Commodities Brokers

[tom82]

Interested in trading commodities, what brokers are available to trade commodities?
Who do you trade with, suggestions, comments etc.
Is there a list somewhere? Maybe list them here.
Look forward to your replies, thanks.

 

[tom82]

Also what is the best way to trade commodities, as CFDs, as futures or some other way?

 

[Starcraftmazter]

If you want to use CFDs, IG Markets has everything.

 

[Trembling Hand]

Also what is the best way to trade commodities, as CFDs, as futures or some other way?

If you want to use CFDs, IG Markets has everything.

Absolutely CFDs are by far the worst way to trade commodities.

If you want to trade commodities use futures. If you cannot afford to trade the size of contracts then go into the city, buy yourself a nice coffee and cake then walk into your CFD providers office and hand every cent of your too little capital over to them in cash.

At least that way you end up having a nice coffee and cake.....

 

[Timmy]

Absolutely CFDs are by far the worst way to trade commodities.

If you want to trade commodities use futures. If you cannot afford to trade the size of contracts then go into the city, buy yourself a nice coffee and cake then walk into your CFD providers office and hand every cent of your too little capital over to them in cash.

At least that way you end up having a nice coffee and cake.....

:

mmmmm ........... cake

 

[blue0810]

Absolutely CFDs are by far the worst way to trade commodities.

If you want to trade commodities use futures. If you cannot afford to trade the size of contracts then go into the city, buy yourself a nice coffee and cake then walk into your CFD providers office and hand every cent of your too little capital over to them in cash.

At least that way you end up having a nice coffee and cake.....

Good point. I like coffee without sugar. Just black no milk.

 

[tom82]

Some brokers do not charge commissions on their commodity CFDs.
Wouldn't this be helpful?

Absolutely CFDs are by far the worst way to trade commodities.

If you want to trade commodities use futures. If you cannot afford to trade the size of contracts then go into the city, buy yourself a nice coffee and cake then walk into your CFD providers office and hand every cent of your too little capital over to them in cash.

At least that way you end up having a nice coffee and cake.....

 

[Trembling Hand]

Some brokers do not charge commissions on their commodity CFDs.
Wouldn't this be helpful?

Yeah thats nice of them. Wonder why? Could it be that they have a 50 cent spread while futs have a 1 to 5 cent spread and brokerage cost of 1-3 cent.

Which one you want?

 

[tom82]

So who are some of the futures brokers?

When you refer to futures do you mean the OTC futures or the futures that are linked to the underlying commodity on an exchange?

I have found some brokers with spreads down to 2pips.

Yeah thats nice of them. Wonder why? Could it be that they have a 50 cent spread while futs have a 1 to 5 cent spread and brokerage cost of 1-3 cent.

Which one you want?

 

[Timmy]

So who are some of the futures brokers?

When you refer to futures do you mean the OTC futures or the futures that are linked to the underlying commodity on an exchange?

Interactive Brokers is a futures broker, for example:
http://individuals.interactivebrokers.com/en/main.php

On a futures exchange Tom; here is a link to a Wikipedia page which lists futures exchanges: http://en.wikipedia.org/wiki/Futures_exchange
and exchanges covered by Interactive Brokers:
http://individuals.interactivebrokers.com/en/general/whyib/PDF-GlobalOfferings.php

 

[tom82]

Don't futures have higher margin requirements?

 

[Trembling Hand]

Don't futures have higher margin requirements?

So? Why does that matter?

 

[tom82]

Then more of the account will be used for margin requirements.

So? Why does that matter?

 

[Trembling Hand]

Then more of the account will be used for margin requirements.

If you think that then I would humbly suggest that you are not ready to trade a very volatile instrument. What you need in your account has little to do with minimum margin. Especially at the expense of CFDs vs Futs.

 

[tom82]

I am trading forex with no problems.

What should one think?

Why would it not have anything to do with it?

If you think that then I would humbly suggest that you are not ready to trade a very volatile instrument. What you need in your account has little to do with minimum margin. Especially at the expense of CFDs vs Futs.

 

[sinner]

I am trading forex with no problems.

forex is probably half or a quarter the volatility of commodities.

 

[Trembling Hand]

Why would it not have anything to do with it?

Because position size has nothing to do with margin. If my broker gives me access to commodities @ 10% margin and yours give you assess @ 2% margin would that effect the position size you take?

Would you take 5 time greater size position?

 

[tom82]

I never said anything about position sizing.

Because position size has nothing to do with margin. If my broker gives me access to commodities @ 10% margin and yours give you assess @ 2% margin would that effect the position size you take?

Would you take 5 time greater size position?

 

[Trembling Hand]

I never said anything about position sizing.

Well then why would the reduced margin of CFDs be of any benefit then?

 

[tom82]

I never said it would be benificial.

If futures have a higher margin requirement, that means more of the account is set aside for margin requirements.

Dont people prefer lower commissions?

Well then why would the reduced margin of CFDs be of any benefit then?