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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 institutional grade spreads from as low as 0.0 pips.
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Global Regulation

Headquartered in Australia and regulated by ASIC plus other jurisdictions providing you with a safe and flexible global 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?

The trading of commodities includes a vast array of products that are mainly traded on global futures exchanges. The world economy is dependant on various commodities to varying degrees. Complex factors drive the supply and demand for energy, metals, and agricultural commodities. This can lead to large price swings as markets attempt to find the price at which supply and demand are balanced.

For traders there are opportunities to trade commodities across all time frames, from minutes to years. Commodity prices tend to establish persistent trends that can last from 5 to 10 years. However, supply and demand can be influenced by weather, geo-political factors, inflation, interest rates, consumer spending and economic conditions. This means new trading opportunities can arise at any time.

 

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 –
very few traders look at any other oil prices.

Brent crude is extracted from the North Sea, while WTI is extracted in North America. WTI is a better product for producing diesel fuel, while Brent is superior for producing gasoline. However, there are other factors that determine the prices of the two benchmarks. Oil costs money to transport,
so the location of demand is an important factor, as is the 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 and Silver offer traders opportunities to profit from both increasing risk aversion in global markets, and speculation around inflation. Both are real assets, with limited supply, meaning they offer a real store of value during times of uncertainty and inflation.

Many of the factors that influence the price of Gold and Silver are the same, however, there are also a few differences. Precious metal prices are influenced by investor appetite for risky assets (including bonds, stocks and commodities), geo-political events, expected inflation and interest rates and the strength of the US Dollar. The dynamics of the mining industry also influence prices.

However, while all the Gold that has been mined still exists, Silver is actually used in industrial processes. It was used in the past for photography and printing and is now used by the solar power industry. This means the total supply of Silver is gradually falling, which may provide an underpin to the price.

FAQs

Brent Crude Oil (UKOUSD)03:00 - 24:00
West Texas Intermediate Crude Oil (UKOUSD)03:00 - 24:00
Silver (XAGUSD)01:00 - 23:59
Gold (XAUUSD)01:01 - 23:59

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. While countertrend, or mean reversion, trading can be very profitable 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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FUND & TRADE

APPLY

Complete a simple application form.

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.