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- 1. Compare the best brokers to trade commodities with debit card
- 2. Here are the best commodities brokers that accept debit cards
- 3. What is a debit card commodities broker?
- 4. Pros and cons
- 5. What are the fees and commissions when using a debit card to buy and sell commodities?
- 6. What to look when trading commodities with a debit card
- 7. Is it safe to trade commodities with debit card?
- 8. Do I need to provide ID when trading commodities with debit card?
- 9. FAQs
Compare the best brokers to trade commodities with debit card
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82% of retail CFD accounts lose money.
Debit cards are one of the most commonly used payment methods for online commodities trading brokers. Keep reading to see how to trade commodities using your debit card, and the pros and cons of doing so.
Here are the best commodities brokers that accept debit cardsCopy link to section
We’ve compiled a list of the best debit card commodity brokers, all reviewed by our team of experts. You can compare them all in the table below, or keep reading if you want to know more.
77% of retail CFD accounts lose money.
What is a debit card commodities broker?Copy link to section
A commodities broker is a firm (or person) who executes orders to trade commodities, getting paid commission for doing so. What we’re looking at are brokers that allow you to use your debit card to fund your trades.
Pros and consCopy link to section
Here are the biggest benefits and drawbacks to be aware of.
ProsCopy link to section
- Convenient. If you already use a debit card for everyday purchases, you can simply use that same card to trade commodities online. Just link your debit card to your brokerage account and you can start trading.
- Fast Deposits. You can fund your broker account quickly using a debit card, allowing you to begin trading commodities as soon as you want.
What are the fees and commissions when using a debit card to buy and sell commodities?Copy link to section
The fees and commissions charged when using a debit card to trade commodities will vary depending on the broker that processes your trades. That said, most leading brokers charge little more than a few pounds per transaction. Our broker reviews help you find the best value around.
What to look when trading commodities with a debit cardCopy link to section
These are the aspects of each broker you want to assess before choosing the service you want to use for commodity trading.
- 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 carry out trades.
- Variety of commodities choices. Look for a broker that lets you trade all kinds of different commodities with a debit card, as you don’t want to put all your money into just one or two investments. Depending on your area of expertise that might mean finding a platform that lets you trade a range of crop commodities like corn and barley.
- Easy to use. The trading platform you choose should be as easy to use as possible, so you can spend all your time honing your trading strategy.
- Speed. Don’t settle for a slow broker, as commodity markets move quickly and you need to be able to make trades fast and efficiently.
- Great customer service. The broker you choose should offer fast and helpful customer service. If you find a broker that offers customer service on a 24/7 basis, that’s even better.
Is it safe to trade commodities with debit card?Copy link to section
Yes, it is generally safe to buy commodities with a debit card. That said, the best brokers make the trading process even more secure with a range of different features – so look for an online trading platform that offers the highest levels of security. Using our broker reviews you can quickly see the relative security of each brokerage.
Do I need to provide ID when trading commodities with debit card?Copy link to section
Yes, you typically need to provide some form of ID when funding your trades with a debit card. Commodity brokers will ask for at least one piece of identification when you sign up. That could be something as simple as your email address, or a more involved process that may include submitting a copy of a photo ID card such as a driving license or passport.
How to trade commodities with debit cardCopy link to section
Here are the steps you need to take when trading commodities with your debit card.
- Find the payments or deposits page on your commodities broker’s website or app.
- Select a debit 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 or sold, usually in the form of futures or options. A broker will execute those trades for you, enabling you to trade assets such as gold, oil, silver, and wheat.
Soft commodities are agricultural products which are grown, as opposed to metals which are mined (which are known as hard commodities). Examples of soft commodities include wheat, corn, coffee, sugar, and livestock.
Pretty much any that you want to trade, as long as you find a broker that offers every commodity. Using your debit card as a payment method typically enables you to trade just as wide a range of both soft and hard commodities as you would with other payment methods.
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 large institutional investors don’t use their immense resources to try to corner the market on a specific commodity.
However, this isn’t relevant to regular traders as 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.
Other payment methods that allow you to buy commodities online include the following options:
Trading commodities involves buying or selling various raw materials or agricultural products. Traders typically trade using futures or options, and make a profit when they guess correctly on the price movement of the commodity they’re trading. When you place a buy or sell order with a broker, the platform will try to execute your trade as quickly as possible, as close to your desired transaction price as possible.
Keep up with the commodities market right here on this site. Invezz publishes investment news on a regular basis, as well as analysis pieces looking at emerging trends in the commodity markets.
A commodities broker typically takes a commission every time you buy or sell each asset. The size of that commission may vary depending on the broker, 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 by paying too many commissions.
Start right here on this site. We publish educational articles and courses on commodities trading, designed to give you all the basics you’ll need to make your first trade. Additionally, we have more involved lessons to help you s쳮d in your trades.
A debit card is a payment card that can be used instead of cash to make purchases, with the money deducted out of your bank account. You may be required to provide your personal identification number (PIN) when making transactions with your debit card.
A futures contract is a method of trading using an agreement to buy or sell an asset at a preset price at a specific time in the future. Commodity trading involves huge volumes of futures contracts.
An options contract is an agreement between two parties to facilitate the trade of a specific asset at a preset price prior to a specific expiration date.
Margin trading involves borrowing a certain amount of money from your broker in order to make a trade for a specific commodity. Another term for margin trading is leveraged trading.
No, margin trading is not recommended for beginners because of the extra risks it entails. Margin trading does give you the ability to make a bigger profit than you would normally make if you only invested your own money, but this effect also applies to your losses. If the market moves against you then you can have all your capital wiped out quickly.
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 >