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Commodities are physical assets and goods like crops, agricultural products, and precious metals. You can trade commodities online or invest in commodity-related assets on popular futures trading platforms. Futures are legal contracts that require the holder to buy or sell a stock or other asset by a specific date for a specific price.
The commodity trading market is volatile, so when opening an account for commodity trading online, make sure to factor in a custom risk management plan and invest through a reputable online or traditional in-person broker. Also, you should stay up-to-date on current market conditions and adapt your commodity investing strategy as needed.
Best Commodity Trading Apps 2024
The top accounts for trading commodities and best commodities broker.
- TD Ameritrade: Best overall
- eToro USA: Best for commodity ETFs
- tastytrade: Best for low-cost futures
- Interactive Brokers: Best for global trading
- Tradeworks: Best resources
- NinjaTrader: Best trading tools
- E*TRADE: Best for retirement
- Goldco: Best for gold
Compare the Top Commodity Trading Brokers
The best commodity trading online platforms allow investors to access global commodity markets and trade valuable commodities like precious metals, energies, agricultural products, and digital currencies. Some commodity trading brokers offer trading directly on your smartphone or tablet.
Here are the best apps for investing in commodities online and the amount of money required for commodity trading, as picked by Business Insider editors in 2024.
TD Ameritrade Commodity Broker
Best overall
TD Ameritrade is one of the top commodity trading brokers for future trading and low-cost mutual funds. TD Ameritrade has low fees overall, but commissions on futures are slightly higher than other brokers on this list. But a regular DIY TD Ameritrade account has no minimum investment requirement.
TD Ameritrade offers commodity futures for metals, energies, agriculture, currencies, softs, stock indexes, interest rates, cryptos, and micros. You’ll pay $2.25 per future contract.
TD Ameritrade’s “Fundamentals of Futures” course, which provides demos, videos, and quizzes on futures trading and related topics, is a good choice for beginner investors.
eToro Commodity Broker
Best for: Commodity ETFs
eToro is an online commodity trading app and brokerage that offers a range of commodity ETFs, including physically backed funds, equity funds, CFDs, and exchange-traded notes (ETNs). Commodity ETFs are a great way for investors to diversify their investment portfolios with significantly less risk than investing in physical commodities. The downside is that eToro does not offer commodity futures.
With eToro USA you can invest in commodity ETFs such as the United States Gasoline Fund (UGA), iShares Silver Trust (SLV), SPDR S&P Oil & Gas Exploration & Production (XOP), GraniteShares Gold Trust (BAR), PowerShares DB Oil Fund (DBO), Direxion Daily Gold Minor Index (DUST), and Direxion Daily S&P Oil & Gas Exp. (DRIP).
tastytrade Commodity Broker
Best for: Low-Cost Futures
tastytrade (previously known as tastyworks) allows investors to trade commodities online including futures, options, futures options, ETFs, and stocks. Tradeable commodities include energy (like coal and crude oil), agriculture (like corn and soybeans), precious metals (like gold and silver), and currencies.
Tastytrade commodity futures span multiple asset classes, including futures, micro futures, small futures, small futures options, and futures options. Opening commissions per contract for futures range from $0.25 to $2.50.
You can use tastytrade’s Trading Pairs feature to balance out your investment portfolio. For example, you can invest in the gold and silver ratio, energy pairs, or grain pairs.
Interactive Brokers Commodity App
Best for: Global Trading
Interactive Brokers offers global commodity futures over 30 market centers on the globe. Commodity assets for futures trading include agriculture, energy, currencies, metals, and softs. Futures commissions range from $0.25 to $0.85 per contract.
There is a $0 ($100 Interactive Advisors automated accounts) minimum to start investing with Interactive Brokers.
Tradeworks Commodity Broker
Best for: Research
Tradeworks is an automated trading platform that implements algorithm research strategies and custom automated rules through trading bots. Tradeworks is not a broker itself but rather a tool that can be connected with an existing brokerage account.
However, Tradeworkers can only be implemented with MetaTrader 4 brokers like Avatrade, IC Markets, and FP Markets.
Although Tradeworks doesn’t offer commodity trading directly, the platform can assist you in designing, testing, running, and analyzing trading strategies. Some of the best features include the Algo editor, the improved backtest tool, and the advanced performance analytic feature for real-time analysis of your trading strategies.
NinjaTrader Commodity Broker
Best for: Trading Tools
NinjaTrader is an online futures trading platform and commodity broker with over 100 futures trading tools, like customizable apps and strategies, free simulated trading accounts, live customer support, advanced charting features, drawing tools, automated strategies, and low-cost trades. There’s no account minimum needed to open a NinjaTrader account.
Agricultural commodity trading on mobile is available on NinjaTrader, along with metal futures, natural gas futures, forex futures, crude oil futures, stock index futures, crypto futures, and interest rate futures. Regular futures commissions start at $0.59 per contract and $0.90 per contract for micro futures.
E*TRADE Commodity Broker
Best for: Retirement
E*TRADE offers more than 60 futures contracting across various markets, including metals, energies, grains, softs, livestock, and currencies. The brokerage also offers interest rates, crypto, and equity index futures. Investors can trade regular futures, micro futures, and E-mini futures.
You must have an E*TRADE margin-enabled brokerage account or an eligible IRA to trade futures. You’ll get 24/6 market access (from Sunday 5 p.m. to Friday 4 p.m. CT). Other features include no short sale restrictions, mobile access, formulated trading strategies, a suite of drawing tools, and access to E*TRADE’s Futures Research Center.
E*TRADE also offers commodity ETFs that almost exclusively invest in commodity assets like agriculture, energy, or metals. There are no additional trading fees for ETFs.
Goldco Commodity Broker
Best for: Buying Gold
Goldco is our top pick for the best gold IRA. It allows investors to trade physical gold bullion and gold coins with an IRA, or get physical gold sent directly to them. Goldco also offers silver IRAs, platinum IRAs, and palladium IRAs.
Goldco is one of the industry’s most trustworthy gold investing firms, with an A+ from the Better Business Bureau and a history of great customer support services. Another perk is that Goldco charges lower fees on greater asset amounts than some competitors.
Goldco allows you to fund your account with rollovers for 401(k)s, 403(b)s, IRAs, thrift savings plans, and savings accounts. The firm can also convert gold assets into cash for you. On the downside, you’ll need at least $25,000 to open an IRA with Goldco, which is higher than with similar platforms like Augusta Precious Metals or Noble Gold Investments.
Introduction to Commodity Trading Apps
When investing in commodity futures, you are legally obligated to sell or buy a commodity for a specific price on a specific date. You’ll make a profit if the spot price of a commodity rises since the seller will still have to sell the asset at the set price. However, commodities are generally volatile assets with high risk.
Over the last few years, diversifying your investment portfolio with commodities has become increasingly popular. Commodities can greatly add to a retirement savings plan or other long-term investment account.
The Rise of Mobile Commodity Trading
Over the last few years, diversifying your investment portfolio with commodities has become an increasingly popular wealth-building strategy. Commodities can greatly add to a retirement savings plan or other long-term investment account.
Features to Look for in Commodity Trading Apps
The best brokers for buying commodities offer diverse asset classes, low contract fees, accessible interfaces, and advanced charting features and tools. Experienced investors can trade commodity futures, options, ETFs, and mutual funds through online brokerages.
The commodities brokers on this list offer some of the best investment options, account features, educational resources, and fees for futures and commodities brokers. Before jumping in head first, thoroughly compare the different brokerage account offerings and features to ensure you pick the best one.
Range of Commodities to Invest In
Precious metals, energy (e.g., gold and silver), livestock, softs, and other agricultural products are examples of tradable commodities. Commodities can be directly traded for goods or cash, but other ways exist to invest in them.
Getting Started with a Commodity Broker
Only advanced traders with a high-risk tolerance should invest in commodities. However, some commodity trading apps with low fees offer beginner-friendly educational resources that may suit new investors. Mobile apps for commodity market analysis may be better suited for advanced, hands-on traders.
If you’re interested in investing in precious metals, consider some of the best apps for trading precious metals, like physical gold as bullion bars or ingots. Unlike some commodities like livestock or agriculture, physical gold can be easy to store and won’t expire. Plus, gold is largely immune to inflation and is a great hedge against economic struggles and disasters. You can buy gold from banks or gold dealers.
You can also invest in some of the best gold IRAs. But remember that gold IRAs have higher storage fees, custodial fees, and set-up costs than other IRA plans. For instance, annual fees tend to exceed $100. Another thing to consider is that gold IRAs don’t usually award dividends or yield high returns.
Tips for Successful Commodity Trading
- Avoid the hassle of direct commodity investing: Instead of owning physical gold or cattle, you can indirectly invest through a brokerage account and trade commodity futures contracts. For example, you can invest in energy future trading applications to buy oil, natural gas, and other agricultural futures, like wheat and coffee.
- Diversify your holdings with commodity funds: Another option to invest in commodities is through stocks, ETFs, and mutual funds. These assets invest in companies that produce or process commodities. Mutual funds and ETFs are great tools for diversifying your investment portfolio and lowering your risk of exposure.
- Consider commodity futures and options: With commodity futures, the futures contract holder must buy or sell a commodity on a specific date for a specific price to make a profit. Since futures tend to be volatile investments, individual investors may prefer options based on a futures contract, as holders aren’t obligated to sell on a certain date.
Commodity Trading Glossary
- Dow Futures Live Stream: The Dow Jones is one of the top stock market indexes, tracking 30 of the most prominent US companies on the stock market. You can use the Dow Futures Live Stream to watch real-time futures trading. You can also access real-time charts, news, futures analysis, and more.
- Commodities: Commodities are tangible, publically traded goods or assets, such as agricultural products, precious metals, energy resources, livestock, meats, and more. You can invest in commodities directly or indirectly through a brokerage.
- Commodity Market: Similar to the stock or bond market, the commodity market trades raw and primary goods and products. For example, the market can trade soft commodities like wheat, sugar, coffee, or cocoa. Another example is metal commodities, mined materials like gold or silver.
- Commodity Future: One of the most popular ways to invest in commodities like agricultural goods or mined raw materials is through futures contracts. Rather than investing directly in a commodity, holders are obligated to buy or sell a commodity at a certain for a set price. The best brokers for buying commodities offer a range of commodity futures across different markets.
- Stock Futures Investing: You can invest in stock futures to hedge against inflation and diversify your investment portfolio. Stock futures are available through brokerages.
Best Commodity Brokers FAQs
A commodity trader is an individual trader or business that assists clients in buying, selling, and investing in commodities like agricultural products, livestock, precious metals, and energy resources. Similar to a stock broker, commodity traders are professionals who trade assets over multiple exchanges.
In a commodity market, you can trade raw goods, natural resources, and limited-manufactured products such as precious metals, livestock, meats, crops, energy resources, and softs. You can trade physical commodities or commodity assets through indirect trading strategies.
A commodity investment is a type of alternative investment offered by some traditional and online brokerages. Commodity investments are tangible goods like agricultural products, energy resources, crops, and precious metals.
Why You Should Trust Us: Our Expert Panel For The Commodity Trading Apps
Rebecca Zissar/Business insider
We interviewed the following investing experts to see what they had to say about commodity trading apps.
- Sandra Cho, RIA, wealth manager, and CEO of Pointwealth Capital Management
- Tessa Campbell, Investment and retirement reporter at Personal Finance Insider
What are the advantages/disadvantages of investing in commodities?
Sandra Cho:
“The advantages are that commodities can serve as a hedge during high inflationary times. This can be helpful if one expects inflation to rise in the near term.
“The disadvantages are that commodities do not offer the same long-term growth that is present in stocks. They also do not offer the same kind of stability that is present in bonds. In general, commodities are better as a short-term option during times of inflation versus a long-term investment where your money is parked for many years.”
Tessa Campbell:
“The advantage of investing in commodities is portfolio diversification and hedging against inflation. Investing in tangible goods like crops, energy, precious metals, and currencies can counterbalance traditional investable assets like stocks or bonds. Diversifying your portfolio with traditional investment options and commodities mitigates your portfolio’s risk. Moreover, investing in assets like gold or silver can increase portfolio stability.
“The disadvantage of investing in commodities is that they are generally illiquid. Commodities also don’t earn dividends or accumulate interest.”
Who should invest in commodities?
Sandra Cho:
“Investors who believe that a rise in inflation may be coming should potentially view commodities as a good investment. However, I recommend talking with a financial advisor before making any concrete decisions.”
Tessa Campbell:
“Most commodity investments are considered high-risk and are generally best for experienced investors with a high-risk tolerance. However, some commodities (like precious metals) are more stable and don’t pose as high of a risk. Precious metals can still be expensive, but more conservative investors may find investing in gold or silver a great way to diversify their investment portfolios.”
Is there any advice you’d offer someone who’s considering investing in commodities?
Sandra Cho:
“I would advise them to talk with a financial professional. Commodities can be a useful investment if used at the right time. However, many investors do not know when that time is. Talking with a professional will give investors the insight they need when deciding whether or not to invest in an asset class like commodities.”
Tessa Campbell:
“If you’re going to invest in more volatile commodities, such as agricultural products that depend on nature or other non-predictable elements, do thorough research before investing. You should also consider how you want to invest in commodities — whether that be investing in physical commodities themselves, commodity futures, or commodity stock — and make sure to understand the level of risk involved in investing in these assets.”
Methodology: How to Choose a Commodity Broker
Business Insider used it’s methodology for rating investment platforms to compare and analyze top commodity trading apps. Factors considered when rating commodity trading platforms include fees, investment selection, trading tools, customer service, and trustworthiness. Commodity brokerages are given a rating between 1 and 5.