Company

Spread

for NATURALGAS

Min.

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City Index

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

 Offers over 12,000 instruments
City Index
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Your capital is at risk
£25Min. Deposit Learn More
  • MT4
  • WebTrader
  • Mobile apps
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Trust Score:

A

Used by:

140,000

Established in:

1983

Regulated by:

Financial Conduct Authority, A...

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

The Ultimate Guide to

Choosing a Broker
For Trading Natural Gas

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 City Index
For Trading Natural Gas?

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

  • 34+ years in business
  • Offers 12500+ instruments
  • A range of platform inc. MT4, Web Trader, Tablet & Mobile apps
  • 24/7 customer service
  • Tight spreads from 0.5 pips
  • Used by 140,000+ traders
  • Allows hedging
  • 3 languages
  • Leverage up to 1:200

City Index offers three ways to trade: Forex, CFDs, Spread Betting. If you wanted to trade NATURALGAS 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.

City Index have a A trust score, which is good. This is largely down to them being regulated by Financial Conduct Authority, ASiC and MAS, segregating client funds, being established for over 34 years, and much more. For comparison:

Trust Score comparsion

City Index
Trust Score A
Year Established 1983
Regulated by Financial Conduct Authority, ASiC and MAS
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 City Index is (& Isn’t)
Suitable For

As mentioned, City Index allows you to trade in three ways: Forex, CFDs, Spread Betting.

Suitable for:

  • Spread Betting
  • CFD Trading
  • Forex Trading

Not Suitable for:

To trade with City Index, you'll need a minimum deposit of $100. City Index offers a range of different account types for different traders including a micro account, mini account, .

Finally, City Index isn't available in the following countries: CF, TD, CG, CG, CI, CU, GN, ER, GN, FR, GW, HT, IR, IQ, KR, LB, LR, LY, MM, NZ, NG, SL, SO, SD, SY, TM, UZ, VE, EH, YE, ZW. They do not offer islamic accounts either.

Part 3

A Comparison of City Index vs. vs.


Want to see how City Index 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.
City Index
Fixed Spreads
Variable Spreads
EUR/USD Spread 0.5
GBP/USD Spread 2.1
Gold spreads from 0.5
Silver spreads from 2.5
Copper spreads from 40.0
Crude Oil spreads from 0.4
Natural gas spreads from 18
DAX Spread 1.0
FTSE 100 Spread 1.0
S&P500 Spread 0.4

Comparison of account & trading features

City Index
Spread type Fixed
EUR/USD Spread 1983
EUR/GBP Spread Financial Conduct Authority, ASiC and MAS
Crude Oil Spread
Gold Spread Private Private Private
DAX Spread

Part 4

1.What is natural gas?

Natural gas is a popular traded commodity, it is the cleanest-burning of the fossil fuels, so with today’s drive to reduce carbon emissions and pollution, demand for natural gas is rising.

Natural gas has to be converted into a liquid – LPG (Liquid Petroleum Gas)- in order to be pumped from one place to another. Major natural gas producers, such as the Russian Federation, send their gas products long distances across Europe, to their key export markets.

The US is a large producer (769 billion cubic metres (bcm)), and shale gas is continuing to expand production but the US still consumes more natural gas (783 bcm) than it produces.

2. Fundamental influences on the natural gas price

In 2015, the US and Russia (650 bcm) were reasonably close as top producers, followed by Iran, Qatar and Canada. The top consumers were the US, the Russian Federation, China, Iran and Japan.

In 2015, the EU consumed less natural gas than the Middle-East. Japan is shifting significantly from nuclear to natural gas, after the Fukushima reactor accident.

Complex regional insecurities and power politics between the US, North Korea, China and Japan, or unrest that might affect pipelines running through Qatar, Iran and neighbouring countries, could all affect the natural gas price, and weather is always a factor.

3. How is natural gas traded?

Natural gas is bought and sold every day for delivery to energy companies that supply gas to the public. But most traders don’t want to take delivery of actual gas. Brokers such as Plus500, offer natural gas to traders as a CFD, in which you can take a position on a real gas contract depending on whether you think the price of the underlying commodity is going to rise or fall before the contract expires.

Your position is actually on a dated contract, for example “Natural Gas Jun-17”.

4. Popular trades

In Europe, the ICE Natural Gas Futures contracts are the most actively traded. Henry Hub Natural Gas is the US price benchmark and the futures contract most frequently traded against. Each contract has an underlying 10,000 million British thermal units (mmBtu) of natural gas.

5. Advantages of trading natural gas with a CFD

Natural gas CFDs involve taking a position on whether the price will rise and fall and using leverage to increase your profits (or your losses). Because the CFDs reflect underlying futures contracts, you’ll find several of them, with different expiry dates.

CFDs are a much easier way to trade natural gas, because you don’t have to take large minimum positions in comparison to Natural Gas Futures that are designed for large energy corporations. Plus500 offer leverage up 1:152, which means that with a £100 account you can open a position on Natural Gas worth up to £15,200.

Some brokers offer a spread bet on natural gas that’s similar to a CFD on an index. There’s no expiry, but you have to pay a charge to hold the position for more than a day.

6. Spot natural gas vs. natural gas futures

The spot natural gas market doesn’t use futures contracts but trades on the actual price at the moment. Spot trading is favoured by institutional traders, often working for large energy firms. Spot trades settle immediately, for cash.

You can also buy a futures contract directly from an exchange. You normally have large minimum trade sizes for futures contracts, and of course the contract expires at a certain point, so you don’t just have to be correct in your view on the price – you have to be correct within a certain period of time.

Natural gas is unusual, in that the spot market can be more volatile than the futures market. This is because delivery difficulties can suddenly affect the spot price. Whereas predictable factors such as the closeness of the winter season may affect the forward (futures) price, all kinds of factors can affect the price for immediate delivery (spot price).

Futures Trades

  • Priced according to forecasts of future prices
  • Position can be kept open but is time-limited
  • Volatility factors, such as increased demand in winter, are more predictable

Spot Trades

  • Priced for immediate delivery
  • Trades settle immediately
  • Delivery issues can arise suddenly and can cause extreme volatility

Alternative Commodities To Natural Gas

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