How to trade cobalt: cobalt trading tips for beginners in 2025

This page explains how to trade cobalt online in 2025. Learn about the different ways you can trade cobalt, what moves its price, and why it might be a good addition to your portfolio. 

Can I trade cobalt?

Yes, trading cobalt is straightforward and available to anyone using an online trading platform. cobalt is one of the most popular commodities for trading and can be accessed through various derivatives. 

You can trade cobalt through many different avenues, including spot cobalt, futures contracts, cobalt options, cobalt exchange traded funds, or CFDs. To decide on the best approach, you will need to consider your goals and time horizon before aligning your strategy with your specific objectives. 

Where can I trade cobalt online?

Before you get started with cobalt trading you’ll need to register with an online broker. Our experts have selected some of the top cobalt trading platforms and you can click any of the links below to get started in just a few minutes.

4.6

eToro

Min. Deposit $100

Fees 1%

No. assets 3600+

Demo account Yes

Visit site

eToro review

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

4.5

Plus500

Min. Deposit $100

Fees From 2%

No. assets 2800+

Demo account Yes

Visit site

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.

This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorised by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe such as leverage limitations and bonus restrictions.

BullionVault

Min. Deposit n/a

Fees -

No. assets n/a

Demo account -

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What is cobalt trading?

Cobalt trading can happen in many different ways. Speculators or retail traders can use futures contracts, the spot market, or options to capitalise on short term price movements. Producers or other entities involved in the wider cobalt industry can use trading strategies to hedge against future price changes. 

Ways to trade cobalt

There are several options available when it comes to trading cobalt and the one you should pick depends on your budget, experience, and the timeframe for seeing returns. Here’s a look at the various ways you can trade cobalt online.

• Trade cobalt CFDs. Contracts for Difference (CFDs) are a popular way to speculate on cobalt price movements without having to own the physical asset itself. This makes them ideal for commodity trading, where it’s not practical to own and store large quantities of cobalt. With CFDs, you can profit from both rising and falling prices. CFDs also offer leverage, which can amplify your exposure to cobalt markets. 
• Cobalt spread betting. Spread betting is a trading method that allows you to speculate on the price movements of cobalt without owning the physical commodity. With spread betting, traders can take positions on whether the price of cobalt will rise or fall. You can use leverage when spread betting cobalt. All profits are also tax-free. 
• Trade cobalt futures. Futures contracts are the most common way to speculate on short term price changes. They are an agreement to make a trade at a future date for a pre-agreed price. cobalt futures contracts require a detailed understanding of what impacts short term prices, and are most suited to someone with experience in the market.
• Trade cobalt options. Options let you buy or sell cobalt contracts at a predetermined price on or before a specific future date. cobalt options trading requires some expertise but allows traders to capitalise on price changes and manage risk, which makes it popular with people familiar with the cobalt market.

Should I trade spot cobalt or cobalt futures?

The best option is neither spot nor futures, but cobalt stocks. It can be difficult and complex to access futures and other options for cobalt. Often, the easiest way is to trade the best cobalt stocks. You can do this using a regular commodity trading platform, such as those we’ve mentioned above. 

How to trade cobalt

Trading cobalt is a simple process. Before you begin, you’ll need to register with a trusted online broker to access the cobalt market. Follow the steps below to learn how to trade cobalt.

What moves the cobalt price?

Not all commodities move in the same way and cobalt has several unique features that make it independent. Below are some of the key factors at play.

• Democratic Republic of Congo. Cobalt is found worldwide, although no country comes close to the DRC in terms of production. Over half of the world’s cobalt is mined in the African nation and production outputs can drastically impact its underlying price. 
• Political instability. The Democratic Republic of Congo is well known for war, corruption, and a difficult political environment. It’s common for mining companies to run into difficulties making it a far from ideal location to do business from. Any changes in the DRC’s political landscape can cause a knock-on effect on cobalt.  
• China. Much of the world’s cobalt comes from the DRC, however, most of the world’s cobalt is refined in China. This means that one nation has control over the world’s cobalt output. As China has a lot of control over supply, it also can impact prices and almost has a monopoly on the metal. 
• Electric vehicles. The biggest use for cobalt is in lithium-ion batteries. These batteries are used in electric vehicles, a market that has been growing in recent years. As the EV market grows, so will the demand for cobalt. Speculating on cobalt

What to consider when you trade cobalt

When you begin trading cobalt, it’s important to approach with a well thought out strategy. Considering a range of factors before trading can save you time and money in the long run. Use the helpful tips below to plan your cobalt trading strategy. 

What are your trading goals?

Before you start, you should clearly define your trading objectives. Are you seeking quick gains, or will you be focused on a longer time frame using swing trading strategies? Knowing your goals before you start can help guide you in your strategy and also which cobalt market to use. 

Does cobalt suit your risk tolerance?

Make sure you’re comfortable with the potential for market fluctuations. If you’re a short term trader, then ensure you’ve checked the historical price chart for cobalt to determine if it’s volatile enough for day trading. 

Will trading cobalt add diversification to your portfolio?

Many traders focus on more than one market at a time and diversification is one of the core principles to follow. When you trade cobalt, make sure it complements the other markets you trade. For example, if you already trade several similar commodities, you may be better off choosing another commodity market to spread your risk. 

Take the time to study the cobalt market dynamics. 

Like many commodities, cobalt has unique characteristics and supply and demand fundamentals. To trade cobalt, studying the broader cobalt market, especially historical price trends is essential. Before trading cobalt, you will need to understand the factors that influence its value. 

Choose the right trading method.

We’ve already discussed the options available to you to trade cobalt. Each has its own advantages, so you should select the one most suited to your trading goals. For example, trading cobalt is best done via futures, options, CFDs, and spot. You could also trade cobalt exchange traded funds (ETFs). 

Is cobalt a good market to trade?

It can be, but it depends on the market, supply and demand dynamics, and the wider economy. Trading cobalt is best achieved through stocks or ETFs which allow you to access companies or a collection of companies involved in the cobalt industry. 

Cobalt is a necessary commodity for various applications and industries, most notably electric vehicles. When the EV market is in a growth stage, trading cobalt could be profitable so it’s important to keep an eye on the wider market before you start trading. 

What are the risks of trading cobalt?

Trading cobalt has the potential for significant rewards but also carries risks you need to be aware of. These risks are the same across the overall commodity market, but for cobalt, several more specific ones apply. Below, we’ve explained the main risks of cobalt trading.

• Volatility. The cobalt market is known for its price volatility. Compared to other markets, the price of cobalt can widely fluctuate daily. It can be costly if you’re unprepared for the volatile nature of the cobalt market. 
• Macroeconomic factors. cobalt prices are affected by several macroeconomic factors, such as industrial demand, inflation, interest rates, dollar strength, and geopolitics. Before trading cobalt, you should have a good understanding of these. 
• Regulatory risks. Government policies can play a role in the way cobalt prices move. Export restrictions or changes in tax regulations could introduce unforeseen risks. 
• Cobalt has no yield. Unlike other investments such as bonds or dividend stocks, cobalt does not provide any income yield. So, any returns you make rely entirely on its value increasing over time. You may encounter long periods of flat prices that can reduce your profits. 
• It has low liquidity. Cobalt does not offer the same levels of liquidity as other commodities such as oil or gold. This can make it more tricky to enter and exit the market, as there may be few participants willing to trade. 

Cobalt trading strategies

There are diverse opportunities when trading cobalt, and you can use various strategies to make the best decisions. Understanding these strategies is essential to navigate the cobalt market effectively. Below are several general trading strategies that can be applied to cobalt trading. 

• Trend trading. Trend trading is a basic strategy and involves identifying and following the prevailing price direction of cobalt. Technical indicators like moving averages can help in identifying trends. You can also look for higher highs or lower lows in cobalt’s price action. Traders look to profit by entering positions in the direction of the established trend, whether an uptrend (bullish) or downtrend (bearish). 
• Range trading. When the cobalt market is not trending, it will consolidate or move within a defined range or channel. You can use a range trading strategy whereby you aim to buy at the lower end of the range and sell at the upper end. Understanding support and resistance levels within a range is essential to trade this strategy effectively. 
• Moving averages strategy. Moving averages are technical indicators that smooth out price data and help identify trends. One common strategy is to compare short-term moving averages (e.g. 10 day), with longer term moving averages (e.g. 50 days). You can then look for crossovers and divergences between these moving averages to find signals for buying to selling cobalt. 
• Breakout trading. Breakout trading involves identifying key price levels, such as support and resistance, and entering positions when the price breaks through these levels. Traders expect the breakout to lead to a significant price movement in the direction of the breakout, allowing them to capture potential gains.
• Fundamental analysis. Fundamental analysis is a strategy used to evaluate the intrinsic value of cobalt. This means rather than focusing on cobalt’s price chart, you can analyse data like supply and demand, geopolitical events, and other variables that impact its price. You can then use your findings and technical analysis to place a trade. 

The above strategies are just a few of the many that you can use to trade the cobalt market. Remembering that each strategy has its own rules and risk management techniques is important. Professional cobalt traders often combine multiple systems and adapt their approach to market conditions. 

Bottom line

One of the key benefits of trading the cobalt market is the various ways you can get involved. There is a trading vehicle for everyone, from cobalt stocks and ETFs for long term speculators to spot cobalt, futures, and CFDs for short term traders. A trusted and regulated trading platform is a must if you want to navigate the cobalt industry successfully. 

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