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Best Commodity Trading Brokers

Written by Miro Nikolov
Miro Nikolov is the co-founder of TradingPedia.com and BestBrokers.com. His mission is to help people make profitable investments by giving them access to educational resources and analytics tools.
, | Updated: November 5, 2025

The commodities asset class is popular among the global trading community, as the prices of goods and raw materials can be volatile, creating opportunities to profit by going long or short. Our team of expert traders tested several regulated and trustworthy commodity trading brokers and compiled a top list of the best among them. Each commodity broker received a quality score based on several factors, including its Trustpilot rating, regulation, fees and commissions, available trading platforms, customer service, and more.

  1. Plus500 US
    Rating: 4
    This content applies only to Plus500 US and clients from the United States. Trading futures involves the risk of loss.
  2. eToro
    Rating: 4.2
    61% of retail investor accounts lose money
  3. Fusion Markets
    Rating: 4.8
    74-89% of retail's CFD accounts lose money
  4. FP Markets
    Rating: 4.9
    73.85% of retail investor accounts lose money
  5. Global Prime
    Rating: 4.7
    74-89% of retail CFD accounts lose money
  6. Pepperstone
    Rating: 4.4
    75.5% of retail investor accounts lose money

Commodities are naturally occurring goods or materials that play a key role in many aspects of people’s daily lives and power the world economy. Because of their constantly changing prices, commodities offer unique opportunities for traders, but gaining the necessary knowledge to make a profit does not happen overnight.

Traders often turn to the commodities market when they want to diversify their portfolios beyond traditional securities, adding different asset classes to achieve this.

It is worth mentioning, however, that trading commodities may carry more risk than trading conventional assets such as stocks and bonds, because numerous factors influence supply and demand. Human-made and natural disasters, epidemics, and weather patterns are just some of the uncertainties that can affect the market.

In the past, commodities were mainly traded by seasoned professionals because gaining exposure to the market required considerable time, expertise, and capital. Today, the market is far more sophisticated, and there are many more opportunities to participate. The list of tradable commodities is much longer, and exchanges are scattered across the globe and operate around the clock.

How commodity trading works for traders and brokers

How Commodities Trading WorksCommodities fall into four main categories: livestock, energy, metals and agricultural products. Unlike bonds and stocks, which exist only as financial contracts, commodities are physical raw materials that are bought, sold and traded in markets. In simple terms, when trading commodities, traders attempt to make the most of supply and demand trends.

Commodities play a significant role in daily life and can be classified by their purpose or grouped as hard and soft. Hard commodities are natural resources that must be mined or extracted, and these include oil, copper, natural gas and gold. Soft commodities are grown and harvested; examples include sugar, wheat, coffee, corn and cocoa, among others.

Investing in commodities is possible in multiple ways, and ETFs, futures contracts, options and CFDs are among the choices available when you want to access the market. Before you take up commodities trading, ensure that you fully understand how your chosen broker makes money. Brokers typically charge a commission or spread for executing an order. Depending on the broker, traders might also incur deposit, withdrawal and inactivity fees, among others.
  1. Commodity trading often involves exchanging assets via futures contracts. The value of a futures contract is derived from the price of the underlying physical commodity, and by buying or selling these contracts traders speculate on that price at a specified point in the future. If traders believe that the price of their chosen commodity will fall, they go short (sell futures). When they expect prices to rise, they go long (buy futures).
  2. Many traders who wish to enter the market prefer to do so through the shares of companies related to their chosen commodity. These might be mining companies, refineries, drilling companies or smelters, among others. Traders often pick commodity stocks over futures because they are less susceptible to large price swings. Another advantage of investing in stocks is that information about a company’s financial situation is typically readily available. However, traders should remember that stock prices are also influenced by factors unrelated to the commodity itself.
  3. When buying physical commodities, traders take possession of the asset itself. Unlike futures, physical purchases result in receiving jewellery, coins or bars, depending on the chosen commodity. Traders should bear in mind the considerably higher transaction costs associated with this way of gaining market exposure.
  4. Commodity ETFs and ETNs – exchange-traded funds and notes can also be based on commodities and pool money from investors into a larger portfolio. With a relatively small outlay, traders can track the price of a single commodity or even a basket of commodities. These instruments are undoubtedly low-cost, and the investment required is considerably smaller than building a comparable portfolio on your own. However, traders should remember that such products might not always perfectly track the price of the underlying commodity.
  5. Trading commodities with contracts for difference – trading commodities via CFDs is another efficient way to gain exposure to the market. Many modern-day commodity investors prefer CFDs because the higher leverage allows them to control larger positions with less capital. Despite the increased profit potential, traders should remember that the potential losses rise proportionally. Contracts for difference are derivative products that enable traders to speculate on the price of a commodity without taking physical ownership.
  6. Commodity pools and managed futures have a lot in common with mutual funds, but they are private funds that invest in commodities. Unlike mutual funds, commodity pools and managed futures are not publicly traded. Although the potential profit can be attractive, traders should not overlook the higher management costs.

Why commodity prices change

Why Commodities Prices ChangeThe commodities market is highly volatile, so traders should continually adjust their strategies. Many traders turn to this market when seeking new opportunities, yet they often overlook the factors that drive commodity prices.

Several factors contribute to the volatility of the commodities market, and, as mentioned, supply and demand are foremost. Economic growth, government policies, geopolitical events and currency movements can also influence commodity prices.

Weather patterns play a decisive role in determining commodity prices, particularly for soft commodities. Storage and transportation costs also influence pricing.

Commodity trading brokers

Commodity Trading Brokers

Today, the sheer variety of commodity trading brokers can make it challenging for traders to distinguish worthwhile platforms from the rest. We have therefore compiled a list of the features to consider when choosing a commodity trading platform.

Variety of tradable instruments

First, traders can gauge a broker’s quality by the variety of commodities it offers. When reviewing brokers’ commodity CFD portfolios, traders may encounter separate categories for metals, energy resources and soft commodities, allowing them to benefit from price fluctuations without owning the underlying assets.

Gold and silver, for example, are commonly traded in pairs with currencies such as EUR, USD and AUD. Depending on their classification as retail or professional, traders will use different leverage and will be charged accordingly.

Regulation

Additionally, traders should ensure that they are dealing with an authorised company that follows all operational guidelines and is rigorous in protecting its users.

Traders are advised to open accounts with properly regulated commodity brokers so that they can benefit from these protections and trade in a fair and secure environment. Depending on the jurisdiction, commodity brokers can be licensed by several financial regulators.

The US commodity market is regulated by the Commodity Futures Trading Commission. The Australian Securities and Investments Commission (ASIC) is the financial regulator responsible for overseeing all trading activities in Australia. In the United Kingdom, the Financial Conduct Authority is another prominent regulator.

Pricing structure

Commodity brokers structure their fees differently: some charge commissions, while others profit from the spread. Some companies have completely waived commissions, whereas others offer both commission-free and commission-based accounts.

Leverage and margin

Many brokers offer leveraged trading in financial instruments such as commodities, forex and indices. Depending on the jurisdiction, leverage is capped at specific ratios across the different asset classes. In the commodities market, the leverage limit for non-professional traders in the EU is set at 1:10 for commodities other than gold, as per ESMA‘s regulations.

While leverage allows traders to control larger positions with less capital, margin is the initial investment required to open a leveraged position.

Trading platforms

MetaTrader 4, MetaTrader 5, cTrader and TradingView are among the most popular trading platforms supported by the majority of commodity brokers. In addition, some brokerage companies offer proprietary platforms.

Supported deposit and withdrawal options, customer care, and educational resources are also features that deserve close attention.

Related topics

FAQ

1. What items are considered a commodity?

There are several ways to classify commodities, and the most common categorization divides them into agriculture, metals, and energy. Agricultural commodities include cotton, sugar, cocoa, wheat, corn, rice, and others. Metal commodities include silver, copper, and gold, while energy commodities include natural gas and crude oil.

2. How can I start trading commodities?

Before they start trading commodities, traders should ensure they have found a reliable and trustworthy broker. The trading account they create will serve as the marketplace for the commodities they choose. Before diving into commodity trading, take the time to set your goals and develop a thorough understanding of the market's intricacies. Of course, traders should also select a commodity trading option that matches their risk appetite and experience level.

3. Should I trade commodities?

Most traders turn to commodities to ensure that their allocation of funds is broadened. In this way, the likelihood of unwanted risk is significantly reduced, and traders' portfolios become far more balanced. Compared with other investment categories, commodities are much cheaper. Lastly, commodities serve as a hedge against inflation because, during periods of high inflation, commodity markets tend to flourish.

4. What drives commodity prices?

Supply and demand are the primary forces that drive commodity prices. Prices rise when demand increases, while they tend to fall when supply is excessive. Supply and demand, in turn, can be influenced by numerous factors, including the state of the global economy, commodity substitution, the strength of the U.S. dollar, and growth in emerging markets such as China, among others.

5. What are the risks of trading commodities?

It goes without saying that trading commodities involves risks, just like any other form of investing or trading. First, traders should be aware of the risks associated with price fluctuations. Although market volatility can create attractive trading opportunities, traders must keep in mind that these price changes can also pose significant risks. Leverage is another factor to consider when trading commodities; while this tool can amplify gains, it can also magnify losses.