Best Commodity Brokers in 2025

Which raw materials can be traded online?

Commodities, or raw materials, represent a fundamental pillar of the global economy and modern financial markets. Traded actively on exchanges and through online platforms, commodities include energy resources (like oil and gas), metals (such as gold, silver, and copper), and agricultural products (such as wheat and soybean). Commodities trading gives investors the chance to participate in the price evolution of these essential resources.

Their prices are shaped by global supply and demand, geopolitical tensions, weather events, and technological progress. For example, oil markets can react strongly to political instability in producing countries, while agricultural prices are highly sensitive to climate conditions.

Retail investors in the Middle East (AE) can access commodities through several popular financial instruments:

• CFDs (Contracts for Difference): Flexible contracts allowing you to speculate on rising or falling prices without owning the physical asset.
• Futures: Standardized contracts traded on exchanges, allowing you to buy or sell a specific amount of a commodity at a future date.
• ETFs (Exchange-Traded Funds): Funds that track the price of one or a basket of commodities, tradable like stocks on major platforms.

Below is an overview of the main traded commodities, their categories, market specifics, and popular instruments to get exposure.

Investing in Gold

Gold is renowned as a "safe haven" asset, meaning investors often turn to it during periods of uncertainty and economic instability. Its price is less volatile compared to other commodities and often moves inversely to stock markets. Gold can provide portfolio diversification and protection against inflation. For most investors, ETFs and CFDs offer quick and practical access without the need to hold physical gold.

Investing in Brent Crude Oil

Oil is one of the most actively traded commodities and is central to the world economy. Its price is extremely sensitive to geopolitical news, OPEC decisions, and short-term supply/demand shocks. This can lead to dramatic price swings within short timeframes. CFDs and futures allow efficient access but require close monitoring and robust risk management given their volatility.

Investing in Natural Gas

Natural gas markets are characterized by very high volatility, influenced by weather patterns, storage levels, and regional demand spikes. Ideal for experienced traders willing to monitor positions actively. The complexity and riskiness of this market mean it's mainly suitable for advanced investors familiar with leverage and derivatives.

Investing in Aluminium

Aluminium is widely used in sectors like automotive and construction, and its price is closely linked to economic growth. As an industrial metal, it's sensitive both to global trade conditions and technological trends (such as renewable energy expansion). ETFs and CFDs can offer simple access, while futures are suited for professional use.

Investing in Agricultural Commodities (Wheat, Corn, Soybean)

Cereals like wheat, corn, and soybean are staples of global nutrition. Their prices depend on weather, harvest yields, international politics, and changes in dietary habits. Agricultural trading allows investors to diversify away from financial markets, but sharp price swings can occur following climate events or geopolitical tensions. ETFs and CFDs enable both direct exposure and inclusion of agricultural themes in broader portfolios.

How to invest in commodities?

Several methods are available for investing in commodities, depending on your investor profile and objectives—whether you seek active, short-term trading or longer-term, stable value assets. Commodities are tangible assets such as energy products, precious metals, agricultural goods, or industrial materials. However, direct access is often replaced by financial products, offering flexibility and liquidity. Below, discover and compare the main ways to invest in commodities.

Investing via CFDs (Contracts for Difference)

CFDs allow you to speculate on the price movements of commodities without owning the underlying asset. When trading CFDs, you do not physically buy, for instance, barrels of oil or gold bars—instead, you agree to exchange the difference in value between entry and exit points with your broker. This method is popular for short-term trading, providing leverage, which means you can take a larger position with relatively little margin. Be aware, though, that leverage can amplify both profits and losses, and CFD trading carries a high risk of losing your invested capital. CFD markets generally offer access to a wide range of commodities, with trading available almost 24 hours.

Example: CFD on Oil

Suppose you believe the price of Brent crude oil will rise. You open a CFD 'buy' position at $80 per barrel for 100 barrels. If the price rises to $82, your profit is (82 – 80) x 100 = $200 (excluding fees and leverage). If the price drops, you incur a loss.

Investing via Futures Contracts

Futures contracts are standardized agreements traded on exchanges, obliging the buyer to purchase (or the seller to sell) a specific amount of a commodity at a predetermined price and date. Used intensively by producers and consumers for hedging price risks, futures are also favored by speculators seeking price movements. Futures require margin and can involve substantial price swings, prompting rapid gains or losses. Delivery is rare—most futures are traded for financial exposure rather than physical receipt.

Example: Wheat Futures Contract

You anticipate a rise in wheat prices due to weather disruptions. You buy one futures contract for 50,000 kg of wheat at $220 per metric ton. If, at the contract's expiry, the price rises to $230 per ton, your gain is (230 – 220) x 50 = $500 (excluding costs).

Investing via ETFs (Exchange Traded Funds)

ETFs provide an easy and liquid way to gain exposure to one or more commodities without direct purchase. Commodity ETFs either track the price of the physical asset or a basket of related futures contracts. This method is convenient and suitable for longer-term investors who prefer an indirect, diversified exposure, without managing logistics or complex derivatives. ETFs are traded like stocks on exchanges and can often be accessed via local brokers.

Example: Gold ETF

You want exposure to gold but do not wish to store physical bars. You buy $5,000 of a gold ETF listed on a major exchange. If the gold price rises by 10%, your ETF position mirrors that movement, gaining $500 (excluding fees and tracking differences).

Investing in Shares of Commodity-Related Companies

Buying shares in companies operating within the commodity sector provides indirect exposure to commodity price fluctuations. For example, mining, agriculture, and energy companies’ revenues are closely linked to raw material prices; their share prices tend to rise and fall with these markets. This approach allows you also to benefit from dividends and the company’s operational growth, while keeping your investments liquid.

Example: Buying Commodity-Related Shares

Interested in gold prices, you purchase shares of a prominent mining company for $4,000. If gold prices rise and the company posts increased profits, its share price may also increase by, say, 12% during the year, yielding a gain of $480 (plus potential dividends).

Investing in Physical Commodities

This is the most traditional method—buying and storing the physical commodity itself (gold, silver, platinum, etc.). Physical ownership may provide security in times of crisis and is often valued for its role in wealth preservation. However, logistical issues such as storage, insurance, and liquidity must be considered.

Example: Buying Physical Gold

You purchase 100 grams of gold in the form of a bar for $7,500, stored in a secure vault. If, after one year, the gold price rises to $8,200 per 100g, you can sell your bar for a $700 gain (minus eventual dealer premiums and storage fees).

Each of these methods has distinct features and risk profiles. Choosing the most suitable way depends on your investment horizon, risk appetite, and desired level of involvement in the commodity markets.

Which raw material is suitable for your investor profile?

Not all commodities behave the same way on the financial markets. Their volatility, return potential, and sensitivity to economic or geopolitical events can vary greatly. Your choice of asset should therefore be guided by your experience, knowledge of risks, and investment goals. Here, we help you identify which commodities best match your investor profile.

🟢 Beginner: stable and predictable commodities

If you are new to commodities, it’s important to focus on assets that are less volatile and easier to understand. Gold and aluminium stand out as good options:

• Gold
• Low to moderate volatility compared to other commodities.
• Widely recognized as a "safe haven" during market uncertainty.
• Less influenced by short-term geopolitical events.
• Often used to diversify and stabilize portfolios.
• Aluminium
• Broadly used in industry and everyday products, providing demand stability.
• Less prone to abrupt price shifts than energy commodities.
• Helps beginners gain exposure to industrial commodities with moderate risk.

Recommended strategies:

• Prefer indirect exposure via ETFs (Exchange Traded Funds) or low-leverage CFDs (contracts for difference).
• Focus on medium to long-term holdings.
• Avoid day trading and high leverage.

🟡 Intermediate: more dynamic assets, sensitive to news

If you have some experience and want to capture more active market movements, consider oil and agricultural commodities like grains:

• Oil
• High liquidity and widely traded globally.
• Prices sensitive to economic indicators, supply-demand changes, and geopolitical events.
• Strong reaction to OPEC decisions and macroeconomic trends.
• Grains (wheat, corn, soy)
• Prices impacted by weather patterns, export news, and global inventories.
• Strong seasonal trends, providing opportunities for informed investors.

Recommended strategies:

• Use swing trading approaches on CFDs or ETFs to capture medium-term changes.
• Keep updated with market news, supply disruptions, and policy shifts.
• Always set stop-loss orders to manage risk and avoid large losses.

🔴 Expert: highly volatile assets, requiring advanced management

For highly experienced investors comfortable with risk, some commodities offer substantial profit potential—but come with significant uncertainty and the need for rapid decision-making:

• Natural gas
• Extremely volatile and sensitive to temperature, supply data, and political news.
• Fast and large price swings require active monitoring.
• Oil (short-term trading)
• Short-term oil contracts mean exposure to news, technical patterns, and speculation.
• Suitable for those with expertise in technical analysis and rapid execution.
• Grains (short-term trading)
• Quick price reactions to crop reports, weather events, and government policies.
• Requires ability to process and act on data swiftly.

Recommended strategies:

• Advanced tactics like scalping (very short-term trades) and use of sophisticated technical indicators.
• Active hedging to balance risk (e.g., using options or futures for protection).
• Rigorous leverage management to avoid large losses during sudden market swings.

By aligning your commodity choices with your experience and risk tolerance, you can build a foundation for more effective and confident investing.

How to choose a broker for trading commodities?

Choosing the right broker is crucial for anyone looking to invest safely and efficiently in commodities. Your broker will be your gateway to the commodities markets, allowing you to access different assets, manage risks, and seize opportunities. In the AE, it is especially important to pick a broker that is both reliable and compliant with local regulations, while also offering the tools, protections, and conditions necessary for successful trading. Below, you’ll find the key criteria to consider when selecting a commodities trading broker, helping you make an informed decision based on your needs.

Why invest in commodities?

Investors often wonder about the relevance of including commodities in a diversified investment portfolio. While stocks and bonds traditionally receive most of the attention, commodities merit careful consideration for their unique characteristics—especially within a balanced, long-term approach. Their specific role is nuanced, offering both benefits and risks that require a clear understanding before making allocation decisions.

Commodities tend to exhibit price movements that are independent from those of equities and fixed income instruments. This means that, when the stock or bond markets are experiencing volatility or periods of underperformance, commodities can behave differently. Incorporating them into a portfolio can thus reduce overall risk and smooth returns over time, thanks to the diversification effect; assets with low or negative correlation help limit the impact of sharp declines in a single segment of the financial markets.

Another key advantage of commodities is their potential to protect purchasing power during inflationary environments. Historically, the prices of goods such as energy, agricultural products, and industrial metals have risen during periods of higher inflation. This makes commodities a natural hedge, helping to preserve value when the cost of living increases and erodes the real returns of traditional financial assets like bonds or cash.

Within the world of commodities, precious metals—particularly gold and, to a lesser extent, silver—play a distinctive role. These so-called “safe-haven” assets are sought after in times of uncertainty, economic stress, or geopolitical tensions. Their intrinsic value and limited supply have made them a proven store of value throughout history, providing portfolios with a buffer during sharp market corrections or crises.

Finally, commodities also present tactical opportunities for investors attentive to economic cycles or international events. Energy resources, like oil, for instance, can experience substantial price swings due to supply disruptions, geopolitical tensions, or changes in global demand. These fluctuations can open windows for short- or medium-term gains, offering an active management angle to portfolio construction.

Key takeaway

Commodities are not a guarantee of returns, nor should they form the entire basis of an investment approach. However, when used thoughtfully, they contribute strategically to a robust and balanced portfolio, by enhancing diversification, mitigating inflation risk, serving as a buffer during uncertain times, and sometimes offering shorter-term opportunities. Their specific role will depend on individual objectives, risk tolerance, and market context.

How much does commodity trading cost?

Trading commodities can be an attractive strategy to diversify your investment portfolio. However, it’s essential to understand that trading isn’t free—various fees can significantly affect your profits. The main costs associated with commodity trading are: the spread (difference between buy and sell price), transaction commissions, overnight financing costs (swap), inactivity fees and withdrawal fees. Being aware of these expenses allows you to plan better and avoid unpleasant surprises that can eat into your gains.

1. The Spread

The spread is the gap between a commodity’s “bid” (sell) and “ask” (buy) prices. It represents a hidden cost every time you open a position—since you always buy at a slightly higher price and sell at a slightly lower one due to this difference. The broker keeps the spread as part of their remuneration.

Spread Example

Suppose you want to trade 1 lot of Brent crude oil.
- Buy (ask) price: $85.50
- Sell (bid) price: $85.40
The spread is $0.10 per barrel. If 1 lot is 100 barrels, the spread cost is $10 each time you buy and immediately sell (100 x $0.10).

2. Transaction Commission

Some brokers add a commission fee per trade in addition to, or instead of, the spread. This fee is often fixed for each lot traded, regardless of the price of the commodity, and is charged on both entry and exit from the position.

Example of Transaction Commission

Imagine a gold trade. The broker charges $2 per lot per side.
- Opening a 2-lot position: 2 x $2 = $4 commission
- Closing the position: 2 x $2 = $4 commission
Total cost for the trade: $8 (if both opening and closing).

3. Financing Fee (Swap)

If you keep a commodity position open overnight, brokers usually charge a financing fee called a swap. This represents the cost of borrowing money to maintain the open position. Swaps are charged or credited daily and can vary depending on the commodity and direction (buy/sell).

Example of Financing Fee (Swap)

You hold 1 lot of silver (5,000 ounces) overnight and the broker’s swap rate is -$2 per lot per day:
- Keeping the position open for 5 nights: 5 x $2 = $10 cost.

4. Inactivity Fee

Some brokers apply a fee if your trading account is inactive for a defined time (e.g. 3, 6, or 12 months). The fee is usually charged monthly until you resume trading.

Example of Inactivity Fee

Your account has been idle for 6 months and the broker charges a $10 monthly inactivity fee.
If you go another 3 months without making a trade, you’ll pay 3 x $10 = $30 in fees.

5. Withdrawal Fee

Every time you take money out of your trading account, brokers may charge a fixed fee, a percentage, or both. This is a direct cost that reduces your available profits.

Example of Withdrawal Fee

After closing your coffee trades, you decide to withdraw $1,000.
If the broker’s withdrawal fee is $15 per transaction, you receive $985 ($1,000 - $15).
If you plan several small withdrawals, these fees can accumulate quickly.

Understanding these fees is key to maximizing your net returns when trading commodities: always factor them into your strategy and plan your trades—including your withdrawals—accordingly.

Live commodity prices

What taxation applies to income from commodities in the UAE?

The taxation of income derived from commodities in AE fundamentally depends on the investment vehicle chosen—such as derivatives (CFDs, futures), funds (ETFs), company shares, or the holding of physical metals. Local fiscal rules determine how each instrument is taxed. Generally, these gains fall under the regime for capital income, with specific features depending on the asset. Understanding the tax treatment applicable to each investment is crucial for effective planning.

CFD and futures contracts are typically considered as financial instruments subject to capital gains tax in AE. Profits realized from trading these products are, in most cases, classified as speculative income and taxed at the standard progressive income tax scales. However, certain investors—especially those deemed to be acting in a professional capacity—may be eligible for specific regimes or potentially higher rates. There might also be an exemption threshold or the possibility to offset losses against gains, according to local practices.

Commodities ETFs (Exchange-Traded Funds focused on commodities) are treated as investment funds for tax purposes. Dividends or distributions received may be subject to a flat withholding tax at source, with the final taxation rate depending on the total income and holding period. Gains from selling ETF shares are generally taxed as capital gains; specific relief or reduced rates may apply if the holding exceeds a minimum period defined by AE’s local tax law.

Shares of companies active in mining, oil, or commodities extraction are taxed more broadly. Dividend income from these shares is subject to AE's rules on investment income, which may provide reduced rates for “qualified” dividends, subject to conditions such as holding period or listing markets. Any capital gain realized on disposal of such shares would typically be subject to the capital gains tax regime; the long-term holding of shares might benefit from reduced rates or partial exemptions.

For physical holdings of precious metals like gold or silver, taxation usually arises at the point of sale. In AE, gains are subject to capital gains tax, with the rate and availability of allowances depending both on the holding duration and on whether the assets are declared. There may also be reporting requirements for physical assets above certain thresholds, and some relief—such as tax abatement for long-term holders—may be provided by local tax rules.

For all types of investments, specific rules may exist regarding the holding period, reporting requirements, and applicable tax calculation methods (flat rate or progressive scale). AE may offer tax incentives or reliefs for certain investors or in line with international tax agreements, but these require careful individual assessment. Always ensure full compliance with AE tax obligations by keeping detailed records of all transactions and holdings.

Raw materials: understanding the Contango and Backwardation effect

Understanding the price curve in commodity markets—how current prices (spot) relate to future prices (futures)—is key for making smart investment decisions. The shape of this curve often reveals important information about market expectations, supply and demand dynamics, and the costs of holding or delivering commodities. Two main configurations, contango and backwardation, frequently shape opportunities and risks for investors. Recognizing which market structure is in place, and why, is essential for understanding returns and avoiding common pitfalls in commodity investing.

Contango: A Future More Expensive than the Present

Contango describes a situation where futures prices for a commodity are higher than the current spot price. In simple terms, it’s more expensive to buy the commodity for delivery in the future than it is today. Contango is common with storable commodities such as oil, metals, or grains. It typically results from a combination of factors:

• Storage costs: Keeping a physical commodity until delivery incurs fees—warehousing, insurance, and sometimes even spoilage.
• Financing costs: The money tied up in inventories could be used elsewhere; investors want compensation for this.
• Expectations of future supply/demand: Traders might expect prices to rise due to anticipated demand or seasonal effects.

Example

Oil in period of oversupply
Imagine a period where global oil production exceeds immediate demand. Storage tanks fill up, increasing storage costs. If the spot price of oil is AED 250 per barrel, but the 3-month futures contract trades at AED 265, the market is in contango. Oil owners need to be compensated for storing excess crude; buying a contract today for future delivery comes at a premium.

Backwardation: When Urgency Takes Over

Backwardation is the opposite configuration, where the futures price is lower than the spot price. This sets up when immediate demand for a commodity outstrips available supply, often due to a sudden disruption, seasonal shortage, or urgent need. The reasons for backwardation include:

• Short-term supply shocks: Weather events, logistical blockages, or geopolitical uncertainties can restrict supply.
• Immediate consumption needs: Buyers are willing to pay a premium for prompt delivery—future prices fall in comparison.

Example

Wheat during the Ukraine crisis
When the war in Ukraine disrupted global wheat exports, many importing countries faced urgent shortages, especially in the Middle East and Africa. If spot wheat trades at AED 1,500 per tonne but 3-month futures are only AED 1,420, the market is in backwardation. The high spot price reflects urgent demand; future contracts are cheaper as the market expects supply to normalize.

Why Does This Matter for Investors?

The shape of the price curve—contango or backwardation—can significantly impact the returns of financial products linked to commodity futures, like ETFs, ETCs, or mutual funds. These instruments often “roll over” expiring contracts by selling the near-maturity future and buying the next one. In a contango market, this rolling means selling cheaper, buying more expensive—eating into returns over time (a “roll yield” cost). In backwardation, the opposite happens: the roll process can add to returns, as investors sell high and buy lower-priced future contracts.

Good to Know: In Summary

Information

Analyzing the price curve in commodity markets helps investors spot key signals about market expectations, risks, and opportunities. Understanding whether the market is in contango or backwardation reveals if future supply or urgent demand is dominating, and it can materially influence the performance of financial products tied to futures contracts. Regularly checking the curve’s shape is a valuable step in refining investment strategies and managing risk.

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.