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- 1. Compare the best brokers to trade commodities with American Express
- 2. Here are the best commodities brokers that accept American Express
- 3. What is an American Express commodities broker?
- 4. Pros and cons
- 5. What are the fees and commissions when using American Express to buy and sell commodities?
- 6. What to look for when trading commodities with American Express
- 7. Is it safe to trade commodities with American Express?
- 8. Do I need to provide ID trading commodities with an American Express broker?
- 9. FAQs
Compare the best brokers to trade commodities with American Express
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77% of retail CFD accounts lose money.
If you use an American Express card as part of your day-to-day life, you might want to link your card to an online commodity broker account and use it to trade commodities. Read on to learn how your Amex card can enable you to buy, sell, and trade all kinds of different commodities.
Here are the best commodities brokers that accept American ExpressCopy link to section
We’ve compiled a list of the best American Express commodity brokers that accept Amex as a method of payment. Simply follow any of the links below, or scroll down and keep reading for more information.
77% of retail CFD accounts lose money.
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
What is an American Express commodities broker?Copy link to section
A commodities broker is a firm or person who executes orders to buy and sell commodities in exchange for a small commission. American Express (or Amex) is one of the most widely used credit cards in the world. In this case we’re looking at trading platforms that offer both features: commodities trading and an account you can fund with Amex.
Pros and consCopy link to section
Trading commodities with your Amex card brings with it unique benefits and drawbacks when compared with using other payment methods. Here are the main things to consider.
ProsCopy link to section
- Convenient. If you already use American Express for everyday purchases, trading commodities with your card will be an easy and logical next step.
- Secure. American Express offers both Know Your Customer protocols and chargeback protections that gives users peace of mind when performing transactions with the card.
What are the fees and commissions when using American Express to buy and sell commodities?Copy link to section
This doesn’t have a one-size-fits-all answer because the fees and commissions you’ll get charged when using Amex to trade commodities may vary. For instance, the size of fees could vary based on which bank issued your credit card, as well as which broker you use.
Our in-depth broker guides will help you find the best values when it comes to low fees and commissions on commodities trades with American Express.
What to look for when trading commodities with American ExpressCopy link to section
When looking for a broker with which you can use your Amex, it’s a good idea to make a checklist of top priorities that matter to you. Here are a few of the key traits to look for:
- Low transaction charges. With numerous brokers to choose from, you want to choose one that charges the lowest fees possible. The less you pay in transaction fees and commissions, the more money you’ll have available to profit from your commodities trades.
- Variety of different commodities available. If variety matters to you, you’ll want to select a broker that lets you trade a wide range of different commodities. Our guides will show you which brokers offer the most variety when it comes to commodities trading.
- Easy to use. You want to spend your time researching the specific commodities you want to trade, rather than figuring out how to use a broker. Look for an American Express broker with a trading platform that’s as easy to use as possible.
- Secure. You don’t want to risk having your hard-earned money or your financial and personal information get hacked. Demand a commodities broker that will keep both your information and your trades as secure as possible.
- Fast. Commodities prices can and will fluctuate. If you want to execute a trade as close as possible to your preferred price, having a broker that will execute your trades fast will help towards that goal.
Is it safe to trade commodities with American Express?Copy link to section
Few payment methods come with more intricate security measures than American Express. Amex’s encryption process and Know Your Customer protocols protect its customers’ data and help protect against fraud.
To make sure your trades are as secure as possible, sign up with a regulated broker and use our reviews to ensure your chosen platform offers good security features.
Do I need to provide ID trading commodities with an American Express broker?Copy link to section
Yes, you will need to provide some form of identification when using commodities brokers. Most brokers will insist on some form of ID specifically for your protection, to protect against fraud or identity theft. The ID you’ll be asked to provide could range from simple biographical information to a copy of a photo ID card such as your driver’s license.
How to trade commodities with American ExpressCopy link to section
After your Amex card and personal information have been verified, here are the steps you’ll need to take:
- Find the payments or deposits page on your commodities broker’s website or app.
- Select American Express as your preferred payment option.
- Enter your Amex card information.
- Enter the amount of money you wish to deposit into your commodities trading account.
- Click confirm.
FAQsCopy link to section
Commodities are raw materials or agricultural products that can be bought and sold by different parties on commodities exchanges and via commodities brokers. Some examples of commonly traded commodities include gold, oil, and wheat.
Soft commodities typically refer to agricultural products which are grown, as opposed to mining products which are mined (the latter are called hard commodities). Examples of soft commodities include wheat, corn, coffee, sugar, and livestock.
The range of commodities you can trade with American Express will often depend most on what your chosen broker is able and willing to offer. Generally speaking, using your Amex card as a payment method will enable you to trade just as wide a range of both soft and hard commodities as you would with most other payment methods.
In theory, yes. Regulatory bodies (such as the Commodities Futures Trading Commission in the United States) will enforce position limits for commodities trades, to ensure that no one trader corners the market on any one commodity.
In practice however, it is virtually impossible for an individual to be affected by these limits, as they are set so high as to be beyond the reach of all but the wealthiest few people in the world. Position limits are put in place more as a safeguard against, say, hedge funds using their immense resources to try to corner the market on coffee, cocoa, or any other commodity.
Yes, American Express allows you to use chargebacks if something goes wrong on your commodities trade, in the same way that Amex would allow you to use chargebacks for a botched transaction at the grocery store.
Just keep in mind that your online commodities broker may try to dispute your chargeback claim, depending on the circumstances. You can’t just make a chargeback claim if you willingly make a trade and it goes against you.
Other payment methods that you can you to get commodities online include:
- Debit card
- Bank transfers
- Apple Pay
- Google Pay
- Digital wallets
Commodities trading is the act of buying or selling various raw materials or agricultural products. Traders can make a profit when they guess correctly on the price movement of a given commodity.
You can do so right here. Invezz publishes commodities news on a daily basis. We also publish analysis pieces looking at emerging trends in the commodities market (and all other financial markets), which can help you make more informed decisions.
A commodities broker typically takes a commission every time you buy or sell commodities. The size of that commission may vary from one broker to the next, so do your research to find the most competitive trading fees.
Look no further than this website. We’ve published a series of educational articles on commodities trading, designed to give you all the basics you’ll need to make your first trade, and then to help improve your knowledge so you can become an expert trader.
American Express is a financial services company that issues one of the most widely used credit cards in the world. Amex is known for accommodating customers with its chargeback allowances, which can help customers have peace of mind in the event of purchase disputes, but may also spook some online brokers.
A futures contract is a binding agreement to buy or sell something at a predetermined price at a specific time in the future. Commodities trading represents one of the most common uses for futures contracts.
An options contract is an agreement between two parties to facilitate a trade on a specific asset at a preset price prior to a specific expiration date. Along with futures contracts, options contracts are one of the most popular ways to execute a commodities transaction.
Margin trading entails borrowing a certain amount of money from your commodities broker in order to make a trade for a specific commodity. Another term for margin trading is leveraged trading.
Margin trading is not recommended for beginner commodities traders. Although margin trading gives you the ability to make a bigger profit than you would normally make if you only invested your own money, it is not worth the risks if you don’t have trading experience.
If you guess wrong on a margin trade, you stand to lose a lot more than you would by trading with only your own money, with potential losses so high they risk wiping out a huge chunk of your funds – or possible all of your capital.
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >