10 Best Forex Brokers for Trading Commodities 2024

A forex broker is a financial services company that provides traders access to platforms for buying and selling various financial instruments, including currencies, commodities, indices, and more. Acting as intermediaries between retail traders and global financial markets, these brokers facilitate transactions electronically, offering tools, resources, and support to help traders navigate the complexities of the markets.

Commodities trading involves the buying and selling of physical goods or resources such as gold, oil, natural gas, and agricultural products. This market offers investors the chance to hedge against inflation or speculate on price fluctuations driven by supply and demand, geopolitical events, or economic changes. Commodities are typically traded via instruments such as CFDs (Contracts for Difference), futures contracts, or spot trading. Many forex brokers offer access to a wide range of commodities, providing competitive spreads, leverage options, and robust platforms equipped with real-time market data and advanced analysis tools.

With numerous online forex brokers available, finding the right one for commodities trading can be challenging. In this article, we’ve compiled a list of the best forex brokers for trading commodities. Our goal is to assist you in finding trustworthy partners that align with your trading objectives while ensuring a smooth and efficient trading experience.

A List of Top 10 Forex Brokers for Commodities Trading

• Pepperstone: Best Overall Forex Broker
• IC Markets: Best for for Tight Spread
• ActivTrades: Best for EU and UK Traders 
• Etoro: Best For Social Copy Trading 
• BlackBull Markets: Best Broker For Free TradingView
• Exness: Best for Instant Deposit and Withdrawal
• XM: Best for Deposit Bonus
• Eightcap: Best for Smart Trading Tools
• Avatrade: Best for Automated Trading
• FBS: Best For High Leverage (as high as 1:3000) 

Best Forex Brokers for Trading Commodities (Reviewed and Compared) 

Can I trust these online brokers for Commodities Trading?

Yes, you can trust these brokers. Brokersway recommends brokers based on facts and findings. We evaluate brokers based on 170 data points grouped into 6 macro categories including regulations and security, fees, Trading experience, trading tools, customer support, and trading education. Multiple regulatory authorities regulate these brokers. So they are legit and trusted. Here are the regulations of these brokers

• Pepperstone: Regulated by 7 regulatory authorities including FCA, ASIC, CySEC, BaFin, DFSA, CMA, and SCB
• IC Markets: Regulated by 3 Regulatory Authorities including FCA, CySEC, and ASIC
• ActivTrades: Regulated by 5 Regulatory Authorities including SCB, FCA, CMVM, BACEN, and CVM
• eToro: Regulated by 7 Regulatory Authorities including SEC, FINRA, FCA, CySEC, FSA-S, SIPC, ADGM
• BlackBull: Regulated by 2 Regulatory Authorities including FMA, FSA-S
• Exness: Regulated by 8 Regulatory Authorities including CySEC, FCA, CMA, FSCA,  FSA in Seychelles, CBCS, FSC (Mauritius), and FSC (BVI)
• XM: Regulated by 5 Regulatory Authorities including ASIC, CySEC, DFSA, FSCA, and FSC in Belize (Global)
• Eighcap: Regulated by 5 Regulatory Authorities including ASIC, FCA, CySEC, SCB, and FSASVG
• AvaTrade: Regulated by 9 Regulatory Authorities including ASIC, JFSA, FSA, FSCA, ADGM, CBI, ISA, KNF, IIROC
• FBS: Regulated by 3 Regulatory Authorities including Cysec, ASIC, FSC-Belize

How Did We Choose the Best Forex Brokers for Trading Commodities?

To choose the best brokers for commodities trading, we follow the procedures below.

Research

To find the best forex brokers for commodities trading, we conducted extensive research, focusing on the features, services, and regulations associated with each broker. We analyzed market trends, broker offerings, and user feedback to understand what traders value most. This comprehensive approach allowed us to build a solid foundation for our evaluations.

Data Collection

We gathered data from various reliable sources, including official regulatory bodies, broker websites, and reputable financial news platforms. This data encompassed key metrics such as trading fees, available assets, leverage options, and client support services. Additionally, we considered user reviews and testimonials to gauge trader satisfaction and experiences.

Verification

After collecting data, we verified the information to ensure accuracy and reliability. This step involved cross-referencing details from multiple sources, including regulatory websites and independent reviews. By ensuring that our data is accurate, we aim to present an honest assessment of each broker’s strengths and weaknesses.

Live Testing

We conducted live testing of the shortlisted brokers to provide a real-world perspective. This involved opening demo accounts and executing trades to evaluate the trading platforms, order execution speed, and customer service responsiveness. Our live testing process allowed us to assess each broker’s performance under actual market conditions, providing valuable insights into their functionality.

Scoring

Finally, we scored each broker based on a set of criteria, including regulatory compliance, trading costs, platform usability, available trading instruments, customer support, and overall user experience. Each category was assigned a specific weight, reflecting its importance in the trading process. The scores helped us rank the brokers, ensuring that our recommendations align with the needs and preferences of traders who want to trade commodities or other Major cryptocurrency pairs. 

What is a Forex Broker?

A forex broker serves as an intermediary between traders and the global forex market, providing access to platforms where currencies can be traded around the clock, five days a week. These brokers enable retail and institutional clients to participate in currency trading by connecting them to liquidity providers, allowing for real-time order execution and monitoring of market changes.

In addition to currency pairs, many forex brokers offer a range of CFDs on other assets, including commodities, indices, stocks, and cryptocurrencies. CFDs allow traders to benefit from price movements without owning the underlying assets. Forex brokers may also provide leverage to enhance trading opportunities and offer tools like market insights, educational resources, and technical analysis to support strategic trading.

What are Commodities?

Commodities are raw materials or primary agricultural products that are traded in financial markets. These assets are categorized into two main types: hard commodities, such as gold, silver, oil, and natural gas, which are extracted or mined, and soft commodities, including crops like wheat, coffee, and cotton, which are grown. Commodities are fundamental to the global economy, serving as essential inputs for manufacturing, energy production, and food supply chains.

Traders can access commodity markets through various means, including spot trading, futures contracts, and Contracts for Difference (CFDs) offered by brokers. The value of commodities is influenced by supply and demand dynamics, geopolitical events, weather conditions, and economic indicators. For example, oil prices may fluctuate due to changes in OPEC production levels, while agricultural commodities are impacted by seasonal weather patterns. Commodities trading provides opportunities for diversification, hedging against inflation, and speculative gains, but it also involves risks due to price volatility and external market factors.

How to trade Commodities on Forex Brokers

To trade Commodities, you need to have a solid understanding of what commodities are and how they are traded. Commodities are raw materials or primary agricultural products that can be bought and sold, such as metals (gold, silver, copper), energy resources (oil, natural gas), and agricultural products (wheat, coffee, sugar). They are typically traded on commodities exchanges, and their prices are influenced by factors such as supply and demand, geopolitical events, economic data, and weather conditions. Commodities trading offers investors the opportunity to diversify their portfolios and benefit from price fluctuations in these essential goods. Next, develop your skills in market analysis and create a trading strategy that will help you generate effective trading signals. Start commodities trading by practicing and refining your strategies on a demo account to gain confidence without risking real money. Once you’re ready, you can follow this step-by-step guide to start live commodities trading:

Step 1: Choose a forex broker that offers commodities trading and open a trading account.
Step 2: Verify your account, fund it, and download the trading platform if required.
Step 3: Select the commodity you wish to trade and create a new order.
Step 4: Set your trade parameters, including trade volume, stop loss, and take profit levels.
Step 5: Place your order by clicking ‘buy’ or ‘sell.’
Step 6: Monitor your trade and close it when you achieve your target. This completes the commodities trade.

What influences the Price of Commodities?

Commodities pairs, which typically involve a commodity priced against a major currency (e.g., WTI/USD, XAU/USD, XAG/USD), are driven by a combination of supply-demand dynamics, macroeconomic trends, geopolitical developments, and currency valuation. Below are the primary factors affecting the price of commodities pairs.

1. Global Supply and Demand

The balance between global production and consumption heavily influences commodity prices. For example, crude oil prices depend on output levels from major producers like OPEC and demand from the industrial and transportation sectors. Similarly, precious metals like gold and silver are affected by industrial demand, jewelry consumption, and investment flows. Supply shortages or increased demand raise prices, while oversupply or waning demand leads to declines.

2. Macroeconomic Indicators

Key economic data, such as GDP growth, inflation rates, and employment figures, influence commodity prices by shaping expectations for economic activity. For instance, higher inflation often increases demand for safe-haven commodities like gold, while robust economic growth boosts industrial commodities like copper. Conversely, economic slowdowns or deflationary pressures can weaken demand, reducing prices.

3. US Dollar Strength

Most commodities are priced in US dollars, making their value inversely correlated with the currency’s strength. When the US dollar appreciates, commodities become more expensive for holders of other currencies, reducing demand and driving prices lower. Conversely, a weaker dollar makes commodities cheaper globally, boosting demand and supporting higher prices.

4. Geopolitical Events

Commodities are particularly sensitive to geopolitical developments. Conflicts, trade sanctions, or political instability in key producing regions often disrupt supply chains, leading to price spikes. For instance, tensions in the Middle East frequently affect crude oil prices, while global uncertainties can drive demand for safe-haven commodities like gold and silver.

5. Interest Rates and Monetary Policy

Central bank policies, especially those of the Federal Reserve, significantly impact commodities prices. Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold and silver, boosting their appeal. Conversely, rising interest rates increase the cost of holding commodities, often leading to price declines. Industrial commodities like oil may also react to monetary policy through its effect on economic growth.

6. Seasonal and Weather Patterns

Agricultural commodities and energy resources are affected by seasonal demand fluctuations and weather conditions. For example, heating oil prices tend to rise during colder months, while agricultural outputs like grains are sensitive to droughts, floods, and other climate phenomena. Seasonal variations create predictable price trends, while extreme weather events can cause abrupt price changes.

7. Industrial and Technological Demand

The rise of new technologies and industries can create shifts in demand for specific commodities. For example, silver and platinum prices are influenced by their use in electronics, solar panels, and automotive catalysts. Similarly, the increasing adoption of renewable energy sources impacts the demand for metals like copper and lithium. These trends can significantly alter long-term price trajectories.

8. Speculative Activity

Commodities markets attract significant speculative trading, which can amplify price volatility. Futures contracts and derivatives enable traders to take leveraged positions, often leading to sharp price movements in response to news or market sentiment. This speculative element is particularly pronounced during times of uncertainty, contributing to both upward and downward price swings.

9. Inventory and Stockpile Levels

Inventory levels reported by key organizations like the Energy Information Administration (EIA) or London Bullion Market Association (LBMA) provide insights into market supply and demand. For instance, rising crude oil inventories often indicate oversupply, pushing prices lower. Conversely, declining stockpiles signal tighter markets, leading to price increases.

10. Global Trade Policies

Tariffs, export bans, and trade agreements impact the flow of commodities across borders, influencing prices. Restrictions on exports from major producers or increased tariffs on imports create supply constraints, raising prices. Conversely, trade agreements that facilitate commodity flows can enhance market stability, keeping prices subdued.

Final Verdicts:

If you are a trader looking to trade commodities, you can choose a broker that suits your trading needs and preferences. We have thoroughly reviewed and compared the top forex brokers offering commodity trading, focusing on those that are licensed, highly rated, and trusted globally. Our evaluation considered regulation and security, fees and commissions, trading conditions, trading tools, customer support, and educational resources. Based on our analysis, we have identified the following brokers as the best for trading commodities:

• Pepperstone: Best overall for commodity trading, providing tight spreads, fast execution, and regulation by top-tier authorities such as ASIC and FCA.
• IC Markets: Known for its competitive spreads and deep liquidity, ideal for traders focused on cost-effective commodity trading.
• ActivTrades: FCA-regulated, offering a reliable platform for trading popular commodities, particularly appealing to EU/UK traders.
• Etoro: Excellent for social trading, enabling traders to follow and replicate strategies of successful commodity investors.
• BlackBull Markets: Provides free access to TradingView, offering advanced charting tools and market analysis for commodity trading.
• Exness: Recognized for instant deposits and withdrawals, making it a convenient choice for commodity traders, though not available in the EU.
• XM: Known for its deposit bonus, providing traders with additional capital for trading commodities.
• Eightcap: Features smart trading tools and a variety of platforms, offering a comprehensive commodity trading experience.
• Avatrade: Best for automated trading, with extensive support for algorithmic strategies tailored to commodity markets.
• FBS: High leverage up to 1:3000, suitable for experienced traders seeking greater exposure to commodities.

Each of these brokers supports a range of commodities, including gold, silver, crude oil, and agricultural products. They offer competitive trading conditions, advanced tools, and secure platforms. Choose any of these brokers based on your trading style and preferences to succeed in commodity trading.