Trade gold with binary options or ETF.
Minimum deposit: 1€
Regulation:Many regulation and registratations
Trade gold, oil, silver, copper, natgas, platinum, gasoline, palladium, wheat, cotton, sugar, corn, cocoa, coffee, orange and soybeans.
Minimum deposit: 100€
Trade gold, oil, silver, platinum, natgas, wheat, cotton, coffee and soybeans.
Minimum deposit: 100€
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Trading CFDs may not be suitable for you. Please ensure you fully understand the risks involved.
When it comes to investing or planning, many people do not consider commodities. These are the things that are very important in life and include energy, metals, and food. And they become even more important for those who trade in them.
Trading commodities can help an investor to diversify a portfolio. It can be a long-term investment or a short-term option when the markets are not so stable. Traditionally, commodities move differently to stocks. Most commodities investors used to require a lot of time and money but there are many different options available now, even for those who are not trading professionally.
With large numbers of commodities exchanges all over the world, there are different ways in which people can invest. Some of the exchanges will deal with more than one commodity while others specialise. London, for example, has the Metal Exchange and only deals with metals. When using the exchanges there is a need for standard agreements. People who are trading want the reassurance that what they are buying is good quality and this is the best way to make sure.
Commodities markets are driven by supply and demand. When supply is low demand is higher, so the prices are higher. When supply is high, demand is lower so the prices drop. Factors that can affect supply include environmental conditions and political situations.
When the markets are a little volatile some investors often take the opportunity to transfer their investment to gold, which is traditionally seen as a safe option. Some will also use gold as an investment when currencies have lost value. Energy commodities are common for most investors too. When oil production drops, oil prices rise but there is also a rising trend towards renewable energies that can be considered too.
Investing in Commodities
Those who are new to commodities can do so through a futures contract. This is where the investor agrees to buy commodities at another time, with a fixed price set for the purchase. All commodities can be invested in using futures. Futures are often used by manufacturers when they are budgeting to reduce problems with cashflow. Airline companies use futures to secure large amounts of fuel at fixed prices so that they can plan. This allows them to avoid the volatility of the markets.
To invest you will need to open a brokerage account and you will need to be prepared to sign a form that acknowledges that you understand the risks that go with investing in futures. There are different minimum deposits on each commodity contract. If values decrease you may need to invest more funds into the account. A small change in the price can lead to a large loss or return, thanks to the large amounts of leverage. Those who are investing in futures can have their account wiped out very quickly, or have its value doubled just as easily.
You could also invest in stocks of companies that are connected to commodities. For example, those who are interested in investing in oil can put money into refineries or tanker companies, for example. Stocks are easy to buy, trade and track and can be more stable than futures. However, some research is needed to be sure that a company could be a good investment.
Stock options do not need such a large investment and could be an easy way for a beginner to invest in commodities. Trading is easy for those who already have a brokerage account and it is easy to find out information on companies.
CFD trading is an abbreviation for ‘Contracts for Difference’. This is a way of speculating on the markets without the need to buy any of the actual assets. This is an agreement based on the difference in value of the asset between the time when the contract is established and the point at which it is closed. CFDs can give you access to a larger position than you would have with a standard trade.