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- 1. Compare the best brokers to trade commodities with credit card
- 2. Here are the best commodities brokers that accept credit cards
- 3. What is a credit card commodities broker?
- 4. Pros and cons
- 5. What are the fees and commissions when using a credit card to buy and sell commodities?
- 6. What to look for when trading commodities with credit card
- 7. Is it safe to trade commodities with a credit card?
- 8. Do I need to provide ID when using a credit card to trade commodities?
- 9. FAQs
Compare the best brokers to trade commodities with credit card
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Many online commodities brokers accept credit cards as a method for funding your account, but it can come with high fees. Keep reading to find out your best options and what you should consider when picking one.
Here are the best commodities brokers that accept credit cardsCopy link to section
We’ve compiled a list of the best commodity brokers and compared them in the table below. Scroll down and keep reading if you need to know more, but if you’re ready to go then simply follow one of the links below.
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 a credit card commodities broker?Copy link to section
Brokers that allow you to fund your account with a credit card. They are online platforms that enact trades for you, taking a small commission in exchange for their services.
Pros and consCopy link to section
There are unique pros and cons that come with using a credit card. Here are the main things to bear in mind when considering using this payment method with a broker.
ProsCopy link to section
- Convenient. If you already use a credit card for everyday purchases, it’s easy to start using that same card for online commodity trading. Just link your credit card to your brokerage account and you can get started right away.
- Security. Most major credit cards offer built-in security and encryption capabilities to ensure that all your transactions are well protected.
- Fast Deposits. You can fund your broker account quickly using a credit card, allowing you to begin trading whenever you’re ready.
What are the fees and commissions when using a credit card to buy and sell commodities?Copy link to section
The fees and commissions you’ll get charged will vary based on both the bank that issues the card and the brokerage that processes your trades. The good news is that the most affordable commodities brokers may charge little more than a few pounds per transaction, but bank charges can vary considerably. Our broker guides help you find the best value in a commodity broker.
What to look for when trading commodities with credit cardCopy link to section
When shopping for a broker, make a checklist of top priorities that matter to you. Here are a few key traits to look for:
- Low transaction charges. Choose a broker 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 trades and make future trades.
- Variety of commodities choices. Look for a trading platform that lets you trade all kinds of different commodities with a credit card. This is because you’ll want to diversify your investment strategy to protect against sudden drops in the value of any one commodity, like oil or gold. You don’t want all your eggs in one basket.
- Secure. You don’t want to risk having your hard-earned money or your financial and personal information hacked. Demand a broker that will keep your information and your trades secure.
- Great customer service. The commodities brokerage you choose should offer fast and helpful customer service in case something goes wrong.
- Easy to use. Look for a trading platform that’s as easy to use as possible so all your focus can be put into making your trades.
Is it safe to trade commodities with a credit card?Copy link to section
Yes, it is generally secure to trade commodities with a credit card, so long as you place trades with a regulated broker. Major credit cards offer built-in security features that make them a safe option for all kinds of purchases, including online trades. Still, security features may vary from broker to broker, so use our reviews to find a trading platform that offers the highest levels of security.
Do I need to provide ID when using a credit card to trade commodities?Copy link to section
Yes, you will likely need to provide some form of ID when signing up to an online broker. Brokers usually ask for identification when you sign up from simple personal information to an actual copy of a photo ID card.
How to trade commodities with a credit cardCopy link to section
Here are the steps you’ll need to take if you choose to fund your account with a credit card.
- Find the payments or deposits page on your commodities broker’s website or app.
- Select a credit card as your preferred payment option.
- Enter your 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, 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:
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.
No, margin trading is not recommended for beginners. Granted, margin trading gives you the ability to make a bigger profit than you would normally make if you only invested your own money. But 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. Leave this one until you get more experience.
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 >