Why trade commodities with us?
Popular commodity markets
Major commodity market news
Our performance in numbers
*StoneX retail trading live and demo accounts globally in the last 2 years.
Mobile trading app
Seize trading opportunities with our most easy-to-use mobile app to date, with simple one-swipe dealing, advanced charting, and seamless execution. Available on Android and iOS.
Complete with one-swipe trading, custom indicators, alerts and drawing tools.
Harness the power of technical analysis and access real-time trade ideas on our most popular markets.
Gain deeper insight into your trading and discover how you could improve your performance.
What are spot commodities?
Spot commodity markets are non-expiring and are not subject to an expiry date or rollover charges. These markets are priced based on the futures contract and offer the opportunity to trade these markets long-term without the need to roll your position on expiration of the current futures contract.
Continuous charting is available on these markets. This allows you to apply deeper levels of technical analysis to your commodity trading compared with traditional commodity market charting.
To find out how we price spot commodity markets, please visit our orders and positions page.
How to trade commodities
Discover everything you need to know about commodity markets, such as gold, oil and natural gas, including both hard and soft commodities.
Commodities market hours
Most commodity trading takes place on futures exchanges. Unlike stock exchanges, though, futures can be bought and sold almost 24-hours a day.
Commodity spot prices vs futures
Learn how to trade a range of commodity markets by spread betting or CFD trading, and choose from spot markets or futures contracts.
Put our trading platform to the test
How do I calculate how much margin I need to trade a commodity?
To work out how much margin you need to trade a commodity market, you divide the full value of your position by its margin requirement. Say, for example, that you want to open an oil position worth £5,000 and oil has a margin requirement of 10%. You’d need (10% of £5,000) £500 as margin.
How you calculate the full value of your trade depends on how you’re trading the commodity. With spread betting, for example, you multiply your stake by the market’s current price. With CFDs, it’s the number of contracts you’re trading and the value of each individual contract.
Learn more about how to trade commodities.
Can anyone trade commodities?
Anyone can trade commodities, as long as they meet the requirements to open a City Index account. Commodity trading is leveraged, though, which means it’s riskier than traditional investing. Learn more about the risks of spread betting and CFD trading.
With City Index, you can trade commodities alongside stocks, indices, forex and more – all on a single platform with one login. All City Index clients get access to our full range of commodities, including 25+ commodities.
To get started, open your trading account.
Is commodity trading good for beginners?
Commodity trading can be a good option for beginners, as long as you understand the risks involved and have a solid trading strategy in place. If you’re new to the markets, though, we’d recommend going through the City Index Academy and trying out trading risk-free in our free demo before opening a live account.
You can use your City Index demo to buy and sell our full range of markets, including commodities, with virtual capital. It’s a great way to see which asset classes are a good fit for you without risking any real capital. To get started, open your demo account.
What are commodities?
Commodities are natural products that are generally consumed by people, animals or industry such as oil, sugar and wheat. Commodities have been traded for thousands of years and have always had an important economic impact on people and nations throughout history.
Commodity trading is just as important today, with commodities playing a crucial role in global economics. Commodity markets can be easier to understand than other financial markets because prices are influenced by more obvious contributing factors. They reflect the fortunes of industries like the oil business or farming. Prices are informed by supply and demand issues that are easy to grasp.
The majority of commodities traded today can be split into three main areas:
Energy commodities are pumped out of the ground. They have a particularly strong influence over the global economy, and are also in turn influenced by demand from the global economy. Examples include:
- US Crude Oil
- UK Crude Oil
- Natural Gas
Agricultural - ‘Soft Commodities’
Soft commodities are generally agricultural commodities that are grown or bred for human consumption, as opposed to commodities that are mined. Soft commodities are important in futures markets where people speculate on price fluctuations as supply and demand changes. They are also used by the farmers who produce these commodities to lock in the future price of their produce, and by commercial consumers and resellers of these goods. Examples of soft commodities include:
- Orange Juice
- Soybean Oil
Metals - ‘Hard Commodities’
Hard commodities are resources that are generally extracted through mining, specifically metals. Metals that are traded can either be precious metals such as gold, silver or platinum, or industrial metals such as aluminium, lead or copper. Examples of hard commodities include:
- Iron ore
How are commodities traded?
Commodity trading often takes place on exchanges as futures and options. Exchanges usually become hubs for a few commodities that it specialises in, for example:
Chicago Board of Trade (CBOT)
Commodities that trade on CBOT include gold, corn, silver, wheat and rice
Chicago Mercantile Exchange (CME)
Commodities that trade on the CME include milk, cattle, pork bellies and lean hogs
Known for being the most liquid market place for the trading of West Texas Intermediate Oil futures.
What drives commodity markets?
Commodity markets exist to provide more efficient prices and security for consumers of those commodities. Airlines, for example, want to be able to protect themselves from sudden and unpredictable changes in the oil price, while farmers will be looking for the best price for their products. A food manufacturer will want to ensure that the price it pays for wheat will be steadily consistent.
The growth of interest in commodity trading represents the growth in interest in global trade and delivering an internationally-recognised price for a product.
Commodity markets can be influenced by a range of factors, including:
- Interruptions of supply, such as bad harvests, miners’ strikes or stockpiling
- Seasonal demand, for example from consumers of heating oil and natural gas in the winter, or people buying gold during periods of political uncertainty
- General economic slowdowns, which can impact demand. Oil, for example, is sensitive to this
- It is worth doing more research on a market you are interested in, as each has its own characteristics
Did you know? There are two oil commodity markets, Brent Crude and West Texas Intermediate. These reflect the prices of US and non-US oil. To make things simpler, at City Index we call them US Crude Oil and UK Crude Oil. While the prices of both will be similar, they are not exactly the same.
Trading commodities with City Index
- City Index offers spread betting and CFD trading on commodities
- You can trade over 20 energy, agricultural and metal commodities, as well as multiple futures for the same market and options for a select number of commodities