Compare the best 3 commodity spread betting brokers in 2024

This guide rates the best places to spread bet commodities right now. Find what makes a great spread betting broker and compare the best options available.
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Updated: Dec 13, 2022
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Our experts have tested a wide range of platforms to find the best commodity brokers that offer spread bets. Read on to find which ones came out at the top of our list and why we rated them so highly.

Where can I find the best trading platforms for spread betting commodities?

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Use the platforms below to get started right away. We’ve done all the legwork and compared all the options so you’ll be well informed when deciding which spread betting platform to use.

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1
Min. Deposit
$ 100
Best offer
User Score
10
Trade +2000 CFDs on Shares, Forex, Indices, Crypto, Options, Commodities & more
Unlimited risk-free Demo Account
0 commissions & attractive spreads
Start Trading
Payment Methods:
American Express, Apple Pay, Bank Transfer, Credit Card, Debit Card, Discover, Google Pay, Mastercard, PayPal, SEPA, Trustly, Visa, , skrill
Full Regulations:
ASIC, FCA, FSA, MAS, cysec-250-14-regulator, isa-regulator

CFD service. 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.

2
Min. Deposit
$ 10
Best offer
User Score
9.9
Up to $240 bonus!
Award-winning trading platform
Regulated and trusted broker worldwide
Start Trading
Payment Methods:
Bank Transfer, Credit Card, Debit Card, PayPal, Wire Transfer
Full Regulations:
CySEC, FCA

eToro offers real assets only, no CFD products. Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Invezz.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD.

3
Min. Deposit
$ 0
Best offer
User Score
9.3
World's biggest online bullion market
High-security vaults based Zurich, London, Toronto, Singapore and New York
Next-day withdrawals
Start Trading
Payment Methods:
Full Regulations:

Best 3 commodity spread betting brokers, reviewed

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1. Plus500. Best for international CFD trading*

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From 0.08%

Fees

$100

Minimum deposit

3,000

No. assets

Yes

Demo/virtual account

Pros & Cons

Can get a free demo account A great mobile platform Well regulated in multiple jurisdictions Wide variety of CFDs to trade Several good risk management tools
No support on trading information and education Website isn’t brilliantly designed to help users find answers to their questions No MetaTrader trading platform compatibility

Overview

We love Plus500 because it is one of the industry’s most transparent and reliable brokers. Its fees are clear and you’ll know exactly what you will be paying before you make a trade. Its technology driven platform gives access to over 2800 instruments, including CFDs on stocks, forex, commodities, and cryptocurrencies among several others.

Plus500 has something for all types of traders, no matter what level of experience. It’s zero commission and tight spreads make it a top choice for day traders and its trading academy is packed with educational content, perfect for beginners just starting. 

For accurate instrument availability, visit plus500.com.

The fees: There are no commission fees on any trades with Plus500 and it makes it money through the Bid/Ask spread. Spread starts from 0.01% or 0.9 pips and varies depending on the instrument. Additional fees include overnight funding which is dependant on trade size and guaranteed stop orders, which add a minimum of 10% to the spread. There is an inactivity charge of £10 per month for accounts not logged in for three months. 

*Based on a comparison of 60+ leading brokers and trading platforms.

Highlights

Visit Plus500 Plus500 Review

CFD service. 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.

2. eToro. Best for beginners, copy-trading & demo-account

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0% commission

Fees

$100

Minimum deposit

4,000

No. assets

Yes

Demo/virtual account

Pros & Cons

Great for beginners, simple to set up and get started Competitive, industry-leading commissions Popular ‘Copy Portfolios’ function lets you follow top traders Excellent customer service, with live chat support provided
Comparatively high fees for withdrawals and account inactivity Does not integrate with the MetaTrader platform High spreads on some assets

Overview

We love eToro because it’s a great trading platform for beginners, with an interface that’s easy to use via app or desktop. A safe and trustworthy broker used by millions of traders worldwide, eToro boasts a zero-to-low fee structure that won’t gobble up your money in charges.

There are more than 5,000 crypto, stock, etf, forex, and commodity assets available to trade on eToro. You can dive straight in to trade or dip your toe in gently with one of the best demo accounts in the business. We like to switch to virtual mode and use its unique CopyTrader feature to get trade ideas, test out strategies, and learn from the pros.

The fees: All stock and ETF trading is commission fee. All crypto trades are charged a 1% fee. Currency spreads are 1 pip, for commodities it’s 2 pips. Stock CFDs have a 0.15% spread. All deposits are free, withdrawals cost $5. There’s an inactivity fee of $10 per month that kicks in if you don’t log in to your account for 12 months.

Highlights

Visit eToro eToro Review

76% of retail CFD accounts lose money. Your capital is at risk.

3. Public. Best for sharing beginner trading ideas

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public.com logo

...

Fees

...

Minimum deposit

...

No. assets

No

Demo/virtual account

Pros & Cons

Commission free stock and ETF investing Share and compare your portfolio on a social trading platform Trade crypto, fractional shares, and alternative investments
You can't trade on margin or use leverage No forex, options, funds, metals, or bonds

Overview

We love Public because it’s a social platform where you can share trading tips and get ideas from other people. Public offers 9,000+ financial instruments, including cryptocurrencies and stocks from around the world.

Alongside a community of other investors all sharing their ideas, Public offers real time news and information so that you can see the full picture before you invest. And the assets don’t just include your run-of-the-mill assets; you can make alternative investments in things like handbags and comic books as well.

The fees: There are no fees for investing in stocks during regular trading hours in the US – 9.30am-4pm EST. There is a $2.99 fee for trades outside of regular hours. Alternative investments, including cryptocurrency, are charged a 2.5% fee per transaction.

Highlights

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Cryptocurrency execution and custody services are provided by Apex Crypto LLC (NMLS ID 1828849) through a software licensing agreement between Apex Crypto LLC and Public Crypto LLC. Crypto trading on Public platforms is served by Public Crypto LLC and offered through APEX Crypto. Please ensure that you fully understand the risks involved before trading.

How does commodity spread betting work?

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Put simply, you place a bet on whether you think the price of a commodity is going to rise or fall. You need a broker to do this, and only a handful of them offer spread betting on the commodities markets. How much money you make depends on the value of your stake multiplied by the number of ‘points’ the price moves. 

A point is a unit of measurement set by the broker and which varies according to the commodity you want to bet on. For gold, a point is usually $0.1, so if you bet that the price would increase at $1 per point and the price did indeed increase by $0.50, you would earn:

Stake = $1

Movement = 5 points (0.5/0.1)

$1 x 5 = $5

Whereas for Brent Crude oil a point is measured in cents/barrel and natural gas in a slightly different way. It’s important you understand how spread bets work before you start, and this is particularly true when it comes to how the bet is measured.

So I don’t own the assets when I trade commodities through a spread betting broker?

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Correct. When spread betting commodities, you’re betting on the price of a commodity (like crude oil or natural gas) to go up or down, without actually owning the underlying asset. But this is ideal, because it simply isn’t practical to ‘own’ crude oil or natural gas in the same way you can own a stock certificate.

By using spread bets you can trade the commodity markets without having to worry about owning any of them. It’s one of the simplest ways to get started with commodity trading, as a spread bet is a transaction that’s easy to understand.

What should I look for in a spread betting service?

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The most important thing is access to the commodities markets. Spread betting is popular in the UK and Ireland but it can be tricky to find one that offers commodities. When you do find one, here are some things to consider before signing up.

  • Find a regulated platform. In the UK, the Financial Conduct Authority (FCA) leads a group of five major regulators that oversee most reputable spread betting platforms. Make sure the service you pick is regulated by the FCA and other regulatory bodies.
  • Range of commodities available. There are many different commodities out there and they all act very differently. You can trade precious metals, hard commodities, soft commodities, energy commodities, even orange juice. All of these prices act in different ways, so you need to choose a niche, research the market, and then find a broker that offers what you want to bet on.
  • Variety of payment methods. Make sure you select a spread betting trading platform that allows you to deposit and withdraw funds in a way that fits your needs. In addition to typical methods, such as bank transfers, some platforms offering spread betting commodities will now even accept deposits in cryptocurrency.
  • Suitable deposit and withdrawal limits. Deposit and withdrawal limits will vary from platform to platform. Make sure you pick one that suits the the level of trading you want to do, whether it’s small commodity bets or big trades that require a serious bankroll.
  • Good reputation. User reviews, media coverage and awards can all be good gauges of reputation. Do your research to find somewhere that ticks all the boxes.
  • Design and ease of use. Don’t overlook design and ease of use when picking a commodity spread betting trading platform. Speed of navigation can be a decisive factor when you need to act quickly, and a badly designed platform can make the whole process unnecessarily complicated.

What’s the difference between spread bets and CFDs?

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The biggest difference is the tax implications, as spread bets are normally tax free while CFDs aren’t. Otherwise, there are a lot of similarities between spread bets and CFDs.

However, there are some other reasons you might want to trade the commodities markets by using spread bets rather than CFDs. Here we have broken down the two approaches so you can compare them.

Spread betting

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Spread betting is popular in the UK and Ireland, but is not available in many other countries. That means it might not be available where you live, but if you are in the UK you won’t have to pay a Capital Gains Tax on any profits you make. Here are a couple of other benefits:

  • Spread bets are tax free and you don’t have to pay a commission every time you trade. The only cost is in the spread – the difference between the buy and sell price – so the price is always right there in front of you.
  • You can use spread bets to ‘short’ a commodity, which means to bet on it going down in price.
  • You can use leverage to make bigger bets. As spread bets are derivatives (where you bet on the value of an underlying asset, rather than buy the asset itself) you are able to make bets with just a small initial deposit.

CFD trading

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A contract for difference (CFD) is an agreement between a buyer and seller that requires the buyer to pay the seller the difference between the current value of an asset and its value at contract time. Here are a few more features:

  • CFDs are much easier to access than spread bets. More brokers offer CFD trading compared to spread betting, particularly when it comes to commodities.
  • You can go long or short a commodity. CFDs are derivatives, just like with spread bets
  • You can use leverage to make bigger trades. Again, just like with spread bets. Just note that you run a high risk of losing money when you use leverage, as your losses are magnified as well as your gains.

What are the tax laws on spread betting profits?

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The big advantage of spread bets is that they are generally tax free. This is true in the United Kingdom, for example, where the profits you make from spread betting are exempt from Capital Gains Tax. 

Normally, when you buy and sell financial assets you have to pay tax on the profits. This is not the case with spread bets as they are considered a form of gambling instead. It’s one of the big advantages of spread bets compared to CFD trades.

You should note that the local law where you live might be completely different. Spread betting is banned in many countries (such as the US) and in others it is only available to professional clients, which may have different tax implications. Always check the regulations where you live to make sure you don’t get caught out.

Quick answers to key questions

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Is online commodity spread betting secure?

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When it comes to security, spread betting is no different from CFD trading, stock market investing or other trading methods. As long as you choose a reputable, regulated platform, your trades will be secure.

Can I bet on multiple assets?

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Yes, you can bet on multiple assets. The bonus is that you won’t need to store any of those assets, since you won’t actually own the commodities you’re speculating on. You can bet on soft commodities, like coffee, sugar, grains, and livestock, or hard commodities, like gold, silver, and oil. As a general rule, soft commodities are things that you can farm or grow, while hard commodities are defined as things you can mine.

Do spread betting platforms charge fees?

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Typically, they don’t charge fees but make money based on the commodity spread itself. If a commodity is normally priced at £100 to buy and £101 to sell, a spread bet might carry quotes of £99 to sell and £102 to buy. The difference in the values is the broker’s profit.

This is also one of the main differences between spread bets and CFDs. When trading CFDs you might have to pay a commission or a fee on every trade, whereas you normally don’t with spread bets.

What are the advantages of using a spread betting platform?

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That it gives you access to the global commodity markets and makes the process of spread betting effortless. Many brokers offer futures markets, and a place for trading CFDs, but few offer spread bets as well. You need a specialised broker in order to bet.

And what are the drawbacks?

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There is a high risk of losing money if you don’t know what you’re doing. This applies to the entire industry of trading commodities, as it’s a market that moves in a very different way to the stock market, which is more familiar to most investors.

Spread betting is also a bit more complicated than simply buying a physical asset at a certain price and selling down the road, so you’ll need more technical financial knowledge in order to take full advantage.

Should I use a spread betting broker?

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You’ve read about the pluses and minuses of spread betting on commodities and using the brokers, so at this point the choice is yours. If you want to bet on oil or precious metals quickly and easily, then spread betting commodities is a great idea.

However, the main decision you need to make is between spread bets and CFDs. There are plenty of advantages to spread bets, but trading CFDs offers many of the same benefits and it is often easier to find brokers that offer them.

Hopefully we’ve given you a decent introduction to the fundamentals of commodities spread betting. Check out our top frequently asked questions to delve a bit deeper, or use the button below to sign up to a broker right now.

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FAQs

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Is it legal to spread bet commodities?
What are some of the commodities you can spread bet on?
Can I short commodities markets?
Are spread bets safer than trading commodities futures?
What’s a good way to manage risk when spread betting commodities?


Sources & references
Risk disclaimer
Harry Atkins
Financial Writer
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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.