Sam Levine has over 30 years of experience in the investing field as a portfolio manager, financial consultant, investment strategist and writer. He also taught investing as an adjunct professor of finance at Wayne State University. Sam holds the Chartered Financial Analyst and the Chartered Market Technician designations and is pursuing a master’s in personal financial planning at the College for Financial Planning. Previously, he was a contributing editor at BetterInvesting Magazine and a contributor to The Penny Hoarder and other media outlets. The margin requirement is typically a percentage of the value of the underlying asset that each contract controls.

Quick Look at the Best Futures Brokers:

IG Group was founded in 1974 so they have a long standing record of being a reputable and trustworhty brokers, especially for U.S. based traders. They are regulated by the CFTC and NFA so your protected trading on this platform. IG holds your money in segregated accounts under trustee arrangements for added security. In addition to its proprietary trading platform, IG offers support for 3rd-party forex platforms such as MetaTrader 4 and ProRealTime. The Fund caters to investors who want a cost-effective and convenient way to invest in commodity futures.

Why futures traders might not choose Tastytrade

Compare the costs across brokers to ensure that they align with your trading strategy and budget. Agriculture as well as industrial and precious metals are GSG’s other underlying investments. GSG is more https://www.trading-market.org/ diversified than an energy-only ETF, but it’s not quite as diversified as some all-commodity ETFs on our list. Commodity pools and managed futures are private funds that can invest in commodities.

What is the best commodity trading platform for beginners?

There is a $0 ($100 Interactive Advisors automated accounts) minimum to start investing with Interactive Brokers. Forex brokers offer trading on a variety of currency pairs, but some may also provide access to other markets such as commodities, indices, cryptocurrency, precious metals and futures contracts. Determine if the broker offers the range of tradable assets you are interested in.

Why futures traders might love NinjaTrader

1. For one thing, futures investors often use a significant amount of margin (leverage) when trading.
2. Tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Marketing Agent (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services.
3. IG US is a well-established commodities broker that offers access to a wide range of commodity markets, including metals, energies, and agricultural products.
4. Tax treatment depends on one’s individual circumstances and may be subject to future change.
5. This decision is crucial because it directly influences your preference in evaluating brokerage fees and commission structures.

The biggest downside to eToro for forex traders is that, they don’t support MetaTrader 4 and 5 (MT4 and MT5). Spreads are available from 0 pips, and the broker offers a completely free line of educational resources before opening an account. Commodities also tend to be a short-term investment, especially if you enter a futures contract with a set deadline.

Commodity stock risks

Once your account is approved, opened, and funded, research and determine which contract you want to trade, fill out the order ticket, then place your trade. Futures trading may or may not be profitable, but it certainly can be exciting. Both the excitement and the potential best commodity brokers profit (and loss) are tied to the tremendous leverage in futures contracts. For example, an initial intraday margin of approximately $2,000 could get around the same profit/loss potential of $35,000 in a Nasdaq 100 ETF (margin requirements vary over time and by broker).

IG’s platform is intuitive, catering to traders of all levels, from beginners to experts. Whether you’re a seasoned trader seeking in-depth insights or a newcomer looking for user-friendly trading, IG provides a well-rounded experience for all. If you’re new to investing in commodities or need help establishing a financial plan, you can find a financial advisor for expert guidance and advice. FOREX.com, registered with the Commodity Futures Trading Commission (CFTC), lets you trade a wide range of forex markets with low pricing and fast, quality execution on every trade.

The broker has a good range of commodity trading products including Gold, Silver, Crude, Natural gas and more. You can trade commodities with razor sharp pricing, low spreads and fast execution speeds, without worrying about physical delivery, ownership and rollovers. TradeStation is our top choice for desktop futures traders because its robust platform offers excellent tools for charting, order entry, and position management, along with reasonable margin rates. A commodities broker acts as an intermediary between traders and the commodities markets. They provide access to the markets by setting up trading accounts for clients and offering membership to exchanges like CME or LME.

Future commissions cost $1.50 per trade, but additional futures exchange fees and National Futures Association (NFA) fees may apply. Leverage can amplify profits and losses in forex trading, so it’s important to understand the broker’s leverage offerings and margin requirements. Ensure that the leverage offered aligns with your risk tolerance and trading strategy.

You can read more about our editorial guidelines and the investing methodology for the ratings below. Overall, commodity trading tends to be more high-risk and speculative than stock trading, but it can also lead to faster, larger gains if your positions end up making money. The contract will require you to keep a minimum balance based on the expected value of your trade. If the market price starts moving in a direction where you are more likely to lose money, you would face a margin call and need to deposit more to get back to the trade’s required minimum value. Rates, terms, products and services on third-party websites are subject to change without notice. We may be compensated but this should not be seen as an endorsement or recommendation by TradingBrokers.com, nor shall it bias our broker reviews.