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for SUGAR

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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 Sugar

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 Sugar?

scored best in our review of the top brokers for sugar, 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 SUGAR 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 Commodities For Traders: Sugar

What is Sugar?

Sugar is a naturally occurring carbohydrate found in many types of plants. It is produced during the photosynthesis process, when absorbed light reacts with carbon dioxide. There are various forms of sugar, including monosaccharides, such as fructose and glucose. When these two types of simple sugars are combined, they produce the disaccharide sugar, sucrose, which is refined to produce the granulated ‘table’ sugar that most consumers are familiar with.

Most of the world’s commercial sugar is produced from the sucrose in sugar beets or sugar cane, due to the extremely high concentrations found in these plants.

In addition to being used in food products, sugar is used in the production of ethanol, which gives it a role as an energy commodity in addition to being a food commodity.

History of Sugar

As it is in most plants, sugar, in some form, will have been growing in the wild about a hundred million years ago and it is widely thought that it would have been in India and south-east Asia. It can be said with confidence that people in these areas were eating sugar cane around 2500BC.

Sugar became an expensive commodity when it was found that the juice of the sugar cane plants could be used in preparing food, and made into granulated crystals making it easy to store and export. This process was thought to have occurred by the time of the Imperial Guptas, around the 5th-century CE.

Sugar was regarded as a luxury, but from the 17th century onwards, its popularity began to grow, and by the 19th century it was deemed a necessity and part of everyday life. It became so popular it began to have huge social and economic impacts on the world. Colonisation of the tropical islands and the emergence of the slave trade were as a result of the sugar industry.

Modern Day Statistics For Sugar

Production of sugar in 2016/2017 was around 178 million metric tons, a more than 10 million metric ton increase from the previous year (statisa).

Top Ten Producers of Sugar (2014-2016)

1. Brazil

2. India

3. EU

4. China

5. Thailand

6. United States

7. Mexico

8. Pakistan

9. Australia

10. Russia

What Influences The Sugar Market

The price of sugar is mainly influenced by supply and demand. Some of the factors that affect this include:

  • The health concerns of consumption such as tooth decay, diabetes, and obesity. Modern nations have made it a priority to solve these problems, which could potentially result in less sugar being produced.

  • The weather. Sugar cane demands a tropical climate, whereas beets require a cooler climate. Frost damage or lack of rain can ruin the processing capacity, playing a significant role in its availability.

  • As sugar cane is useful for ethanol distillation, the world’s fuel industry also has an impact on its price. For example, Brazil, who are major sugar producers, are also promoting the use of ethanol fueled vehicles, increasing its demand.

  • The price of sugar has shown to be correlated with inflation, and can, therefore, be used to hedge against inflation in a well-rounded portfolio.

How is Sugar Traded?

Sugar is usually traded freely in what is considered a competitive marketplace. Futures and options are amongst the most popular instruments for this exchange-traded commodity. The sugar futures trading history dates back to 1914, when they were traded on the Sugar and Cocoa Exchange.

The Sugar No. 11 futures contract traded on today’s Intercontinental Exchange (ICE) is one of the major benchmarks for the sugar trading industry. It trades under the symbol SB, with a contract size of 112,000 pounds, during the months of March, May, July and October, and is quoted in cents and hundredths of a cent per pound, with a minimum price movement at the equivalent of $11.20 per contract.

Futures contracts are also traded on exchanges around the world, including the Kansai Commodities Exchange (KEX), the Brazilian Mercantile and Futures Exchange (BF&M), the National Commodities and Derivatives Exchange (NCDEX), Zhengzou Commodity Exchange (CZCE), and the National Commodity Exchange Limited (NCEL).

Futures and options are mainly used by producers and manufacturers within the industry that rely on sugar. In order to hedge their risks with regards to the price of sugar, they place trades which provide them with some protection against price rises or decreases, depending on their requirements.

In addition to futures and options, traders can also speculate on the industry using Exchange-traded funds (ETFs) and exchange traded notes (ETNs), such as those traded on the London Stock Exchange. The Dow Jones AIG Sugar Total Return Sub-Index is an ETN that tracks the performance of the sugar.

Another convenient way to trade sugar is through contracts for difference (CFDs). Regulated online brokers provide easy access to such products through their online trading platforms. One example is the CFD from regulated brokers, IG, which is based on the price of the London Sugar No. 5 futures contract which is traded on the London International Financial Futures and Options Exchange (LIFFE). The minimum requirements for a trade are 1 contract, with the value of one pip being USD 50, and a minimum margin requirement of 4%. At the current buy price of 382.0, $764 would be required to place the trade (382.0 * 1 * 50 * 4%).

IG - Sugar CFD

IG – Sugar CFD

Conclusion

Sugar prices have fallen continually in 2017 due to a world producing surplus. Factors such as this and the afore mentioned, mean that understanding the market can be difficult as price swings are not uncommon. Traders wishing to speculate on the price of the industry using CFDs should seek a regulated broker to place the trades to ensure they are protected by the stringent regulations they are required to abide by.


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