Commodities Trading Broker

Selecting a good commodity trading broker is crucial to get access to markets all over the globe with ease and reliability. 

IST Markets is a great trading platform for trading various commodities with extensive tools and platforms to support beginners as well as experienced traders. 

Market winner in the best commodity trading broker, IST Markets provides user-friendly interfaces along with advanced trading features which enable clients to tap into the complexities of commodity markets with ease.

Commodities

Facts

Commodity Trading at IST Markets

Commodity trading is an investment strategy that allows investors to diversify their portfolios and hedge against inflation. 

IST Markets, one of the best commodity brokers to trade, offers its clients the complete spectrum of commodities to trade in various classes of energies, metals, and soft commodities. 

By employing advanced trading platforms such as MetaTrader 4, MetaTrader 5, and cTrader, clients are able to access global commodity markets with precise accuracy.

Our Commodities Trading Assets

Energy Commodity trading

Energy commodity trading is the trading of energy commodities like crude oil, natural gas, and refined products

These markets are highly sensitive to geopolitical events, supply constraints, and global demand fluctuations and hence become volatile but lucrative.

 IST Markets trades spot energy contracts like Crude Oil, Brent, and Natural Gas against the US Dollar. 

Dealing in these energy commodities as spot instruments provides investors with the choice of placing bets on price action without necessarily employing futures contracts.

Precious Metals

Precious metals dealing entails selling and buying precious metals like gold, silver, platinum, and palladium. 

Precious metals are typically regarded as safe-haven assets in periods of economic uncertainty. 

IST Markets provides trading in the spot price of Silver and Gold against the US Dollar or the Euro, and against the US Dollar, Platinum and Palladium respectively, all on up to 1:500 leverage. 

The structure makes it possible for investors to gain very high exposure in precious metals for relatively modest amounts of initial capital investment.

Soft Commodities

Apart from metals and energies, IST Markets also provides exposure to a variety of soft commodities such as corn, soybeans, sugar, cocoa, coffee, and wheat. 

They are traded in the shape of Contracts for Difference (CFDs), thereby leaving space for maneuvering space as well as possible returns in up as well as down markets. 

With low spreads and leverage up to 1:100, risk management as well as market opportunities in such agri products are efficiently managed by traders.

How Does Commodities Trading Work?

Commodity trading involves buying and selling raw materials or staple grains. Their value derives from supply and demand forces whose direction can be ascertained by such variables as weather, geopolitics, and stages of economics. 

Commodities trading can be done by traders with various instruments of finance that each have strengths and considerations worth noting: futures contracts, spot contracts, and CFDs.

For example, the purchase and sale of energy commodities such as crude oil require examining worldwide supply levels, comments from OPEC, and tensions in major oil-producing nations.

Commodity Trading Example

The gross profit on your trade is calculated as follows:

Opening Price:

€200,000 x 1.33623 = USD $267,246

Closing Price:

$460 * 100 contracts * 4 = USD $184,000

Gross Profit on Trade:

USD $184,000 – $174,100 = $9,900

Opening the Position:

Wheat is priced at 435.25 per bushel. Anticipating an adverse weather condition on Australia’s East Coast to decrease crop yields, you buy 100 contracts (covering every 4 bushels) at that quote, for USD $174,100 (435.25 * 100 * 4).

 

Closing the Position

Following the anticipated weather impact, the wheat price rises to 460.00 per bushel.

You close your 100 contracts at this price, making a gross profit of USD $9,900 (460.00 – 435.25) * 100 contracts * 4 bushels).

Online commodities trading with IST Markets

As a reputable commodities broker, IST Markets provides an easy-to-use online commodities trading system with competitive spreads and adjustable leverage options. 

As a professional trader or commodity trading novice, IST Markets provides you with the means and tools to successfully trade these markets. 

By opting for IST Markets, clients are exposed to a full range of commodities, backed by robust trading platforms and constant customer support, thereby becoming one of the top commodity trading companies in the industry.

IST Markets offers trading in various commodities, including precious metals like gold and silver, energy products like oil and natural gas, and agricultural goods like wheat and coffee.

Commodities trading involves speculating on the price movements of raw materials. With IST Markets, you can trade these commodities through Contracts for Difference (CFDs), allowing you to profit from both rising and falling markets without owning the physical assets.

Trading hours vary depending on the specific commodity and market. IST Markets provides detailed trading schedules on its platform to help you plan your trades effectively.

Online trading’s primary advantages are that it allows you to manage your trades at your convenience.

Yes, IST Markets offers leverage options for commodities trading. Leverage allows you to control larger positions with a smaller amount of capital, but it also increases the potential risk.

IST Markets offers competitive spreads on commodities trading. While there may not be direct commissions, it's essential to review the platform's fee structure for any applicable charges.

Commodities trading can be complex and carries risks. However, IST Markets provides educational resources and demo accounts to help beginners learn and practice before trading with real money.