Compare the best commodities apps
As investing in commodities has become increasingly popular, the emergence of mobile apps has accelerated onboarding new investors. Now, there is no shortage of options for mobile users who want to get involved. With this in mind, we take you through the best apps for long-term commodity investing and short-term trading.
What are the best apps for investing in commodities?
Regardless of how you plan to invest, the same app offers both long and short term options. For example, you can day trade the price of gold for short-term gains, whereas, for the long term, you may buy into a gold ETF, gold weighted index, or take out a futures contract.
Top apps for commodities trading
No matter what commodity you buy into and in what form, the best commodity trading apps combine powerful tools and charts to help you spot key technical indicators with low fees to maximise your profits. Below are some of the best options we have tested.
What should I look for in a commodity trading app?
The three most important considerations are security, safety, and ease-of-use. In addition, there are many other elements you should factor in when picking an app to trade commodities. To help you out, we have listed some of the key things you should look out for when choosing one.
Design and ease of use
A general advantage of mobile apps is that they can make certain activities easier, and this is true of commodities investing. However, not all apps are equal. The app with the clearest interface that is the easiest to use will save you time and effort, especially if you are a beginner, whereas, for more experienced users, a more complex app with powerful tools could be the way to go.
Reputation and regulation
Whenever dealing with your finances, you need to have confidence that the app you are using has a good reputation and is regulated effectively. To check an app’s reputation, read its reviews. In the UK, the FCA carefully regulates trading apps, but this will vary greatly based on the country you live in, so check the rules before you sign up.
In addition, commodities brokers are insured in case they go bankrupt to protect your assets, whilst long-term ISAs and IRAs are protected by government regulation. This will give you peace of mind, but make sure to check your app follows these rules before downloading it.
Tools and charts
For traders who are looking to spot patterns and make good decisions, tools and charts form the backbone of their technical trading strategy. Therefore, if you want to trade commodities effectively, choose an app with a wide selection of charts and tools to help you spot trends as they unfold and position yourself appropriately.
Fees and commissions
The cost of each app varies, and even apps that market themselves as ‘free’ have to make money somewhere. You can expect to see costs come in the form of trading, deposit, and withdrawal fees, whilst other apps will make their money from the spread, which is the difference between the buy and sell price they offer for a commodity. Make sure you are happy with an app’s fees before signing up.
Keeping your money and assets permanently secure is a top priority for any commodities investor. So, some key security features to look out for include two-factor authentication, fraud protection and data protection compliance. While largely, mobile apps have been developed extensively to ensure good security, be cautious about using an app that neglects to include these features.
Mobile apps provide flexibility because they are portable, and to increase this flexibility further, there are a variety of trading options you can choose from. Here are some of the most popular ones.
Contracts for difference (CFDs) are a means of speculating on the price of a commodity without owning it outright. They are popular because of the increased amount of leverage available, lower purchase cost, and also because buying and storing several barrels of oil is rather inconvenient. Major trading apps like Plus500 and eToro offer CFDs to users.
Trading with leverage means you can make bigger trades with less up-front investment by borrowing capital from a broker. If you are experienced, this can be a great way of maximising your profits, but it equally increases your exposure to the market downside risk, so exercise plenty of caution.
Just like a bookies, if you want to bet a broker whether the price of a commodity will fall or rise, this is the method of choice. Simply choose your stake and place a bet on where you expect the price of something to reach.
These can be a nice bonus for an app, but they can also be a real gamechanger. For example, demo accounts and tutorials can be a great way for novice traders and investors to learn the ropes without losing money. Before you sign up with an app, see what extra features it has to sweeten the deal.
Quick answers to key questions
Can I trade commodities on Android and iOS devices?
Yes. The majority of apps are available on both operating systems and function exactly the same. A few are exclusive to one operating system, though it is easy to find out where you stand by searching for an app on the Google Play Store or the App Store. If it shows up, you’re in business.
How much do commodities trading apps cost?
They are usually free to download. However, costs can come in many forms, including subscriptions fees and commissions/trading fees that usually range from 1-2%. So, make sure to check your app for a detailed breakdown of the costs and decide if they work for you.
Do I have to verify my identity with a commodities trading app?
Yes, there is usually some form of identity verification check for taxation and security purposes. It is likely that you will need to provide a copy of your photo ID and some contact details.
Do apps charge fees for trading commodities?
Sometimes. It entirely depends on the platform, so some will charge a fixed rate, a percentage of the trade value or they may even make their money from the margin. While fees are much lower than they used to be, especially in the case of brokers, they remain an important consideration that you should make before choosing an app.
Should I use a commodities trading app?
This depends on your own individual financial goals and needs. If you want to invest in or trade commodities, they are a great, accessible way of doing so on the move, or even while relaxing in bed. They bring flexibility to investment, and this is really helpful for busy retail investors.
If you’re still on the fence, we hope the below pros and cons of commodity apps can help you make up your mind. We have also included some final key questions to help set you on the right path.
- Trade and invest in commodities and manage your portfolio regardless of where you are
- Gone are the days of hiding gold beneath the floorboards; you can just store it in your mobile
- No other practical way to benefit from rises and falls in commodity prices
- Many apps are slimmed down and more accessible than full-blown websites, and this can be really helpful for beginners
- Storing any apps containing financial information on your phone can be risky if you lose it or have it stolen, though this is no different to having your local banking app installed
- Some apps don’t offer as many features as the main online versions on a website
- By trying to fit a complex interface into a smaller package, some mobile apps can be fiddly
Should I buy commodities with an app now?
This all depends on the current market environment. For example, if there has just been a major development that could affect the price of silver, you ought to know about it before investing in silver! To keep informed with commodities news, check out some of the links below for our latest analysis:
Gold price breaks higher, here is the next target on the upside
Should I invest in gold in April?
Crude oil prices analysis for April
Where can I learn more about commodities?
We hate to brag, but the Invezz website is a great place to recieve an education in commodities. Moreover, it’s also a great place to learn about the stock market and even cryptocurrencies. To get started, why not check out our latest commodities news?
Yes. There is no limit on the number of apps you can use, and many individuals use multiple apps because they offer different assets and can help you mitigate the risks of relying on a single platform.
Yes, though this may vary based on where you live in the world. It’s always a good idea to check the law in your country before you get started.
It depends. For most countries, yes, but for others with restrictions on internet usage, you might be in for a trickier time.
Downloading them is usually free, and this is because they make their money elsewhere. Expect to find trading fees, withdrawal fees or deposit fees in most apps. The fee structure of each one will vary, so make sure you know exactly where you stand before pulling the trigger.
This depends on the service you use. Using an app is no more expensive than using a conventional commodities broker, but you need to look out for the typical trading fees, deposit fees, withdrawal fees and commissions. The majority of apps will have a transparent explanation of their fees that users can access.
Yes, they have been developed for many years by intelligent minds to ensure their safety and security levels are extremely high.
Yes, provided the company running the app is reputable. The apps are strictly regulated by the financial regulators, and if you have chosen a respected app, it should be plain sailing.
This depends on the rules in your country. Commonly, you need to pay some kind of capital gains tax. For example, in the UK, you have to pay tax on gains over £12,300, and you can check out the government website for the full lowdown. It is extremely important that you understand the rules in your jurisdiction so you avoid infringing upon them.
It depends on the trading options provided by your app. Shorting commodities involves borrowing them from a broker, selling them, then hoping the price will fall so you buy them back, return them to a broker and pocket the difference. Not every app offers this service, so check before you sign up.
Usually, yes. However, this is a complex and difficult to execute trading strategy and you should be aware of this before jumping in with both feet. If you intend to scalp a commodity, consider using some form of loss protection like stop limits.
This depends on the app you are using. Some apps will offer trading options like options and futures to help mitigate the risk of buying or shorting a commodity. Hedging is a really useful strategy for reducing risk, but it can be complex, so make sure you know exactly what you are doing.
Yes, and this is a key advantage of apps. Being able to switch between a website when you are in a static environment and a mobile when you are on the move makes for a flexible experience.
Each app has its own password recovery protocols, and it should guide you through this process via on-screen prompts. Provided you still have access to the email account you signed up with, you should have no issues getting back into your account.
No, uninstalling an app shouldn’t affect your funds because it doesn’t normally delete your account. Provided you don’t delete your account, you can simply reinstall the app at a suitable time and transfer your funds elsewhere.
Provided you have opted for a reliable and trustworthy platform, the risks should be minimal. No app can guarantee that you will make money from trades, but many apps can guarantee that you will experience a service conducive to investment success.
Yes, however, this varies from app to app. PayPal is being increasingly accepted as a means for investors to add funds to their accounts, but this isn’t always the case.