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Best Palladium Trading Brokers

Palladium is a rare metal part of the platinum group that has really taken off among traders. It is used in the production of a number of electronic products, and it is interesting to point out that automakers use more than 75% of all the palladium that is mined annually. The lustrous white material is used predominantly in catalytic converters and is extracted as a secondary product of operations that are predominantly focused on metals like nickel and platinum.

Palladium is used in several other manufacturing processes, including industrial processing and electronics. The lustrous white material can also be used in groundwater treatment, jewellery, dentistry, chemistry, and medicine.

Figures show that last year, South Africa was the world’s largest palladium producer, and it was followed by Russia, Canada, the US, and Zimbabwe. In 2021 alone, the average price of palladium was USD2,600 per ounce. Since 2016, the palladium’s price has seen a six-fold increase, thus lifting its price higher than the price of gold.

Over the past few years, the shortage of the precious metal has been driving prices to record, which also increased its attractiveness to traders.

How Palladium Trading Works for Traders and Brokers

How Palladium Trading WorksPalladium is one of the rarest precious metals on earth, and since the beginning of March 2022, its price has been hitting a record high. Over the past two decades, the precious metal has seen a dramatic increase in the trading volume, and focusing on palladium is a great way to diversify your portfolio. So, what are the different ways of investing in palladium?

Palladium Bars

Palladium BarsWithout a doubt, the most straightforward and intuitive way to invest in palladium is to buy bars. Some traders prefer to buy palladium bars, jewelry, or coins in the hope that their price will go up in the future and they will make a profit. Before they go for this approach of trading palladium, investors should consider several major drawbacks. First and foremost, traders should keep in mind that they need to find a place to keep the bars, which results in additional costs.

Buying and selling palladium bars will also incur a commission, and traders might also be required to pay for insurance, which adds to the extra costs. Thus, the logistical issues regarding the storage of the bars and the larger initial investment are things traders should consider carefully.

Palladium CFDs

Palladium CFDsContracts for difference or CFDs allow traders to speculate on the increasing and decreasing palladium prices. An essential thing to consider about palladium CFDs is that traders will not take ownership of the physical asset, which is the case with bars.

Opting for this way of trading palladium means that the two parties involved in the contract agree to exchange the difference in the opening and the closing price of the underlying asset. What sets palladium CFDs apart from futures is that the contracts do not have a termination date. This means that traders have the freedom to hold the position open for as long as they prefer.

Yet, what traders should bear in mind is that keeping the positions open overnight will result in swap fees being charged.

Palladium Stocks

Palladium StocksInvesting in palladium is possible also by buying shares of companies that operate in that industry. What traders should consider is that this approach does not give them direct exposure to the underlying asset. Investing in palladium stocks is a preferred option by traders because the initial investment they need to make will be smaller when compared to the investment they need to make when taking ownership of the physical commodity. Naturally, the investment they need to make will be based on the number of shares they wish to buy. Additionally, palladium shares offer better liquidity in comparison with palladium bars.

Palladium Futures

Palladium FuturesThere are a number of financial derivative products that make it possible for traders to speculate on the asset’s price without taking ownership of it. Futures contracts are one such option, and they represent an agreement between the buyer and the seller under the terms of which they will exchange the underlying asset at a specific time in the future and at a preset amount.

Palladium futures allow traders to speculate on the price of the special metal in both directions. The reason why traders might steer clear of palladium futures is that they are not suitable for long-term speculation because there is a limit on the amount of time they can hold the position.

Factors that Have an Impact on the Price of Palladium

Factors that Have an Impact on the Price of PalladiumThe shortage of palladium is not the only factor that has an impact on its price, and as we said earlier, the cost of palladium has increased enormously in the past few years. One of the key reasons for this increase is the tougher emission regulations that call for greater usage of the precious metal by the automobile industry. Other key factors that result in fluctuations in the price of the precious metal include:

  • Investment demand
  • Energy costs
  • Supply control
  • Chinese demand

The price of palladium is constantly changing also because, in Europe, there is a tendency for more and more people to switch from diesel-run vehicles to petrol-run ones. As for the catalytic converters of petrol-run cars and trucks, platinum is mainly used instead of palladium.

South Africa is the largest producer of palladium in the world, and over the past few years, the output levels of the precious metal have been seriously affected by increased fuel and construction costs there. Still, as it seems, the country has started to slow pace and now Russia is the one to take the lead.

Supply constraints might also have an effect on the price of palladium. As we explained earlier, palladium is a secondary product to nickel and platinum, and for this reason, increasing the extraction and output will not be that easy.

Palladium Trading Brokers

choosing a brokerKnowing how to trade palladium inside out is indeed essential, but finding a broker that offers premium-quality services is just as important. If they want to maximize their profit potential and enjoy a top-quality trading experience, traders should make sure that the services the broker offers will suit their trading needs. To achieve this, they should look into the available account types, how long do payments take, are there any extra fees, does the broker charge a commission, whether they can trade palladium when they are on the go, is there around-the-clock customer support, and others. These are ten of the leading brokers that offer palladium trading.

Related Topics


1. What factors have an impact on the price of palladium?

Owing to its scarcity, the price of palladium is very sensitive to the mining volume. The supply and demand are the main factors that cause the palladium price to increase and decrease. In addition to this, its price is also closely tied with the production of vehicles, as well as with the production of solar panels.

2. Which countries produce the most palladium?

Last year, South Africa was the biggest mine producer, and it was followed by Russia, Canada, the US, and Zimbabwe. In 2021 alone, the mine production of palladium in Russia reached 74 metric tonnes.

3. How can I trade palladium?

Trading palladium is possible through the physical commodity but also through EFTs, CDFs, options, and futures. The easiest way to trade palladium is to go for CFDs, mainly because traders are saved the inconvenience of buying and owning the physical commodity. In addition to this, CFDs allow traders to benefit from the upwards and downwards movements in the price of the precious metal.

4. What is palladium used for?

Palladium is an integral part of the production of catalytic converters because of its chemical properties. Several other industries also rely on the production of palladium, including dentistry and electronics. The precious metal is also used in water treatment, medicine, oil refining, photography, and polyester production.

5. What are the palladium trading hours?

The trading hours will vary depending on the trading instrument you want to use. When spot and futures markets are concerned, there is a wide variety of global exchanges that are accessible around the clock. The trading hours for stocks and EFTs will be based upon the trading hours of the local market, while over-the-counter derivatives will be determined by the broker.