How to start trading Commodities, Gold, Oil on FXCM?

Trade Commodity CFDs on FXCM

Do you have an opinion on the oil market? Do you want to speculate on gold? With FXCM, you can dive deeper into a variety of natural resources.

As with all FXCM products, you can trade commodities with CFDs.

Exchange your views on the global commodity market with products like gold, oil, natural gas, and copper.

Trade your opinion on Natural Resources.

Why trade commodities with FXCM?

Enhanced Execution

Trade oil, gold, and silver with enhanced execution with no stop and limit restrictions and no requote.

Trade on Margin

Enter the market with only a fraction of the nominal trade size.

Lower Transaction Costs

Trade without exchange and clearing commissions1: pay only the spread.

Advanced Price Charts

Trade commodities alongside forex and indices on the same powerful platform with intuitive charts.

Open FXCM Account for Free

What Commodity CFDs are available for trading on FXCM?

With FXCM, you can bet on the price movement of precious metals, oil, and gas, as well as on forex.

All you need to know is the symbol of the product you want to trade and the size of the contract.

Invest in Commodity CFDs on FXCM

CORNF (Corn Future)

Corn is a cereal produced mainly in the United States.

The price of corn is largely determined by the demand for ethanol from corn (a renewable fuel source), by the climate in large production areas (United States, China, South America) and is often correlated with the trend of the US dollar as well as the sectors of raw materials and energy.

Trade Corn on FXCM

WHEATF (Wheat Future)

Wheat is one of the largest “soft” commodities produced globally and its production is spread all over the world, with the largest crops found in China, the United States, India, Russia, France, and Australia.

Wheat prices are strongly influenced by global climatic factors as well as by the economies and production of its major producers.

Trade Wheat on FXCM

SOYF (Soy Future)

Soy is a renewable resource produced mainly in the United States, South America, and China that can be used both for oil and as a meat substitute.

The price of soybeans moves based on a large number of economic variables including climate, demand, and factors of production.

Trade Soy on FXCM

USOIL and USOILSPOT – WTI

West Texas Intermediate (WTI), also known as Texas light sweet, is a type of crude oil used as a benchmark in oil prices.

WTI contracts are mainly sold on the New York Mercantile Exchange.

Historically, WTI has traded at similar prices to Brent and the OPEC basket but is currently discounted against Brent crude.

Historical WTI pricing data is available from the Energy Information Administration of the Department of Energy.

Trade WTI Oil on FXCM

UKOIL and UKOILSPOT BRENT CRUDE

Brent Crude is a trading classification of light sweet crude oil that serves as an important reference price for oil purchases around the world.

Brent Crude originates from the North Sea and includes Brent Blend, Forties Blend, Oseberg, and Ekofisk crude (also known as BFOE Quotation).

The index represents the average trading price in the 21-day BFOE market in the relevant delivery month, as reported and confirmed by industry media.

Only negotiations and assessments of the official cargo size (600,000 barrels [95,000 m3]) are taken into consideration.

Trade Brent Crude Oil on FXCM

NGAS – NATURAL GAS (HENRY HUB)

NGAS is the reference for the price of natural gas futures contracts on the New York Mercantile Exchange (NYMEX) and OTC swaps traded on the Intercontinental Exchange (ICE).

The spot and futures prices set on Henry Hub are denominated in $ / mmbtu (million British thermal units) and are generally considered to be the prime price set for the North American natural gas market.

Unregulated North American natural gas prices at the wellhead and burner are closely related to those set at Henry Hub.

Trade Natural Gas on FXCM

COPPER

COMEX Copper is widely regarded as one of the key cyclical raw materials, given its wide use in construction, infrastructure, and a range of equipment manufacturing.

The most common end-use is for the production of cables, wiring, and electrical equipment due to its excellent electrical conduction properties.

The construction industry is the second largest user of copper, for plumbing, HVAC, and building wiring applications.

Although abundant, extensively mined, and recycled, the copper value chain is quite capital intensive.

This makes the market susceptible to supply-side constraints and, therefore, to high price volatility.

Trade Copper on FXCM

XAU/USD – GOLD

Gold is traded on the spot market and the spot price of gold is quoted in US dollars per troy ounce.

Since 1919, the most common benchmark for the price of gold has been the gold fixing in London, a telephone meeting that takes place twice a day with representatives of five bullion trading companies in the bullion market.

Gold is continuously traded around the world based on the intraday spot price, which is derived from the over counted gold markets around the world (code XAU).

Trade Gold on FXCM

XAG/USD – SILVER

The price of silver is driven by speculation, supply, and demand, mainly by large traders or investors, short selling, industrial, consumer, and commercial demand, and hedging against financial stress.

Compared to gold, the price of silver is notoriously volatile.

This is due to lower market liquidity and fluctuations in demand between industrial uses and deposits of value.

Sometimes this can cause widespread valuations in the market creating volatility.

Trade Silver on FXCM

Commodity CFD Trading Conditions

As the market is always on the move, you can find updated information for each product on your trading platform or consult the Commodities Product Guide.

Cost of the Spread

With all FXCM accounts, you only pay the spread to trade commodities. Also, with our decimal prices, you will see small price movements, giving you more precision on USOil, UKOil, and NGAS.

Financing Costs

There are currently no overnight financing costs on energy futures products. USOilSpot, UKOilSpot, Gold, and Silver, however, are spot products so funding costs apply if you hold your position beyond 5 pm ET.

Trading Hours

With FXCM’s energy products, your trading hours are based on the underlying market, just like your prices. You can open and close trades during the week before the weekend closes. FXCM’s metals products are traded 24 hours a day, five days a week, with a one-hour break each day.

Margin Requirements

Trading on margin gives you better access to the market. Margin requirements vary by instrument. Find the updated margin requirements on your platform.

Deadline

Non-commercial oil and gas products expire periodically. Oil and Gas expire monthly, usually on the day before the First Notice or when the underlying market contracts expire. This means that you may want to manage your positions before the contract expires and your positions are automatically closed.

Our goal is to keep commodity prices as low as possible. With competitive average spreads, you can keep your transaction costs low while speculating on oil, natural gas, and more.

When trading with FXCM, your spread costs are automatically calculated on your platform, so you can see real-time spreads and costs per pip when you trade.

To calculate the cost of trading in your account currency:

Spread x Cost per Pip x Number of Contracts = Total Transaction Cost

Trade Commodity CFDs on FXCM