The best commodity trading brokers in the UK let you trade gold, oil, natural gas, and agricultural futures with competitive fees, strong charting tools, and full FCA regulation.
These platforms combine fast execution, clear pricing, and risk management tools suited to both beginners and advanced traders.
When comparing brokers, focus on spreads, leverage, and available commodities, along with platform reliability and regulatory protection. FCA-regulated brokers also offer FSCS protection up to £85,000.
Quick answer: What are the best commodity trading platforms in the UK?
The best commodity trading platforms in the UK are eToro, known for social trading and diverse commodities; XTB, offering low spreads and an intuitive platform; and IG, trusted for advanced tools and a wide range of commodity markets. All are FCA-regulated with transparent fees and strong investor protection.
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Description: 30 million users globally trust eToro for their social trading needs, benefiting from a vast array of stocks, ETFs, forex, commodities, and cryptocurrencies. |
Description: A reliable trading platform offering a wide range of markets, advanced tools, and educational resources to empower traders of all skill levels. |
Description: Award-winning trading platform offering extensive market access and advanced tools for both beginner and experienced traders. |
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Disclaimer:
61% of retail CFD accounts lose money.
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73% of retail investor accounts lose money when trading CFDs with this provider.
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69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
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30 million users globally trust eToro for their social trading needs, benefiting from a vast array of stocks, ETFs, forex, commodities, and cryptocurrencies.
- User-friendly platform for beginners
- Copy the moves of professional traders
- Social trading & educational features
A reliable trading platform offering a wide range of markets, advanced tools, and educational resources to empower traders of all skill levels.
- User-friendly platforms with intuitive design
- Wide range of instruments, including forex, stocks, and CFDs
- Comprehensive educational tools and webinars
Award-winning trading platform offering extensive market access and advanced tools for both beginner and experienced traders.
- User-friendly platform with advanced trading tools
- Comprehensive educational resources and demo account
- Wide range of markets
5 best commodity trading platforms ranked
Here’s a quick list of the best commodity brokers in the UK, selected through expert testing and platform analysis:
Your capital is at risk.
- eToro – Best overall and for beginners
- XTB – Best for advanced trading tools & educational resources
- IG – Publicly traded & trusted broker
- Plus500 – One of the best for CFD commodity trading
- Spreadex – Best for tight spreads
Best commodities broker compared for UK traders
This comparison rates the top commodity brokers across four key factors every trader should assess.
| Rank | Commodities broker | No. of commodities | Minimum deposit | Fees | Account types |
|---|---|---|---|---|---|
| 1 | eToro | 43 | $50 | Gold 0.9, Oil 1.4 | CFDs, investing |
| 2 | XTB | 22 | £0 | 0.6 points | CFDs, DMA, investing |
| 3 | IG | 35+ | £250 | Gold 0.3, Oil 0.28 | CFDs, spread betting, DMA, investing |
| 4 | Plus500 | 22 | $100 | Gold 41 pips, Oil 4 pips | CFDs |
| 5 | Spreadex | 20+ | £0 | Gold 0.4, Oil 1 | CFDs, spread betting |
Commodity broker reviews
Commodity trading has expanded rapidly, with global earnings rising from $27 billion in 2018 to $52 billion in 20211.
Choosing the right platform is essential for UK traders entering this market.
This guide ranks the best commodity trading brokers in the UK, based on four key factors:
- Number of tradable commodities
- Minimum deposit
- Fees and spreads
- Account types
Other considerations include usability, research tools, education resources, and platform features. All listed brokers are FCA-regulated, ensuring compliance, transparency, and fund protection for UK investors.
You can read about how we test platforms here.
This article was reviewed by Tobi Opeyemi Amure, a trading expert and writer at Investopedia, Investing.com, and Trading.biz.
1. eToro – Best overall and for beginners
What makes eToro one of the best commodity trading platforms?
eToro stands out for its user-friendly design, social trading tools, and full FCA regulation, making it ideal for learning and trading commodities safely. The platform lets you trade major commodities like gold, oil, and silver, or invest through commodity ETFs such as GLD.
How much does it cost to trade commodities on eToro?
You can start trading with a $50 minimum deposit and a $5 withdrawal fee. Typical spreads are 0.9 for gold and 1.4 for oil, keeping overall costs competitive for retail traders.
What features help beginners trade more effectively?
eToro includes CopyTrader, which allows users to automatically replicate the strategies of experienced traders. It also offers educational content such as videos, tutorials, and market insights to help you understand key concepts before placing trades.
Who is eToro best for?
eToro is best suited for beginners and casual traders who want a simple, low-cost way to access commodities alongside stocks, ETFs, and crypto. It’s also ideal for those who prefer social trading and want to learn by following professional investors.
Key details:
- Regulation: FCA
- Commodities available: 43
- Minimum deposit: $50
- Spreads: Gold 0.9 | Oil 1.4
- Account type: CFDs (USD-based)
Read our eToro review.
Key rating criteria:
| No. of commodities | Minimum deposit | Fees | Account types |
|---|---|---|---|
| 43 | $50 | Gold 0.9, Oil 1.4 | CFDs, investing |
Pros:
- Copy trading feature
- Easy-to-use trading platform
- Smart Portfolios & Learning Academy
Cons:
- Withdrawal fees
{etoroCFDrisk}% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
2. XTB – Best for advanced trading tools & educational resources
What makes XTB one of the best commodity trading platforms?
Founded in 2002 and FCA-regulated, XTB is a trusted, publicly listed broker offering access to 2,350+ CFDs across commodities, forex, indices, stocks, and ETFs. It’s known for its proprietary xStation 5 platform, which blends sleek design with powerful analytics, ideal for active and professional traders.
How much does it cost to trade commodities on XTB?
XTB offers tight spreads starting from 0.35 on gold, with £0 commissions for UK share CFDs. You can trade commodity CFDs or commodity ETF CFDs, and the platform groups assets by category, energy, metals, and agriculture, for easier navigation.
Does XTB offer educational tools for traders?
Yes. XTB provides over 200 lessons through its Trading Academy, plus daily market analysis and in-platform news that highlights key commodity levels. You can even trade directly from news articles, adding convenience for active traders.
Who is XTB best for?
XTB is best suited to intermediate and advanced traders who value education, real-time analysis, and fast execution. It’s ideal for those who prefer a proprietary platform over MetaTrader and want to manage CFDs across multiple markets from one dashboard.
Key details:
- Commodities available: 22
- Gold spread: 0.35
- Account types: CFDs and spread betting
- Platform: xStation 5
- Regulation: FCA, CySEC, KNF
Key rating criteria:
| No. of commodities | Minimum deposit | Fees | Account types |
|---|---|---|---|
| 22 | £0 | 0.6 points | CFDs, DMA, investing |
Pros:
- User-friendly xStation 5 platform
- Extensive range of CFDs and forex options
- Strong educational and research resources
Cons:
- MetaTrader 4 not prominently featured
- Geographic limitations on cash equities
73% of retail investor accounts lose money when trading CFDs with this provider.
3. IG – Publicly traded & trusted broker
What makes IG one of the best commodity trading platforms?
Founded in 1974, IG is one of the UK’s most established and FCA-regulated brokers. It offers access to 35+ commodities, including gold, silver, and Brent Crude, with industry-leading spreads and no deposit or withdrawal fees. IG stands out for its liquidity, market range, and advanced trading technology, catering to both retail and professional traders.
How much does it cost to trade commodities on IG?
IG offers spreads from 0.3 on gold and 2.8 on Brent Crude, making it one of the lowest-cost brokers for commodity CFDs and spread betting. The broker also provides exclusive undated contracts, which allow flexible trading without expiry dates, and guaranteed stops to limit losses in volatile markets.
What tools and features does IG provide?
The IG trading platform delivers professional-grade charting, real-time analytics, and IGTV news directly integrated into the dashboard. Traders can access the IG Academy, which offers free courses, webinars, and tutorials, plus Trade Analytics, an in-house tool that helps identify performance trends and improve strategy over time.
Who is IG best for?
IG is best for experienced or high-volume traders seeking deep market access, fast execution, and direct market data. It’s also ideal for UK traders wanting to combine CFD or spread betting with longer-term investing through ISAs or Smart Portfolios.
Key details:
- Commodities available: 35+
- Gold spread: 0.3
- Account types: CFDs, spread betting
- Platform: IG Trading, ProRealTime, MT4
- Regulation: FCA
Read our IG review.
Key rating criteria:
| No. of commodities | Minimum deposit | Fees | Account types |
|---|---|---|---|
| 35+ | £250 | Gold 0.3, Oil 0.28 | CFDs, spread betting, DMA, investing |
Pros:
- Intuitive trading platform
- Extensive research/education
- 35+ commodity options
Cons:
- High trading fees
- $200 minimum deposit
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
4. Plus500 – Best for CFD commodity trading
What makes Plus500 one of the best commodity trading platforms?
Plus500 is an FCA-regulated broker known for its low fees, mobile-friendly interface, and commission-free CFD trading on a wide range of commodities. It’s particularly popular with beginners thanks to its free demo account preloaded with £40,000 virtual funds, allowing you to practise risk-free before trading live.
How much does it cost to trade commodities on Plus500?
Plus500 charges no deposit or inactivity fees and offers five free withdrawals per month, after which a £10 withdrawal fee applies. The platform earns revenue from tight spreads, making it one of the most cost-effective brokers for trading commodities like gold, oil, and natural gas. Additional fees include overnight funding and a 0.7% currency conversion charge.
What tools and educational features does Plus500 offer?
The Plus500 app and web platform are both intuitive and fully customisable. Traders can access a comprehensive Trading Academy with videos and guides, plus real-time charts, price alerts, and risk management tools such as guaranteed stop orders. The broker also provides 24/7 customer support, ensuring quick help when needed.
Who is Plus500 best for?
Plus500 suits beginners and mobile traders who want a clean, easy-to-use platform without complex setup. It’s also a great choice for cost-conscious CFD traders seeking low spreads and reliable execution.
Key details:
- Commodities available: Wide CFD selection (energy, metals, agriculture)
- Demo account: £40,000 virtual balance
- Fees: No deposit/inactivity fee, 0.7% FX conversion, £10 withdrawal (after 5)
- Account type: CFDs only
- Regulation: FCA
Read our Plus500 review.
| No. of commodities | Minimum deposit | Fees | Account types |
|---|---|---|---|
| 22 | $100 | Gold 41 pips, Oil 4 pips | CFDs |
Pros:
- 24/7 customer support
- Zero commissions
- No transaction fees
Cons:
- Minimal research tools
80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
5. Spreadex – Best for tight spreads
What makes Spreadex one of the best commodity trading platforms?
Spreadex is a UK-based, FCA-regulated broker known for its tight spreads, award-winning mobile app, and excellent customer service. It provides access to major commodities like gold, silver, Brent Crude, and natural gas, making it a strong choice for UK traders focused on CFDs and spread betting.
How much does it cost to trade commodities on Spreadex?
Spreadex offers spreads as low as 0.4 points on gold, making it one of the most competitively priced platforms for commodity traders. There are no minimum deposit requirements, and profits from spread betting are exempt from Capital Gains Tax and Stamp Duty, giving UK traders a tax-efficient way to trade commodities.
What tools and features does Spreadex provide?
The Spreadex web and mobile platforms are intuitive, fast, and fully customisable. The broker has been recognised for “Efficiency of Taking Trades” in the Investment Trends Awards, reflecting its reliable execution and smooth trading experience. However, it offers limited educational and research tools, which may not suit traders seeking in-depth analysis or learning resources.
Who is Spreadex best for?
Spreadex is best for experienced UK traders who want a secure, low-cost, and tax-efficient way to trade commodities via spread betting or CFDs. It’s particularly appealing for traders who prioritise fast execution and responsive customer support over in-depth education.
Key details:
- Deposit: No minimum
- Commodities available: Gold, Silver, Brent, Natural Gas, Light Crude
- Gold spread: 0.4 points
- Account types: CFDs, spread betting
- Regulation: FCA
Key rating criteria:
| No. of commodities | Minimum deposit | Fees | Account types |
|---|---|---|---|
| 20+ | £0 | Gold 0.4, Oil 1 | CFDs, spread betting |
Pros:
- Competitive spreads, as low as 0.4 points on Gold
- Award-winning efficiency in trade execution
- Profits from spread betting tax-free
Cons:
- Limited to forex/CFDs, less diverse asset options
- No demo account available for practice
64% of retail investors lose money when trading spread bets and CFDs with this provider.
How to choose the best commodity trading platform
Choosing the right commodity trading platform depends on your goals, experience, and trading style.
Here are the key factors to compare:
1. Regulation and safety
Always choose an FCA-regulated broker to ensure fund protection and compliance with UK standards. Regulation guarantees segregated client accounts and fair trading practices.
2. Fees and trading costs
Compare spreads, commissions, and overnight fees. Look for transparent pricing and no hidden charges, especially if you plan to trade frequently or in high volumes.
3. Market access
Check the range of commodities and global markets available. Some platforms focus on gold and oil, while others offer agriculture, metals, and energy products across multiple exchanges.
4. Platform usability
Test the platform via a demo account. A user-friendly, reliable interface with fast order execution improves trading efficiency and reduces errors.
5. Research and education
Access to charts, market analysis, and educational materials helps you make informed decisions. Many brokers include tutorials, webinars, or in-app research tools.
6. Customer support
Choose platforms with responsive 24/5 support via chat, phone, or email. Fast help can make a big difference when markets move quickly.
7. Mobile trading
If you trade on the go, check that the broker offers a secure and full-featured mobile app for iOS and Android with real-time data and trading alerts.
8. User feedback
Read verified reviews to understand real trading experiences. Consistent praise for reliability, execution speed, and transparency often signals a trusted broker.
What is commodities trading?
Commodities trading means buying and selling raw materials like gold, oil, wheat, or copper. Traders profit from price movements using CFDs, futures, or ETFs, while investors may hold commodity funds for diversification.
Commodities fall into two main types:
- Hard commodities: Metals, energy, and mined resources
- Soft commodities: Agricultural goods and livestock
Commodities can help hedge inflation and diversify portfolios, but prices are highly volatile and influenced by global supply, demand, and geopolitical factors.
Expert insight
UK trading analysts highlight liquidity, diversification, and inflation protection as key benefits. Experts from FCA-regulated brokers stress the importance of deep liquidity, transparent pricing, and disciplined risk management, especially when using leveraged products like CFDs or spread bets.
What are commodities?
Commodities are standardised natural goods traded globally and valued by supply and demand. Examples include:
- Energy: Crude oil, natural gas, heating oil
- Metals: Gold, silver, platinum, copper
- Agriculture: Wheat, corn, soybeans, coffee
These assets underpin the global economy and often act as leading indicators of inflation and growth trends.
Best commodities for beginners
New traders should start with liquid, well-known commodities that are easier to analyse and trade:
- Gold: Stable, widely traded, and viewed as a safe-haven asset
- Oil (Brent/WTI): High liquidity and clear links to global growth
- Silver: Moderate volatility, accessible through CFDs and ETFs
- Natural gas: Popular but more volatile, requiring cautious risk control
These assets help beginners build skills with lower complexity and reliable market data.
Commodity indices
Commodity indices track the collective performance of raw materials, offering a benchmark for sector trends or diversified exposure through ETFs.
Key examples include:
- Thomson Reuters/CoreCommodity CRB Index
- Bloomberg Commodity Index (BCOM)
- S&P GSCI (Goldman Sachs Commodity Index)
Direct vs indirect commodity exposure
- Direct exposure: Trade price movements through spot markets, CFDs, futures, or options.
- Indirect exposure: Invest via ETFs, mutual funds, or stocks of mining and energy firms.
Retail traders often prefer indirect exposure for lower volatility and easier diversification.
What drives commodity prices?
Commodity prices move due to global and local factors, including:
- Supply and demand: Shortages drive prices up, oversupply brings them down.
- US dollar strength: Most commodities are priced in USD; a weaker dollar usually lifts prices.
- Economic cycles: Demand rises during expansions and falls in recessions.
- Shocks: Geopolitical tensions, weather, or trade disruptions cause short-term spikes.
How to trade or invest in commodities
- Spot trading: Buy or sell physical commodities for immediate delivery.
- CFDs: Trade price movements without owning the asset.
- Spread betting: Tax-free speculation for UK traders (e.g., IG, Spreadex).
- Futures: Contracts to buy/sell at a fixed date and price.
- Options: Leverage exposure with limited downside.
- ETFs/Funds: Diversified, long-term exposure to commodity baskets.
Commodity derivatives
Futures, options, and CFDs derive value from the underlying commodity. They allow traders to hedge or speculate using leverage, which can magnify both gains and losses. Only trade through FCA-regulated brokers with segregated funds and clear risk disclosures.
Commodity ETFs and funds
Commodity ETFs provide low-cost, diversified exposure without managing futures contracts. Examples include:
- SPDR Gold Shares (GLD): Tracks gold prices
- iShares GSCI Commodity ETF: Follows a broad index of commodities
- Invesco DB Oil Fund: Tracks crude oil futures
ETFs are suitable for long-term investors and can be traded easily through UK brokers like eToro, Hargreaves Lansdown, or Interactive Brokers.
What is the best commodities trading platform for beginners?
eToro is the best commodities trading platform for beginners in the UK. It offers a simple interface, low minimum deposit ($50), and social trading tools that let users copy professional traders’ strategies.
The platform includes educational videos, tutorials, and a free demo account, helping new traders learn before risking real money. eToro also provides access to gold, oil, silver, and natural gas under full FCA regulation, ensuring fund protection and transparency.
Which commodities broker offers the most account types?
IG provides the widest range of account types for UK commodity traders, all under FCA regulation. Its flexibility suits beginners, active traders, and professionals alike.
- Spread betting: Tax-free trading for UK residents
- CFDs: Ideal for leveraged short-term trading
- DMA accounts: Direct access to market liquidity for advanced traders
- Investment accounts: Long-term exposure via ETFs and indices
This versatility makes IG the most adaptable broker for both retail and institutional commodity trading.
Which platform is best for commodity futures trading?
Interactive Brokers (IBKR) and IG are the top UK platforms for trading commodity futures.
- Interactive Brokers: Offers direct access to global exchanges like CME, ICE, and NYMEX, with professional-grade margining and commissions from $0.85 per contract. Ideal for institutional and high-volume traders seeking real futures contracts.
- IG: Provides synthetic futures exposure via CFDs and spread betting, offering an easier route for retail traders without exchange membership.
IBKR leads for true futures trading, while IG is best for regulated, accessible alternatives.
Which brokers offer commodity options?
The leading UK brokers for trading commodity options are Saxo Bank, Interactive Brokers, and IG.
- Saxo Bank: Offers options on gold, oil, and natural gas through SaxoTraderGO, featuring clear margin rules and competitive pricing.
- Interactive Brokers: Supports multi-leg options strategies on regulated exchanges, ideal for hedging or advanced speculation.
- IG: Provides synthetic options exposure via CFDs and turbo warrants, simplifying risk control for retail traders.
These platforms combine strong regulation with varying levels of complexity and market access, catering to both retail and professional traders.
Which broker is best for commodity CFDs?
The top UK brokers for commodity CFD trading are Plus500, XTB, and eToro.
- Plus500: Focuses exclusively on CFDs, offering a broad range of commodities, tight spreads, and zero commission fees.
- XTB: Provides 20+ commodities on its xStation 5 platform with advanced charting, fast execution, and strong margin controls.
- eToro: Combines CFD trading with social copy features, letting beginners follow experienced commodity traders.
Best for low-cost CFD trading: Plus500
Best for multi-asset flexibility: XTB
Which platform is best for commodity spread betting?
Spreadex is the best UK platform for commodity spread betting, offering spreads from 0.4 points on gold, FCA regulation, and tax-free profits under UK law.
IG is a close alternative, combining spread betting with advanced charting and in-depth market research.
Both brokers provide cost-efficient, regulated access to key energy, metal, and agricultural markets for UK traders.
Which broker is best for commodity ETFs?
For long-term investors, eToro and Hargreaves Lansdown are the top UK brokers for commodity ETFs.
- eToro: Offers zero-commission ETF trading, fractional investing, and access to major funds like SPDR Gold Shares (GLD) and iShares S&P GSCI Commodity ETF.
- Hargreaves Lansdown: Provides a wide ETF library, plus ISA and SIPP accounts for tax-efficient investing.
For active traders, IG and Interactive Brokers offer direct exchange access to both UK and US-listed ETFs with professional-grade execution.
Which online commodities broker has the best market access?
IG offers the widest market access of any UK commodities broker, with 35+ tradable commodities across metals, energy, and agriculture. Traders benefit from 24-hour market coverage, global exchange connectivity, and multiple account types including CFDs, spread betting, DMA, and ETFs.
Its integration with ProRealTime supports algorithmic and advanced chart-based trading, making it ideal for active traders.
For institutional traders, Interactive Brokers remains the global leader, providing direct access to thousands of futures, options, and swaps across international commodity markets.
Final thoughts
The best commodities trading platforms in the UK balance low fees, FCA regulation, and broad market access.
Beginners benefit most from eToro’s simplicity and education, while active traders may prefer XTB or IG for advanced tools and execution speed.
For institutional access, Interactive Brokers leads globally. Always trade responsibly, commodity prices are volatile, and capital is at risk.
FAQs
What is the best commodity trading app UK for beginners?
eToro is a popular commodity trading app in the UK that is well-suited for beginners. It offers a user-friendly interface, making it easy for beginners to navigate and execute trades. The app provides access to a wide range of commodities, allowing users to trade popular options such as gold, oil, and more. Additionally, eToro offers social trading features, enabling beginners to learn from and copy the trades of experienced traders. This can be beneficial for those starting in commodity trading, as they can gain insights and knowledge from successful traders.
Do UK traders pay Capital Gains Tax on commodities?
Yes. Profits made from trading commodities such as gold, oil, or agricultural futures may be subject to Capital Gains Tax (CGT). The current CGT allowance applies to total gains across all assets each tax year. The applicable tax rate depends on your income bracket, 10% for basic-rate taxpayers and 20% for higher-rate taxpayers. Traders must maintain detailed transaction records, including entry and exit prices, to calculate their liability accurately.
How does HMRC treat CFD vs. futures trading?
CFD and futures trading are treated differently under UK tax law. CFD profits are generally considered speculative and may fall under Income Tax rather than CGT, depending on trading frequency and intent. Futures contracts are typically classified as capital transactions and fall under CGT. HMRC assesses on a case-by-case basis, taking into account your trading volume, duration of positions, and whether trading constitutes your primary income.
Can you make money trading through a commodities broker?
Yes, but success depends on strategy discipline, market timing, and risk management. Commodities are volatile and often influenced by macroeconomic cycles, supply constraints, and geopolitical events. While professional traders exploit this volatility, the majority of retail traders lose money due to poor leverage control. Sustainable profitability requires a structured approach: limit risk per trade, use stop-losses, and focus on data-driven analysis rather than speculation.
Are commodities suitable for beginners?
Commodities can be challenging for beginners due to volatility and leverage exposure. However, starting with ETF-based commodities or micro-lot CFD contracts provides controlled risk and exposure to market fundamentals. Beginners should prioritise education, demo trading, and use risk tools such as guaranteed stop-loss orders before transitioning to live trades.
What are the main risks of commodity trading?
– Leverage Amplification: Small price swings can generate outsized losses.
– Market Volatility: Driven by unpredictable geopolitical or weather events.
– Liquidity Gaps: Some soft commodities have lower volume, causing slippage.
– Financing Costs: Overnight interest and roll-over fees reduce long-term profitability.
Mitigate these risks by limiting leverage, avoiding illiquid markets, and diversifying across assets
Do commodities offer inflation protection?
Yes. Commodities historically act as a hedge against inflation because their prices often rise alongside consumer goods costs. Precious metals like gold and silver maintain value when currencies weaken, while energy and agricultural commodities benefit from rising production costs. However, correlation varies by cycle and is not guaranteed over short periods.
Can I hold commodities in an ISA or SIPP?
Indirectly, yes. While physical commodities and leveraged derivatives cannot be held inside an ISA or SIPP, commodity ETFs or funds that track commodities can. Investors can use these vehicles for tax-efficient exposure to gold, oil, or multi-commodity baskets.
Can UK traders use spread betting for commodities?
Yes. Spread betting is popular in the UK because profits are exempt from Capital Gains and Income Tax when conducted as a hobby or secondary activity. It allows speculation on price movements without owning the asset. However, spread betting remains high-risk and suitable only for experienced traders who understand leverage mechanics.
What is margin in commodity trading?
Margin represents the deposit required to open and maintain a leveraged position. It is usually a small fraction of the total contract value, often 5–10%. Brokers calculate margin dynamically based on volatility and exposure. Failure to maintain margin levels triggers automatic position closure or margin calls.
How much capital do you need to start trading commodities?
Minimum requirements vary by broker and instrument. CFD brokers often accept deposits as low as £100–£250, while futures trading through professional platforms typically requires £5,000 or more to meet margin obligations. Starting small and scaling gradually is recommended to manage risk exposure effectively.
Do commodity brokers provide demo accounts?
Yes. Most FCA-regulated brokers, including IG, AvaTrade, and Saxo Markets, offer demo environments with simulated funds. These allow traders to practice execution, test strategies, and familiarise themselves with market behaviour before transitioning to live trading.
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