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Best Copper Trading Brokers

Copper is a metal that is considered to be the first metal ever used by humans. It has played a key role in technology for thousands of years, and today, it has a number of essential uses throughout the industry because of its strong electrical properties and heat conductivity. Copper has also been used to print coins, and for many of its applications, it is utilized in its pure form.

Copper is also known as an economic bellwether, and it is a metal with a diverse utility. Because of its wide range of use, the soft malleable metal is often seen as an indicator of global economic health. For the most part, the demand for copper is derived from electronic products, transportation equipment, and building constructions.

It finds applications in multiple industries like agriculture and construction, and today, it is one of the most commonly traded commodities. The metal is highly correlated to economic growth, and traders prefer to go for it when hedgers and speculators are looking to protect themselves from future price movements or when they want to get the most out of them.

How Copper Trading Works for Traders and Brokers

Copper TradingJust like silver and gold, copper is also highly ductile and conducts electricity, but unlike them, it is not that rare. Because of the metal’s wide range of global uses, copper is traded in big volumes, which might work to the advantage of traders since the chart patterns will be cleaner, while spreads will be reduced.

One of the main reasons why traders prefer to hone in on trading copper is that it is widely accessible. Copper is traded with various intents, and portfolio diversification is among the main reasons why traders settle on it. The metal can be traded on multiple platforms, and speculators are offered a choice of options, futures, and spreads. Gaining exposure to copper is also possible through EFTs and CFDs.

Depending on their preferences, traders can invest in copper directly and indirectly, and if the first route is what they prefer, they should decide between coins, bullion bars, and futures.

While picking the copper trading platform they will use, traders should check if the broker charges a commission and whether there are inactivity, deposit, and withdrawal fees. The margin on each trade is yet another thing to consider when being on the lookout for a copper trading platform.

Investing in Copper Directly
  1. Bullion bars – as is the case with gold and silver, investing in copper is also possible by purchasing bullion bars. Yet, while investing in copper in this way, traders should not forget about the additional costs they will face
  2. Copper coins – purchasing copper coins is far more convenient than buying bullion bars, and not to mention that if they prefer, traders can get smaller sizes
  3. Copper futures – another way to get exposure to copper is to go for futures. When they go for copper futures, traders will be required to buy or sell a preset amount of copper at a specific future date. Traders will be offered the chance to roll out the position longer than the predetermined date or terminate it prior to it
Investing in Copper Indirectly
  1. Copper stocks – buying stocks of copper mining companies is one of the options traders have when they want to get exposure to the metal as an equity investment. Naturally, the returns will vary greatly depending on the mines the company owns and the quality of the company itself
  2. Copper ETFs – another option traders have is to buy ETFs that might hold stocks of copper mining companies, copper futures, bullion, or a combination of these
  3. Copper options – just like futures, copper options also have an expiration date, but the difference lies in the fact that options are successful, provided that the asset’s price reaches a preset value prior to that future date
  4. Copper CFDs – CFDs are the way to go when traders do not want to own billions, coins, shares, options, or futures but want to speculate on the price of copper. The value of the contracts for difference or CFDs will decrease when the copper price decreases and will increase when the copper price increases

Why the Price of Copper Changes

Price of CopperIn order to better prepare your trades and increase your chances of predicting the direction in which prices might move, you should also invest some time into learning the factors that might move the price of copper.

To a large extent, the direction in which the copper price will move is determined by the demand from markets like India and China. In simple terms, the price of copper will increase during periods of economic growth because of the greater demand, and vice versa, it will decrease during economic downturns.

Supply problems might be yet another reason for changes in the direction in which copper prices move. For example, the prices might increase as a result of trade wars that lead to a decrease in the mining output and disruption of the supply chains.

The price of copper can also be influenced by alternative metals. When the copper price goes too high, some industries start looking for cheaper alternatives like aluminum, for example. Thus, the copper price drops as a result of the shrunk demand.

Copper Trading Brokers

choosing a brokerMaking sure that your broker of choice offers copper trading should not be the only indicator that it is a worthwhile option. Traders should also make sure that the platform offers innovative trading solutions, reliable trade execution, and competitive pricing, among others.

Related Topics


1. Why should I trade copper

There are many reasons why traders should consider trading copper, and portfolio diversification and the fact that it can serve as a safe haven are among the major causes for its popularity. What traders should bear in mind, however, is that copper is considered a barometer of the overall health of the world’s economy. Keep in mind that the market is highly volatile, and although traders will stand the chance to make large profits, they should not overlook the risk of seeing major losses too.

2. Can I trade copper on MetaTrader4

Yes, traders can go for copper trading on MT4 through CFDs. Thus, traders will only speculate on the increases and decreases of the asset’s price and will not get ownership of the physical metal.

3. Which instruments can be used to trade copper

There are several instruments you can use when trading copper, including spot markets, ETF,s stocks, futures contracts, spread betting, options, and CFDs. Investing in copper CFDs is what traders might prefer if they do not feel like paying for storage and when they want to have the chance to trade in both directions.

4. Can I trade copper when I am on the go

Most brokers that allow trading copper cater to all their users, including those that want to have the freedom to execute their trades no matter the time or the place. Universal trading platforms like MT4 and MT5 also offer mobile apps that facilitate copper trading anytime and anywhere.

5. What factors have an impact on the copper price

The increases and decreases of the copper price might be caused by supply disruptions, economic growth, oil supply, the US dollar, and metal substitution, to name a few.