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CFDs are leveraged products and can result in the loss of your capital. Rankings are influenced by affiliate commissions. All information collected on 1/11/2017.

The Ultimate Guide to

Choosing a Broker
For Coffee

Not sure which broker is right for you?

Don’t worry - we’ve got you covered. In this guide, you’ll learn:

Ready?

Part 1

Why Choose
For Coffee?

scored best in our review of the top brokers for coffee, which takes into account 120+ factors across eight categories. Here are some areas where scored highly in:

  • + years in business
  • Offers + instruments
  • A range of platform inc.
  • 24/7 customer service
  • Tight spreads from pips
  • Used by 0+ traders
  • Offers demo account
  • 0 languages
  • Leverage up to

offers one way to trade: . 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.

have a trust score, which is . This is largely down to them being regulated by , segregating client funds, being established for over years, and much more. For comparison:

Trust Score comparsion

Trust Score
Year Established
Regulated by
Uses tier 1 banks
Company Type Private Private Private
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.

Part 2

Who is (& Isn’t)
Suitable For

As mentioned, allows you to trade in one way: .

Suitable for:

  • Spread Betting
  • CFD Trading
  • Forex Trading
  • Social Trading

Not Suitable for:

To trade with , you'll need a minimum deposit of $. offers a range of different account types for different traders including a , .

Finally, isn't available in the following countries: . They do not offer islamic accounts either.

Part 3

A Comparison of vs. vs.


Want to see how stacks up against and ? We've compared their spreads, features, and key information below.



Spread & fee comparsion

The 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.
Fixed Spreads
Variable Spreads
EUR/USD Spread
GBP/USD Spread
DAX Spread
FTSE 100 Spread
S&P500 Spread

Comparison of account & trading features

Spread type Fixed
EUR/USD Spread
EUR/GBP Spread
Crude Oil Spread
Gold Spread Private Private Private
DAX Spread

Part 4

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.

Fundamental Influences

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.

Plus500 - Coffee CFD

Plus500 – Coffee CFD

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

  • Cocoa

  • Butter

  • Sugar


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