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for Palladium

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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 Palladium

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 Palladium?

scored best in our review of the top brokers for palladium, 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 PALLADIUM 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

Trading Palladium Online

Palladium is a rare, shiny metal that is resistant to corrosion. It belongs to the Platinum Group of Metals (PGMs) which also includes iridium and rhodium, and is the least dense of metals within this group. Often confused with the more expensive platinum, it is actually slightly darker in colour and is found as a pure metal, or often alloyed with other metals, such as gold and platinum. Palladium is not usually as valuable as gold, but is 30 times more rare.

Palladium Key Facts and History

  • The element, Palladium, was first discovered when it was extracted from platinum by William Hyde Wollaston in 1803.

  • It was named after an asteroid, Pallas, which was discovered around the same time. The origin of the name is derived from the Greek goddess of wisdom.

  • Palladium is a suitable metal for jewellery, and dental products such as crowns, however its primary use is currently as a component within catalytic converters in cars. Almost two thirds are used for this purpose. It is also used to create ceramic capacitors that are found in computing devices, and within fuel cells that provide electricity from fuel.

  • It is possible to find palladium uncombined, but it is more likely that it will be found within sulphide minerals or combined with other metals, such as copper and zinc.

Modern Day Statistics for Palladium

The Top Palladium Producing Countries in the World 2016 (statista)

Country – Metric Tonnes

Russia – 82

South Africa – 73

Canada – 23

United States – 13.2

Zimbabwe – 10

Other Countries – 6.6

Factors that Influence the Palladium Market

Palladium is bought and sold as a commodity and can be traded on a variety of markets. Precious metal markets can be quite volatile, as there are many factors that influence price changes in these markets. Some of these are listed below:

  • Demand: The overall demand of the metal, either in its raw or physical form or through derivative financial products.

  • Mine production: Changes in national production can also affect the supply of palladium and therefore the price.

  • Uses. As the majority of palladium is currently used within catalytic converters and as new cars are now being manufactured with electronic fuel injection systems, they do not require catalytic converters, which will cause the demand for palladium to drop. Any usage changes such as this has the potential to dramatically affect market prices.

How is Palladium Traded

There are many methods available for trading palladium.

CME Group palladium futures and options are listed on NYMEX in New York under the ticker symbol of PA for futures and PAO for options. They are electronically traded on CME Globex. A contract size is 100 troy ounces, and contracts are traded all months with the last trading day being the third to last business day of the month.

Other exchanges include the Tokyo Commodity Exchange, and the London Metal Exchange, the latter of which works with the London Platinum and Palladium Market to deliver prices available for trading on their electronic platform. The London Platinum and Palladium market is mainly for spot delivery, rather than trading futures and options contracts.

Physical ownership of the metal is another way to be involved in palladium markets, and this is held in the form of bars and coins.

Alternatively, traders could choose to own shares in palladium mining companies. It should be noted that many of the mining companies do not exclusively mine for palladium, so there are other factors impacting the price of these shares.

Palladium ETFs (exchange traded funds) are another way to gain access to palladium markets. An example is the iShares Physical Palladium ETC, which tracks the spot price of palladium and exposes the trader purely to this market. The advantage of trading ETFs is their liquidity and the ease at which they can be traded.

Another convenient route for traders are contracts for difference (CFDs). These can be based on the price of futures, for example the Palladium CFD offered by regulated broker, Plus500, which tracks the price of the CME future (PA) and offers clients leverage of 1:152. With a minimum contract size of 100 contracts, the minimum margin required to open a long position at the buy rate of 941.42, would be $621.55.

Palladium - IG - CFD

Palladium – IG – CFD

Another example is the IG CFD, which is based on the NYMEX traded palladium futures contract. A minimum contract size of 1 is required for this, with the value of one pip at $100. The minimum margin required is 3.5%, therefore, in order to have open a long position in the palladium SEP-17 CFD, the minimum margin requirement is (941.70*1*100*3.5% =$3295.95). Note – live price taken from IG 30th August 2017.

Conclusion

As with most precious metal trading, palladium markets can be highly volatile. Although often neglected by traders who opt instead for platinum or gold, due to its unique qualities and uses, coupled with the fact that it is cheaper than platinum, it is a metal that should continue to be of significant interest to those who understand the market.


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