Compare the best brokers to trade commodities with credit card

Commodities are raw materials or agricultural products that can be bought and sold by different parties, using brokers to execute those trades. Examples of commonly traded commodities include gold, oil, silver, and wheat.

Soft commodities are agricultural products which are grown, as opposed to metals which are mined (these are called hard commodities). Examples of soft commodities include wheat, corn, coffee, sugar, and livestock.

Using your credit card as a payment method typically enables you to trade just as wide a range of commodities as you would with most other payment methods. Different brokers offer different assets to trade, so compare your options before registering with a broker.

Unless you’re ultra wealthy, no. Regulatory bodies (such as the Commodities Futures Trading Commission in the United States) enforce position limits for commodities trades, to ensure that no one trader corners the market on any one commodity. But 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 large institutional investors using their immense resources to try to corner the market on a specific commodity.

Other payment methods that you can use to buy commodities online include the following:

Debit card
Bank transfers
Apple Pay
Google Pay
Digital wallets

The process of buying or selling various raw materials or agricultural products. Traders make a profit when they correctly guess the price movement of a given commodity and buy and sell it accordingly. When you place a buy or sell order with a commodities broker, the broker will try to execute your trade as quickly as possible, as close to your desired transaction price as possible.

Keep up with the commodity markets right here on this site. Invezz publishes up-to-the-minute news on a regular basis, as well as analysis pieces looking at emerging trends in markets around the world.

A commodities broker typically takes a commission every time you buy or sell a commodity. The size of that commission may vary from one broker to the next, so do your research to find the most competitive trading fees. Also make sure that if you’re a frequent trader, the size of your account balance is large enough to ensure that you’re not significantly eating into your budget too much and being left with less money to make trades.

Start right here on 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, plus more involved lessons to help you s쳮d when investing in a variety of assets.

A credit card is a plastic card issued by a bank that gives you the right to buy goods and services on credit, delaying your need to spend actual money for a period of time.

A futures contract is an agreement to buy or sell an asset at a preset price at a set time in the future. Futures contracts (or just ‘futures’) are integral to commodities trading.

An options contract is an agreement between two parties to carry out the trade of a specific asset at a preset price prior to a specific expiration date.

Margin trading lets you place trades that are larger than the amount of your money you stake. It works by allowing you to borrow a certain amount of money from your broker in order to make a trade for a specific commodity (or other asset). Another term for margin trading is leveraged trading.