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Commodities Trading

Trade Gold, Silver and Oil on the market-leading MT4 or MT5 platforms.

Why Trade Commodities with Eightcap

Lightning Fast Execution

Lightning Fast Execution

Our execution servers are located in Equinix data centres, where most of the world's financial institutions are hosted, ensuring optimal performance at all times.
Premium Liquidity

Premium Liquidity

Our pricing is aggregated from multiple top-tier liquidity providers, allowing you to trade on spreads from as low as 0.0 pips.
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Multi-Jurisdictional Regulation

Established in Australia with multiple entities each regulated independently to provide you with a safe trading environment.
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MT4 & MT5 Platforms

Trade effortlessly on intuitive, market-leading platforms designed and built for traders worldwide via our cutting-edge technology infrastructure.
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Trade Commodities on MT4 across desktop and mobile or MT5 across webtrader, desktop and mobile, all on our powerful and secure technology infrastructure.

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What is Commodities Trading?

Commodity trading involves the buying and selling of raw materials on a number of exchanges and is normally traded as a futures contract. Natural resources can include physical assets such as cotton, wheat, oil, and precious metals. The world economy is dependant on these natural resources being traded on exchanges that specialise in commodity trading.

There are a variety of complex factors which affect the production and consumption of commodities including politics, supply and demand, economic events, weather, natural disasters, and also the price of the USD as commodities are generally priced in the US currency. Commodity prices tend to establish persistent trends that can last from 5 to 10 years creating opportunities for trading commodities across all time frames.

 

Trading Oil: Brent & WTI

The oil market is diverse with various prices quoted for crude oil depending on the location, quality and properties. The most commonly traded oil contracts are Brent (Brent Sweet Light Crude) and WTI (West Texas Intermediate), which are the two global benchmarks for oil trading.

Brent crude oil is extracted from the North Sea, and WTI is extracted in North America. WTI is known to be the best quality from the oil benchmarks as it used for diesel fuel. However, Brent is recognised for its high-quality gasoline production. There are other factors that also need to be considered when determining the price of the two benchmarks, this includes transportation fees, amount of production and the availability of storage facilities.

For many years the prices of the two were only a few dollars apart, however, over the last decade, Brent has surged ahead and now trades $5-$10 higher than WTI.

Trading Metals: Gold & Silver

Gold has always been the most coveted precious metals throughout history, both for its status and monetary value. It has always had its links to currency, now traders tend to use gold as a safe haven asset in their trading portfolio, in times where there is a financial crisis.

In a similar way to Gold, Silver has always been linked to currency and even though it doesn't share the same status as Gold there are other reasons why traders turn to this particular precious metal. There is a lower cost to enter and open a position in the silver market compared to Gold and is considered to be a relatively volatile market making it attractive to traders who may want to optimise their chance of bigger returns. However, it is important to remember that all trading involves risk.

FAQs

SymbolStandard account
Lowest spread
Raw account
Lowest spread*
Brent Crude Oil (UKOUSD)1.0 pips1.0 pips
West Texas Intermediate Crude Oil (USOUSD)1.0 pips1.0 pips
Silver (XAGUSD)0.5 pips0.5 pips
Gold (XAUUSD)0.0 pips0.0 pips

When engaging in a Contract for Difference, you are only required to deposit a percentage of the contract’s full value. This is called a margin and it allows traders to open large positions while investing a fraction of the value. The margin is used as leverage, giving traders full exposure to the position. A margin is required before opening a position on your account. Your account should also hold extra funds to cover any potential losses and stop your account going into margin call. Always remember, leverage is a double-edged sword. While it can maximise your profits, it can also increase your losses.

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Trades can either be made in the direction of a trend or counter to the trend. With countertrend or mean reversion, trading can be very profitable, however, it generally requires more experience. If you are new to trading, you can look at trading in the direction of the trend as a starting point.

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Trading in three steps

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VERIFY

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FUND & TRADE

Fund account with as little as $100 and start trading the global markets.

APPLY

Complete a simple application form.

VERIFY

Upload documents to verify your account.

FUND & TRADE

Fund account with as little as $100 and start trading the global markets.