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.
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
Palladium 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?
Without 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.
Contracts 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.
Investing 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.
There 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
The 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
Knowing 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.
- Min DepositNo minimum deposit amountFeesDeposits and withdrawals are fee-freeCommissions$2,25 per lotSpread
Leverage EU10:1Leverage non-EU100:1All financial products involve risk and you should ensure you understand the risk involved as certain financial products may not be suitable for everyone. Trading in margin foreign exchange and derivatives carries a high level of risk and you may incur a loss that is far greater than the amount you invested. Past performance of any product described on this website is not a reliable indication of future performance. Any information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs.
- Min spread 0.00
- Average spread 2.93
There are many different choices for brokers that offer palladium trading, and Fusion Markets indeed deserves consideration. While presenting its services, the broker adheres to several simple principles, including offering cutting-edge technology, dedicated customer support, and low prices.
There are plenty of causes for the broker’s growing popularity, and first and foremost, Fusion Markets is so preferred because its commission rate is 36% lower when compared to some of its closest competitors. The broker puts the satisfaction of its users first, and because of this, Fusion Markets has waived the funding-related fees. Not to mention that traders can start trading palladium or any other asset with as little as they prefer as there is no minimum account size.
In order to deliver a seamless trading experience, the broker has ensured that its users will access the world’s markets with ease and in no time at all. Fusion Markets gives its users a choice from MT4 and MT5 platforms that are accessible on the go and on their desktop devices.
Traders can decide between zero and classic accounts, and depending on their pick, they will benefit from spreads that start from 0.00 or 0.8 and different commissions. While the zero account is tailor-made for traders with more experience in palladium trading and trading other precious metals, the classic account is more suitable for traders who are now making their first steps.
Before they join the community of their broker of choice, traders should make sure that it is trustworthy, and in the case of Fusion Markets, it is regulated by the Vanuatu Financial Services Commission and the Australian Securities and Investment Commission.
- 2. eToroMin Deposit$10 - $10,000Fees
- $10 inactivity fee
- All withdrawal requests are subject to a $5 fee
Spread3 pips (0.0003)Leverage EU10:1Leverage non-EUN/ACFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
- 1% fee is charged when buying and selling crypto assets
Established in 2007, eToro is one of the best-known social investment networks accessible in dozens of jurisdictions. The broker’s mission is to make trading accessible anywhere and to anyone, which is undoubtedly the key to its success. Since its inception, the broker has significantly expanded its operations, and throughout the years, eToro’s portfolio has considerably expanded.
Today, the markets eToro users can go for include cryptocurrencies, indices, currencies, EFTs, stocks, and commodities. The variety of commodities is indeed on par, and traders can decide between palladium, platinum, silver, gold, aluminum, and copper, among others.
Back in 2021, the broker introduced eToro Money, which is an innovative financial service offering, thanks to which traders will benefit from no FX conversion fees and lightning-fast cash-outs. Additionally, they will be offered a Visa debit card and an app, thanks to which they can manage their traders with ease.
Depositing funds to eToro is possible in several quick and convenient ways, and traders can handle their payments using their credit or debit card, bank transfer, or digital wallets like Neteller, Skrill, and PayPal. Sofort and Klarna are also among the accepted funding options. As for withdrawals, traders should keep in mind that no matter the payment processor they will pick, a fee of $5 will be charged on each such transaction.
By joining the eToro community, traders will be given access to several intuitive and easy-to-use platforms that are equipped with various features like one-click trading, trailing stop loss, pro charts, offline trading, and others.
- 3. XMMin Deposit$5 for micro, standard, and zero accountsFeesThere are no deposit and withdrawal feesCommissionsNo commissionSpread10.01Leverage EU10:1Leverage non-EU100:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.03% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
XM is a globally renowned broker that has licenses in four jurisdictions and a user base of more than 5 million people. Boasting more than 1,000 trading instruments, over 30 industry awards, and 16 trading platforms, XM is a broker that has added palladium trading to the roster of options its users are presented with. The broker does not hone in on trading precious metals as its users can also go for trading stocks, Forex, shares, commodities, indices, and energies, among others. The available trading instruments are not the only thing traders should pay close attention to, as the available account types are worth considering too.
The broker claims that the client comes first, and for this reason, XM gives its users a choice of several account types. While trading palladium, traders can go for a standard, micro, or a zero account, and depending on their decision, they will benefit from a greater range of base currency options, different contract sizes, and spreads on all majors. Yet, with all three account types, the minimum deposit amount is $5.
One of the best things about XM is that traders will gain full access to all instruments even when they are out and about, thanks to the all-in-one app the broker offers. If traders are now making their first steps in palladium trading, they should take a look at the learning center, where they will find various webinars, tutorials, and videos.
- 4. PepperstoneMin Deposit$200FeesNo deposit and withdrawal feesCommissions
- No commission for standard accounts
- Commission is only charged on CFD razor accounts when trading Forex and equities
Leverage EU10:1Leverage non-EU100:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
- 11.37 minimum spread
- 17.31 average spread
Pepperstone is a broker that takes pride in the premium-quality services it has been offering to its users since 2010. The award-winning broker offers a plethora of free and secure funding methods, and traders can top up their accounts using Visa, Mastercard, and bank transfer, to name a few.
Pepperstone does not underperform in terms of trading opportunities, and the trading instruments its users can decide between exceed 700. As for the asset classes, traders can go for Forex trading, indices, cryptocurrencies, ETFs, and shares, among others. Trading precious metals, palladium included, is also among the range of options Pepperstone users have.
Creating a single account will give traders access to multiple trading platforms, including MT4, MT5, cTrader, and TradingView. While TradingView gives traders access to some advanced trading tools, cTrader stands out with its intuitiveness, opportunities for customization, and advanced order capabilities. Best of all, these powerful platforms are accessible whenever and wherever traders prefer as they are available on their computer, tablet, smartphone, or straight in the browser of their device.
Pepperstone offers fast execution times and shines when the quality of the customer support is concerned. The seals of approval issued by CySec, FCA, BAFIN, ASIC, DSFA and SCB should give traders the peace of mind that they can trade palladium in a safe environment.
- 5. FP MarketsMin Deposit$100 or the currency equivalent for all account typesFees
CommissionsZero commission per lot for standard accounts and $3 per side for raw accountsSpread
- No fees for standard accounts for all instruments
- A fee of AUD/CAD3,50 when trading Forex and metals for raw accounts
- Trading all other instruments is fee-free
Leverage EU10:1Leverage non-EU10:1Trade Responsibly: Derivative products are highly leveraged, carry a high level of risk and are not suitable for all investors. Features of our products including fees and charges are outlined in the relevant legal documents available on our website. The legal documents should be considered before entering into transactions with us.
- 11.37 minimum spread
- 17.31 average spread
With more than 15 years trading experience, FP Markets is a one-stop destination to trade shares, cryptocurrencies, commodities, Forex, indices, and metals, including palladium. Traders will be given a choice from over 10,000 markets over the above-mentioned instruments, and benefit from tight raw spreads and low commission that turn FP Markets into a worthwhile stop for seasoned traders and total novices.
The account types the broker offers are also designed with traders in mind, and FP Markets’ users can go for a standard or a raw account. No matter which account type they will settle on, traders will be given full access to all instruments the broker offers, benefit from maximum leverage of 500:1, and spread from 0.0 or 1.0 pips.
The platform options FP Markets offers include Iress, MT4, and MT5, and they are accessible on mobile and the web, thus giving traders the freedom to speculate on the price of palladium or any other precious metal they prefer whenever and wherever they prefer.
Becoming part of the FP Markets community means that traders will benefit from personal account managers and multilingual customer support that is available around the clock. To address their questions, traders should get in touch with the support hosts via email, over the phone, or through live chat.
- 6. Capital.comMin Deposit$20FeesNo fees for deposits, withdrawals, real-time quotes, dynamic charts, and indicators, among othersCommissionsNo commissionSpread0.0066Leverage EU10:1Leverage non-EUN/ACFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83.45% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Capital.com is all about offering top-notch trading services, no matter which of the 6,100 markets its users will go for. The broker offers everything from cryptocurrencies, currency pairs, and shares to indices, thus promising that traders will be fully satisfied with the offered services.
Obviously, the broker is looking to make trading simpler than ever, and the available platforms prove this beyond doubt. The features traders will benefit from can be easily described as industry-leading, and creating an account at Capital.com means that they can access more than 70 technical indicators, price alerts, client sentiment, and thousands of charts.
No matter the account type traders will settle on, they will get to benefit from the negative balance protection feature. Additionally, traders can protect what they earn using the stop-loss and take-profit orders.
Capital.com is a preferred palladium trading broker because most of the brokerage services traders can make use of are fee-free. The broker promises that there will not be hidden fees, and if there are any additional costs, they will be well aware of them in the beginning.
The broker caters to a multi-national customer base, and the variety of languages Capital.com loads in go to show this. Besides, the broker operates under seals of approval issued by the Cyprus Securities and Exchange Commission, Australian Securities and Investments Commission, Financial Conduct Authority, and the Financial Services Authority of Seychelles. Thus, while trading palladium, you can have the very confidence that the broker is reliable and trustworthy.
- 7. CMC MarketsMin DepositNo minimum deposit requirementFees
- A fee of 1% is charged on credit card deposits
- Debit card deposits have a fee of 0.6%
- There is an inactivity fee of £12
Spread34.90Leverage EU10:1Leverage non-EU100:1Contracts for difference (CFD) are leveraged products and carry a high level of risk to your capital as prices may move rapidly against you. It is possible to lose more than your initial investment and you may be required to make further payments. Countdowns carry a level of risk to your capital as you could lose all of your investment. Invest only what you can afford to lose. CFDs and Countdowns involve the risk of substantial loss and trading such products may not be suitable for all clients therefore ensure you understand the risks and seek independent advice.
- The commission for most countries is 10%
- Hong Kong - 18%
- For the US, it is 2 cents per unit
There is a lot to consider while looking for the best palladium trading broker, and CMC Markets is positively among the worthwhile options. The goal the broker has set is to provide its users with the ultimate trading experience, and this is why CMC Markets is always looking for ways to enhance the way in which their users execute their deals.
Judging from the range of markets CMC Markets offers, the broker undoubtedly wants to stay relevant, and its users will find everything from indices, Forex, shares, EFTs, treasuries, and commodities. The commodities alone exceed 100, and palladium, along with silver and gold, are on the list of options traders can pick from, thus allowing them to develop a diverse portfolio.
Traders can also make the most out of CMC Markets’ dynamic charting capability. Some of the features traders can use in order to support their chart analysis include more than 80 indicators, drawing tools, a pattern recognition feature, and several chart types.
The broker is undoubtedly dedicated to keeping its services up to date, and allows its users to trade no matter the time or the place. The trading apps run smoothly on Android and iOS-run devices and ensure that you will enter and exit positions in the blink of an eye.
While trading palladium at CMC Markets, traders can control the execution of their trades with ease. If they want to place their trades without any ado, CMC Markets users can take advantage of the 1-Click Trading feature.
- 8. Global PrimeMin DepositThere is no minimum starting balance, but the broker advises transferring at least $200 to your accountFeesNo deposit and withdrawal feesCommissionsNo commission or $7 per round turn lot depending on the account typeSpread0.8Leverage EU10:1Leverage non-EU100:1Trading derivatives is high risk. Losses can exceed your initial investment. You should only trade with money you can afford to lose. Any Information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs. Past performance of any product described on this website is not a reliable indication of future performance.
Global Prime is an Australian-owned and operated broker that specializes in CFDs and forex trading. The broker was established in 2010, and today, it is preferred by traders who are focused on bonds, shares, indices, cryptocurrencies, Forex, and commodities. The choice of commodities is indeed vast, and in addition to palladium, traders can also go for gold, silver, and platinum, among others. If they are not sure whether they want to start trading with Global Prime, traders should consider using the demo account first in order to wrap their heads around the services the broker offers.
TradingView and MT4 are without a doubt among the most popular trading platforms, and along with TraderEvolution, they are all accessible by Global Prime users. If you are a more seasoned trader, TraderEvolution will probably fulfill your requirements. It offers the same execution and pricing as MT4 but also offers Volume analysis, DoM trading, and Level 2 pricing. What traders should consider, however, is that MetaTrader4 is accessible on a greater range of devices in comparison with TraderEvolution.
As for the available tools, Global Prime has introduced a PIP calculator, VPS, and Copy Trading. The latter might grab the attention of traders as it allows them to subscribe and copy other trading systems straight into their Global Prime accounts.
Global Prime holds licenses from the Australian Financial Services, VFSC, and the FSA and undergoes regular independent external audits to guarantee the compliance of all arrangements.
- 9. IGMin Deposit
FeesDeposits via PayPal, credit, and debit cards are fee-freeCommissionsZero commission of US shares and £3 per trade on UK sharesSpread1.2Leverage EU10:1Leverage non-EU100:1The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how this product works, and whether you can afford to take the high risk of losing your money.
- No minimum deposit requirement for bank transfers
- $300 for deposits executed through debit or credit cards
Established in 1973, IG is a broker with a long-stand presence on the online trading scene, which proves that it has been doing things right. The broker provides its users with access to thousands of opportunities across a wide variety of markets. Commodities trading, palladium included, Forex, indices, shares, options, and cryptocurrencies are only some of the markets IG allows trading on.
If trading commodities is what you prefer, you can pick and choose from more than 30 options, keep up to date with the market movements, thanks to the in-platform feed, and protect their capital by attaching a guaranteed stop to cap the risk.
The award-winning trading platforms IG offers are fast and efficient, and depending on your trading goals, you can go for MetaTrader4, ProRealTime, and L2 Dealer. The latter allows traders to retain their anonymity, compare market sentiment, and select from a wide range of order types. ProRealTime, on the other hand, offers automated CFD trading, gives them access to more than 1009 indicators, and allows them to filter options based on their expiration date and strike price, among others.
Those who take trading more seriously can benefit from the premium services IG offers. Premium account holders will get access to advanced educational seminars, benefit from a personal account manager, and priority access to new products and platform launches. Additionally, premium clients will be offered premium customer care and exclusive pricing and insights.
IG is a trusted and regulated palladium trading broker, and it is authorized by the Bermuda Monetary Authority.
- 10. IC MarketsMin Deposit$200Fees
- No inactivity fee
- No deposit and withdrawal fees
SpreadMin spread 86.00 for raw accounts and 1.00 for standard accountsLeverage EU10:1Leverage non-EU500:1Risk Warning: Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
- No commission for standard accounts
- $7 per standard lot round turn
Regulated by the Financial Services Authority of Seychelles, IC Markets is a multi-language broker that offers everything traders might insist on for their trading experience.
The broker promises that if traders join its community, they will be offered live customer support, tight spreads, and competitive trading conditions. Besides, the broker has teamed up with some of the best-known trading technology companies, and as a result, its users can benefit from tools like ladder trading, in-built spread monitoring, and automated close of trades with custom order templates, among others.
IC Markets caters to those who are interested in trading commodities as they are given a choice from 22 options. The broker gives traders easy and quick exposure to some of the world’s most popular commodities, including precious metals like palladium, platinum, silver, and gold, to name a few. Still, IC Markets does not only cater to users who are interested in trading palladium as options like Forex trading, indices, bonds, and stocks are also within reach, no matter the device traders prefer to use.
IC Markets has used three of the most preferred trading platforms, including MetaTrader4, MetaTrader5, and cTrader in order to give its users direct access to its Raw Pricing. If they want to get a feel for the broker before they add funds to their accounts and dive into palladium trading, traders might wish to open a demo account first.