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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 Oats

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 Oats?

scored best in our review of the top brokers for oats, 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 OATS 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

Popular Grains for Trading: Oats

What are Oats?

The seeds from oat grass are known as cereal grain. They are harvested around the world and used as a food type. The benefits of harvesting grain are that they can be easily stored and transported without spoiling, and can be used to create a variety of other products, such as flour.

Although oats are associated with human consumption, their value as livestock feed should not be underestimated. In fact, in many places the vast majority is used for this purpose, although the ethics surrounding this are questionable as most of these animals are more naturally suited to eating grass than grain.

Oats are rich in nutrients, and have been shown to help reduce cholesterol levels when consumed regularly.

Oats History and Key Facts

Genetic evidence traces a form of oats back to the fertile crescent of the ‘Near East’, known as today as Western Asia. The domesticated oat that we are currently familiar with appeared relatively late in Bronze Age Europe. However, it has not always been well received – in Greece they were considered to be a deformed type of wheat.

Oats, like rye, are a secondary crop, which means that they are derived from the weed of the primary crops such as barley and wheat.

Oats were the fifth most important grain in 2016 in terms of their worldwide production figures. With over 1 billion metric tons produced, corn was the most important grain. 23 million metric tons of oats were produced, which is a great quantity, but it is dwarfed significantly by the corn production figures (statista).

Modern Day Statistics for Platinum Production

The Top Oat Producing Countries in the World 2014 (FAO.org)

Country – Production (Metric Tons)

1. Russia – 5273812

2. Canada – 2907000

3. Poland – 1458623

4. Australia – 1254659

5. Finland – 1039000

6. United States of America – 1019410

7. United Kingdom – 820000

The top 5 oat producing countries are responsible for over 50% of the oats produced globally.

What Influences the Oat Market

As with any edible commodity, there are various factors that can influence the price of the stock, including:

  • Weather: If the weather conditions have not been right for the crop to grow to its optimum quality, this can cause poor harvests and result in price changes.

  • Supply and Demand: As with all commodities, high demand and low supply will increase the price. As oats are a staple food source for many countries for humans and animals, there should always be sufficient demand for them. However, if production outstrips demand, resulting in stores building up, this can reduce the price.

  • Oat prices tend to run similarly to that of corn. However, one thing to note is that if corn or wheat prices are running high, farmers may plant these commodities instead of oats, which may impact the supply of oats.

  • Location: As the leading five oat producers are responsible for so much of the world’s production levels, any instability within these countries may have a significant impact on the industry. This is therefore an important consideration.

How are Oats Traded?

Futures are standardised, exchange-traded contracts where the trader agrees to take delivery from the seller of a specified quantity of oats at a predetermined price on a future delivery date. Options are similar, but give the trader the option at the end of the contract. Oats futures and options can be traded at the Chicago Board of Trade (CBOT). They are quoted in dollars and cents per bushel and are sold in lots of 5000 bushels.

Futures and options are mainly used by participants in the industry to hedge their price risks. This can be farmers, grain processors, millers, livestock feeders, and anyone in the food industry that requires oats for their food products.

However, these are not the only group to take advantage of the financial products that allow for this agricultural commodity to be traded, and speculators taking advantage of price swings in the commodity also make up a significant portion of market participants.

Contracts for difference (CFDs) are amongst the other financial instruments used to trade oats markets. They are an extremely convenient way to trade as they are offered by regulated brokers such as Plus500 and IG, and are available to access through their online platforms.

Oats - IG CFD

Oats – IG CFD

The Oats CFD offered by IG is based on the official price of the CBOT oats future. The minimum requirement for open a buy trade can be calculated as follows: Current price (225.6) * minimum contract size (1) * value of one lot (USD 50) * margin (5%) = $564.

Conclusion

Traders looking to take a position on oats can do so with a variety of financial instruments. Some of the most popular include CFDs as they are conveniently offered by many regulated online brokers, and they enable trading on margin, which means a smaller deposit can be put down to gain a greater exposure to the market. However, this additional exposure can work both ways, and if the markets go against the trader, this can result in them losing more of their capital than they originally placed to open the trade. Going with a regulated broker will mean that the customer’s interests are looked after by a set of stringent regulations that the broker is required to adhere to.


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