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adamal7

Best CFD broker for commodities

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Hello guys,

I'm starting to swing trade commodities, especially soft commodities (corn, sugar, coffee, cotton, soybean, ...). I'm also checking gold and oil.

My problem is I'd like to know what is the best broker for trading those markets (regulated, large commodity choice) ? For CFD trading.

I'm thinking of IC MARKETS who are very good with forex and have good trading conditions.

The concern I have is that I need a broker that offers MT4 as a platform, and also I'd like to be able to open mini lots positions for a better risk management.

As a swing trader, I'm less concerned by the spread but looking at the financing fees.

Wish you have a nice day, and thanks in advance.

Alexandre.

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Hello,

I think it depends. If you are talking about good trading conditions, for me it is https://capital.com/

As I know , Most Transparent Brokerage Service Provider by European awards and best trading platform by Forex Awards.

But before I was loyal customer of IG. I think it needs to try some to choose, for example with demo

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  On 6/19/2018 at 4:03 PM, merchilowichess said:

Hello,

I think it depends. If you are talking about good trading conditions, for me it is https://capital.com/

As I know , Most Transparent Brokerage Service Provider by European awards and best trading platform by Forex Awards.

But before I was loyal customer of IG. I think it needs to try some to choose, for example with demo

Yeah IG is good I use it along with Hotforex, the best two brokers so far. 

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i guess the best way is to pick ur top 5 and do a small comparison, cant say much about others, but I do trade hotforex and they do have some interesting options to choose from. best of luck

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  On 4/29/2018 at 1:26 PM, adamal7 said:

Hello guys,

I'm starting to swing trade commodities, especially soft commodities (corn, sugar, coffee, cotton, soybean, ...). I'm also checking gold and oil.

My problem is I'd like to know what is the best broker for trading those markets (regulated, large commodity choice) ? For CFD trading.

I'm thinking of IC MARKETS who are very good with forex and have good trading conditions.

The concern I have is that I need a broker that offers MT4 as a platform, and also I'd like to be able to open mini lots positions for a better risk management.

As a swing trader, I'm less concerned by the spread but looking at the financing fees.

Wish you have a nice day, and thanks in advance.

Alexandre.

Have a look at Hotforex their conditions are quite competitive maybe they will be suit your requirements too. 

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Nowadays, it is really becoming hard recommending any broker since there are many new players joining this industry while many somehow winding up as well. So, it is good to check broker's reputation and number of years in service before opening live account with them. I guess HFM has a good past reputation in my opinion.

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I have recently switched from trading forex to trading futures due to the futures market's unbiased order execution and superior price movement. And yes, I trade commodities in the COMEX exchange. Years ago, hefty initial capital requirements were a burden for retail traders. Then Mini futures were created, but they were still somewhat burdensome. Then Micro futures were created. Now, you can daytrade with only a few hundred dollars (generally 9:30 a.m. E.T. to 4:00 p.m. E.T.). Even so, I recommend starting with a couple thousand in order to sustain statistical losses and/or hold positions overnight.

If you have access to U.S. CME products (you're not in a U.S. sanctioned country), I suggest trading in the actual centralized commodity futures exchange because:

  • Orders are required to be executed in the sequence of arrival to the COMEX exchange. In contrast, CFD's (contracts for difference) are in-house contracts between you and your CFD dealer. In CFD trading, your execution is reliant upon the size of your individual dealer's liquidity pool, and its institutional liquidity providers if it has any. Retail CFD orders, and retail forex orders, generally get prioritized by the dealer depending on order quantity. This is why retail CFD orders get hit or miss execution. In this way, the COMEX exchange is much fairer to retail traders.
  • COMEX provides centralized pricing. In contrast, CFD dealers have no centralized exchange providing objective pricing. This is why CFD's tend to spike randomly. Unless your goal is to somehow exploit these random CFD spikes, they're likely to take out your stops where the alleged "underlying asset" (there isn't one) wouldn't have done so. To me, a CFD dealer follows an in-house casino model, whereas COMEX is an actual market.
  • U.S. futures are not subject to the pattern-day-trader rule which states that anyone placing more than 3 equities, equities ETF's, or equities options trades per week is a pattern-day-trader. This means that you need at least $25,000 of initial capital, and SEC reporting is required.
  • If you have formed your own single funded private company (LLC, etc.) specifically for speculative trading purposes, the SEC deems you a professional but the CME and its COMEX subsidiary do not. If you sign an attestation regarding your own single-funding, you get non-professional discounts on data and commissions.
  • While CFD, equity, ETF, and options third-party liquidity providers (banks and hedge funds) get paid every time they take the other side of your trade, futures traders are generally dealing directly with a greater centralized exchange. 

In short, the real futures market ain't as burdensome as it used to be and is more of a level playing field for retail traders.

And oh yeah... my broker is TradeStation Securities. No complaints.

Edited by RJo

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