Offers two ways to trade: Forex, CFDs
CySEC, Financial Services Boar...
Popular for Wheat!
566 traders clicked on Markets.com this month.
The Ultimate Guide to
Choosing a Broker
Not sure which broker is right for you?
Don’t worry - we’ve got you covered. In this guide, you’ll learn:
- Why Markets.com scored high for wheat (Jump to section)
- Who Markets.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 wheat (Jump to section)
What is the Best Trading Platform
Markets.com scored best in our review of the top brokers for wheat, which takes into account 120+ factors across eight categories. Here's the full list of all the brokers we considered.
The following brokers allow wheat on their platform:
Here are some areas where Markets.com scored highly in:
- 10+ years in business
- Offers + instruments
- A range of platform inc. MT4, MT5, Web Trader, Tablet & Mobile apps
- 24/7 customer service
- Tight spreads from pips
- Used by + traders
- Allows hedging
- 2 languages
- Leverage up to 100:1
Markets.com offers two ways to trade: Forex, CFDs. If you wanted to trade WHEAT 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.
Markets.com have a B trust score, which is good. This is largely down to them being regulated by CySEC, Financial Services Board, segregating client funds, being established for over 10 years, and much more. For comparison:
Trust Score comparsion
|Regulated by||CySEC, Financial Services Board|
|Uses tier 1 banks|
|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.
Who Markets.com is (& Isn’t)
As mentioned, Markets.com allows you to trade in two ways: Forex, CFDs.
- CFD Trading
- Forex Trading
Markets.com offer a wide range of instruments to trade including forex pairs, stocks, indices, and cryptocurrencies . In fact, they’re one of the few brokers to offer not only Bitcoin trading but also Ripple, and many more. In the following section we’ve listed Markets.com’s spreads for a range of popular instruments. You can also see a more detailed breakdown of how Markets.com’s spreads compare in this Markets.com review
Finally, Markets.com isn't available in the following countries: AF, DZ, AS, AO, AU, BE, BA, BR, KH, CA, CN, CU, KR, GU, GY, HK, ID, IR, IQ, IL, JP, LA, MO, MY, MM, NZ, MP, PA, PG, PH, PR, RU, SG, KR, SD, SY, TW, TH, TR, UG, VI, VU, USA, VN, YE.
A Comparison of Markets.com vs. vs.
Want to see how Markets.com stacks up against and ? We've compared their spreads, features, and key information below.
Spread & fee comparsionThe 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.
|FTSE 100 Spread||2|
Comparison of account & trading features
|Accounts offered||Mini account, Islamic account, standard account, VIP account|
|Platforms||MT4, MT5, Web Trader, Tablet & Mobile apps|
|Risk management features||Limit order, one click trading, trailing stops, price alerts and negative balance protection|
|Funding methods||Payoneer, Credit cards, Bank transfer, PayPal, WebMoney, DebitCard,|
Trading Wheat Futures Online
Wheat is a cereal crop, which grows as a grass, and its grain is used to make bread and pasta, amongst other things. It is a staple food around the world, and one of the most popular cereal grains.
737 million metric tons of it were produced worldwide in 2015/16. The largest producer was the European Union, with over 160 million metric tons. France, Germany and the UK were the biggest producers in the EU in the last decade (statista). Other large producers were China, and the US.
The different types of wheat include hard red spring, hard red winter, soft red winter, durum and white wheat. Each type of grain has its own primary use based on its qualities. Different regions are responsible for the different types, for example, the Great Plains near Kansas in the US are a prominent source of hard red winter wheat.
History Of Wheat
Archaeologists suggest that wheat was first cultivated in the southern Levant (Middle East), dating back as far as 8000 years. It rapidly became a staple food source across Europe, North Africa and West Asia .
During the Bronze Age in the British Isles, it was also used for roofing in the form of wheat straw, often referred to as thatch. This use was common right up until the late 19th century.
What Influences The Wheat Market?
Wheat is one of the largest and therefore most important agricultural commodities in the world. Because it is widely used within the food industry, there is the potential to use it to hedge against inflation. Below are a few examples of what can affect the prices.
Economy. The situation of the economy is one of the biggest factors in deciding the price. A weak economy will find the prices usually dip. As the economy strengthens so will the price of wheat.
Climate. As it is an agricultural commodity the weather hugely can determine the growth, quality and therefore price of wheat. Drought and cold weather will result in the price rising.
US Dollar Exchange. As US wheat futures are priced in dollars, the exchange rate of this currency plays an important role for foreign traders.
Wheat stockpiles have been diminishing recently with current data showing that in Europe the figures are at their lowest in the last 13 years with a 37% decrease. This is due to a combination of both poor harvest and strong consumption.
How is Wheat Traded?
Wheat futures are usually standardised, exchange-traded contracts where the trader agrees to take delivery of the stock from the seller at an agreed price on a future date. A futures deal is legally binding for a delivery of grain in the future at a price that has been agreed. The contracts are set at a standard by an exchange depending on quantity, quality, time and their place of delivery.
Wheat futures are usually used by industry participants as a form of risk management. This is known as hedging and it allows them to cover themselves against the crop fetching an insufficient price or a less than required amount being produced, for example.
Other futures traders are known as speculators, and they simply trade futures to speculate on the price movements in the hope of benefiting from the market moving in their favour.
Futures can be traded at the NYSE Euronext (Euronext) and at the Chicago Board of Trade (CBOT), where it is one of the most widely traded crops. CBOT futures are traded in lots of 5000 bushels (136 metric tonnes), and are priced per bushel in dollars and cents. Euronext Milling Wheat futures are traded in units of 50 tonnes and again prices are quoted in dollars and cents per bushel.
Wheat can also be traded with the CME Group, as Globex futures and Globex options (for electronic trading), or as Open Outcry options (for pit trading).
Trading Wheat as a CFD
Many online regulated brokers offer wheat trading as a contract for difference (CFD). These include IG and Plus500. The CFDs offered by Plus500 are based on the Chicago Wheat futures contract from CME Group. A minimum of 10,000 bushels is required to be traded on a Plus500 trade, so with leverage at 1:152. a spread of 0.87, and an initial margin on 0.66%, the minimum margin required to open a long position at a price of 403.93 would be around £207 (price taken from Plus500 trading platform – 30/08/2017). IG offer wheat CFDs on Chicago Wheat, London Wheat and Paris Milling Wheat.
Wheat is a popular commodity, and with a CFD, traders can gain significant exposure to the market with a low margin requirement. This is because they are offered on leverage. However, this also exposes the trader to the risk of significant losses to their capital, and this should be noted when taking a position on any financial instrument. Choosing a regulated broker from a country that is known for stringent regulatory standards is useful for providing reassurance that the broker is acting in the best interests of their clients.
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