Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Best Platinum Trading Brokers

Platinum is a white-colored and heavy precious metal that was officially discovered in the 18th century, and today, manufacturers prominently use it in jewellery, catalytic converters, and electronics. The metal is also used in dentistry, electrodes, laboratory equipment, and thermometers, among others. As with the other precious metals, platinum is also highly unreactive, and when compared to gold, it finds more applications because it is more durable and denser.

The silver-white metal is among the most valuable elements and among the highest-priced metals on a global scale. In 2021, the total mine production of platinum amounted to approximately 180 metric tons, while figures show that the global demand for the malleable, dense, silver-white metal was 7.38 million ounces. Just for comparison, back in 2021, the worldwide gold production was 3,000 metric tons, while the estimated global production of silver was 24,000 metric tons.

Much like the price of palladium, the price of platinum goes up during periods of economic growth and stability and starts moving in the opposite direction during periods of uncertainty. Figures show that following the global financial crisis of 2007-2008, metals like silver, gold, and palladium perform much better than platinum.

Platinum is categorized as a precious metal and not a base metal, and these days, an increasing number of people go for the opportunity to invest in it. Considering how appealing platinum trading has become for traders, it makes sense that the number of brokers that offer these opportunities is heavily on the rise.

How Platinum Trading Works for Traders and Brokers

Platinum TradingThere are a few ways in which you can trade platinum, and there are several factors you should consider when picking the instrument you will start using.

  1. Platinum coins and bars – purchasing platinum coins and bars is one of the ways to go when traders want to invest in the precious metal directly. Yet, what might be an issue for some traders is that the coins and bars should be stored and insured.
  2. ETFs – exchange-traded funds or ETFs give traders the chance to get exposure to precious metals like platinum, silver, gold, and palladium. Just like with stocks, the financial instruments will be traded as shares. Some of the most popular platinum ETFs include physical platinum shares, spot physical platinum and palladium trust, and physical precious metals basket shares.
  3. Platinum mining companies shares – the publicly traded companies that have exposure to platinum prices are thick on the ground, and, best of all, most such companies have exposure to other precious metals as well.
  4. Platinum futuresfutures contracts are the derivatives with the longest history when compared to all other products that are traded on the exchange. When going for this opportunity, traders buy contracts that are tied to the platinum price using leverage. Traders should keep in mind that when investing in the futures market, they will be required to actively maintain their positions, and if prices go downwards, they will need to put up an extra margin. Future contracts have an expiration date, and each month, traders should decide if they want to accept delivery or roll them forward.
  5. Platinum options – they also have a date of expiry, but the requirement platinum options should meet in order to be successful is to reach a predetermined price prior to the termination date. Therefore, traders will only benefit from options, provided that they accurately determine the direction and size of the movement of the platinum price.
  6. Platinum CFDs – When CFDs are concerned, traders attempt to make the most out of the up and down price movements while taking advantage of the added leverage such contracts offer. What traders should keep in mind about CFDs is that, ultimately, their financial exposure might be greater than the amount they have deposited.

    Going for platinum CFDs means that traders can get exposure to the precious metal price without managing options or futures or physically buying the asset and then looking for a place where they can keep them securely.

Causes for the Price Movement of Platinum

Price MovementTrading platinum is becoming an appealing option for more and more traders, and for a reason. The precious metal offers relative stability, and like palladium, it is used as a tracker of global growth. Additionally, it responds to trends in the automobile industry and is used as a hedge against downturns. Last but not least, it is a low-risk entry.

As is the case with other products in the commodity world, the supply and demand are among the determining factors that influence the platinum price. The precious metal is mined mainly in Africa, and political and economic changes or disrupted supply changes can affect supply, which will result in an increase in the price.

As we explained earlier, car manufacturing and jewelry are the two more main industries that rely on platinum. Therefore, the trading price of platinum will move up or down if major changes occur in any of these industries.

Platinum Trading Brokers

choosing a brokerOne of the most challenging decisions traders need to make is picking the right online broker. With a long and constantly growing list of platinum trading brokers, finding a reliable platform that offers competitive pricing and the features traders are looking for might be somewhat daunting. To make things easier for traders, we dug deep to assess all the important features premium-quality platinum trading platforms should have.

Related Topics


1. Why should I trade platinum?

Platinum is a metal traders should not steer clear of because it is sure to work well for them when they want to diversify their portfolio. The precious metal gives them more opportunities when they prefer to take aim at that market in particular, and because of its multiuse, it can serve as an indicator of the health of several industries. Thus, using the trends in these industries can help traders get a better idea about the pricing of the precious metal and therefore, make better trades.

2. What is the best strategy for trading platinum?

There are several things to consider when discussing the best strategy for trades, and some of these include the type of contracts they will use, their available capital, as well as what their tolerance to risk is. Thus, if you are a newcomer to platinum trading and you have a rather limited capital, you might be more comfortable with day trading CFDs. If you are a seasoned trader and you have more capital, you might be more comfortable with using the strategy that is based on the spread between platinum and other precious metals.

3. What are the most common uses of platinum?

Platinum is a metal with multi use metal, and because of its unique characteristics, it is employed in the automobile industry and jewelry. Additionally, the precious metal is used for the production of a number of industrial products. The investment demand should not be overlooked either.

4. How much should I invest to start trading platinum?

There is no single best amount traders can add to their accounts before they start trading platinum. Traders should make sure that they are comfortable with the amount they will invest in the market. With this in mind, speculating on the price of platinum with money they do not actually have is one of the most common mistakes traders tend to make, and for this reason, it is a must to ensure that your risk management approach is good enough.

5. Where and how can I trade platinum?

Traders can enjoy the freedom to trade platinum wherever they are, as the platforms brokers offer are normally available on Android and iOS-run tablets and smartphones and on Mac and Windows OS for desktop devices. Most brokers also offer web apps that make it all the more convenient to trade platinum.