Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% 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. 65% 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.

CFD Trading on Commodities

Find new opportunities in the global commodities markets with FXTM.

Trade oil and other CFDs online as a more flexible way to investand diversify your portfolio.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% 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.

Commodity Trading

Trading CFDs on commodities is a more convenient way to access the commodities markets than purchasing the product outright. With FXTM you can trade CFDs on:

  • UK Brent oil (spot)
  • US crude oil (spot)
  • US natural gas (spot)

The prices of oil and other energy products fluctuate according to a huge number of factors, including demand, supply and general confidence in the global economy.

Key Reasons to Trade CFDs on Commodities

  • Easier access to popular commodity markets
  • Fantastic way to diversify your portfolio
  • Low margin requirements

Live Fx & Spot Metal Quotes

Trade Spot Metals and the Currency Market

Trading InstrumentSpread PTCurrent Price $ Bid/AskChanges
Trading InstrumentSpread PTCurrent Price $ Bid/AskChanges
Trading InstrumentSpread PTCurrent Price $ Bid/AskChanges
Trading InstrumentSpread PTCurrent Price $ Bid/AskChanges

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% 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.

What is Commodities CFD Trading?

A Contract for Difference (CFD) is an agreement between the buyer and the seller. It means the seller will pay the buyer the difference between the commodity’s current price and its price at the point the contract specifies. By trading CFDs on commodities, investors are speculating whether the value of the instrument will rise or fall.

One of the benefits of CFD trading is that you’re trading on the expectation of a price movement, so you don’t have to actually buy (or take delivery of) the underlying asset. Because you can take a short position (expecting the price to decrease) as well as a long one (expecting the price to increase), you can still make a profit when the commodity falls in value, not just when it rises. This gives commodity CFD traders greater flexibility and more opportunities to earn from market movements. By the same token, you should be aware of the potential for losses when going long or short on a commodity’s price.

Why Trade CFDs on Commodities with FXTM?

Globally Regulated & Licensed

Globally Regulated & Licensed

The FXTM brand is regulated and licensed under CySEC in Cyprus, South Africa’s FSCA, UK’s FCA, and the FSC of the Republic of Mauritius, among others.

Support in over 30 languages

Support in over 30 languages

We speak your language so that you can feel at home while trading with us.

Transparent

Transparent

Performance statistics, including Requote, Slippage and Order Execution, are checked by PwC.

Secure & Safe

Secure & Safe

Your funds are kept safe in segregated accounts, and your trades are protected by negative balance.

Trading Platforms

FXTM offers the industry’s leading trading platform: MetaTrader 4 (MT4).

trading-platforms

Discover all the tools and commodity CFD trading software you need with the industry’s most popular platform. Smart analytical tools help you identify potential in the markets and plan your next move. MT4 can be downloaded onto your computer or phone. You can also trade online directly in your browser with WebTrader.

FXTM also offers mobile trading. Download our currency trading app FXTM Trader for Android or iOS to open, close or modify positions on the go. Mobile trading allows you to react quickly to sudden market movements wherever you are.

Trading CFDs on Commodities Basics

Leverage

Trading commodities CFDs with leverage means that you can access the market at a much lower initial cost than if you were trading the underlying energy product. Please remember that leverage increases potential losses incurred as well as profits won. All the Commodity CFDs on offer – UK Brent oil, US crude oil and US natural gas – are tradable with a maximum allowed leverage of 1:10.
*Leverage is offered based on your knowledge and experience.

Spreads

Our CFDs on commodities trading accounts have competitive spreads, ranging from 4 to 11 pips on our standard, ECN and ECN Zero for MT4 accounts. For more information about the spreads and leverage offered on different accounts, please visit our Trading Accounts Comparison page.

Trading Hours

Traders can access FXTM’s trading services whenever the market is open, meaning you can in effect trade 24 hours a day, 5 days a week. For US natural gas and US crude oil, the market opens at 01:00 and closes at 23:45. For UK Brent oil, the market opens at 03:00 and closes at 23:45.

Lot Sizes

Depending on instrument and account type, there are a range of lot sizes to choose from with FXTM. The right commodity CFD lot size for you will depend on your level of experience and trading style. Our lot sizes range from 1000 to 10000.

Example: Buy 1 lot Crude

Deposit: $10,000

Open Price: 77.66

Close Price: 77.90

Notional Value ($) = Volume * Contract Size * Open Price = 1 * 1,000 * 77.66 = $77,660

Profit: (Close Price - Open Price) * Volume * Contract Size = (77.90 - 77.66) * 1 * 1,000 = $240

Costs

Swap: Volume * Swap Rate = 1 * -$45 = -$45

Commission: (Volume * Contract Size * Open Price) / 1,000,000 * Commission * 2 = (1 * 1000 * 57.66) / 1,000,000 * -20 * 2 = -$2.31

Cumulative Costs = Swap + Commission = -$45 - $2.31 = -$47.31

Cumulative Costs (%) = (Cumulative Costs / Notional Value) * 100 = (47.31 / 77,660) * 100 = 0.0609%

Cumulative Effect of Costs on Return (without fees) = (Profit / Deposit) * 100 = (240 / 10,000) * 100 = 2.40%

Cumulative Effect of Costs on Return (with fees) = (Profit - Cumulative Costs / Deposit) * 100 = (240 - 45 - 2.31 / 10,000 ) * 100 = 1.93%

Reduction of profit = 2.40% - 1.93% = 0.47%

 

Example: Buy 1 lot Crude

Deposit: $10,000

Open Price: 77.66

Close Price: 77.45

Notional Value ($) = Volume * Contract Size * Open Price = 1 * 1,000 * 77.66 = $77,660

Profit: (Close Price - Open Price) * Volume * Contract Size = (77.45 - 77.66) * 1 * 1,000 = -$210

Costs

Swap: Volume * Swap Rate = 1 * -$45 = -$45

Commission: (Volume * Contract Size * Open Price) / 1,000,000 * Commission * 2 = (1 * 1000 * 57.66) / 1,000,000 * -20 * 2 = -$2.31

Cumulative Costs = Swap + Commission = -$45 - $2.31 = -$47.31

Cumulative Costs (%) = (Cumulative Costs / Notional Value) * 100 = (47.31 / 77,660) * 100 = 0.0609%

Cumulative Effect of Costs on Return (without fees) = (Profit / Deposit) * 100 = (-210 / 10,000) * 100 = -2.10%

Cumulative Effect of Costs on Return (with fees) = (Profit - Cumulative Costs / Deposit) * 100 = (-210 - 45 - 2.31 / 10,000 ) * 100 = -2.57%

Reduction of profit = 2.57% - 2.10% = 0.47%

*For FXTM Invest, the Strategy Profit Share represents a percentage of the profits that will be awarded to the Strategy Manager for his/her positive performance. Example: If the above example refers to a profitable trade in FXTM Invest, and the Strategy Manager sets a performance fee of 20%, then the Client’s net profit would amount to: (Net Profit) - (Net Profit * 20% Manager fee) = (240 - 47.31) - (192.69 * 20%) = $154.15.

**Such estimations are based on assumptions and may deviate from costs and charges that will actually be incurred. Swaps and commissions may be subject to change. For more information please refer to our contract specifications and commissions pages.Transaction costs and fees incurred in currencies other than the currency of the account are converted on a real-time basis in MetaTrader, at no additional cost to the client.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% 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.

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