Offers two ways to trade: Forex, CFDs
CySEC, Financial Services Boar...
Popular for Coffee!
566 traders clicked on Markets.com this month.
The Ultimate Guide to
Choosing a Broker
Not sure which broker is right for you?
Don’t worry - we’ve got you covered. In this guide, you’ll learn:
- Why Markets.com scored high for coffee (Jump to section)
- Who Markets.com is (and isn’t) suitable for (Jump to section)
- An in-depth feature comparison of the top #3 brokers (Jump to section)
- An overview on coffee (Jump to section)
What is the Best Trading Platform
Markets.com scored best in our review of the top brokers for coffee, which takes into account 120+ factors across eight categories. Here's the full list of all the brokers we considered.
The following brokers allow coffee on their platform:
Here are some areas where Markets.com scored highly in:
- 10+ years in business
- Offers + instruments
- A range of platform inc. MT4, MT5, Web Trader, Tablet & Mobile apps
- 24/7 customer service
- Tight spreads from pips
- Used by + traders
- Allows hedging
- 2 languages
- Leverage up to 100:1
Markets.com offers two ways to trade: Forex, CFDs. If you wanted to trade USCOFFEE through copy trading or other means, skip to part two.
The two most important categories in our rating system are the cost of trading and the broker’s trust score. To calculate a broker’s trust score, we take into account a range of factors, including their regulation history, years in business, liquidity provider etc.
Markets.com have a B trust score, which is good. This is largely down to them being regulated by CySEC, Financial Services Board, segregating client funds, being established for over 10 years, and much more. For comparison:
Trust Score comparsion
|Regulated by||CySEC, Financial Services Board|
|Uses tier 1 banks|
|Segregates client funds|
The second thing we look for is the competitiveness of the spreads, and what fees they charge. We've compared these in detail in part three of this guide.
Who Markets.com is (& Isn’t)
As mentioned, Markets.com allows you to trade in two ways: Forex, CFDs.
- CFD Trading
- Forex Trading
Markets.com offer a wide range of instruments to trade including forex pairs, stocks, indices, and cryptocurrencies . In fact, they’re one of the few brokers to offer not only Bitcoin trading but also Ripple, and many more. In the following section we’ve listed Markets.com’s spreads for a range of popular instruments. You can also see a more detailed breakdown of how Markets.com’s spreads compare in this Markets.com review
Finally, Markets.com isn't available in the following countries: AF, DZ, AS, AO, AU, BE, BA, BR, KH, CA, CN, CU, KR, GU, GY, HK, ID, IR, IQ, IL, JP, LA, MO, MY, MM, NZ, MP, PA, PG, PH, PR, RU, SG, KR, SD, SY, TW, TH, TR, UG, VI, VU, USA, VN, YE.
A Comparison of Markets.com vs. vs.
Want to see how Markets.com stacks up against and ? We've compared their spreads, features, and key information below.
Spread & fee comparsionThe spreads below are illustrative. For more accurate pricing information, click on the names of the brokers at the top of the table to open their websites in a new tab.
|FTSE 100 Spread||2|
Comparison of account & trading features
|Accounts offered||Mini account, Islamic account, standard account, VIP account|
|Platforms||MT4, MT5, Web Trader, Tablet & Mobile apps|
|Risk management features||Limit order, one click trading, trailing stops, price alerts and negative balance protection|
|Funding methods||Payoneer, Credit cards, Bank transfer, PayPal, WebMoney, DebitCard,|
Trading Coffee Online
The word ‘coffee’ is Ethiopian in origin, named after the province of Kaffa. According to the British Coffee Association, coffee is the most popular drink in the world, and each day around 2 billion cups are consumed. Naturally, it is therefore one of the most popular commodities for trading.
Coffee is one of the main exports from several developing countries: More than 90% of the world’s coffee supply comes from developing countries, particularly in the South American region.
Brazil is by far the largest coffee producer in the world and about one-third of the world’s coffee comes from Brazil alone. In 2016, Brazil produced around 3.3 billion kilograms of coffee. More than 5 million people work on the cultivation and harvesting of about 3 billion coffee plants in Brazil. The next highest coffee producing country, Vietnam, produced 1.5 billion – less than half the output of Brazil (statista). Other major coffee producing countries include Indonesia, Colombia, and Ethiopia.
Countries that consume the most coffee include the Netherlands and Finland.
Brazil and Vietnam collectively account for almost half of the world’s coffee production. Any political instability in these countries can result in a decrease in supply, leading to a significant increase in price.
Climate factors can also have a major influence on the price of coffee as it is extremely sensitive to climate changes. Coffee requires adequate amounts of both rain and sunlight at the right times in order to thrive. When these conditions are not properly met, the farm output can gradually decrease, consequently bringing about a decrease in supply and increase in the price.
Coffee price is also heavily influenced by market activities as it is one of the most highly traded commodities. An increase in the trading activities of coffee can bring about a surge in the price, signaling that the demand of coffee is increasing.
How is Coffee Traded?
Coffee can be traded through various financial instruments, including CFDs and futures contracts.
The futures contracts for coffee can be traded at Multi Commodity Exchange (MCX), Brazilian Mercantile and Futures Exchange (BM&F), Kansai Commodities Exchange (KEX), NYSE Euronext, and Intercontinental Exchange (ICE). A futures contract is dated and reads something like “Coffee September 2017”.
Coffee falls into two main types; Robusta and Arabica. London International Financial Futures and Options Exchange offers futures contracts for Robusta coffee and since 2007, New York Intercontinental Exchange has been offering them as well. Futures contracts for Arabica are traded on the New York Mercantile Exchange.
With CFDs, the trader takes a position depending on whether they believe the price of coffee will fall or rise before the expiration of the CFD contract. The contracts can be based on the price of futures. For example, Plus500 offer a CFD based on the Coffee C Futures contract from ICE. This is the benchmark for Arabica coffee and the contract trades on the ticker symbol of KC, with a trading screen hub name of NYCC. Settlement of the futures contract is physical delivery, whereas the CFD is settled in cash upon termination of the contract. If the price moves against the trader, they are required to pay the broker (Plus500 in this instance) and if it moves in favour of the trader, Plus500 are required to settle the difference.
A minimum trade on a Plus500 Coffee CFD is 200 contracts. After leverage of 1:50, a spread of 1.17, and an initial margin of 2%, the minimum margin requirement for taking out a buy position at 127.91 is £398.49 (taken from Plus500 platform – 29/08/2017).
Coffee is also traded as a commodity in exchange-traded funds (ETFs).
Commodities Similar to Coffee
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