Broker

Spread

for USCOFFEE

Min.

Deposit

Platforms

Offered

Account

Types

Spread

Type

Funding

Methods

Customer

Support

Execution

Details

AvaTrade

Offers four ways to trade: Forex, CFDs, Spread Betting, Social Trading

 Offers Bitcoin, Ethereum, Dash, Ripple and Litecoin
AvaTrade
See Details Try a Demo
Losses can exceed deposits
£250Min. Deposit Learn More
  • MT4
  • WebTrader
  • Mobile apps
See Platforms
  • Micro
  • Standard
  • VIP
See All Accounts
  • Fixed
  • Variable

See Spreads
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Contact Details
  • Market Maker
  • DMA
  • ECN
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Trust Score:

AAA

Used by:

200

Established in:

2006

Regulated by:

Central Bank of Ireland, ASiC,...

See Details Try a Demo
Losses can exceed deposits

Plus500

Offers one way to trade: CFDs

Plus500
See Details Try a Demo
Your capital is at risk
£100Min. Deposit Learn More
  • MT4
  • WebTrader
  • Mobile apps
See Platforms
  • Micro
  • Standard
  • VIP
See All Accounts
  • Fixed
  • Variable

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  • Market Maker
  • DMA
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Trust Score:

B

Used by:

155

Established in:

2008

Regulated by:

Financial Conduct Authority (F...

See Details Try a Demo
Your capital is at risk

XTB

Offers three ways to trade: Forex, CFDs, Social Trading

XTB
See Details Try a Demo
Your capital is at risk
£250Min. Deposit Learn More
  • MT4
  • WebTrader
  • Mobile apps
See Platforms
  • Micro
  • Standard
  • VIP
See All Accounts
  • Fixed
  • Variable

See Spreads
  • Bank transfer
  • Credit cards
  • PayPal
See Methods
  • Live chat
  • Phone support
  • Email support
Contact Details
  • Market Maker
  • DMA
  • ECN
Learn More
Trust Score:

AAA

Used by:

20

Established in:

2002

Regulated by:

Financial Conduct Authority

See Details Try a Demo
Your capital is at risk

City Index

Offers three ways to trade: Forex, CFDs, Spread Betting

City Index
Losses can exceed deposits
£100Min. Deposit Learn More
  • MT4
  • WebTrader
  • Mobile apps
See Platforms
  • Micro
  • Standard
  • VIP
See All Accounts
  • Fixed
  • Variable

See Spreads
  • Bank transfer
  • Credit cards
  • PayPal
See Methods
  • Live chat
  • Phone support
  • Email support
Contact Details
  • Market Maker
  • DMA
  • ECN
Learn More
See Details
Losses can exceed deposits

IG

Offers four ways to trade: Forex, CFDs, Spread Betting, Share dealing

IG
Losses can exceed deposits
£1Min. Deposit Learn More
  • MT4
  • WebTrader
  • Mobile apps
See Platforms
  • Micro
  • Standard
  • VIP
See All Accounts
  • Fixed
  • Variable

See Spreads
  • Bank transfer
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  • Live chat
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  • Email support
Contact Details
  • Market Maker
  • DMA
  • ECN
Learn More
See Details
Losses can exceed deposits

XM

Offers two ways to trade: Forex, CFDs

XM
Your capital is at risk
0.007pointsSee All Spreads
£5Min. Deposit Learn More
  • MT4
  • WebTrader
  • Mobile apps
See Platforms
  • Micro
  • Standard
  • VIP
See All Accounts
  • Fixed
  • Variable

See Spreads
  • Bank transfer
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  • PayPal
See Methods
  • Live chat
  • Phone support
  • Email support
Contact Details
  • Market Maker
  • DMA
  • ECN
Learn More
See Details
Your capital is at risk

London Capital Group

Offers three ways to trade: Forex, CFDs, Spread Betting

London Capital Group
Your capital is at risk
£1Min. Deposit Learn More
  • MT4
  • WebTrader
  • Mobile apps
See Platforms
  • Micro
  • Standard
  • VIP
See All Accounts
  • Fixed
  • Variable

See Spreads
  • Bank transfer
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  • PayPal
See Methods
  • Live chat
  • Phone support
  • Email support
Contact Details
  • Market Maker
  • DMA
  • ECN
Learn More
See Details
Your capital is at risk

Markets.com

Offers two ways to trade: Forex, CFDs

Markets.com
Your capital is at risk
£100Min. Deposit Learn More
  • MT4
  • WebTrader
  • Mobile apps
See Platforms
  • Micro
  • Standard
  • VIP
See All Accounts
  • Fixed
  • Variable

See Spreads
  • Bank transfer
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  • PayPal
See Methods
  • Live chat
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  • Email support
Contact Details
  • Market Maker
  • DMA
  • ECN
Learn More
See Details
Your capital is at risk

SpreadEx

Offers four ways to trade: Forex, CFDs, Spread Betting, Binary Options

SpreadEx
Losses can exceed deposits
£1Min. Deposit Learn More
  • MT4
  • WebTrader
  • Mobile apps
See Platforms
  • Micro
  • Standard
  • VIP
See All Accounts
  • Fixed
  • Variable

See Spreads
  • Bank transfer
  • Credit cards
  • PayPal
See Methods
  • Live chat
  • Phone support
  • Email support
Contact Details
  • Market Maker
  • DMA
  • ECN
Learn More
See Details
Losses can exceed deposits

EasyMarkets

Offers two ways to trade: Forex, CFDs

EasyMarkets
Your capital is at risk
£100Min. Deposit Learn More
  • MT4
  • WebTrader
  • Mobile apps
See Platforms
  • Micro
  • Standard
  • VIP
See All Accounts
  • Fixed
  • Variable

See Spreads
  • Bank transfer
  • Credit cards
  • PayPal
See Methods
  • Live chat
  • Phone support
  • Email support
Contact Details
  • Market Maker
  • DMA
  • ECN
Learn More
See Details
Your capital is at risk
CFDs are leveraged products and can result in the loss of your capital. Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. 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 AvaTrade
For Coffee?

AvaTrade 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 AvaTrade scored highly in:

  • 12+ years in business
  • Offers 250+ instruments
  • A range of platform inc. MT4, Mac, Mirror Trader, ZuluTrade, Web Trader, Tablet & Mobile apps
  • 24/7 customer service
  • Tight spreads from 0.70pips
  • Used by 200+ traders
  • Allows hedging
  • 2 languages
  • Leverage up to 1:400

AvaTrade offers four ways to tradeForex, CFDs, Spread Betting, Social Trading. If you wanted to trade USCOFFEE

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.

AvaTrade have a AAA trust score, which is v. good. This is largely down to them being regulated by Central Bank of Ireland, ASiC, FSA, FSB and BVI, segregating client funds, being segregating client funds, being established for over 12

Trust Score comparsion

AvaTrade Plus500 XTB
Trust Score AAA B AAA
Year Established 2006 2008 2002
Regulated by Central Bank of Ireland, ASiC, FSA, FSB and BVI Financial Conduct Authority (FRN 509909) and Cyprus Securities and Exchange Commission (License No. 250/14) Financial Conduct Authority
Uses tier 1 banks
Company Type Private Public 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 AvaTrade is (& Isn’t)
Suitable For

As mentioned, AvaTrade allows you to trade in four ways: Forex, CFDs, Spread Betting, Social Trading.

Suitable for:

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

Not Suitable for:

  • Share Dealing

To trade with AvaTrade, you’ll need a minimum deposit of $250. AvaTrade offers a range of different account types for different traders including a micro accountmini account, vip account .

Finally, AvaTrade isn’t available in the following countries: BE, BR, KP, NZ, TR, US, CA, SG.

Part 3

A Comparison of AvaTrade vs. Plus500 vs. XTB


Want to see how AvaTrade stacks up against Plus500 and XTB? 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.
AvaTrade Plus500 XTB
Fixed Spreads
Variable Spreads
EUR/USD Spread 0.70 0.60 0.20
GBP/USD Spread 1.8 0.01% 4.0
DAX Spread 1.5 0.01% 0.50
FTSE 100 Spread 1.0 0.02% 0.50
S&P500 Spread 0.25 0.02% 0.10

Comparison of account & trading features

AvaTrade Plus500 XTB
Platform MT4, Mac, Mirror Trader, ZuluTrade, Web Trader, Tablet & Mobile apps Web Trader, Tablet & Mobile apps MT4, Mirror Trader, Web Trader, Tablet & Mobile apps
Services Forex, CFDs, Spread Betting, Social Trading CFDs Forex, CFDs, Social Trading
Base currency options USD, GBP, EUR, JPY, AUD GBP, EUR, CHF, JPY, AUD, CAD, NZD, PLN USD, GBP, EUR
Funding options Payoneer, Credit cards, Bank transfer, PayPal, Neteller, WebMoney, Payoneer, Credit cards, Bank transfer, PayPal, Payoneer, Credit cards, Bank transfer, PayPal, Neteller, DebitCard,
Micro account
ECN account

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


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