Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 89% 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.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 89% 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.

CFDs on Commodities

Oil & Gas Products

What are CFDs?

A Contract for Difference (CFD) is an agreement made between the buyer and the seller of a specified asset. This agreement states that the seller will pay the buyer the difference in price between the asset’s value at the time the agreement was made and the asset’s value at present.

CFD trading is one of the most popular options for traders because you’re trading on price movements of an asset, without actually owning it.

Why trade CFDs on Commodities?

CFDs offer you easier and faster access to the commodities markets. As a result, it provides you with flexible trading opportunities that can diversify your investment portfolio.

With FXTM, you can choose to trade the following three CFD commodities:

  • UK Brent (Spot)
  • US Crude (Spot)
  • US Natural Gas (Spot)

Competitive Trading Costs

Our CFDs on Commodities are designed in a way that gives clients the same trading benefits as if they were trading instruments on the actual commodities exchange, but without the costs associated with connecting to the actual exchange.

Example #1 for Crude

Initial Deposit

$1000

Leverage

1:100

Funds available for trading

$100,000

Lot Size

1

Direction

Buy

Open Price

57.66

Close Price

57.90

Profit

$240

Commission (Fee)
Swap (Fee)

-$2.08
-$65

Example #2 for Crude

Initial Deposit

$1000

Leverage

1:100

Funds available for trading

$100,000

Lot Size

1

Direction

Buy

Open Price

57.66

Close Price

57.45

Loss

-$210

Commission (Fee)
Swap (Fee)

-$2.08
-$65

Leverage

Leverage is assessed on your level of knowledge and experience when you open a trading account. As a regulated and responsible broker that provides suitable, safe and transparent trading conditions, our flexible leverage ranges from 1:25 to 1:500.

Just like with any other leveraged products, there is a possibility for both increased losses as well as profits.

Fast Execution and Deep Liquidity

Our CFD commodities are tradable with both instant and market execution. FXTM’s commitment to efficient order execution, and super-fast execution for more precise trading.

Things to consider when trading CFDs on Commodities:

  • Whether you go short or go long, the same rules and margin requirements apply when trading CFDs.
  • The margin requirements for CFDs are lower than they are for the underlying asset. Click here for our contract specification details on CFDs.
  • Since you can take both short and long positions with CFDs, a falling market retains the same risks when it comes to incurring losses but it can also offer potential profit-taking opportunities.
  • The benefits of CFD trading is clear, but always remember that all leveraged assets have similar levels of associated risks and CFDs are no different.

For a full list of specifications offered by FXTM for CFDs on Commodities, please see the “Spot Commodities” tab in our Contract Specifications page, and click on each commodity for complete details.