
|5+ base currencies supported||No swap-free account|
|MetaTrader support||Inactivity fees|
|Free VPS||High minimum deposit|
IG is regulated by several entities, including JFSA, ASIC, FCA, CFTC and FINMA.
This broker offers Crypto, Shares, Commodities, Forex and Indices, as well as a trading academy and a demo account for beginners.
IG is a great option for professional and institutional traders and currently has more than 300,000 clients.
Pros and Cons of IG:
|5+ funding currencies||Minimum deposit is high|
|Many regulations||Maximum leverage is low|
|Compatible with MetaTrader||No swap-free accounts|
Plus500 accepts many currencies for account funding, with a total of 14 currencies that can be used, and a minimum deposit of 100 USD is required,
This broker is regulated by several entities, including CySEC, FCA and ASIC, and offers an innovative proprietary trading platform.
Plus500 is suitable for beginners and offers a variety of risk management tools, trading alerts, charts, analysis tools and more.
Pros and Cons of Plus500
|10+ base currencies||No MetaTrader support|
|Negative Balance Protection||Inactivity fees|
|Tier-1 regulations||No US clients|
With FxPro, you can trade Forex, Metals, Crypto, Energies, Shares and Indices, and accounts can be funded using AUD, CHF, PLN, ZAR, USD, JPY, EUR or GBP.
FxPro is regulated by CySEC, FCA and FSCA and is based in the UK.
FxPro offers one multi-purpose account that can also be used as a demo account or a swap-free account.
Pros and Cons of FxPro:
|Many base currencies for account funding||No trading bonuses|
|Regulated by CySEC||Inactivity fees|
Saxo Bank clients can get more out of their trades with the loyalty program and this broker is suitable for more experienced traders.
Saxo Bank offers 3 account types with different tiers and has a client base of nearly 1 million traders.
Saxo Bank is regulated by FCA, MAS, JFSA, FSA, FSC and ASIC and offers 2 proprietary trading platforms.
Pros and Cons of Saxo Bank:
|40,000+ instruments||High minimum deposit|
|Flexible accounts||Educational content is lacking|
|15+ base currencies||Penalty fee for inactivity|
|Many regulations||No MetaTrader support|
FXCM is compatible with more than 3 platforms, including some of the most popular mainstream trading platforms, such as NinjaTrader, Trading Station, MetaTrader, ZuluTrade and more.
FXCM is regulated by 3 entities, including ASIC, and clients can benefit from cash rebates and a referral program.
This broker is also an excellent option for beginners and offers many trading guides, eBooks, videos and tutorials.
Pros and Cons of FXCM:
|Low minimum deposit||4 base currencies|
easyMarkets is regulated by 3 top-tier agencies and facilitates the trading of Shares, Metals, Indices, Commodities, Forex and Crypto.
This broker accepts more currencies for funding than most other brokers do and is compatible with MetaTrader 4, TradingView and the proprietary easyMarkets trading app.
Pros and Cons of easyMarkets:
|19 funding currencies||No US clients|
|Plenty of educational resources|
|Low minimum deposit|
eToro has 17 million clients and is regulated by ASIC, CySEC and FCA.
This broker requires an initial deposit of 50 USD and accepts RUB, JPY, CAD, AUD, EUR, GBP, CNY and USD as funding currencies for accounts.
We recommend eToro to beginners and there is an entire trading academy available with all the educational resources you could possibly need.
Pros and Cons of eToro:
|Beginner-friendly||No MetaTrader support|
|Low minimum deposit||High trading fees|
|Massive client base|
Trading commodities is a great way to get market exposure and can really help you develop a more diversified investment portfolio, so we recommend opening an account with one of these 30 Best Commodities Forex Brokers.
There are many benefits and opportunities to trading commodities and we hope that one of the brokers we have listed in this review will help you achieve your trading goals.