T
here are a wide range of commodities which you can trade on the web. While the most popular is undoubtedly Crude Oil, there are a variety of other commodities which can be traded. Here is a brief overview of which commodities you can trade, where you can trade them and how much a trade normally costs.
Range of Commodities
Commodities fall under four categories; Metals (including gold, silver, platinum and copper), Energy (including crude oil, heating oil, natural gas and gasoline), Livestock (including lean hogs, pork bellies, live cattle and feeder cattle) and Agriculture (including corn, soybeans, wheat, rice, cocoa, coffee, cotton and sugar).
Easiest Way to Trade
The quickest and easiest way to trade commodities is to set up an account with a Commodities Broker, who you pay a commission fee to in order to place your buy order for the commodity of your choosing. Online Commodities Brokers are available at TradeStation and Interactive Brokers.
Costs of Trading
Costs for having an account with a commodities broker are usually based around commissions fees, which are fees that occur after each trade. Commissions fees are roughly £3 - £4 but can get pricier depending on the type of trade you are doing. If you want to learn more about different types of trading, such as futures trading, Investopedia covers a wide range of subjects.
