Compare the best 6 commodities trading platforms & apps in 2023

How do commodity brokers work?

They operate as a go-between for you and the market. When you wish to place a commodities order, you go online and enter the information on your broker’s site. The broker then locates a seller who is willing to sell at the same price as the buyer (or it may act as the seller itself).

Each trader pays a fee for this service, which you may have to pay every time you place a transaction in the form of a trading fee or commission. Some platforms levy their fees by tacking on a modest extra to the price of a commodity.

What should I look for in a commodity trading app?

With all of the leading online commodities trading platforms providing an excellent service to their consumers, comparing them on a few key parameters will help you select the appropriate broker for you. Here’s a brief rundown of what to think about while making your decision.

Design and ease of use

The goal of most commodities trading firms is to make trading accessible to the general public. You don’t want a platform that makes the procedure difficult, since this might lead to you missing out on trading opportunities or making costly blunders due to poor design.

Demo account

Choose a commodities broker that permits you to start with a free sample account, especially if you’re a commodity trader. This means you may trade assets such as gold, oil, natural gas, and wheat using fictitious money, allowing you to learn the ropes while preventing you from losing money while you’re still figuring out the commodities market.

Low fees 

You want a commodities broker to provide the lowest costs possible for placing transactions, which virtually goes without saying. More of your money may be used for trading on the commodities markets if the costs are reduced.

Small spreads

One consideration is the spreads (the difference between the bid and ask price). Pay close attention to this if a trader claims to have “zero costs”; in this case, they are probably using wider spreads than usual to mask the real cost of trading.

Payment charges

Not all trading platforms allow every type of payment. Even those that do may charge fees for financing your account in specific methods. This is particularly prevalent when using credit cards or PayPal to make a deposit.

Reputation and regulation

When trading CFDs, you should use a registered commodity broker with a good reputation. This involves looking for a trading platform that is regulated by the FCA, or a similar agency in another nation. FCA laws safeguard your trading account far better, and their approval provides you piece of mind that you have picked a trustworthy broker.

Number of commodities available to trade

The commodities you may trade will differ from broker to broker, so make sure to look into what each one has to offer before joining. Commodities include agricultural items like cattle and wheat, precious metals like gold and platinum, and energy sources like crude oil and natural gas.

Trading options

The standard techniques are mentioned further up this page, however not every option is accessible on every platform. Some may not enable you to spread bet commodities, while others may provide varied limits and leverage for CFD trading, and more complete trading platforms may allow you to trade stocks, FX, and cryptocurrencies.

You should also look for a broker who provides access to the futures markets. Futures trading is a popular method of trading, and the best commodities brokers provide both futures contracts and commodity CFDs. To be successful, most experienced traders employ a combination of both.

Consumer service

If you are trading commodities for the first time, using a trading platform with outstanding customer service might be beneficial. A solid support service is available at all times throughout business hours and, preferably, beyond. A competent online broker would provide client service 24 hours a day, seven days a week.

Quick answers to key questions

Is CFD trading the best way to buy and sell commodities?

In general, it is the greatest option for newcomers. CFD trading is a considerably easier alternative than trading futures or options, which inject significantly more risk into the equation. When trading CFDs, the trading procedure is more comparable to that of other financial instruments, making it easier to understand.

When compared to commodities futures, it is also significantly easier to identify a broker that provides CFD trading. If you already have an account with a broker, you may discover that it already provides this type of trading, although futures and options are more specialized.

Do brokers charge commissions or fees?

Absolutely, they often charge fees for trading commodities on their websites or applications. When it comes to futures markets, these costs might take the shape of minor charges applied to each transaction, overnight fees for CFD holdings carried over to the following day, or spreads between the bid (buy) and ask (sell) prices of each commodity.

Do I need to provide identification?

Yeah, you must give ID when joining up for their sites. This is to ensure that KYC (know your customer) rules are followed and that platforms are not exploited for money laundering. At least one kind of picture identification is usually necessary.

Can I trade more than one commodity at a time?

Certainly, brokers will let you trade a variety of commodities. The top platforms will provide you with access to every commodities market and allow you to trade in a number of ways.

Yet, each commodity market is unique and is influenced by a variety of variables. The price of gold, for example, behaves very differently from the price of coffee or gasoline. Just because they are all “commodities” does not indicate that one technique will work for all of them.

Do I need any extra software?

No, not typically. Generally, you may place all of your transactions using their websites or mobile applications, with all trading data saved in your account. If you wish to utilise other popular software, such Meta Trader 4, you can usually combine it with the broker’s trading platform.

Can I trade commodities on Android and iOS devices?

Yes. The vast majority of programmes are accessible for both operating systems and perform identically. Some are only available for one operating system, but you can easily find out where you stand by searching for an app in the Google Play Store or the App Store. If it appears, you’re in business.

How much do commodities trading apps cost?

These are normally available for free download. Nevertheless, charges can take numerous forms, including as membership fees and commissions/trading fees, which typically vary between 1-2%. Thus, check your app for a thorough breakdown of the expenses and determine whether they are right for you.

Should I use a commodity trading broker?

If you wish to trade rather than purchase, these trading platforms have the most possibilities and are very easy to use. A commodities trader is preferable if you wish to buy commodities outright, which is rare but not impossible.

Still undecided?

If you’re still undecided about which trading platform is best for you, the following advantages and drawbacks, as well as the extra information and Questions at the bottom of the page, will help you make a final choice.