Commodity Trading Broker is a Broker offering to trade various Commodities in it portfolio, where Commodity is 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.
Commodity market split into the categories of Soft Commodities and Hard Commodities like 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.
Commodity Broker is usually a company that behaves as a mid-party between the client and the seller, just as the client will be charged a commission for the executed commodity contract order. the Broker that allows you to trade safely various commodities should hold a necessary registration or to be an authorized company and follow necessary operational guidelines. Otherwise, in case the company is not eligible and not regulated, it may just fake its access on commodity trading.
Originally commodity derivatives were traded by the over-the-counter OTC Forex or formal exchanges, yet currently increasing figures traded via clearinghouses, ETFs that are based on non-owning trading. For now most popular is simplified speculation on the Commodity CFDs where trader does not own instrument but speculate only on its price movements, most Forex brokers and CFD brokers offer Commodity CFD trading.
Most often, the trader who trades commodity contracts chose either hedging strategy or speculating on the price.
Spread basis for CFDs or Commission basis for Futures and Options
Sell and Buy
Micro Lot, Standard Lot (Depending on the broker)
Best Commodity Brokers
Here is our selection of Best Commodity Trading Forex Brokers selected best by category.
InteractiveBrokers – Best Commodity Futures Broker 2022
FP Markets– Best Forex Commodities Broker 2022
FBS– Lowest Spread Broker 2022
GO Markets – Best MT4 Commodity trading Broker 2022
Plus500 – Best Commodity CFDs Broker 2022
Who is Licensed Commodity Broker?
Commodity Brokers are divided by 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 – is a company that accepts orders for contracts and holds clients funds’ to margin. Another type includes the IB (Introducing Broker), Commodity Trading Advisor, the Commodity Pool Operator and the last is the Registered Commodity Representative, who is the partner of one of all abovementioned types.
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.
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