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Best Forex Brokers for Commodities

Marcus Taylor

Written by Marcus Taylor

September 08, 2022

How to Find the Best Brokers for Commodity Trading For You

Commodity Trading is the trading of a physical product that is typically bought and sold in an established financial exchange. Commodity trading can be a popular choice for traders because of the potentially increased returns (with the subsequently increased risks) offered by the high leverage usually associated with commodities.

These higher levels of leverage, coupled with the use of margin deposits where the broker essentially lends the trader the remaining portion of the actual commodity value, means a trader can make multiples of his investment if the commodity price moves in a favorable direction. These margin deposits will then usually be charged an overnight financing charge. For example, the popular CFD broker City Index will charge an overnight fee +/– 2.5% annual charge above or below the relevant base rate.

However, it is important to remember that the opposite is also true that if the market moves against the trader then their losses can be much more magnified.

For example:

  1. A trader buys a commodities futures contract for gold, where the cost per ounce of gold is $1,000.
  2. They agree to 2 contracts at a weight of 100 ounces per contract.
  3. The full contract cost therefore totals $200,000 ($1,000 x 2 x 100).
  4. The trader makes a margin deposit of 6% which totals $12,000 (0.06 x 1,000 x 2 x 100).
  5. The broker is therefore technically lending them the difference of $188,000.
  6. The price of gold then increases by 1% to $1010 per ounce.
  7. The trader’s profit will therefore be $2000 ($1010 x 100 x 2 = $202,000 – $200,000).
  8. The trader’s return on their investment will total 16.67% (2000/12000).

So, with an account balance of $12,000, the trader will have made a profit of $2000 (16.67%) with just a 1% price increase in the commodity.

However, it is important to note that if the price had fallen by the same amount, the trader would have made a loss of 16.67%, with the commodity having only suffered a 1% fall in price.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 65% and 82% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Best Forex Brokers for Trading Commodities

  • IG
    - 9.7/10 Overall
  • Saxo Bank - 9.5/10 Overall
  • CMC Markets - 9.4/10 Overall
  • Interactive Brokers - 9.2/10 Overall
  • TD Ameritrade - 8.9/10 Overall
  • FOREX.com
    - 8.7/10 Overall
  • XTB - 8.7/10 Overall
  • City Index - 8.7/10 Overall
  • eToro - 8.6/10 Overall
Overall Rating
9.7 / 10
Minimum Initial Deposit
£250.00
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard0.86 (September 2022)
All-in Cost EUR/USD - Active0.5957 (September 2022)
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)No
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded1974
Publicly Traded (Listed)Yes
BankYes
Tier-1 Licenses7
Tier-2 Licenses2
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Mobile Trading - Forex or CFDsYes
Tradeable Symbols (Total)19537
Forex Pairs (Total)100
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)33
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
9.5 / 10
Minimum Initial Deposit
€2,000
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard0.9 (September 2022)
All-in Cost EUR/USD - Active0.7 (September 2022)
PayPal (Deposit/Withdraw)No
Skrill (Deposit/Withdraw)No
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded1992
Publicly Traded (Listed)No
BankYes
Tier-1 Licenses6
Tier-2 Licenses1
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Mobile Trading - Forex or CFDsYes
Tradeable Symbols (Total)60000
Forex Pairs (Total)190
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)No
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)62
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
9.4 / 10
Minimum Initial Deposit
$0
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard0.51 (August 2022)
All-in Cost EUR/USD - Active0.51 (August 2022)
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)No
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded1989
Publicly Traded (Listed)Yes
BankNo
Tier-1 Licenses5
Tier-2 Licenses1
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Mobile Trading - Forex or CFDsYes
Tradeable Symbols (Total)12377
Forex Pairs (Total)158
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)84
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
9.2 / 10
Minimum Initial Deposit
$0
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard0.6 (Aug 2022)
All-in Cost EUR/USD - Active0.6 (Aug 2022)
PayPal (Deposit/Withdraw)No
Skrill (Deposit/Withdraw)No
Visa/Mastercard (Credit/Debit)No
Regulationexpand_moreexpand_less
Year Founded1977
Publicly Traded (Listed)Yes
BankNo
Tier-1 Licenses8
Tier-2 Licenses1
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Mobile Trading - Forex or CFDsYes
Tradeable Symbols (Total)8500
Forex Pairs (Total)90
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)No
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingNo
Charting - Indicators / Studies (Total)128
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
8.9 / 10
Minimum Initial Deposit
$0
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard1.25 pips (September 2022)
All-in Cost EUR/USD - Active1.25 pips (September 2022)
PayPal (Deposit/Withdraw)No
Skrill (Deposit/Withdraw)No
Visa/Mastercard (Credit/Debit)No
Regulationexpand_moreexpand_less
Year Founded1955
Publicly Traded (Listed)Yes
BankYes
Tier-1 Licenses4
Tier-2 Licenses0
Investment Optionsexpand_moreexpand_less
Forex TradingYes
Mobile Trading - Forex or CFDsYes
Tradeable Symbols (Total)0
Forex Pairs (Total)73
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)No
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingNo
Charting - Indicators / Studies (Total)360
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
8.7 / 10
Minimum Initial Deposit
$100
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard1.0 (July 2022)
All-in Cost EUR/USD - Active1.0 (July 2022)
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)No
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded1999
Publicly Traded (Listed)Yes
BankNo
Tier-1 Licenses4
Tier-2 Licenses2
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Mobile Trading - Forex or CFDsYes
Tradeable Symbols (Total)5500
Forex Pairs (Total)91
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)Yes
Proprietary PlatformYes
Social Trading / Copy TradingNo
Charting - Indicators / Studies (Total)203
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
8.7 / 10
Minimum Initial Deposit
$0
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard1.07 (Q3 2022)
All-in Cost EUR/USD - Active1.04 (Q3 2022)
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)Yes
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded2002
Publicly Traded (Listed)Yes
BankNo
Tier-1 Licenses1
Tier-2 Licenses3
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Mobile Trading - Forex or CFDsYes
Tradeable Symbols (Total)12000
Forex Pairs (Total)49
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)39
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
8.7 / 10
Minimum Initial Deposit
£100.00
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard1.0 (July 2022)
All-in Cost EUR/USD - Active1.0 (July 2022)
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)No
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded1983
Publicly Traded (Listed)Yes
BankNo
Tier-1 Licenses3
Tier-2 Licenses2
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Mobile Trading - Forex or CFDsYes
Tradeable Symbols (Total)13500
Forex Pairs (Total)84
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)88
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
8.6 / 10
Minimum Initial Deposit
$10-$10,000
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard1 (August 2021)
All-in Cost EUR/USD - ActiveN/A
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)Yes
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded2007
Publicly Traded (Listed)No
BankNo
Tier-1 Licenses2
Tier-2 Licenses1
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Mobile Trading - Forex or CFDsYes
Tradeable Symbols (Total)3458
Forex Pairs (Total)49
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)No
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)66
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)No
Economic CalendarYes


How Commodities are Traded

Commodities can typically be traded on the futures market through futures contracts, which are short term contracts with definite expiry dates. However, commodities may also be traded indirectly through the equities market, through mutual funds, through exchange-traded funds (ETFs) or through a contract for difference CFD platform.

Leverage and smaller contract sizes are two factors that attract traders to trading futures contracts as CFDs (contracts for difference) rather than traditional trading. With a combination of smaller contracts and leverage, the initial capital requirements for traders is significantly lower.

Unlike manufacturers, most traders do not want the actual delivery of the commodity they are trading, therefore a commodities trader will usually opt to roll over the futures contract for that commodity. A commodities roll-over effectively extends the expiration date for the settlement of the contract, allowing the trader to avoid the costs associated with the settlement of an expired futures contract.

BrokerNotes.co 2022 Overall Rankings

To recap, here are our top forex brokers for 2022, sorted by Overall ranking.

Company Overall Rating Minimum Initial Deposit Average Spread EUR/USD - Standard Trust Score Trust Score Tradeable Symbols (Total) Visit Site
IG logoIG 9.7 £250.00 0.86 (September 2022) 99 Highly Trusted 19537 Visit Site
Saxo Bank logoSaxo Bank 9.5 €2,000 0.9 (September 2022) 99 Highly Trusted 60000
CMC Markets logoCMC Markets 9.4 $0 0.51 (August 2022) 99 Highly Trusted 12377
Interactive Brokers logoInteractive Brokers 9.2 $0 0.6 (Aug 2022) 99 Highly Trusted 8500
TD Ameritrade logoTD Ameritrade 8.9 $0 1.25 pips (September 2022) 99 Highly Trusted 0
FOREX.com logoFOREX.com 8.7 $100 1.0 (July 2022) 99 Highly Trusted 5500 Visit Site
XTB logoXTB 8.7 $0 1.07 (Q3 2022) 95 Highly Trusted 12000
City Index logoCity Index 8.7 £100.00 1.0 (July 2022) 99 Highly Trusted 13500
eToro logoeToro 8.6 $10-$10,000 1 (August 2021) 93 Highly Trusted 3458
Swissquote logoSwissquote 8.5 $1000 N/A 99 Highly Trusted 466
AvaTrade logoAvaTrade 8.2 $100 0.91 (Aug 2020) 93 Highly Trusted 1260
Plus500 logoPlus500 8.2 €100 0.6 (as of Aug 2018) 98 Highly Trusted 2800
FXCM logoFXCM 8.3 Starts from $50 1.38 (Q2 2022) 96 Highly Trusted 441
Admiral Markets logoAdmiral Markets 8.1 $100 0.8 (July 2021) 87 Trusted 8425
FP Markets logoFP Markets 8.3 $100 AUD 1.2 (August 2022) 86 Trusted 9956
IC Markets logoIC Markets 8 $200 0.62 (August 2021) 86 Trusted 3583
OANDA logoOANDA 8 $0 1.26 (5/22-5/27/22) 92 Highly Trusted 124
Capital.com logoCapital.com 8.1 $20 0.6 (July 2021) 77 Average Risk 6000
Markets.com logoMarkets.com 8.1 $100 1.9 (as of Oct 2019) 98 98 2179
XM Group logoXM Group 8 $5 1.6 (Aug 2020) 90 Trusted 1372
Pepperstone logoPepperstone 8 $200 0.77 (September 2022) 93 Highly Trusted 1200
FxPro logoFxPro 8 $100 1.51 (August 2020) 90 Highly Trusted 2249
Tickmill logoTickmill 7.8 $100 0.51 (August 2022) 82 Trusted 295
HYCM (Henyep) logoHYCM (Henyep) 7.7 $100 0.6 (Sept 2021) 86 Trusted 245
DooPrime logoDooPrime 7.7 $100 -1 84 Average Risk 10000
Fineco Bank logoFineco Bank 7.7 $0 N/A 92 Highly Trusted 126
HFM logoHFM 7.6 $5 1.2 (August 2021) 85 Trusted 3500
BDSwiss logoBDSwiss 7.6 $100-$5000 (depending on account type) 1.6 (08/10/22) 83 Trusted 1081
Vantage logoVantage 7.4 $50 1.22 (August 2021) 83 Trusted 257
Trading 212 logoTrading 212 7.4 EUR 10 N/A 77 Average Risk 1785
Moneta Markets logoMoneta Markets 7.3 $50 1.27 (September 2022) 71 Trusted 965
Trade Nation logoTrade Nation 7.1 $0 0.6 83 Trusted 601
ACY Securities logoACY Securities 7.2 $50 1.2 (Sept 2021) 75 Average Risk 1600
Eightcap logoEightcap 7.2 $100 N/A 87 Trusted 326
ThinkMarkets logoThinkMarkets 7.3 $250.00 N/A 86 Trusted 1674
BlackBull Markets logoBlackBull Markets 7 $0 0.827 (August 2022) 74 Average Risk 26000
VT Markets logoVT Markets 7.2 $200 1.2 (September 2021) 71 Trusted 168
easyMarkets logoeasyMarkets 7.3 $100 0.9 (as of Mar 2020) 84 Trusted 199
TMGM logoTMGM 7 $100 0.96 (July 2021) 79 Average Risk 12000
Exness logoExness 7.2 $1 0.9 (as of May 19) 74 Average Risk 112
Spreadex logoSpreadex 7.2 $0 -1 70 Average Risk 2000
IronFX logoIronFX 7.1 $50 1.2 84 Trusted 340
RoboForex (RoboMarkets) logoRoboForex (RoboMarkets) 7.1 $100 1.4 (Jan 2022) 69 High Risk 12000
Trade360 logoTrade360 7 $250 N/A 75 Average Risk 1062
AxiTrader logoAxiTrader 7 0 N/A 83 Trusted 175 Visit Site
GKFX logoGKFX 7 $0 N/A 66 High Risk 354
Vestle logoVestle 7 -1 -1 79 Average Risk 750
TeleTrade logoTeleTrade 7 $100 -1 67 High Risk 500
FXOpen logoFXOpen 7 $100 N/A 80 Trusted 87
OctaFX logoOctaFX 6.8 $25 0.6 (August 2021) 67 High Risk 80
Forex4you logoForex4you 6.9 $0 -1 62 High Risk 150
LegacyFX logoLegacyFX 6.8 $500 0 75 Average Risk 425
FXPrimus logoFXPrimus 6.8 $100 N/A 69 High Risk 140 Visit Site
Alpari logoAlpari 6.8 $20 N/A 67 High Risk 105
GBE brokers logoGBE brokers 6.7 $500 -1 69 High Risk 500
TopFX logoTopFX 6.5 Depends on payment method N/A 67 High Risk 655
ATFX logoATFX 6.6 $500 -1 70 Average Risk 150
UFX logoUFX 6.5 $100 3 (Jan 2021) 67 High Risk 619
Libertex (Forex Club) logoLibertex (Forex Club) 6.5 $10 -1 72 High Risk 300
Xtrade logoXtrade 6.5 $250 -1 80 Trusted 142
Tradeo logoTradeo 6.4 $200 -1 67 High Risk 256
View More

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There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Learn more about foreign exchange risk.

About the Author

Marcus Taylor
Marcus Taylor

BrokerNotes was founded in 2014 by Marcus Taylor, founder and CEO of Venture Harbor, a venture studio in Oxford that develops innovative online tools & technology across a range of sectors.


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