Best Brokers For Trading Heating Oil

The Ultimate Guide to

Choosing a Broker
For Trading Heating Oil

Not sure which broker is right for you?

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

• Why Forex.com scored high for trading heating oil (Jump to section)
• Who Forex.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 trading heating oil (Jump to section)

Ready?

Part 1

What is the Best Trading Platform
for Trading Heating Oil?

Forex.com scored best in our review of the top brokers for trading heating oil, which takes into account 120+ factors across eight categories. Here's the full list of all the brokers we considered.

The following brokers allow trading heating oil on their platform:

1. Forex.com

Here are some areas where Forex.com scored highly in:

Forex.com offers one way to trade: Forex. If you wanted to trade HEATINGOIL 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.

Forex.com have a AAA trust score, which is v. good. This is largely down to them being regulated by Financial Conduct Authority, segregating client funds, being established for over 19 years, and much more. For comparison:

Trust Score comparsion

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 Forex.com is (& Isn’t)
Suitable For

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

To trade with Forex.com, you'll need a minimum deposit of $250. Forex.com offers a range of different account types for different traders including a mini account, .

Forex.com offer a wide range of instruments to trade including forex pairs, indices, and many other asset classes. In the following section we’ve listed Forex.com’s spreads for a range of popular instruments. You can also see a more detailed breakdown of how Forex.com’s spreads compare in this Forex.com review

Forex.com is also suitable for traders looking to trade with an ECN broker. ECN trading allows the trader to get access to the actual pricing of instruments as set by the banks and liquidity providers, rather than relying on the broker to set the price. To open an ECN account with Forex.com you will need a minimum deposit of $100000.

Finally, Forex.com isn't available in the following countries: BE.

Part 3

A Comparison of Forex.com vs. vs.

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

Spread & fee comparsion

Comparison of account & trading features

Part 4

What Is Heating Oil?

Derived from petroleum (and thus from crude oil), heating oil is a low viscosity oil. Though it is similar to the oil used in diesel engines, as its name indicates, heating oil is primarily used in boilers and other heaters in both domestic and commercial properties. Often referred to simply as ‘HHO’, it is in wide use throughout the globe. The heating oil industry is worth around $34 billion annually, though industry statistics from IBIS indicate that this industry has shrunk by -4.4% over the past year. The biggest producers of heating oil are Russia, Saudi Arabia and the US, whilst the biggest consumers are the US, China and Japan.

2: Fundamental Influences Of Heating Oil:

Fuel is required in many households on a seasonal basis: in Ireland, oil providers such as EMO report that demand for heating oil is higher during the winter months where more energy is required to heat homes and commercial properties. When deployed in factories and heavy industry, however, heating oil is required consistently throughout the year.

Political ties with key oil producing countries such as the US and Russia can dramatically influence the cost of heating oil. One key example to examine currently is Venezuela; consistently one of the top 10 oil producers in the world, Venezuela’s current political troubles are disrupting its ability to supply oil to the rest of Latin America and beyond.

3: How Is Heating Oil Traded?

Heating oil is traded as a viscous liquid. When condensed, it is known as ‘petroleum jelly’ and this is a different product entirely. Heating oil needs to be kept in tanks with specific safety requirements: it is a criminal offence to store heating oil in an inadequate tank. Heating oil can be sold via representatives, on the spot market, or as a futures or options contract. A CFD (Contract for Difference) and certificates are two other options when it comes to trading heating oil.

4: What Are The Most Popular Forms Of Trading Heating Oil?

The most popular forms for trading heating oil, and indeed any type of oil, are Brent Crude and WTI. Brent Crude is deployed worldwide as a benchmark for classifying oil. Brent Crude oil is known as ‘sweet’ (i.e. low in sulphur) and ‘light’ (i.e. relatively low in density). West Texas Intermediate (WTI) is a similar benchmark, and it is also used worldwide. WTI crude oil is also classified as ‘sweet and light’, though it is substantially lighter and sweeter than Brent Crude oil.

5: Advantages Of Trading Heating Oil As A CFD

One of the main advantages of trading Heating Oil as a CFD vs a Futures contract is the required capital, as Futures contracts are designed for large corporation and institutional traders, the required capital reflects this requirement. However, trading Heating Oil as a CFD with a broker like Plus500, drastically reduces the capital requirements using leverage. Plus500 offer leverage up to 1:152 on Heating Oil CFD’s which means that a trader can open a £15,200 position in Heating Oil with a £100 account size. It is important to note however, leverage can work both ways and amplify both losses and profits.

6: Spot Heating Oil vs Heating Oil Futures

Whether you trade on the spot market or as part of a futures contract will depend on the way in which you balance the difference between these two forms of trading. The key differences are outlined below:

Trading heating oil on the spot market:

• A lower capital requirement
• Trades are completed instantly
• Traders can access larger trading volumes

Trading heating oil futures:

• Only a marginal value is initially invested
• The heating oil futures market is more liquid than the spot marker
• Futures are better for managing risk

Alternative Commodities To Heating Oil

• Crude Oil
• Gold
• Natural Gas