Commodity Trading
Trade metals and energy markets with tight spreads. Enjoy all the benefits of an innovative broker when you trade commodities with Expert Forex Trade.
Open a commodity trading accountExpert Forex Trade: Commodity trading for the experts
Commodity trading dates back centuries, to an era long before the development of the financial markets. It involves the exchange of different assets based on the price of a physical commodity – typically metals and energy. The commodity market is one of high risk and high reward, where a more specialised level of knowledge is required.
Advantages of commodity trading with Expert Forex Trade
Trade commodities with leverage
Trade commodity CFDs with Expert Forex Trade using up to 1:20 leverage.
One platform with multiple instruments and markets
With us as your broker, you can use one platform for commodity trading (metals and energy only) as well as indices, shares, forex and cryptocurrency CFDs.
Trade commodities in confidence
Expert Forex Trade EU is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) and holds a cross border license, authorizing the company to provide services to all European Union Member States.
Access automated commodity trading
You have the choice to download and use ready-made scripts and expert advisors or create a custom indicator or script, based on your very own commodity trading strategy.
Access anytime, anywhere
via the desktop, web-based or mobile version of the Expert Forex Trade suite of trading platforms.
A wide range of analysis
50+ built-in indicators and graphic tools for technical analysis, quotes history centre, strategy tester and news, all designed to help you increase your commodity trading knowledge.
The different methods of commodity trading
Most commodity traders operate via a futures exchange, which is where an agreement is reached to buy or sell an asset at a predetermined price at a certain time in the future. When that futures contract expires, the buyer is obligated to pay the commodity price that was agreed.
If, in the intervening period, the value of the asset has risen above the agreed price, the buyer stands to make a profit. Conversely, if the market price has fallen below that benchmark, they will suffer a loss.
An alternative is for traders to purchase stocks in businesses that are associated with these commodities – such as mining companies or oil refineries. Adopting this approach means commodity traders are not just taking a risk on the value of that particular product, but on the performance of the company itself.
Of course, commodity prices are likely to impact an organisation’s share price, but it’s not the only contributing factor as businesses can still make a profit even if the commodity itself suffers a drop in value.
What are the most traded commodities?
The commodity market can typically be divided into four main categories: metals and energies, both of which you can trade with Expert Forex Trade, and livestock and agriculture.
Metals including gold, silver, copper or platinum
Some precious metals such as gold have a conveyable value, which can make them an attractive proposition for commodity traders.
Agriculture products such as corn, sugar and wheat
It was this type of commodity that formed the backbone of the first markets in the 1800s, when farmers would lock in prices for their produce at various times of the year.
Energy sources such as crude oil and natural gas
This particular commodity market can be impacted by a number of factors including production rates and the development of renewable energy sources.
Livestock including cows, pigs and sheep
This is a commodity which can be affected by economic inflation and its impact on food prices, weather conditions, the spread of disease and societal attitudes towards eating meat.
The risks and rewards of the commodity market
As with all types of trading, there are no guarantees when it comes to commodities. It’s important that traders understand and appreciate both sides of the coin before they enter the commodity market. They should ensure they’ve done the necessary research and analysis prior to taking up any positions.
The commodity market is particularly high risk and high reward, perhaps even more so than most other markets. Commodity traders can take steps to mitigate those risks, but it’s a market that requires a good deal of specialised knowledge in order to be navigated successfully.
Register for an account with Expert Forex Trade and gain access to our cutting-edge CFD trading platform.
You can trade multiple instruments – forex, indices, shares, commodities and cryptocurrency – all from one account and rest assured we’re fully regulated by the CySEC and are members of the Investor Compensation Fund.
RegisterHow to open a commodity trading account
Select your country of residence
Select your country of residence to get started.
Complete the online application
You will then be directed to our secure server to complete the online application.
Login and start trading
Upon completing the application you will be provided a username and password. Log in to the Client portal, deposit funds, and start trading.
Open a commodity trading account
You can trade metals and energy markets with tight spreads and
low commissions with Expert Forex Trade EU. We’re fully authorised and regulated by the Cyprus Securities and
Exchange Commission (CySEC), which makes us a reputable choice for commodity traders.
Why not get in
touch with us today or open an
account to start your trading journey and find out why Expert Forex Trade EU offers one of the very best
commodity trading platforms on the market.
What factors affect commodity prices?
Commodity trading is widely seen as higher risk because the market can also be affected by circumstances outside of traders’ control. For example, major political events such as the US elections have historically had a significant impact on the price of precious metals – especially gold – so that is one commodity market that traders will monitor closely when candidates embark on their campaigns.
What is a commodity broker?
How to define success for a commodity trader
Setting objectives will help to give your trading strategy a framework and it will allow you to manage your expectations as you progress. Remember, commodity trading is high risk and high reward, so you need to be prepared for any losses and have a plan in place that will help you recover from them. Even the most experienced commodity traders won’t get it right every time, but it’s important that you have faith in your research and be clear in your mind as to how you define success.