| Updated: November 5, 2025Crude oil is widely regarded as one of the world’s key commodities, with many traders choosing to trade this non-renewable resource. Many brokerages give their clients the opportunity to trade CFDs on WTI crude oil, enabling traders to take long or short positions on the commodity’s fluctuating price. If you would like to learn more about WTI crude oil trading and the brokerages that offer the best trading conditions, we suggest you keep reading.
Our team of expert traders tested several regulated and reliable WTI crude oil brokers and compiled a list of the best. Each platform offering CFDs on WTI crude oil received a quality score based on multiple factors, including its Trustpilot rating, regulatory status, fees and commissions, available trading platforms, customer service and more.
Plus500 USThis content applies only to Plus500 US and clients from the United States. Trading futures involves the risk of loss.- eToro61% of retail investor accounts lose money
- Fusion Markets74-89% of retail's CFD accounts lose money
- FP Markets73.85% of retail investor accounts lose money
- Global Prime74-89% of retail CFD accounts lose money
- Pepperstone75.5% of retail investor accounts lose money
WTI oil trading brokers
There are many things to consider when choosing an online WTI oil trading brokerage, and the regulation under which the broker falls should be the first aspect you examine. The time required to process deposits and withdrawals, along with the working hours and contact channels of the customer support department, are also important. The broker’s online presence, reputation, pricing and trading terms are, without doubt, further features that should tip the scale for or against the broker.
TRADE NOWREAD REVIEWRegulatorsPlatformsMetaTrader 4, MetaTrader 5, Proprietary Mobile, Proprietary Web1. PepperstoneMin Deposit$0FeesNo deposit and withdrawal feesDeposit Methods
Commissionsno commissions charged on CFD commodity tradesSpreadEUR/USD: AVG 1.1 pips, GBP/USD: AVG 1.3 pips, USDJPY: AVG 1.3 pipsWithdrawal Methods Leverage EU1:500 (CySEC | Pro Account), 1:30 (CySEC | Retail Account), 1:30 (FCA | Retail Account)Leverage non-EU1:500 (SCB | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (DFSA | Retail Account), 1:200 (SCB | Retail Account)InstrumentsCommodities CFDs, Crypto CFDs, Energy CFDs, Forex CFDs, Indices CFDs, Metals CFDs, Stock CFDsCFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.1% 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.Founded in 2010 by a team of seasoned and enthusiastic traders, Pepperstone is now among the most popular brokers for trading WTI oil. Pepperstone offers more than 180 trading instruments across currency indices, equities, cryptocurrencies, commodities, and currency pairs, among others. Those who choose to trade commodities with Pepperstone will benefit from top-tier liquidity, competitive spreads, fast execution, and no dealing-desk intervention.
As a Pepperstone user, you will be able to trade on the world’s markets no matter the time or place by using reliable platforms such as TradingView, MetaTrader 4, MetaTrader 5, or cTrader. Depending on the platform they choose, traders gain access to advanced trading tools, customization options, flexible order types, automated trading, analysis tools, advanced pending orders, a built-in economic calendar, and pre-installed indicators, to name a few.
Opening a Pepperstone account is fast and easy, and to better serve its clients the broker allows them to choose between a Standard or Razor account. To keep every client satisfied, Pepperstone permits hedging, scalping, expert advisors, and news trading, and offers a minimum trading size of 0.01 lots, regardless of the account type chosen.
Pepperstone provides a range of deposit and withdrawal methods as well as a large number of account base currencies, which is crucial considering the broker’s diverse user base.
Pepperstone is widely regarded as a safe and reliable broker because it is licensed by the Cyprus Securities and Exchange Commission, the Financial Conduct Authority, and the Australian Securities and Investments Commission. These licenses ensure that client funds are segregated, encryption is used for security, and retail clients are entitled to negative balance protection.
- TRADE NOWREAD REVIEWRegulatorsCySEC (Cyprus, # 371/18), FSAS (Seychelles, # SD130), FSCA (South Africa, # 50926), SCB (Bahamas), ASIC (Australia, # 286354), FSCM (Mauritius, # GB21026264)PlatformscTrader, IRESS, MetaTrader 4, MetaTrader 5, TradingView2. FP MarketsMin Deposit$50 (AU$100)Fees
- No deposit fees
- Fees of 1% is charged on withdrawals executed through Skrill and NetellerzFees of 1% is charged on withdrawals executed through Skrill and Neteller
Deposit Methods Commissionszero commission on commodity CFDsSpreadEUR/USD: AVG 1.2 pips, GBP/USD: AVG 1.4 pips, USDJPY: AVG 1.5 pipsWithdrawal Methods Leverage EU1:500 (CySEC | Pro Account), 1:30 (CySEC | Retail Account)Leverage non-EU1:30 (ASIC | Retail Account), 1:500 (FSAS | Retail Account)InstrumentsCommodities CFDs, Crypto CFDs, Energy CFDs, Forex CFDs, Indices CFDs, Metals CFDs, Stock CFDsCFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.73% 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.FP Markets is a trusted CFD and forex broker that is favored for the range of trading accounts it offers, consistently tight spreads, and the variety of more than 10,000 tradable instruments its users can choose from. The broker has more than 15 years of trading experience, which is a sure sign that its services meet industry standards.
FP Markets users can select from several powerful platform options, including Iress, MetaTrader 4, and MetaTrader 5. Trading on the go is also an option thanks to web-based accessibility and dedicated mobile apps. When opening an account with FP Markets, traders benefit from technical indicators and charts, news, an economic calendar, and automated open and close positions, among other features.
Using MT4 and MT5 allows traders to access more than 60 currency pairs, indices from global exchanges, and a wide range of commodities. Metals, soft commodities, and energies such as WTI oil are available. The all-new trading app gives traders instant access to all their favorite products through a single account.
As an FP Markets user, you can choose a Standard or Raw account and fund it easily and quickly using bank transfer, Mastercard, Visa, Neteller, Skrill, Perfect Money, broker-to-broker transfer, or one of the accepted cryptocurrencies.
Traders can get in touch with the multilingual customer support team around the clock via email, live chat, or phone.
- TRADE NOWREAD REVIEWRegulatorsCONSOB (Italy, # 211), FCA (United Kingdom, # 434413), SCB (Bahamas, # 199667 B), CMVM (Portugal, # 433), FSCM (Mauritius, # GB24203277), CVM (Brazil, # 43050.917/0001-03)PlatformsMetaTrader 4, MetaTrader 5, Proprietary Web, TradingView3. ActivTradesMin Deposit$0Fees
- 0.5% currency conversion fee
- £9 for bank transfers in GBP (SCB and FSC entities only)
- A $10 inactivity fee after 50 weeks
Deposit Methods CommissionsNo commissionSpreadEUR/USD: AVG 0.5 pips, GBP/USD: AVG 0.8 pips, USDJPY: AVG 0.5 pipsWithdrawal Methods Leverage EU1:10Leverage non-EU1:400 (CMVM | Pro Account), 1:30 (CMVM | Retail Account), 1:1000 (FSC), 1:200 (SCB)InstrumentsBonds CFDs, Commodities CFDs, Crypto CFDs, ETF CFDs, Forex CFDs, Indices CFDs, Share CFDsCFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82% 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.ActivTrades offers optimal trading conditions for over 20 commodity markets, including CFDs based on the Light Crude Oil spot and futures prices. The broker facilitates seamless trading with razor-sharp execution and tight target spreads of 0.03 points for this market. Position sizes range from 0.01 to 30 lots.
ActivTrades offers flexible leverage up to 1:100 through its Bahamas-regulated entity and up to 1:200 via its Mauritius division. Retail clients from Europe and the UK can access maximum leverage of 1:10 for all commodity markets except gold, where the ratio doubles to 1:20.
The broker offers negative balance protection to both retail and professional traders, in contrast to the majority of trading brands, which exclude professional clients from this safeguard. In addition, individual investor compensation of up to one million per claim is available if the broker becomes insolvent.
In addition to the MetaTrader platform suite, ActivTrades allows clients to place orders through a highly intuitive proprietary platform that is compatible with most desktop and mobile devices. Customers from select countries can open an Islamic account to engage in swap-free trading. Both standard and swap-free accounts enable commission-free commodity trading.
Clients can fund their live accounts using several payment methods, including Visa, Mastercard, Skrill, Neteller, Bitcoin, Ethereum, and bank transfers.
- TRADE NOWREAD REVIEWRegulatorsCIRO (Canada), CySEC (Cyprus, # 347/17), FRSA (United Arab Emirates, # 190018), FFAJ (Japan, # 1574), FSCA (South Africa, # 45984), FSRA (Canada, # 190018), ISA (Israel, # 514666577), JFSA (Japan, # 1662), ASIC (Australia, # 406684), BVIFSC (Virgin Islands, British, # SIBA/L/13/1049), CBI (Ireland, # C53877)PlatformsAvaOptions, DupliTrade, AvaSocial, MetaTrader 4, MetaTrader 5, AvaTadeGO, Proprietary Web, ZuluTrade4. AvaTradeMin Deposit$100Fees
- $10 inactivity fee (after 2 consecutive months of inactivity)
- $100 administration fee
- No deposit and withdrawal fees
Deposit Methods CommissionsNo commissionSpreadEUR/USD: AVG 0.8 pips, GBP/USD: AVG 1.2 pips, USDJPY: AVG 1.3 pipsWithdrawal Methods Leverage EU- 1:10 retail leverage
- 1:100 leverage pro
Leverage non-EU1:400 (Pro Account), 1:30 (Standard Account)InstrumentsBonds CFDs, Commodities CFDs, Crypto CFDs, Crypto Options, Energy CFDs, ETF CFDs, Forex CFDs, Forex Options, Index Options, Indices CFDs, Metals CFDs, Share CFDs, Stock CFDs, Stock Options, US Stock OptionsCFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 57% 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.AvaTrade is an international broker established in 2006. Its market selection includes bonds, treasuries, stocks, ETFs, commodities, indices, and cryptocurrencies. If you are interested in energy markets, you can trade crude oil, Brent, natural gas, heating oil, or even gasoline.
The available platforms include MetaTrader 4, MetaTrader 5, and the broker’s proprietary platforms, AvaTradeGo and AvaOptions. If you want to copy or mirror the trades of more seasoned traders, you can do so through one of the automated trading platforms such as DupliTrade, ZuluTrade, or AvaSocial.
The range of payment solutions is also worth mentioning. Regardless of the payment processor you choose, the minimum deposit is $100. However, the broker recommends depositing between $1,000 and $2,000 to take full advantage of the products offered. Whichever payment method you use to fund or withdraw from your account, you will not incur any additional fees.
The broker guarantees transparent services and assures clients that their funds are safe at all times. AvaProtect is a risk-management tool that can reimburse traders for losing trades.
- TRADE NOWREAD REVIEWRegulatorsCFTC (United States, # 0516820), CySEC (Cyprus, # 120/10), DFSA (United Arab Emirates, # F003484), FSCA (South Africa, # 49976), IFSC (Belize, # 000261/27), FSCM (Mauritius, # GB23202700)PlatformsMetaTrader 4, MetaTrader 4 MultiTerminal, MetaTrader 5, Proprietary Mobile, Proprietary Web5. XM GroupMin Deposit$5Fees
- A monthly fee of $5 is charged on dormant accounts following 90 days of inactivity
- $15 for cashouts of amounts of less than $200 requested via bank transfer
Deposit Methods Commissions- A commission is charged when zero account holders open or close a position
- The commission is capped at $7 for every 100,000 units
SpreadEUR/USD: AVG 1.2 pips, GBP/USD: AVG 1.5 pips, USDJPY: AVG 1.4 pipsWithdrawal Methods Leverage EU1:30 (CySEC | Retail Account)Leverage non-EU1:1000 (IFSC | Retail Account)InstrumentsBonds CFDs, Commodities CFDs, Crypto CFDs, Energy CFDs, ETF CFDs, Forex CFDs, Forex Options, Index Options, Indices CFDs, Metals CFDs, Share CFDs, Stock CFDs, Stock Options, US Stock OptionsCFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.99% 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 large and well-established investment firm with a long-standing presence in the online trading scene spanning more than a decade. Its community has expanded significantly over the years, and today XM’s client base exceeds 15 million.
At the outset of their membership, traders should decide whether micro, standard, or zero accounts best fulfill their needs. MT4 and MT5 are the only platforms supported by XM, and traders can instantly access the global markets they are interested in on their computer, tablet, or smartphone. Even while on the go, you will still have access to more than 1,400 instruments and can manage your account with ease. Additionally, traders will have access to more than 90 indicators and advanced charting tools.
XM users will be well served when it comes to trading instruments, and their choices span forex, shares, commodities, equity indices, and energies, including WTI oil. Trading crude with XM offers several benefits, and traders can go long or short. Depending on where one resides, the leverage available will be capped at 1:10 or 1:200. Additionally, there is no overnight financing on oil CFDs.
XM users will also benefit from instant funding and zero fees on deposits and withdrawals. The broker allows its clients to choose from more than 25 payment processors, so they can select the deposit and withdrawal method they are most comfortable with.
- TRADE NOWREAD REVIEWRegulatorsCySEC (Cyprus, # 079/07), FSAS (Seychelles, # SD056), FSCA (South Africa, # 54018), ASIC (Australia, # 246566), BVIFSC (Virgin Islands, British, # SIBA/L/20/1135)PlatformsMetaTrader 4, MetaTrader 5, Proprietary Mobile, Proprietary Web, TradingView6. easyMarketsMin Deposit$25 ($2,000 for MT4 Premium, $10,000 for MT4 VIP)FeesNo account feesDeposit Methods CommissionsNo commissionSpreadEUR/USD: MIN 0.8 pips, EUR/USD: AVG 0.7 pips, GBP/USD: MIN 1.4 pips, GBP/USD: AVG 0.9 pips, USDJPY: MIN 1.5 pips, USDJPY: AVG 2 pipsWithdrawal Methods Leverage EU1:500 (CySEC | Pro Account), 1:30 (CySEC | Retail Account)Leverage non-EU1:500 (ASIC | Pro Account), 1:30 (ASIC | Retail Account), 1:2000 (FSAS | Retail Account)InstrumentsCommodities CFDs, Crypto CFDs, Forex CFDs, Forex Forwards, Forex Options, Indices CFDs, Metal Options, Metals CFDs, Share CFDsCFDs and Options are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs and Options work and whether you can afford to take the high risk of losing your money. Please refer to broker's full Risk Disclaimer. Easy Forex Trading Ltd (CySEC – License Number 079/07).
Founded in 2001, easyMarkets is one of the best brokers for trading commodities and for accessing cryptocurrency, indices, forex, shares, and metals markets. Commodity traders can choose from a diverse range of products, including WTI Oil, natural gas, Brent oil, heating oil, wheat, corn, coffee, and sugar, among others.
One of the top perks of easyMarkets is the freedom to trade anywhere, as its intuitive trading platform is accessible on desktop and mobile devices. The platform also features innovative trading tools, and while trading WTI oil, you can take advantage of the dealCancellation feature, which allows you to cancel a losing trade for a small fee.
The broker offers a wide range of account base currencies, including EUR, CAD, USD, NOK, SEK, GBP, PLN, NZD, and CHF, among others. There is no shortage of funding options either, and traders can fund their accounts and withdraw their balances using Mastercard, Maestro, Visa, AstroPay, online banking, Perfect Money, WebMoney, Skrill, Neteller, bank wire, or other options.
Without a doubt, easyMarkets aims to provide its users with an excellent trading experience; to achieve this, it offers Standard, VIP, and Premium accounts. Each account type is designed to meet the individual needs of traders; regardless of the option they choose, they will benefit from fixed spreads, no account fees, no commissions, a personal account manager, and a minimum transaction size of 0.01.
- 7. GO MarketsMin Deposit$0Fees
- No deposit and withdrawal fees
- No inactivity fees
Deposit Methods Commissions$2.50 commission per side (FX standard lot)SpreadEUR/USD: AVG 1 pips, GBP/USD: AVG 1.3 pips, USDJPY: AVG 1 pipsWithdrawal Methods Leverage EU1:30 (CySEC)Leverage non-EU1:30 (ASIC), 1:500 (FSAS), 1:500 (FSCM), 1:500 (SVGFSA)InstrumentsCommodities CFDs, Crypto CFDs, ETFs, Forex CFDs, Indices CFDs, Metals CFDs, Share CFDs, TreasuriesCFDs are complex instruments with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money trading CFDs with GO Markets Ltd. Consider whether you understand how CFDs work and whether you can afford to risk losing your money.Launched in 2006, GO Markets is a CFD provider dedicated to elevating its clients’ experience. The multi-award-winning broker caters to traders of all levels, and to meet their needs it has introduced Standard and GO Plus accounts. Its pricing structures and features are designed to satisfy traders with diverse preferences, offering tight or ultra-low spreads, multiple base currency options, and commission-free trading, among other benefits.
GO Markets offers dozens of tradable instruments, allowing users to choose from forex, indices, commodities, metals, shares, treasuries, crypto, and ETFs. Furthermore, trading on leading markets is commission-free, as costs are incorporated into the spread.
GO Markets users can trade WTI oil on the powerful MT4 and MT5 platforms and benefit from low trading costs. Moreover, trading can be conducted on both desktop and mobile devices.
The broker seeks to deliver innovation in all areas and provide its users with the most enjoyable trading experience. GO Markets offers secure transactions through flexible account funding, premium-quality trading platforms, and fast execution speeds. Traders also benefit from fee-free deposits and withdrawals, regardless of whether they choose Neteller, Skrill, bank transfer, Dotpay, or bank cards as their payment method of choice.
GO Markets also performs well in terms of integrity and compliance, as the broker is authorized and regulated by CySEC.
- TRADE NOWREAD REVIEWRegulatorsCMA (Saudi Arabia, # 155), CySEC (Cyprus, # 183/12), DFSA (United Arab Emirates, # F004885), FCA (United Kingdom, # 801701), FSAS (Seychelles, # SD015), SVGFSA (Saint Vincent and the Grenadines, # 22747 IBC 2015), FSCA (South Africa, # 46632), FSCM (Mauritius, # C110008214)PlatformsMetaTrader 4, MetaTrader 5, Proprietary Mobile8. HFMMin Deposit$0 (Zero, Premium, Cent), $5,000 (Premium Pro), €100 (Pro)FeesNo deposit feesDeposit Methods CommissionsNo commissionSpreadEUR/USD: AVG 1.3 pips, GBP/USD: AVG 2 pips, USDJPY: AVG 2.4 pipsWithdrawal Methods Leverage EU1:400 (FCA | Premium Pro), 1:30 (FCA | Retail Account)Leverage non-EU1:2000 (FSCA), 1:2000 (SVGFSA)InstrumentsCommodities CFDs, Crypto CFDs, Forex CFDs, Indices CFDs, Metals CFDs, Share CFDsCFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with HF Markets (Europe) Ltd. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the broker’s full Risk Disclosure.
Established in 2010, HF Markets has earned more than 60 industry awards, including accolades for its CFD trading conditions and commodity trading offerings. HF Markets is among the top destinations for traders interested in WTI crude, and, in addition to energy trading, the broker also facilitates the trading of CFDs on forex, metals, indices, stocks, bonds, ETFs, and physical stocks, among others.
The wide variety of trading instruments HF Markets’ users can choose from is not the only reason it is a worthwhile WTI oil trading broker. Finding an account type that meets your specific trading requirements is a breeze, as there are several options to choose from, including Premium, Zero Spread, and Premium Pro.
The security of traders’ funds is a top priority for the broker, and HF Markets has also ensured that payments to and from the trading platform will take no time at all. Funding options such as Mastercard, Visa, Maestro, wire transfer, Neteller, and Skrill are available.
HF Markets users can trade with added confidence, thanks to the various trading tools they can use. You can take your WTI oil trading experience to the next level with a wide range of trading calculators, economic calendars, Autochartist tools, and exclusive analysis features. The platform also identifies the biggest currency moves, offers breaking news, and gauges market sentiment.
- TRADE NOWREAD REVIEWRegulatorsCNMV (Spain, # 40), CySEC (Cyprus, # 169/12), DFSA (United Arab Emirates, # F006316), FCA (United Kingdom, # 522157), FSCA (South Africa, # 49970), FSAN (Norway, # FT00118162), IFSC (Belize, # 000302/11), KNF (Poland), BaFin (Germany)PlatformsxStation 59. XTBMin Deposit$250Fees
- $30 for withdrawals of under $50
- €10 when requesting the withdrawal of amounts smaller than €100
- No fees for payments via credit and debit cards
- 1% and 2% of the deposited amount for payments executed through
- Neteller and Skrill (Int.), fee of up to 0.85% on digital wallet withdrawals (EU)
Deposit Methods CommissionsNo commission charged on commodity CFD tradesSpreadEUR/USD: AVG 0.9 pips, GBP/USD: AVG 2.2 pips, USDJPY: AVG 1.4 pipsWithdrawal Methods Leverage EU1:200 (CySEC | Pro Account), 1:30 (CySEC | Retail Account), 1:30 (FCA | Retail Account)Leverage non-EU1:500 (IFSC | Retail Account)InstrumentsCommodities CFDs, Crypto CFDs, Energy CFDs, ETF CFDs, Forex CFDs, Indices CFDs, Metals CFDs, Share CFDs, Stock CFDs, US Stock CFDsCFDs 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.XTB is a forex and CFD broker with more than 20 years of experience in the financial markets. The company is dedicated to constantly expanding its foothold, and today XTB has offices in more than 13 countries around the globe.
The brand offers award-winning trading solutions, and its users have the opportunity to trade on over 2,000 of the world’s markets. Forex, indices, cryptocurrencies, stock CFDs, ETFs, and commodities are all accessible to XTB users. WTI is included among the available commodity products, and clients also benefit from commission-free trades.
XTB customers can choose between standard and swap-free account types and benefit from leverage of up to 1:67 on WTI crude oil trades (for non-EU traders), automated trading, free account setup and management, and full access to the complete list of instruments. In Europe, the highest leverage allowed for crude oil is 1:10.
Depositing funds into your XTB trading account is quick and easy and can be done through digital wallets such as Neteller, Skrill, Paysafecard, and SafetyPay; with Maestro-, Mastercard-, or Visa-branded credit cards; or via bank transfer. Deposits are processed instantly, whereas withdrawals may take up to one business day to clear. Protecting your funds is the broker’s utmost priority, and for this reason, XTB keeps the funds of all its users in segregated bank accounts.
Traders can rest assured of the broker’s reliability and trustworthiness because XTB is regulated by some of the most prominent supervisory authorities in the world, including the FCA, KNF, CySEC, and FSC, among others.
- 10. IC MarketsMin Deposit$200Fees
- No deposit and withdrawal fees
- No inactivity fee
Deposit Methods CommissionsNo commission on commodity CFD tradesSpreadEUR/USD: AVG 0.82 pips, GBP/USD: AVG 1.03 pips, USDJPY: AVG 0.94 pipsWithdrawal Methods Leverage EU1:500 (CySEC | Pro Account), 1:30 (CySEC | Retail Account)Leverage non-EU1:1000 (FSAS | Retail Account)InstrumentsCommodities CFDs, Crypto CFDs, Energy CFDs, Forex CFDs, Indices CFDs, Metals CFDs, Stock CFDsCFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.42% 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.IC Markets is a broker suitable for seasoned traders and total novices alike. Its catalog features CFDs across various markets, and its range of platforms makes trading possible both at home and on the go. The Australia-based broker welcomed its first users in 2006, and today it is a preferred platform for traders interested in bonds, cryptocurrencies, forex, indices, stocks, futures, and commodities.
Traders will be pleased with the assortment of commodities the broker offers, and IC Markets caters to users who are particularly interested in precious metals, soft commodities, and energies, including WTI oil. The broker allows its users to trade energy instruments on their MT4, MT5, and cTrader platforms, regardless of the account type they choose.
Whether traders choose the Standard or Raw account type, they will enjoy excellent trading conditions. The leverage available to users can go as high as 1:500 (non-EU), but customers from Europe can trade WTI crude oil with leverage of up to 1:10. IC Markets clients can also benefit from one-click trading and Islamic accounts, and they have the freedom to use the trading style they prefer.
The broker is regulated by several authorities around the globe, including the Financial Services Authority of Seychelles, CySEC, and the SCB. If traders require specialist assistance or have any questions regarding their accounts, they can contact the customer service team around the clock via email, phone, or the contact form.
Also known as Texas light sweet or West Texas Intermediate (WTI), US crude oil is undoubtedly one of the most valuable commodities to trade. It is sourced primarily from the Permian Basin in Texas and is then refined in the Gulf of Mexico and the Midwest.
Along with Dubai Crude and Brent, WTI is one of the standard benchmarks for oil pricing, meaning that buyers and sellers of crude oil use its price as a reference. Additionally, it is the primary commodity on the New York Mercantile Exchange, the world’s largest physical commodity futures exchange.
How WTI oil trading works for traders and brokers
WTI is a high-quality oil that is easily refined and preferred by traders because of the strong trends observed over recent years. As a result, both long-term timing strategies and short-term swing trades can generate handsome returns.
Understanding the unique characteristics of WTI oil trading is essential if traders are to make the most of the large price swings. Before entering the oil market, you should take time to learn about the different ways to trade WTI oil. Traders can choose between exchange-traded products such as ETFs and ETNs, options, futures or spot oil. Each carries a specific degree of risk, and traders must remember that they are dealing with one of the most volatile commodities.
- Spot oil – if you have deep pockets and facilities in which to store oil barrels, buying WTI oil on the crude market may be worth considering. In spot oil markets, settlement takes place almost instantly, meaning that the transactions are short-term and represent the price of a barrel you could buy or sell at that specific moment. Thus, spot prices indicate how much the commodity is worth right now. Importantly, these markets have no expiry date, so traders are not required to roll positions over.
- Oil futures – futures prices show how much oil will cost when the contract’s expiration date arrives. When trading oil futures, traders agree that a preset amount of oil will be exchanged at a specific price on a certain future date. Some futures contracts require physical delivery of the commodity at a preset delivery point. Futures contracts are popular among market participants because they do not need to own the commodity they trade. Although traders are still obliged to fulfil the contract, this is achieved through cash settlement. Companies, meanwhile, use futures to lock in an advantageous price for the commodity.
- Oil options – options provide another way to buy or sell oil and, much like futures, allow you to trade the commodity on a preset date at a set price. Unlike futures, however, options on WTI crude oil do not oblige traders to fulfil the order. Options are divided into two sub-categories: puts and calls. Traders buy a put when they believe the WTI oil price will fall and a call when they expect the price to rise.
- ETFs – the popularity of exchange-traded funds (ETFs) has skyrocketed in recent years, and they allow crude oil traders to gain exposure to the market by tracking its price. WTI crude oil ETFs can include the commodity itself as well as companies involved in the oil sector. In this way, traders can participate in the oil market without having to trade futures contracts.
- WTI oil CFDs – trading the prices of oil futures, options contracts or spot prices can also be done through contracts for difference (CFDs). Traders do not gain ownership of the asset, and they can choose whether to roll over futures positions when the contract matures. With such contracts, brokerage clients can leverage their positions, allowing them to open trades for just a fraction of their actual cost. However, leverage is a double-edged sword: although it can lead to larger profits, it can also result in elevated risk.
Why WTI oil price increases and decreases
Global output and economic prosperity are the two main factors that affect the supply and demand of oil. Consequently, during periods of rising demand and declining production, traders bid the price higher, whereas they begin selling oil markets during periods of oversupply and sluggish demand.
When the economy thrives, demand also rises in industries such as pharmaceuticals, manufacturing, energy and transport, as they require greater supplies. Thus, the price of WTI oil will rise if demand exceeds supply. Conversely, WTI oil prices will decrease during periods of economic decline.
The push for alternative energy resources is another factor that can move the price of the commodity. As more companies turn to resources such as hydroelectric, wind and solar energy, demand for oil might decrease considerably. The influence of the Organization of the Petroleum Exporting Countries (OPEC) and oil storage levels should also be considered when discussing WTI oil price movements.