Commodities

Best Commodity Brokers in 2025

Application
Fees
Features
Our Opinion
Learn More
#1
#1
Fees
Starting from5%
Raw Materials
25+
Minimum Deposit
$0
Trading Software
MT4, MT5, cTrader
Regulatory Organizations
FCA, ASIC, BaFin, CySEC, CMA, SCB
Raw Materials
25+
Minimum Deposit
$0
Trading Software
MT4, MT5, cTrader
Regulatory Organizations
FCA, ASIC, BaFin, CySEC, CMA, SCB
Quality training
  • Automated Trading
  • Dedicated Customer Support
  • Unlimited demo account
  • Fast withdrawals
  • Automated Trading
  • Dedicated Customer Support
  • Unlimited demo account
  • Fast withdrawals
5 Things to Know About pepperstone

Is Pepperstone reliable?

Yes, Pepperstone is a reliable trading platform regulated by reputable authorities such as the FCA (UK) and ASIC (Australia). It guarantees the security of funds through segregated accounts and advanced security protocols. Users appreciate the transparency and strict regulation that frame operations on this platform.

Why choose Pepperstone?

Pepperstone stands out for its accessibility and tools adapted to all profiles. With an intuitive platform and powerful tools like cTrader, beginners and experienced traders can exploit a wide range of assets, from currencies to indices. The emphasis is on competitive spreads and fast order execution.

What are the fees at Pepperstone?

Pepperstone offers attractive fees with spreads from 0 pips on Raw accounts, but with a small commission of $3.5 per lot. For Standard accounts, there are no commissions, but slightly wider spreads. No fees on deposits, and withdrawal fees are transparent and reasonable.

Who is Pepperstone for?

Pepperstone is perfect for traders of all levels. Beginners will benefit from guides and demo accounts to practice, while more advanced users will appreciate the speed of the platform and access to high-end trading tools. Its diversity of assets allows everyone to find their area of expertise.

Is Pepperstone reliable?

Yes, Pepperstone is a reliable trading platform regulated by reputable authorities such as the FCA (UK) and ASIC (Australia). It guarantees the security of funds through segregated accounts and advanced security protocols. Users appreciate the transparency and strict regulation that frame operations on this platform.

Why choose Pepperstone?

Pepperstone stands out for its accessibility and tools adapted to all profiles. With an intuitive platform and powerful tools like cTrader, beginners and experienced traders can exploit a wide range of assets, from currencies to indices. The emphasis is on competitive spreads and fast order execution.

What are the fees at Pepperstone?

Pepperstone offers attractive fees with spreads from 0 pips on Raw accounts, but with a small commission of $3.5 per lot. For Standard accounts, there are no commissions, but slightly wider spreads. No fees on deposits, and withdrawal fees are transparent and reasonable.

Who is Pepperstone for?

Pepperstone is perfect for traders of all levels. Beginners will benefit from guides and demo accounts to practice, while more advanced users will appreciate the speed of the platform and access to high-end trading tools. Its diversity of assets allows everyone to find their area of expertise.

#2
30+ million users
#2Recommended by Forbes
Recommended by Forbes
Fees
Starting from0.025%
Raw Materials
30+
Minimum Deposit
$50
Trading Software
eToro Trading
Regulatory Organizations
FCA, CySEC, AMF, ASIC, FSRA
Raw Materials
30+
Minimum Deposit
$50
Trading Software
eToro Trading
Regulatory Organizations
FCA, CySEC, AMF, ASIC, FSRA
Low Stocks & CFDs Fees
  • Copy trading available
  • Integrated Crypto Wallet
  • Ideal for beginners
  • 4.6% interest rate on uninvested balance
  • Copy trading available
  • Integrated Crypto Wallet
  • Ideal for beginners
  • 4.6% interest rate on uninvested balance
51% of CFD accounts lose money. You will never lose more than your investment.
5 things to know about eToro

Is eToro reliable?

Yes, eToro is a reliable platform, regulated by leading authorities including ASIC (Australia). With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not identified any complaints regarding the security of funds.

Why choose eToro?

With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, CopyTrader, allow you to copy the best traders to learn while investing.
You can access thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's a bit like the Spotify of investing.

What are the fees at eToro?

eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset but remain very affordable.
Deposits are free, and withdrawals are fixed at $5. If you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are clearly mentioned on its site (which cannot be said of all competitors).

Who is eToro for?

eToro is mainly aimed at beginners and intermediaries, thanks to its simplicity and educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find what they are looking for with a key argument for them: a real variety of assets (stocks, cryptocurrencies, ETFs).

Is it easy to withdraw money from eToro?

Yes, withdrawing your earnings from eToro is as simple as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests in 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analyzing thousands of customer cases, no such problems have been identified.

Is eToro reliable?

Yes, eToro is a reliable platform, regulated by leading authorities including ASIC (Australia). With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not identified any complaints regarding the security of funds.

Why choose eToro?

With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, CopyTrader, allow you to copy the best traders to learn while investing.
You can access thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's a bit like the Spotify of investing.

What are the fees at eToro?

eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset but remain very affordable.
Deposits are free, and withdrawals are fixed at $5. If you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are clearly mentioned on its site (which cannot be said of all competitors).

Who is eToro for?

eToro is mainly aimed at beginners and intermediaries, thanks to its simplicity and educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find what they are looking for with a key argument for them: a real variety of assets (stocks, cryptocurrencies, ETFs).

Is it easy to withdraw money from eToro?

Yes, withdrawing your earnings from eToro is as simple as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests in 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analyzing thousands of customer cases, no such problems have been identified.

#3
Regulated broker since 2006
#3
Fees
Starting from0.30%
Raw Materials
20+
Minimum Deposit
$100
Trading Software
MT4, MT5, AvaTradeGO
Regulatory Organizations
CySEC, ASIC, FCA, FSCA, FSRA
Raw Materials
20+
Minimum Deposit
$100
Trading Software
MT4, MT5, AvaTradeGO
Regulatory Organizations
CySEC, ASIC, FCA, FSCA, FSRA
Ideal for Beginners
  • Free Demo Account
  • Copy Trading Available
  • AvaProtect Coverage
  • 3% interest rate on uninvested balance
  • Free Demo Account
  • Copy Trading Available
  • AvaProtect Coverage
  • 3% interest rate on uninvested balance
5 Things to Know About Avatrade

Is Avatrade reliable?

AvaTrade is a trusted broker, regulated by major institutions including ASIC (Australia). In operation since 2006, it offers solid guarantees, including the segregation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.

Why choose Avatrade?

AvaTrade combines simplicity and expertise. Tutorials, demo accounts and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities as you progress. You don't need to be an expert: AvaTrade adapts to you.

What are the fees at Avatrade?

AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and inactivity costs that can be avoided with regular use. You can focus on learning and your investments, without surprises when it comes to paying.

Who is Avatrade for?

AvaTrade is for everyone: beginners can take advantage of detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you are looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.

Is it easy to withdraw money from Avatrade?

Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, wire transfer or e-wallets. Everything is designed to provide you with fast, clear and secure access.

Is Avatrade reliable?

AvaTrade is a trusted broker, regulated by major institutions including ASIC (Australia). In operation since 2006, it offers solid guarantees, including the segregation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.

Why choose Avatrade?

AvaTrade combines simplicity and expertise. Tutorials, demo accounts and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities as you progress. You don't need to be an expert: AvaTrade adapts to you.

What are the fees at Avatrade?

AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and inactivity costs that can be avoided with regular use. You can focus on learning and your investments, without surprises when it comes to paying.

Who is Avatrade for?

AvaTrade is for everyone: beginners can take advantage of detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you are looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.

Is it easy to withdraw money from Avatrade?

Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, wire transfer or e-wallets. Everything is designed to provide you with fast, clear and secure access.

Raw materials with competitive spreads
Fees
starting from0%
Raw Materials
30+
Minimum Deposit
$100
Trading Software
MT4, MT5, TradingView
Regulatory Organizations
CySEC, FCA, ASIC, SCB
Raw Materials
30+
Minimum Deposit
$100
Trading Software
MT4, MT5, TradingView
Regulatory Organizations
CySEC, FCA, ASIC, SCB
Ultra-competitive spreads
  • Free Demo Account
  • Automated Trading Option
  • Raw ECN Access
  • Advantageous fee amount
  • Free Demo Account
  • Automated Trading Option
  • Raw ECN Access
  • Advantageous fee amount
5 Things to Know About Eightcap

Is EightCap reliable?

Yes, EightCap is a trusted platform regulated by ASIC (Australia) and FCA (United Kingdom). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to start with, EightCap is a safe bet, recognised in the industry.

Why choose EightCap?

EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools such as MT4 and MT5, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.

What are the fees at EightCap?

At EightCap, fees depend on the account you choose: Raw accounts display spreads from 0 pip, with a commission of $3.5 per lot. Standard accounts have slightly higher spreads but no commissions. There are no fees on deposits or withdrawals, for clear and controlled costs.

Who is EightCap for?

Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you a beginner? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like MT5 and competitive spreads will allow you to go further in your strategies.

Is it easy to withdraw your money from EightCap?

Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.

Is EightCap reliable?

Yes, EightCap is a trusted platform regulated by ASIC (Australia) and FCA (United Kingdom). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to start with, EightCap is a safe bet, recognised in the industry.

Why choose EightCap?

EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools such as MT4 and MT5, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.

What are the fees at EightCap?

At EightCap, fees depend on the account you choose: Raw accounts display spreads from 0 pip, with a commission of $3.5 per lot. Standard accounts have slightly higher spreads but no commissions. There are no fees on deposits or withdrawals, for clear and controlled costs.

Who is EightCap for?

Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you a beginner? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like MT5 and competitive spreads will allow you to go further in your strategies.

Is it easy to withdraw your money from EightCap?

Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.

Broker specialized in Raw Materials
Fees
Starting from0%
Raw Materials
20+
Minimum Deposit
$50
Trading Software
MT4, MT5, Vantage Mobile
Regulatory Organizations
ASIC, FCA, FSCA
Raw Materials
20+
Minimum Deposit
$50
Trading Software
MT4, MT5, Vantage Mobile
Regulatory Organizations
ASIC, FCA, FSCA
Account opening in 5 minutes
  • Copy Trading Available
  • Responsive Support
  • Integrated training
  • Free demo account
  • Copy Trading Available
  • Responsive Support
  • Integrated training
  • Free demo account
5 Things to Know About Vantage

Vantage est-il fiable ?

Vantage est un broker fiable, réglementé par des autorités reconnues comme l’ASIC (Australie) et la FCA (Royaume-Uni). Il se distingue par la sécurité de ses comptes clients, protégés par des banques de premier ordre, et son engagement envers la transparence. Fort de plus de 15 ans d’expérience, Vantage est une plateforme digne de confiance.

Why choose Vantage?

Vantage stands out for its balance between accessibility and professional tools. Beginners benefit from support with demo accounts and educational resources, while experienced traders appreciate competitive spreads, fast execution, and advanced platforms like MT4/MT5. With a varied range of assets and transparent fees, Vantage caters to a wide audience in search of reliable and efficient trading conditions.

What are the fees at Vantage?

The fees at Vantage are adapted to everyone. On ECN accounts, spreads start at 0 pip with a commission of $3 per lot. Standard accounts offer slightly higher spreads, but without commission. No deposit or withdrawal fees are applied, and the cost of inactivity is limited. With Vantage, you keep control of your costs to invest effectively.

Who is Vantage for?

Vantage is perfect for traders looking for professional conditions, while remaining accessible to beginners. If you want a fast platform, competitive fees and advanced tools, Vantage is an excellent choice. Whether you are learning or perfecting your strategies, you will find the necessary resources.

Is it easy to withdraw your money from Vantage?

Withdrawing funds from Vantage is quick and secure. Requests are processed in less than 48 hours and you can choose between bank transfer, cards or electronic wallets. The platform guarantees smooth transactions and reduced fees, allowing you to access your earnings easily.

Vantage est-il fiable ?

Vantage est un broker fiable, réglementé par des autorités reconnues comme l’ASIC (Australie) et la FCA (Royaume-Uni). Il se distingue par la sécurité de ses comptes clients, protégés par des banques de premier ordre, et son engagement envers la transparence. Fort de plus de 15 ans d’expérience, Vantage est une plateforme digne de confiance.

Why choose Vantage?

Vantage stands out for its balance between accessibility and professional tools. Beginners benefit from support with demo accounts and educational resources, while experienced traders appreciate competitive spreads, fast execution, and advanced platforms like MT4/MT5. With a varied range of assets and transparent fees, Vantage caters to a wide audience in search of reliable and efficient trading conditions.

What are the fees at Vantage?

The fees at Vantage are adapted to everyone. On ECN accounts, spreads start at 0 pip with a commission of $3 per lot. Standard accounts offer slightly higher spreads, but without commission. No deposit or withdrawal fees are applied, and the cost of inactivity is limited. With Vantage, you keep control of your costs to invest effectively.

Who is Vantage for?

Vantage is perfect for traders looking for professional conditions, while remaining accessible to beginners. If you want a fast platform, competitive fees and advanced tools, Vantage is an excellent choice. Whether you are learning or perfecting your strategies, you will find the necessary resources.

Is it easy to withdraw your money from Vantage?

Withdrawing funds from Vantage is quick and secure. Requests are processed in less than 48 hours and you can choose between bank transfer, cards or electronic wallets. The platform guarantees smooth transactions and reduced fees, allowing you to access your earnings easily.

Broker specialising in Stocks, ETFs and CFDs
Fees
Starting from0.30%
Raw Materials
20+
Minimum Deposit
$0
Trading Software
Xstation 5
Regulatory Organizations
FCA, KNF, ACP, CNMV, DFSA
Raw Materials
20+
Minimum Deposit
$0
Trading Software
Xstation 5
Regulatory Organizations
FCA, KNF, ACP, CNMV, DFSA
Varied educational tools
  • Unlimited demo account
  • Copy trading available
  • Mobile-only trading
  • 4.5% interest rate on uninvested balance
  • Unlimited demo account
  • Copy trading available
  • Mobile-only trading
  • 4.5% interest rate on uninvested balance
5 things to know about XTB

Is XTB reliable?

XTB is a trusted broker, regulated in France by the AMF and supervised by renowned authorities such as the FCA and CySEC. It protects its clients' funds in segregated accounts, ensuring a secure trading environment. With millions of users, XTB stands out as a reliable and transparent platform.

Why choose XTB?

XTB is attractive with its intuitive platform and powerful tools like xStation, ideal for all levels. With a wide range of assets including stocks, cryptos and Forex, investment becomes accessible. In addition, its rich educational content allows traders to evolve quickly and gain autonomy.

What are the fees at XTB?

XTB offers competitive fees, including 0% commission on the purchase of stocks and ETFs. Spreads are attractive and deposits are free. Withdrawals over $100 are free of charge, and prolonged inactivity may incur fees after one year. Transparency is at the heart of its model.

Who is XTB for?

XTB is suitable for both beginners and experienced investors. Novices will appreciate its educational resources and easy handling, while experienced traders will benefit from advanced tools and a wide selection of assets to diversify their strategies.

Is it easy to withdraw money from XTB?

XTB facilitates withdrawals with various options such as bank transfer and e-wallets. Requests are generally processed within 24 hours, ensuring quick access to funds. No fees are applied beyond a certain amount, and the process is clear and secure.

Is XTB reliable?

XTB is a trusted broker, regulated in France by the AMF and supervised by renowned authorities such as the FCA and CySEC. It protects its clients' funds in segregated accounts, ensuring a secure trading environment. With millions of users, XTB stands out as a reliable and transparent platform.

Why choose XTB?

XTB is attractive with its intuitive platform and powerful tools like xStation, ideal for all levels. With a wide range of assets including stocks, cryptos and Forex, investment becomes accessible. In addition, its rich educational content allows traders to evolve quickly and gain autonomy.

What are the fees at XTB?

XTB offers competitive fees, including 0% commission on the purchase of stocks and ETFs. Spreads are attractive and deposits are free. Withdrawals over $100 are free of charge, and prolonged inactivity may incur fees after one year. Transparency is at the heart of its model.

Who is XTB for?

XTB is suitable for both beginners and experienced investors. Novices will appreciate its educational resources and easy handling, while experienced traders will benefit from advanced tools and a wide selection of assets to diversify their strategies.

Is it easy to withdraw money from XTB?

XTB facilitates withdrawals with various options such as bank transfer and e-wallets. Requests are generally processed within 24 hours, ensuring quick access to funds. No fees are applied beyond a certain amount, and the process is clear and secure.

Broker specializing in CFDs/derivatives/turbos
Fees
Starting from0.03%
Raw Materials
20+
Minimum Deposit
$300
Trading Software
IG, MetaTrader 4, ProRealTime
Regulatory Organizations
MAS, FCA, ASIC
Raw Materials
20+
Minimum Deposit
$300
Trading Software
IG, MetaTrader 4, ProRealTime
Regulatory Organizations
MAS, FCA, ASIC
Wide range of stocks/ETFs
  • Training options
  • Copy trading available
  • Level 2 order book
  • 4.5% interest rate on uninvested balance
  • Training options
  • Copy trading available
  • Level 2 order book
  • 4.5% interest rate on uninvested balance
74% of CFD accounts lose money. Risk limited to your capital.
5 Things to Know About IG

Is IG reliable?

Yes, IG is a recognised trading platform regulated by leading authorities such as the FCA in the UK and ASIC in Australia. It protects client funds through segregated accounts and ensures enhanced security. Many users attest to its seriousness and transparency in transaction management.

Why choose IG?

IG is ideal for beginners as well as more experienced traders. Its simple interface and practical tools, such as the ProRealTime function, facilitate the learning of trading. The platform offers a wide choice of assets, from stocks to cryptocurrencies, while emphasizing an active community to exchange and progress together.

What are the fees at IG?

IG is distinguished by competitive fees, with no commission on the purchase of shares and ETFs. Spreads are affordable, and there are no fees on deposits. However, inactivity fees may apply if your account is inactive for 2 years. The platform focuses on transparency to avoid surprises.

Who is IG for?

IG is suitable for all types of investors. If you're a beginner, you'll benefit from a clear interface and demo accounts to learn at your own pace. For experienced traders, IG offers powerful tools and a wide variety of assets, from stocks to options, to refine your trading strategies.

Is it easy to withdraw money from IG?

Withdrawing your money from IG is quick and easy. You can use several methods such as bank transfer, PayPal, or credit card. Withdrawals are processed quickly and the fees are transparent. Thousands of customers testify to the smoothness of the process and direct access to their funds.

Is IG reliable?

Yes, IG is a recognised trading platform regulated by leading authorities such as the FCA in the UK and ASIC in Australia. It protects client funds through segregated accounts and ensures enhanced security. Many users attest to its seriousness and transparency in transaction management.

Why choose IG?

IG is ideal for beginners as well as more experienced traders. Its simple interface and practical tools, such as the ProRealTime function, facilitate the learning of trading. The platform offers a wide choice of assets, from stocks to cryptocurrencies, while emphasizing an active community to exchange and progress together.

What are the fees at IG?

IG is distinguished by competitive fees, with no commission on the purchase of shares and ETFs. Spreads are affordable, and there are no fees on deposits. However, inactivity fees may apply if your account is inactive for 2 years. The platform focuses on transparency to avoid surprises.

Who is IG for?

IG is suitable for all types of investors. If you're a beginner, you'll benefit from a clear interface and demo accounts to learn at your own pace. For experienced traders, IG offers powerful tools and a wide variety of assets, from stocks to options, to refine your trading strategies.

Is it easy to withdraw money from IG?

Withdrawing your money from IG is quick and easy. You can use several methods such as bank transfer, PayPal, or credit card. Withdrawals are processed quickly and the fees are transparent. Thousands of customers testify to the smoothness of the process and direct access to their funds.

Table of Contents
  • Which raw materials can be traded online?
  • How to invest in commodities?
  • Which raw material is suitable for your investor profile?
  • How to choose a broker for trading commodities?
  • Why invest in commodities?
  • How much does commodity trading cost?
  • Live commodity prices
  • What taxation applies to income from commodities in the UAE?
  • Raw materials: understanding the Contango and Backwardation effect

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.

CommodityCategoryInvestor ProfileDescriptionInstruments AvailablePopular Brokers
Brent Crude OilEnergySpeculative, macro-orientedKey global oil benchmark, highly liquid, volatileCFDs, Futures, Oil ETFsIG, Saxo Bank, eToro
GoldPrecious MetalDefensive, diversification-seekersSafe haven, inflation hedge, global store of valueCFDs, Futures, Gold ETFsInteractive Brokers, XTB
Natural GasEnergyAdvanced, risk-tolerantVolatile energy source, influenced by seasonalityCFDs, Futures, Gas ETFsIG, Plus500, AvaTrade
AluminiumIndustrial MetalCyclical, industrial exposureUsed in construction, automotive, sensitive to global growthCFDs, Futures, Metals ETFsSaxo Bank, XTB
WheatAgriculturalThematic, macro-awareStaple food grain, affected by weather, geopoliticsCFDs, Futures, Agri ETFseToro, IG, XTB
SilverPrecious MetalDiversification, speculativeIndustrial and financial uses, higher volatilityCFDs, Futures, Silver ETFsInteractive Brokers, Plus500
CopperIndustrial MetalGrowth-oriented, cyclicalWidely used in industry, indicator of global demandCFDs, Futures, Metals ETFsIG, Saxo Bank
SoybeanAgriculturalThematic, ESG, defensiveMajor protein crop, climate and demand sensitiveCFDs, Futures, Agri ETFseToro, AvaTrade
Brent Crude Oil
Category
Energy
Investor Profile
Speculative, macro-oriented
Description
Key global oil benchmark, highly liquid, volatile
Instruments Available
CFDs, Futures, Oil ETFs
Popular Brokers
IG, Saxo Bank, eToro
Gold
Category
Precious Metal
Investor Profile
Defensive, diversification-seekers
Description
Safe haven, inflation hedge, global store of value
Instruments Available
CFDs, Futures, Gold ETFs
Popular Brokers
Interactive Brokers, XTB
Natural Gas
Category
Energy
Investor Profile
Advanced, risk-tolerant
Description
Volatile energy source, influenced by seasonality
Instruments Available
CFDs, Futures, Gas ETFs
Popular Brokers
IG, Plus500, AvaTrade
Aluminium
Category
Industrial Metal
Investor Profile
Cyclical, industrial exposure
Description
Used in construction, automotive, sensitive to global growth
Instruments Available
CFDs, Futures, Metals ETFs
Popular Brokers
Saxo Bank, XTB
Wheat
Category
Agricultural
Investor Profile
Thematic, macro-aware
Description
Staple food grain, affected by weather, geopolitics
Instruments Available
CFDs, Futures, Agri ETFs
Popular Brokers
eToro, IG, XTB
Silver
Category
Precious Metal
Investor Profile
Diversification, speculative
Description
Industrial and financial uses, higher volatility
Instruments Available
CFDs, Futures, Silver ETFs
Popular Brokers
Interactive Brokers, Plus500
Copper
Category
Industrial Metal
Investor Profile
Growth-oriented, cyclical
Description
Widely used in industry, indicator of global demand
Instruments Available
CFDs, Futures, Metals ETFs
Popular Brokers
IG, Saxo Bank
Soybean
Category
Agricultural
Investor Profile
Thematic, ESG, defensive
Description
Major protein crop, climate and demand sensitive
Instruments Available
CFDs, Futures, Agri ETFs
Popular Brokers
eToro, AvaTrade

Investing in Gold

🧑‍💼 Profile Type⚠️ Risk Level📉 Volatility⏳ Investment Horizon🛠️ Key Instruments
Diversification-seekers, conservative, defensiveLow-MediumLow-MediumMedium to Long termGold ETFs, CFDs, Futures
Diversification-seekers, conservative, defensive
⚠️ Risk Level
Low-Medium
📉 Volatility
Low-Medium
⏳ Investment Horizon
Medium to Long term
🛠️ Key Instruments
Gold ETFs, CFDs, Futures

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

🧑‍💼 Profile Type⚠️ Risk Level📉 Volatility⏳ Investment Horizon🛠️ Key Instruments
Speculative, macro-oriented, activeHighHighShort to Medium termOil CFDs, Futures, ETFs
Speculative, macro-oriented, active
⚠️ Risk Level
High
📉 Volatility
High
⏳ Investment Horizon
Short to Medium term
🛠️ Key Instruments
Oil CFDs, Futures, ETFs

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

🧑‍💼 Profile Type⚠️ Risk Level📉 Volatility⏳ Investment Horizon🛠️ Key Instruments
Experienced, risk-seeking, tacticalVery HighVery HighShort termGas CFDs, Futures, ETFs
Experienced, risk-seeking, tactical
⚠️ Risk Level
Very High
📉 Volatility
Very High
⏳ Investment Horizon
Short term
🛠️ Key Instruments
Gas CFDs, Futures, ETFs

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

🧑‍💼 Profile Type⚠️ Risk Level📉 Volatility⏳ Investment Horizon🛠️ Key Instruments
Cyclical, growth-oriented, sector-focusedMediumMedium-HighMedium termAluminium CFDs, Futures, Metals ETFs
Cyclical, growth-oriented, sector-focused
⚠️ Risk Level
Medium
📉 Volatility
Medium-High
⏳ Investment Horizon
Medium term
🛠️ Key Instruments
Aluminium CFDs, Futures, Metals ETFs

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)

🧑‍💼 Profile Type⚠️ Risk Level📉 Volatility⏳ Investment Horizon🛠️ Key Instruments
Thematic, ESG-conscious, defensiveMediumMedium-HighShort to Medium termAgri CFDs, Futures, ETFs
Thematic, ESG-conscious, defensive
⚠️ Risk Level
Medium
📉 Volatility
Medium-High
⏳ Investment Horizon
Short to Medium term
🛠️ Key Instruments
Agri CFDs, Futures, ETFs

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.

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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.

CategoryExample CFD Assets
EnergyBrent Crude Oil, Natural Gas
Precious MetalsGold, Silver, Platinum
AgricultureWheat, Coffee, Sugar
Industrial MetalsCopper, Aluminium
Energy
Example CFD Assets
Brent Crude Oil, Natural Gas
Precious Metals
Example CFD Assets
Gold, Silver, Platinum
Agriculture
Example CFD Assets
Wheat, Coffee, Sugar
Industrial Metals
Example CFD Assets
Copper, Aluminium

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.

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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).

CategoryExample Futures Assets
EnergyWTI Crude Oil, Gasoline
Precious MetalsGold, Silver
AgricultureWheat, Corn, Cocoa
Industrial MetalsCopper, Zinc
Energy
Example Futures Assets
WTI Crude Oil, Gasoline
Precious Metals
Example Futures Assets
Gold, Silver
Agriculture
Example Futures Assets
Wheat, Corn, Cocoa
Industrial Metals
Example Futures Assets
Copper, Zinc

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.

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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).

CategoryExample ETFs
Precious MetalsSPDR Gold Shares, iShares Silver Trust
EnergyUnited States Oil Fund (USO), Invesco DB Energy
AgricultureTeucrium Wheat, Invesco DB Agriculture
DiversifiediShares S&P GSCI Commodity Index
Precious Metals
Example ETFs
SPDR Gold Shares, iShares Silver Trust
Energy
Example ETFs
United States Oil Fund (USO), Invesco DB Energy
Agriculture
Example ETFs
Teucrium Wheat, Invesco DB Agriculture
Diversified
Example ETFs
iShares S&P GSCI Commodity Index

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.

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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).

SectorExample Companies
EnergySaudi Aramco, Shell
Mining/MetalsBarrick Gold, Rio Tinto
AgricultureAlmarai, Bunge Limited
ChemicalsSABIC, Nutrien
Energy
Example Companies
Saudi Aramco, Shell
Mining/Metals
Example Companies
Barrick Gold, Rio Tinto
Agriculture
Example Companies
Almarai, Bunge Limited
Chemicals
Example Companies
SABIC, Nutrien

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.

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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).

Physical CommodityAccessible Forms
GoldBars, coins
SilverBars, coins
Platinum/PalladiumBars, coins
DiamondsInvestment stones
Gold
Accessible Forms
Bars, coins
Silver
Accessible Forms
Bars, coins
Platinum/Palladium
Accessible Forms
Bars, coins
Diamonds
Accessible Forms
Investment stones

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.

Investor profileRecommended commodities
🟢 BeginnerGold, Aluminium
🟡 IntermediateOil, Grains
🔴 ExpertNatural gas, Oil (short-term), Grains (short-term)
🟢 Beginner
Recommended commodities
Gold, Aluminium
🟡 Intermediate
Recommended commodities
Oil, Grains
🔴 Expert
Recommended commodities
Natural gas, Oil (short-term), Grains (short-term)

🟢 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.

CriteriaWhat to Look For
RegulationEnsure the broker is licensed by recognized authorities in AE, such as the Securities and Commodities Authority (SCA), ADGM Financial Services Regulatory Authority (FSRA), or DIFC Dubai Financial Services Authority (DFSA). This guarantees oversight and compliance with local laws.
Fund ProtectionConfirm the existence of mechanisms like the Investor Compensation Fund or Deposit Guarantee Schemes that protect your funds in case the broker goes bankrupt.
Commodities RangeCheck that the broker offers a wide selection of commodities, including energy (oil, gas), metals (gold, silver, copper), and agricultural products (wheat, coffee, etc.).
Trading InstrumentsLook for varied instruments such as CFDs, futures, ETFs, and commodity-related stocks to suit different trading strategies and risk profiles.
Trading FeesAnalyze spreads, commissions, overnight (swap) fees, and inactivity charges. Comparing overall cost structures is essential for profitability.
Trading PlatformThe platform should be user-friendly, reliable, and compatible with leading software like MetaTrader (MT4/MT5), and should offer mobile access for flexible trading.
Trading ToolsSeek advanced charting, technical indicators, customizable alerts, and real-time market data to support analysis and informed decision-making.
Leverage OfferedCheck the maximum allowed leverage for commodity trading in AE, and ensure it matches your risk tolerance; high leverage increases both potential gains and losses.
Risk ManagementMake sure the broker offers robust tools such as stop-loss, take-profit, margin call alerts, and negative balance protection for responsible trading.
Customer Support QualitySupport should be easily accessible, responsive, and available in your preferred language (like English and Arabic) to solve issues promptly and effectively.
Regulation
What to Look For
Ensure the broker is licensed by recognized authorities in AE, such as the Securities and Commodities Authority (SCA), ADGM Financial Services Regulatory Authority (FSRA), or DIFC Dubai Financial Services Authority (DFSA). This guarantees oversight and compliance with local laws.
Fund Protection
What to Look For
Confirm the existence of mechanisms like the Investor Compensation Fund or Deposit Guarantee Schemes that protect your funds in case the broker goes bankrupt.
Commodities Range
What to Look For
Check that the broker offers a wide selection of commodities, including energy (oil, gas), metals (gold, silver, copper), and agricultural products (wheat, coffee, etc.).
Trading Instruments
What to Look For
Look for varied instruments such as CFDs, futures, ETFs, and commodity-related stocks to suit different trading strategies and risk profiles.
Trading Fees
What to Look For
Analyze spreads, commissions, overnight (swap) fees, and inactivity charges. Comparing overall cost structures is essential for profitability.
Trading Platform
What to Look For
The platform should be user-friendly, reliable, and compatible with leading software like MetaTrader (MT4/MT5), and should offer mobile access for flexible trading.
Trading Tools
What to Look For
Seek advanced charting, technical indicators, customizable alerts, and real-time market data to support analysis and informed decision-making.
Leverage Offered
What to Look For
Check the maximum allowed leverage for commodity trading in AE, and ensure it matches your risk tolerance; high leverage increases both potential gains and losses.
Risk Management
What to Look For
Make sure the broker offers robust tools such as stop-loss, take-profit, margin call alerts, and negative balance protection for responsible trading.
Customer Support Quality
What to Look For
Support should be easily accessible, responsive, and available in your preferred language (like English and Arabic) to solve issues promptly and effectively.

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.

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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.

Type of FeeExplanationConcrete Example
SpreadDifference between buying and selling price of a commodityIf crude oil has a buy price of $80.10 and a sell price of $80.00, the spread is $0.10.
Transaction CommissionFixed or variable fee per tradeA broker charges $3 per lot traded on gold; buy and sell costs total $6 for a full trade.
Financing Fee (Swap)Interest charged for holding a position overnightHolding a silver trade overnight incurs a daily fee of $1.50 per lot.
Inactivity FeeFee for not trading over a set period (e.g., 3 or 6 months)If your trading account is inactive for 6 months, a $10 monthly fee is charged until use.
Withdrawal FeeFee for transferring money from your trading accountYou withdraw profits and your broker charges a flat $20 per withdrawal.
Spread
Explanation
Difference between buying and selling price of a commodity
Concrete Example
If crude oil has a buy price of $80.10 and a sell price of $80.00, the spread is $0.10.
Transaction Commission
Explanation
Fixed or variable fee per trade
Concrete Example
A broker charges $3 per lot traded on gold; buy and sell costs total $6 for a full trade.
Financing Fee (Swap)
Explanation
Interest charged for holding a position overnight
Concrete Example
Holding a silver trade overnight incurs a daily fee of $1.50 per lot.
Inactivity Fee
Explanation
Fee for not trading over a set period (e.g., 3 or 6 months)
Concrete Example
If your trading account is inactive for 6 months, a $10 monthly fee is charged until use.
Withdrawal Fee
Explanation
Fee for transferring money from your trading account
Concrete Example
You withdraw profits and your broker charges a flat $20 per withdrawal.

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.

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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.

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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).

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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.

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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.

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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.

Type of InvestmentApplicable TaxationKey Features
CFD and futuresTaxed as capital gains or speculative incomeShort-term gains taxed at ordinary rates; possible exemptions for professional investors
Commodities ETFsDividends/gains taxed as investment incomeWithholding at source may apply; possible relief based on holding period
Shares of mining/oil companiesTaxed as dividend income and/or capital gainsPreferential rates may apply to qualified dividends; holding period impacts taxation
Physical precious metals (gold, silver)Taxed as capital gains on disposalExemptions or reductions may apply for long-term holding; declaration of physical assets
CFD and futures
Applicable Taxation
Taxed as capital gains or speculative income
Key Features
Short-term gains taxed at ordinary rates; possible exemptions for professional investors
Commodities ETFs
Applicable Taxation
Dividends/gains taxed as investment income
Key Features
Withholding at source may apply; possible relief based on holding period
Shares of mining/oil companies
Applicable Taxation
Taxed as dividend income and/or capital gains
Key Features
Preferential rates may apply to qualified dividends; holding period impacts taxation
Physical precious metals (gold, silver)
Applicable Taxation
Taxed as capital gains on disposal
Key Features
Exemptions or reductions may apply for long-term holding; declaration of physical assets

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.
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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.
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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

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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
P. Laurore
Finance expert
HelloSafe
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.

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