Known also as Texas light sweet or West Texas Intermediate (WTI), US crude oil is without a doubt among 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 benchmarks when it comes to oil pricing, which is to say that buyers and sellers of crude oil use its price as a reference. Additionally, it is the primary commodity of the New York Mercantile Exchange which is 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 is preferred by traders because of the strong trends that are observed over the past few years. Thanks to them, long-term timing strategies and short-term swing trades can produce some handsome returns.
Learning the unique characteristics of WTI oil trading is a must in order to ensure that traders will be able to make the most out of the large swings in its price. Before you start playing the oil market, you should take your time to learn more about the different ways in which WTI oil trading is possible. It is up to traders to decide whether they prefer to go for exchange-traded products like ETF and ETN, options, futures, or spot oil. Each of these options goes with a certain degree of risk, and traders should keep in mind that they will deal with one of the most volatile commodities.
- Oil spots – if you have deep pockets and facilities where you can keep oil barrels, then buying WTI oil on the crude market is what you should consider. With spot oil markets, the settlement takes place almost instantly, which is to say that the transactions are short-term ones, and they represent the price of a barrel you would have bought or sold at a specific time. Thus, spot prices indicate how much it is worth right now. An important thing to keep in mind is that these commodity markets have no expiry date, meaning that traders are not required to roll positions over.
- Oil futures – futures prices will go to show how much oil will cost when the contract’s expiration date comes. When they go for oil futures, traders give their consent that a preset amount of oil will be exchanged at a specific date. It is important to note that there are futures contracts that require the transfer of the commodity at a pre-set delivery point. Futures contracts are so preferred by traders because they do not need to actually get a delivery of the commodity. Even though traders are still required to fulfill the contract, this is achieved through a cash settlement. Companies, on the other hand, use futures when they are looking to make the most out of an advantageous price of the commodity.
- Oil options – oil options are yet another way to buy oil, and much like futures, you will have the freedom to buy or sell the commodity on a preset date and at a set price. Options are further divided into two sub-categories, and they can be puts or calls. Traders will buy a put when they think the WTI oil price will fall and go for a call when they think the price will increase.
- ETFs – the popularity of exchange-traded funds has skyrocketed in recent years, and thanks to them, traders will get exposure to the market by keeping tabs on its price as a commodity.
- WTI Oil CFDs – trading on the prices of oil futures, options contracts, or oil’s spot prices can also be done through contracts for difference or CFDs. This time, traders will not be required to take delivery of the asset, and it is up to them to decide if they want to roll over their futures positions when the contract matures. With such contracts, traders will have the opportunity to leverage their position, meaning that they will be allowed to open it for just a fraction of its actual cost. Yet, leverage can be a double-edged sword, and although it can make for larger profits, it also makes for elevated risk.
Why WTI Oil Price Increases and Decreases
The worldwide output and global economic prosperity are the two main factors that have an impact on the supply and demand of oil. Thus, during periods when there is a rise in demand and decline in production, traders will bid the price higher and in reverse, traders will start selling oil markets during periods of oversupply and sluggish demand.
Additionally, during periods when the economy thrives, an increase in the demand will also be observed as industries like pharmaceuticals, manufacturing, energy, and transport will need greater supplies. Thus, the price of WTI oil will go up if the demand exceeds supply. The WTI oil price will decrease during periods of economic decline.
The push for alternative energy resources is yet another factor that can move the price of the commodity. Since more and more companies turn to resources like hydroelectric, wind, and solar, the demand for oil might considerably decrease. The influence of OPEC and oil storage should also be considered when discussing the WTI oil price movements.
WTI Oil Trading Brokers
There are lots of things to be considered while being on the lookout for an online WTI oil trading brokerage, and the regulation the broker falls under is what you should look into in the first place. How long it takes for deposits and withdrawals to be processed, along with the working hours and contact venues of the customer support department, are also among the things to look into. The broker’s presence on the online scene, its reputation, the pricing, and the trading terms are without a doubt among the features that should tip the scale against or in favor of the broker.
- 1. AvaTradeMin Deposit$100Fees
- $50 inactivity fee
- $100 administration fee
- No deposit and withdrawal fees
- 0.03 spread
- 0.02 pro spread
Leverage non-EU100:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% 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.
- 10:1 retail leverage
- 100:1 leverage pro
AvaTrade is an international and regulated broker that was established in 2006. There are many reasons why you might pick AvaTrade as your broker, and many traders prefer to stick to it because of the variety of platforms for CFDs and Forex the broker has introduced. Bonds, treasuries, stocks, EFTs, commodities, indices, and cryptocurrencies are all accessible to AvaTrade users. If energies are what they are interested in, they will have the chance to trade crude oil, Brent oil, natural gas, heating oil, or opt for gasoline trading.
The platforms the broker puts forward include MetaTrader4, MetaTrader5, its proprietary platforms AvaTradeGo, and AvaOptions. If you want to copy or mirror the trades of more seasoned traders, you can do so using one of the automated trading platforms like DupliTrade, ZuluTrade, or AvaSocial.
The choice of payment solutions is also worth mentioning, and no matter the payment processor traders will select, the least amount they can deposit is $100. What they should consider, however, is that the broker advises depositing at least $1,000 or $2,000 in order for traders to make the most out of the products offered. No matter which payment processor traders will pick to add or take their funds from the balance of their account, they will not face extra fees.
The broker ensures that the offered services are transparent and the funds of its clients will be safe at all times. AvaProtect is a risk management tool traders might be interested in because, thanks to it, they can get their money back for losing trades.
- 2. XM GroupMin Deposit$5Fees
- A monthly fee of $5 is charged on dormant accounts
- No deposit and withdrawal fees, except for cashouts of amounts of less than $200 requested via bank transfer
Spread0.03Leverage EU10:1Leverage non-EU100:1Risk Warning: Forex and CFD trading involves a significant risk to your invested capital. Please read and ensure you fully understand our Risk Disclosure.
- A commission is charged when zero account holders open or close a position
- The commission runs to $7 for every $100,000 transaction
XM is a large and well-established investment firm with a long-standing presence on the online trading scene that spans more than a decade. Its community has significantly expanded throughout the years, and today, XM’s clients are more than 5,000, which is a good barometer of the quality of the services the broker offers.
At the outset of their membership, traders should decide whether micro, standard, or zero accounts fulfill their requirements. MT4 and MT5 are the only platforms that connect to the brokerage service of XM, and traders can access the global markets they are interested in instantly on their computer, tablet, or smartphone. While being on the go, you will still gain access to more than 1,000 available instruments and manage your account like a charm. Additionally, traders will be presented with more than 90 indicators and advanced charts.
XM users will be well-served in terms of trading instruments, and their choice ranges from Forex, shares, commodities, equity indices, and energies, including WTI oil. Trading oil with XM goes with a number of benefits, and traders will be allowed to go long or short, depending on the direction in which the market moves and trade on a margin as low as $5. 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 users to pick from more than 25 payment processors, thus promising that they will find the deposit and withdrawal method they are most comfortable with.
- 3. easyMarketsMin Deposit$25, $2,000, or $10,000 depending on the account type and the chosen trading platformFeesNo account feesCommissionsNo commissionSpread3 pipsLeverage EU10:1Leverage non-EU100:1Trade Responsibly: CFDs and Options are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% 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 our full Risk Disclaimer. Easy Forex Trading Ltd (CySEC – License Number 079/07).
Founded in 2001, easyMarkets is one of the best brokers to trade commodities with but also to access the cryptocurrencies, indices, Forex, shares, and metals markets. There are plenty of reasons why traders might pick the broker to trade commodities as they will have a choice 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 best things about easyMarkets is that traders will have the freedom to trade anywhere as the intuitive trading platform is accessible on desktop and handheld devices, thus ensuring that traders will be able to pick their commodity and start trading whenever they feel like it. The platform is not short of innovative trading tools, and while trading WTI oil, you can take advantage of the dealCancellation feature that allows you to give up on a losing trade in exchange for a small fee.
The broker gives its users a choice of 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 load their accounts with funds and withdraw their winnings using Mastercard, Maestro, Visa, AstroPay, their online banking, Perfect Money, WebMoney, Skrill, Neteller, or bank wire, among others.
Without a doubt, easyMarkets is looking to provide its users with a complete trading experience, and to achieve this offers standard, VIP, and premium accounts. Each account type is developed to meet the individual needs of traders, but no matter which of these options they will pick, they will benefit from fixed spreads, no account fees, no commission, a personal account manager, and a minimum transaction size from 0.01.
- 4. FP MarketsMin Deposit$100 minimum deposit amount for standard and raw accountsFees
- No deposit fees
- Fees of 1% and 2% are charged on withdrawals executed through Skrill and Neteller
- A fee between 0.5% and 7.25% is charged when withdrawing funds using the other payment processors
Spread0.03Leverage EU10:1Leverage non-EU100:1Trade 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.
- A commission, which starts from 0.08% is charged when trading equity CFDs
- A commission is charged also when trading Forex and international futures
FP Markets is a trusted CFDs and Forex broker that is preferred because of the range of trading accounts it offers, the consistently tight spreads, and the variety of more than 10,000 tradable instruments its users can select from. The broker has more than 15 years of trading experience, which is a sure sign that its services are up to standard.
FP Markets users can select from several powerful platform options like Ires, MetaTrader4, and MetaTrader5, and the best thing is that they can take their trades wherever they go, thanks to the web-based accessibility options and the dedicated apps. As they open an account with FP Markets, traders will benefit from technical indicators and charts, news, economic calendar, and auto open and close positions, among others.
Using MT4 and MT5 means that traders will access over 60 currency pairs, indices from global exchanges, and a wide range of metals, and commodities. Traders can take their pick from a wide range of commodities such as agricultural, metals, and energy, WTI oil included. The all-new trading app gives traders instant access to all their favorite products through a single account.
As an FP Markets user, you will be allowed to go for a standard or raw account and then fund it easily and quickly using bank transfer, Mastercard, Visa, Neteller, Skrill, Perfect Money, PayTrust, or through one of the accepted cryptocurrencies.
Traders can get in touch with the multilingual client service team of FP Markets around the clock via email, live chat, or phone.
- 5. PepperstoneMin Deposit$200 or the equivalent of this amount in another currencyFeesNo deposit and withdrawal feesCommissions
- $0.04 (0.08 round turn) per 0.01 lots for MT5 and MT4 Razor accounts
- $6 USD round-trip for cTrader
Leverage EU10:1Leverage non-EU10:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81.18% 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.
- Minimum spread 2
- Average spread 2.3
Founded in 2010 by a team of seasoned and enthusiastic traders, Pepperstone is now one of the most chosen WTI oil trading brokers. Pepperstone offers over 180 trading instruments across currency indices, equities, cryptocurrencies, commodities, energy, and currency pairs, among others. Those who decide to start trading 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 the place using reliable platforms like TradingView, MetaTrader4, MetaTrader5, or cTrader. Depending on their pick, traders will gain access to advanced trading tools, opportunities for customization, 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 opt for a standard or razor account. The broker is perfectly aware that every trader is different, and to keep every client satisfied, Pepperstone allows hedging, scalping, expert advising, news trading, and offers a minimum 0.01 lots trading size, no matter the account type they will settle on.
Pepperstone provides a slew of deposit and withdrawal methods and a great number of account base currencies, which is of crucial importance, considering the user base the broker targets.
There is a good reason why Pepperstone is considered a safe and reliable broker as it has licenses from the Cyprus Securities and Exchange Commission, the Financial Conduct Authority, and the Australian Securities and Investments Commission.
- 6. GO MarketsMin Deposit$200Fees
CommissionsNo commissionSpread3.5 pointsLeverage EU10:1Leverage non-EU50:1Trading derivatives and leveraged products carries a high level of risk, including the risk of losing substantially more than your initial investment. It is not suitable for everyone. Before making any decisions in relation to a financial product, you should obtain and consider our Disclosure Statement (DS) available on our website and seek independent advice if necessary.
- No deposit and withdrawal fees
- No inactivity fees
Formed in 2006, GO Markets is a CFD provider dedicated to taking its clients’ experience to the next level. The multi-award-winning broker caters to traders at all levels, and to measure up to their requirements, has introduced standard and GO Plus accounts. Their pricing structures and features are sure to live up to the expectations of traders with different styles, and they will be offered tight or ultra-low spreads, multiple base currency options, and commission-free trades, among others.
GO Markets has put more than 60 tradable instruments under the same roof, and its users can pick and choose from Forex, indices, commodities, and metals, and the best thing is that they can trade on industry-leading markets without a commission. GO Markets users are given the opportunity to trade WTI oil on the powerful MT4 and MT5 platforms on their computers and portable devices and benefit from lower trading costs.
The broker is looking to deliver innovation in all areas and to provide its users with the most enjoyable trading experience, GO Markets offers secure transactions, premium-quality trading platforms, and fast execution speed. The broker offers flexible account funding, and traders will benefit from fee-free deposits and withdrawals, no matter if they will pick Neteller, Skrill, bank transfer, Dotpay, or Checkout.com as their payment processor of choice.
GO Markets does not underperform also in terms of integrity and compliance, and the broker is authorized and regulated by CySec.
- Min Deposit$50Fees
- Deposits are fee-free
- Withdrawals via international transfer incur a fee of $25
- A fee of 3% is charged on withdrawals via Skrill
- Free withdrawals for Australia local bank transfers
Spread$0.034Leverage EU10:1Leverage non-EU10:1RISK WARNING: Foreign exchange and derivatives trading carry a high level of risk. Before you decide to trade foreign exchange, we encourage you to consider your investment objectives, your risk tolerance and trading experience. It is possible to lose more than your initial investment, so do not invest money you cannot afford to lose. ACY Capital Australia Limited (VFSC: 012868) provides general advice that does not consider your objectives, financial situation or needs. The content of this website must not be construed as personal advice; please seek advice from an independent financial or tax advisor if you have any questions. The KIS and Terms are available upon request or registration. If there is any advice on this site, it is general advice only.
- No commission for standard accounts
- $3/lot per side for prozero accounts
- $2.5/lot per side for Bespoke
Acy Securities is one of the fastest developing multi-asset online trading providers in Australia, and it is now starting to gain worldwide recognition as well. The broker has a track record of servicing clients since 2011, and over the years, has been granted multiple awards for the high-quality services it offers.
With over 1,800 different trading instruments available across MT4 and MT5, Acy users are sure to find the market they are interested in as the broker keeps them covered if they prefer cryptocurrencies, ETFs, metals, CFDs, Forex, precious metals, and commodities. Oil is one of the most actively traded commodities on a global scale, and it comes as no surprise that Acy offers both WTI crude oil and Brent oil trading. If you choose to trade commodities with Acy Securities, you can start doing so on leverage, and benefit from low trading costs, fast execution, as well as tight spreads.
The broker is well-positioned to meet the requirements of traders at all levels, and the three account types are bound to fit the needs of seasoned traders and total novices. When they decide to get started with their trading experience with Acy Securities, traders need to select between a standard, bespoke, and ProZero account. If traders are not sure whether Acy Securities is the right broker for them, they can open a demo account and get a feel for the quality of the services.
Acy Securities is undoubtedly a client-focused broker, and its support team is on hand to assist with all queries traders might have via live chat, phone, or email.
- 8. HF MarketsMin Deposit$100 or $200, depending on the account typeFeesNo deposit feesCommissionsNo commissionSpread0.05Leverage EU10:1Leverage non-EU50:1Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71.24% 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 full Risk Disclosure.
Established in 2010, HF Markets now owns more than 60 industry awards, including such for best CFDs conditions and best commodities broker. It is among the top stops for traders who are particularly interested in WTI oil trading, and in addition to energies trading, the broker also facilitates trading Forex, metals, indices, stocks, bonds, ETFs, and physical stocks, among others.
The wide variety of trading instruments HF Markets’ users can select from is not the only reason why it is a worthwhile WTI oil trading broker. Finding an account type that measures up to your specific trading requirements will be a breeze as there are four account types to decide between, including premium, zero spread, HFCopy, and premium pro.
The security of traders’ funds is a top priority for the broker, and HF Markets has also made sure that payments to and from the trading platforms will take no time at all. Funding options like Mastercard, Visa, Maestro, wire transfer, iDeal, Neteller, and Skrill are all on the list of options the broker offers.
HF Markets users can trade with added confidence, thanks to the various trading tools they can make use of. Taking your WTI oil trading experience to the next level is possible, thanks to the wide range of trading calculators, economic calendars, autochartist tools, or exclusive analysis. Their board that identifies the biggest currency moves, offers breaking news, and gauges market sentiment, among others, can also be of use while preparing their trades.
- 9. XTBMin Deposit$/€/£250Fees
- €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
Spread0.03Leverage EU10:1Leverage non-EU1:66.7CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% 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.
- No commission for standard accounts. The only exceptions are equity CFD and ETF trades
- €3,5 for 1 lot commission for transactions for professional accounts, excluding Stock CFD, ETF CFD, and crypto-currencies
XTB is a Forex and CFD broker with long-standing experience in the financial markets as the broker accommodated its first clients almost 20 years ago. The broker does not stand still and is dedicated to constantly expanding its foothold as today, XTB has offices in more than 13 countries around the globe.
The broker offers award-winning trading solutions, and its users will have the opportunity to trade on more than 2,000 of the world’s markets. Forex, indices, cryptocurrencies, stock CFDs, ETFs, and commodities are all accessible by XTB users. The broker keeps its users covered if they enthuse over WTI oil trading, and best of all, traders will benefit from commission-free trades.
XTB users are allowed to decide between standard and swap-free account types, and benefit from leverage of up to 500:1, automated trading, free account setup and management, and gain full access to the complete list of instruments.
Depositing funds to your XTB trading account is quick and easy, and is possible using digital wallets like Neteller, Skrill, Paysafecard, and SafetyPay, using Maestro, Mastercard, or Visa-branded credit cards, or through bank transfer. The processing times are yet another thing the broker pays great attention to, and while deposits are completed on the spot, cashouts might take up to one business day to clear. The safety of your funds is an utmost priority for the broker, and for this reason, XTB keeps the funds of all its users in its segregated account.
Traders should not worry about the reliability and trustworthiness of the broker as XTB is regulated by some of the most prominent supervision authorities in the world, including the FCA, KNF, CySEC, and FSC, among others.
- 10. IC MarketsMin Deposit$200 or the currency equivalentFees
- No deposit and withdrawal fees
- No inactivity fee
- No commission on standard accounts
- $3.5 per standard lot round turn on raw spread accounts
- $3.00 per standard lot round turn on spread accounts (cTrader)
Leverage EU10:1Leverage non-EU100:1Risk 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.
- Minimum spread 0.020
- Average spread 0.027
IC Markets is a broker that is recommended to seasoned traders and total novices, no matter if they prefer Forex or CFDs, trading when they are on the move or from the comfort of their homes. The Australia-based broker welcomed its first users in 2006, and today, it is a preferred platform by traders who are interested in bonds, cryptocurrencies, Forex, indices, stocks, futures, and commodities.
Traders are sure to be pleased with the assortment of commodities the broker offers, and IC Markets accommodates the needs of its users that are specifically keen on precious metals, soft commodities, and energies, including WTI oil. The broker allows its users to trade spot energy contracts from their MT4 and MT5 platforms, no matter the account type they will settle on.
The broker guarantees that its users will get easy and flexible exposure to some of the most popular commodities, including WTI oil, from all platforms IC Markets offers, including MT4, MT5, and cTrader.
IC Markets’ large product range and raw pricing are featured across all account types. No matter if traders will pick the standard or raw account type, they will be offered leverage of up to 500:1, 200 or 2,000 ceiling on the number of position orders per account, one-click trading, Islamic Accounts, and will 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, Financial Services Authority, and the SCB. If traders require specialist assistance or they have any questions about how to trade WTI oil, they can get in touch with the customer service team around the clock via email, phone, or using the contact form.