Best Forex Brokers for Commodities
Written by BrokerNotes.co
How to Find the Best Brokers for Commodity Trading For You
Commodity Trading is the trading of a physical product that is typically bought and sold in an established financial exchange. Commodity trading can be a popular choice for traders because of the potentially increased returns (with the subsequently increased risks) offered by the high leverage usually associated with commodities.
These higher levels of leverage, coupled with the use of margin deposits where the broker essentially lends the trader the remaining portion of the actual commodity value, means a trader can make multiples of his investment if the commodity price moves in a favorable direction. These margin deposits will then usually be charged an overnight financing charge. For example, the popular CFD broker City Index will charge an overnight fee +/– 2.5% annual charge above or below the relevant base rate.
However, it is important to remember that the opposite is also true that if the market moves against the trader then their losses can be much more magnified.
For example:
- A trader buys a commodities futures contract for gold, where the cost per ounce of gold is $1,000.
- They agree to 2 contracts at a weight of 100 ounces per contract.
- The full contract cost therefore totals $200,000 ($1,000 x 2 x 100).
- The trader makes a margin deposit of 6% which totals $12,000 (0.06 x 1,000 x 2 x 100).
- The broker is therefore technically lending them the difference of $188,000.
- The price of gold then increases by 1% to $1010 per ounce.
- The trader’s profit will therefore be $2000 ($1010 x 100 x 2 = $202,000 – $200,000).
- The trader’s return on their investment will total 16.67% (2000/12000).
So, with an account balance of $12,000, the trader will have made a profit of $2000 (16.67%) with just a 1% price increase in the commodity.
However, it is important to note that if the price had fallen by the same amount, the trader would have made a loss of 16.67%, with the commodity having only suffered a 1% fall in price.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 65% and 82% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.Best Forex Brokers for Trading Commodities
-
IG
- 9.9/10 Overall
- Saxo Bank - 9.7/10 Overall
- Interactive Brokers - 9.7/10 Overall
- CMC Markets - 9.6/10 Overall
- TD Ameritrade - 9.5/10 Overall
-
FOREX.com
- 9.3/10 Overall
- City Index - 9.2/10 Overall
- XTB - 9/10 Overall
- eToro - 8.8/10 Overall
Overall Rating
Minimum Deposit
Trust Score Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.
| Average Spread EUR/USD - Standard | 0.86 |
| All-in Cost EUR/USD - Active | 0.5957 |
| PayPal (Deposit/Withdraw) | Yes |
| Skrill (Deposit/Withdraw) | No |
| Visa/Mastercard (Credit/Debit) | Yes |
| Year Founded | 1974 |
| Publicly Traded (Listed) | Yes |
| Bank | Yes |
| Tier-1 Licenses | 7 |
| Tier-2 Licenses | 2 |
| Forex Trading (Spot or CFDs) | Yes |
| Mobile Trading - Forex or CFDs | Yes |
| Tradeable Symbols (Total) | 19537 |
| Forex Pairs (Total) | 100 |
| Bitcoin | Yes |
| Virtual Trading (Demo) | Yes |
| MetaTrader 4 (MT4) | Yes |
| MetaTrader 5 (MT5) | No |
| Proprietary Platform | Yes |
| Social Trading / Copy Trading | Yes |
| Charting - Indicators / Studies (Total) | 33 |
| Android App | |
| Apple iOS App | Yes |
| Education (Forex or CFDs) | Yes |
| Daily Market Commentary | Yes |
| Forex News (Top-Tier Sources) | Yes |
| Economic Calendar | Yes |
Overall Rating
Minimum Deposit
Trust Score Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.
| Average Spread EUR/USD - Standard | 0.9 |
| All-in Cost EUR/USD - Active | 0.7 |
| PayPal (Deposit/Withdraw) | No |
| Skrill (Deposit/Withdraw) | No |
| Visa/Mastercard (Credit/Debit) | Yes |
| Year Founded | 1992 |
| Publicly Traded (Listed) | No |
| Bank | Yes |
| Tier-1 Licenses | 6 |
| Tier-2 Licenses | 1 |
| Forex Trading (Spot or CFDs) | Yes |
| Mobile Trading - Forex or CFDs | Yes |
| Tradeable Symbols (Total) | 60000 |
| Forex Pairs (Total) | 190 |
| Bitcoin | Yes |
| Virtual Trading (Demo) | Yes |
| MetaTrader 4 (MT4) | No |
| MetaTrader 5 (MT5) | No |
| Proprietary Platform | Yes |
| Social Trading / Copy Trading | Yes |
| Charting - Indicators / Studies (Total) | 62 |
| Android App | |
| Apple iOS App | Yes |
| Education (Forex or CFDs) | Yes |
| Daily Market Commentary | Yes |
| Forex News (Top-Tier Sources) | Yes |
| Economic Calendar | Yes |
Overall Rating
Minimum Deposit
Trust Score Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.
| Average Spread EUR/USD - Standard | 0.6 |
| All-in Cost EUR/USD - Active | 0.6 |
| PayPal (Deposit/Withdraw) | No |
| Skrill (Deposit/Withdraw) | No |
| Visa/Mastercard (Credit/Debit) | No |
| Year Founded | 1977 |
| Publicly Traded (Listed) | Yes |
| Bank | No |
| Tier-1 Licenses | 8 |
| Tier-2 Licenses | 1 |
| Forex Trading (Spot or CFDs) | Yes |
| Mobile Trading - Forex or CFDs | Yes |
| Tradeable Symbols (Total) | 8500 |
| Forex Pairs (Total) | 90 |
| Bitcoin | Yes |
| Virtual Trading (Demo) | Yes |
| MetaTrader 4 (MT4) | No |
| MetaTrader 5 (MT5) | No |
| Proprietary Platform | Yes |
| Social Trading / Copy Trading | No |
| Charting - Indicators / Studies (Total) | 128 |
| Android App | |
| Apple iOS App | Yes |
| Education (Forex or CFDs) | Yes |
| Daily Market Commentary | Yes |
| Forex News (Top-Tier Sources) | Yes |
| Economic Calendar | Yes |
Overall Rating
Minimum Deposit
Trust Score Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.
| Average Spread EUR/USD - Standard | 0.51 |
| All-in Cost EUR/USD - Active | 0.51 |
| PayPal (Deposit/Withdraw) | Yes |
| Skrill (Deposit/Withdraw) | No |
| Visa/Mastercard (Credit/Debit) | Yes |
| Year Founded | 1989 |
| Publicly Traded (Listed) | Yes |
| Bank | No |
| Tier-1 Licenses | 5 |
| Tier-2 Licenses | 1 |
| Forex Trading (Spot or CFDs) | Yes |
| Mobile Trading - Forex or CFDs | Yes |
| Tradeable Symbols (Total) | 12377 |
| Forex Pairs (Total) | 158 |
| Bitcoin | Yes |
| Virtual Trading (Demo) | Yes |
| MetaTrader 4 (MT4) | Yes |
| MetaTrader 5 (MT5) | No |
| Proprietary Platform | Yes |
| Social Trading / Copy Trading | Yes |
| Charting - Indicators / Studies (Total) | 84 |
| Android App | |
| Apple iOS App | Yes |
| Education (Forex or CFDs) | Yes |
| Daily Market Commentary | Yes |
| Forex News (Top-Tier Sources) | Yes |
| Economic Calendar | Yes |
Overall Rating
Minimum Deposit
Trust Score Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.
| Average Spread EUR/USD - Standard | 1.25 |
| All-in Cost EUR/USD - Active | 1.25 |
| PayPal (Deposit/Withdraw) | No |
| Skrill (Deposit/Withdraw) | No |
| Visa/Mastercard (Credit/Debit) | No |
| Year Founded | 1955 |
| Publicly Traded (Listed) | Yes |
| Bank | Yes |
| Tier-1 Licenses | 4 |
| Tier-2 Licenses | 0 |
| Forex Trading (Spot or CFDs) | Yes |
| Mobile Trading - Forex or CFDs | Yes |
| Tradeable Symbols (Total) | 0 |
| Forex Pairs (Total) | 73 |
| Bitcoin | Yes |
| Virtual Trading (Demo) | Yes |
| MetaTrader 4 (MT4) | No |
| MetaTrader 5 (MT5) | No |
| Proprietary Platform | Yes |
| Social Trading / Copy Trading | No |
| Charting - Indicators / Studies (Total) | 360 |
| Android App | |
| Apple iOS App | Yes |
| Education (Forex or CFDs) | Yes |
| Daily Market Commentary | Yes |
| Forex News (Top-Tier Sources) | Yes |
| Economic Calendar | Yes |
Overall Rating
Minimum Deposit
Trust Score Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.
| Average Spread EUR/USD - Standard | 1.0 |
| All-in Cost EUR/USD - Active | 1.0 |
| PayPal (Deposit/Withdraw) | Yes |
| Skrill (Deposit/Withdraw) | No |
| Visa/Mastercard (Credit/Debit) | Yes |
| Year Founded | 1999 |
| Publicly Traded (Listed) | Yes |
| Bank | No |
| Tier-1 Licenses | 4 |
| Tier-2 Licenses | 2 |
| Forex Trading (Spot or CFDs) | Yes |
| Mobile Trading - Forex or CFDs | Yes |
| Tradeable Symbols (Total) | 5500 |
| Forex Pairs (Total) | 91 |
| Bitcoin | Yes |
| Virtual Trading (Demo) | Yes |
| MetaTrader 4 (MT4) | Yes |
| MetaTrader 5 (MT5) | Yes |
| Proprietary Platform | Yes |
| Social Trading / Copy Trading | No |
| Charting - Indicators / Studies (Total) | 203 |
| Android App | |
| Apple iOS App | Yes |
| Education (Forex or CFDs) | Yes |
| Daily Market Commentary | Yes |
| Forex News (Top-Tier Sources) | Yes |
| Economic Calendar | Yes |
Overall Rating
Minimum Deposit
Trust Score Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.
| Average Spread EUR/USD - Standard | 1.0 |
| All-in Cost EUR/USD - Active | 1.0 |
| PayPal (Deposit/Withdraw) | Yes |
| Skrill (Deposit/Withdraw) | No |
| Visa/Mastercard (Credit/Debit) | Yes |
| Year Founded | 1983 |
| Publicly Traded (Listed) | Yes |
| Bank | No |
| Tier-1 Licenses | 3 |
| Tier-2 Licenses | 2 |
| Forex Trading (Spot or CFDs) | Yes |
| Mobile Trading - Forex or CFDs | Yes |
| Tradeable Symbols (Total) | 13500 |
| Forex Pairs (Total) | 84 |
| Bitcoin | Yes |
| Virtual Trading (Demo) | Yes |
| MetaTrader 4 (MT4) | Yes |
| MetaTrader 5 (MT5) | No |
| Proprietary Platform | Yes |
| Social Trading / Copy Trading | Yes |
| Charting - Indicators / Studies (Total) | 88 |
| Android App | |
| Apple iOS App | Yes |
| Education (Forex or CFDs) | Yes |
| Daily Market Commentary | Yes |
| Forex News (Top-Tier Sources) | Yes |
| Economic Calendar | Yes |
Overall Rating
Minimum Deposit
Trust Score Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.
| Average Spread EUR/USD - Standard | 1.07 |
| All-in Cost EUR/USD - Active | 1.04 |
| PayPal (Deposit/Withdraw) | Yes |
| Skrill (Deposit/Withdraw) | Yes |
| Visa/Mastercard (Credit/Debit) | Yes |
| Year Founded | 2002 |
| Publicly Traded (Listed) | Yes |
| Bank | No |
| Tier-1 Licenses | 1 |
| Tier-2 Licenses | 3 |
| Forex Trading (Spot or CFDs) | Yes |
| Mobile Trading - Forex or CFDs | Yes |
| Tradeable Symbols (Total) | 12000 |
| Forex Pairs (Total) | 57 |
| Bitcoin | Yes |
| Virtual Trading (Demo) | Yes |
| MetaTrader 4 (MT4) | Yes |
| MetaTrader 5 (MT5) | No |
| Proprietary Platform | Yes |
| Social Trading / Copy Trading | Yes |
| Charting - Indicators / Studies (Total) | 39 |
| Android App | |
| Apple iOS App | Yes |
| Education (Forex or CFDs) | Yes |
| Daily Market Commentary | Yes |
| Forex News (Top-Tier Sources) | Yes |
| Economic Calendar | Yes |
Overall Rating
Minimum Deposit
Trust Score Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.
| Average Spread EUR/USD - Standard | 1 |
| All-in Cost EUR/USD - Active | N/A |
| PayPal (Deposit/Withdraw) | Yes |
| Skrill (Deposit/Withdraw) | Yes |
| Visa/Mastercard (Credit/Debit) | Yes |
| Year Founded | 2007 |
| Publicly Traded (Listed) | No |
| Bank | No |
| Tier-1 Licenses | 2 |
| Tier-2 Licenses | 1 |
| Forex Trading (Spot or CFDs) | Yes |
| Mobile Trading - Forex or CFDs | Yes |
| Tradeable Symbols (Total) | 3458 |
| Forex Pairs (Total) | 49 |
| Bitcoin | Yes |
| Virtual Trading (Demo) | Yes |
| MetaTrader 4 (MT4) | No |
| MetaTrader 5 (MT5) | No |
| Proprietary Platform | Yes |
| Social Trading / Copy Trading | Yes |
| Charting - Indicators / Studies (Total) | 66 |
| Android App | |
| Apple iOS App | Yes |
| Education (Forex or CFDs) | Yes |
| Daily Market Commentary | Yes |
| Forex News (Top-Tier Sources) | No |
| Economic Calendar | Yes |
How Commodities are Traded
Commodities can typically be traded on the futures market through futures contracts, which are short term contracts with definite expiry dates. However, commodities may also be traded indirectly through the equities market, through mutual funds, through exchange-traded funds (ETFs) or through a contract for difference CFD platform.
Leverage and smaller contract sizes are two factors that attract traders to trading futures contracts as CFDs (contracts for difference) rather than traditional trading. With a combination of smaller contracts and leverage, the initial capital requirements for traders is significantly lower.
Unlike manufacturers, most traders do not want the actual delivery of the commodity they are trading, therefore a commodities trader will usually opt to roll over the futures contract for that commodity. A commodities roll-over effectively extends the expiration date for the settlement of the contract, allowing the trader to avoid the costs associated with the settlement of an expired futures contract.
BrokerNotes.co 2023 Overall Rankings
To recap, here are our top forex brokers for 2023, sorted by Overall ranking.
| Company | Overall Rating | Minimum Deposit | Average Spread EUR/USD - Standard | Trust Score | Tradeable Symbols (Total) | Read Review | Visit Site |
 IG
|
9.9 | £250.00 | 0.86 | 99 | 19537 | IG Review |
Visit Site
|
 Saxo Bank
|
9.7 | €2,000 | 0.9 | 99 | 60000 | Saxo Bank Review | |
 Interactive Brokers
|
9.7 | $0 | 0.6 | 99 | 8500 | Interactive Brokers Review | |
 CMC Markets
|
9.6 | $0 | 0.51 | 99 | 12377 | CMC Markets Review | |
 TD Ameritrade
|
9.5 | $0 | 1.25 | 99 | 0 | TD Ameritrade Review | |
 FOREX.com
|
9.3 | $100 | 1.0 | 99 | 5500 | FOREX.com Review |
Visit Site
|
 City Index
|
9.2 | £100.00 | 1.0 | 99 | 13500 | City Index Review | |
 XTB
|
9 | $0 | 1.07 | 95 | 12000 | XTB Group Review | |
 eToro
|
8.8 | $10-$10,000 | 1 | 93 | 3458 | eToro Review | |
 Swissquote
|
8.7 | $1000 | N/A | 99 | 466 | Swissquote Review | |
 AvaTrade
|
8.6 | $100 | 0.92 | 93 | 1260 | AvaTrade Review | |
 FXCM
|
8.5 | Starts from $50 | 1.38 | 96 | 440 | FXCM Review |
Visit Site
|
 Plus500
|
8.5 | €100 | 0.8 | 98 | 2800 | Plus500 Review | |
 Capital.com
|
8.4 | $20 | 0.65 | 85 | 3152 | Capital.com Review | |
 XM Group
|
8.4 | $5 | 1.6 | 90 | 1429 | XM Group Review | |
 Pepperstone
|
8.4 | $200 | 0.77 | 93 | 2342 | Pepperstone Review | |
 OANDA
|
8.4 | $0 | 1.26 | 92 | 124 | OANDA Review | |
 Admiral Markets
|
8.3 | $100 | 0.8 | 88 | 6942 | Admiral Markets Review | |
 FP Markets
|
8.3 | $100 AUD | 1.2 | 86 | 10000 | FP Markets Review | |
 IC Markets
|
8.2 | $200 | 0.62 | 86 | 3583 | IC Markets Review | |
 Markets.com
|
8.2 | $100 | 1.9 | 98 | 2179 | Markets.com Review | |
 FxPro
|
8.1 | $100 | 1.51 | 90 | 2249 | FxPro Review | |
 Tickmill
|
8.0 | $100 | 0.51 | 82 | 725 | Tickmill Review | |
 Fineco Bank
|
8.0 | $0 | N/A | 92 | 126 | Fineco Bank Review | |
 BlackBull Markets
|
7.9 | $0 | 0.827 | 74 | 26000 | BlackBull Markets Review | |
 DooPrime
|
7.8 | $100 | N/A | 84 | 10000 | DooPrime Review | |
 Vantage
|
7.8 | $50 | 1.30 | 89 | 1000 | Vantage Review | |
 BDSwiss
|
7.8 | $100-$5000 | 1.6 | 83 | 1081 | BDSwiss Review | |
 TMGM
|
7.8 | $100 | 0.96 | 79 | 12000 | TMGM Review | |
 HFM
|
7.8 | $0 | 1.2 | 85 | 3500 | HFM Review | |
 FlowBank
|
7.7 | $0.00 | N/A | 77 | 408600 | FlowBank Review | |
 HYCM (Henyep)
|
7.7 | $100 | 0.6 | 86 | 362 | HYCM Review | |
 Trading 212
|
7.6 | EUR 10 | N/A | 77 | 1785 | Trading 212 Review | |
 Eightcap
|
7.6 | $100 | 1.0 | 87 | 736 | Eightcap Review | |
 Trade Nation
|
7.5 | $0 | 0.6 | 83 | 601 | Trade Nation Review | |
 Moneta Markets
|
7.5 | $50 | 1.27 | 71 | 965 | Moneta Markets Review | |
 ThinkMarkets
|
7.4 | $250.00 | N/A | 86 | 1674 | ThinkMarkets Review | |
 VT Markets
|
7.4 | $200 | 1.2 | 71 | 168 | VT Markets Review | |
 ACY Securities
|
7.4 | $50 | 1.2 | 75 | 1600 | ACY Securities Review | |
 easyMarkets
|
7.3 | $100 | 0.9 | 84 | 199 | a href="/reviews/easymarkets">easyMarkets Review | |
 RoboForex (RoboMarkets)
|
7.3 | $100 | 1.4 | 69 | 12000 | Roboforex (RoboMarkets) Review | |
 IronFX
|
7.2 | $50 | 1.2 | 84 | 340 | IronFX Review | |
 Exness
|
7.2 | $1 | 0.9 | 74 | 112 | Exness Review | |
 Spreadex
|
7.2 | $0 | N/A | 70 | 2000 | Spreadex Review | |
 Trade360
|
7.1 | $250 | N/A | 75 | 1062 | Trade360 Review | |
 AxiTrader
|
7.1 | 0 | N/A | 83 | 175 | Axitrader Review | |
 GKFX
|
7.1 | $0 | N/A | 66 | 354 | GKFX Review | |
 Vestle
|
7.1 | -1 | N/A | 79 | 750 | Vestle Review | |
 OctaFX
|
7 | $25 | 0.9 | 69 | 229 | OctaFX Review | |
 FXOpen
|
7 | $100 | N/A | 80 | 87 | FXOpen Review | |
 TeleTrade
|
7 | $100 | N/A | 67 | 500 | Teletrade Review | |
 FXPrimus
|
6.9 | $100 | N/A | 69 | 140 | FXPrimus Review |
Visit Site
|
 Forex4you
|
6.9 | $0 | N/A | 62 | 150 | Forex4you Review | |
 LegacyFX
|
6.9 | $500 | N/A | 66 | 425 | LegacyFX Review | |
 GBE brokers
|
6.8 | $500 | N/A | 69 | 500 | GBE Brokers Review | |
 Alpari
|
6.8 | $20 | N/A | 67 | 105 | Alpari Review | |
 TopFX
|
6.7 | Depends on payment method | N/A | 67 | 655 | TopFX Review | |
 Libertex (Forex Club)
|
6.7 | $10 | N/A | 72 | 300 | Libertex Review | |
 ATFX
|
6.6 | $500 | N/A | 70 | 150 | ATFX Review | |
 UFX
|
6.6 | $100 | 3 | 67 | 619 | UFX Review | |
 Xtrade
|
6.5 | $250 | N/A | 80 | 142 | Xtrade Review | |
 Tradeo
|
6.4 | $200 | N/A | 67 | 256 | Tradeo Review |
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