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

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

Can I trade copper?

Copy link to section

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

You can trade copper through many different avenues, including spot copper, futures contracts, copper options, copper 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 copper online?

Copy link to section

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

What is copper trading?

Copy link to section

Copper trading involves speculating on its price using various financial instruments to capitalise on price movements. Unlike traditional investing, copper traders look to capitalise on fluctuations in price over the short term. Trading copper is available to anyone with an online trading account. 

What copper markets can I trade?

Copy link to section

Copper is traded mainly using futures contracts, although CFDs are another popular way to trade the metal. Futures contracts are available on two main exchanges: the COMEX division of the New York Mercantile Exchange and the London Metal Exchange. Each exchange has a different contract for copper. 

High-grade copper is futures on the COMEX. These contracts can also be traded at the current market price, or ‘spot’. The futures market for the London Metal Exchange (LME) is copper. Like COMEX futures, LME copper can also be traded at teh current market price (spot). 

Ways to trade copper

Copy link to section

There are several options available when it comes to trading copper 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 copper online.

• Trade copper CFDs. Contracts for Difference (CFDs) are a popular way to speculate on copper 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 copper. With CFDs, you can profit from both rising and falling prices. CFDs also offer leverage, which can amplify your exposure to copper markets. 
• Copper spread betting. Spread betting is a trading method allowing you to speculate on the price movements of copper without owning the physical commodity. With spread betting, traders can take positions on whether the price of copper will rise or fall. You can use leverage when spread betting copper. All profits are also tax-free. 
• Trade copper 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. copper futures contracts require a detailed understanding of what impacts short term prices, and are most suited to someone with experience in the market.
• Trade copper options. Options let you buy or sell copper contracts at a predetermined price on or before a specific future date. copper 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 copper market.

Should I trade spot copper or copper futures?

Copy link to section

It depends on your level of experience and your trading goals. Spot trading is best suitable for short term traders who are focused on quick moves. Spot copper trading gives you direct exposure to the current market price and is the option most retail traders use when trading copper online. 

Copper futures contracts offer the benefit of leverage and require you to only post margin, rather than the full value of a contract. This means you can trade larger positions and magnify your gains. But, it also means your losses can be larger. Copper futures trading is best suited for traders with a good level of experience. 

How to trade copper

Copy link to section

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

Step 1. Open a copper trading account

Copy link to section

Choose an online broker that offers the copper market. We recommend Plus500 as the best copper trading platform. It has one of the widest selections of derivatives available, so you’ll find multiple ways to trade copper. 

Step 2. Choose your copper trading method

Copy link to section

You can trade copper in many ways. Use our guide above to help you decide which option is most suitable for you. Most traders will use either the copper spot market, copper CFDs, or copper futures.

Once you’ve selected, search for your chosen copper trading method using your broker’s search feature. 

Step 3. Analyse the copper market

Copy link to section

Before you start trading, take the time to analyse the copper market thoroughly. You can look at factors such as supply and demand dynamics, price charts, and technical analysis or fundamental analysis. You can use your analysis to help develop a trading strategy. 

Step 4. Make your trade

Copy link to section

It’s time to place your trade when you’ve completed your research and defined your strategy. Search for the market you want to invest in and visit its trading page while logged into your brokerage account. 

Check its price and enter your trade details. Consider including a stop loss and take profit level to help protect your position. Once you’ve entered your order details, hit the buy or sell button. 

Step 5. Monitor your trades

Copy link to section

Regularly review your trading portfolio and its performance. You may want to consider rebalancing if necessary and be prepared to adjust your strategy as the copper market conditions change. 

What moves the copper price?

Copy link to section

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

• Supply and demand. Supply and demand dynamics are the main drivers in the movement of copper prices. Supply and demand can be impacted by various factors. When demand is high, prices are likely to rise. Conversely, a decrease in demand can lead to lower prices. 
• The global economy. A strong global economy usually means an increase in demand for copper. When economic times are good, industries like construction and manufacturing tend to fare well, both of which heavily depend on copper. 
• Geopolitical tensions. Copper is produced globally, but the major producers are concentrated in a few regions. Geopolitical tensions or instability in these regions can directly affect copper mining and exports, leading to supply chain disruptions. 
• The US Dollar.  The US dollar plays a key role in copper pricing.  A strong US dollar can make copper appear relatively more expensive for countries using other currencies, potentially leading to a decrease in demand and lower copper prices.
• Inventory levels. Exchanges and warehouses hold stockpiles of copper. Low inventories can indicate strong demand and push prices higher, while rising inventory levels can suggest weak demand resulting in lower prices. 

What to consider when you trade copper

Copy link to section

When you begin trading copper, 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 copper trading strategy. 

What are your trading goals?

Copy link to section

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 copper market to use. 

Does copper suit your risk tolerance?

Copy link to section

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 copper to determine if it’s volatile enough for day trading. 

Will trading copper add diversification to your portfolio?

Copy link to section

Many traders focus on more than one market at a time and diversification is one of the core principles to follow. When you trade copper, 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 copper market dynamics. 

Copy link to section

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

Choose the right trading method.

Copy link to section

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

Is copper a good market to trade?

Copy link to section

Copper trading can be an excellent addition to your portfolio. The copper market boasts good liquidity, which is important for traders looking to enter and exit the market frequently. Unlike some commodities, where liquidity is low, copper trading allows for smooth transactions. 

In addition to liquidity, the various methods for trading copper make it an enticing option for traders looking at base metal trading. The easiest ways to trade copper include CFDs and futures, while copper ETFs and copper stocks widen the available instruments. This means participating in the copper market is more accessible to traders depending on their risk tolerance. 

Another reason to look at copper trading is the volatility. While many investors view volatility as a negative, traders can use strategies to capitalise on volatile markets. When used correctly, volatility in the copper market can provide ample trading opportunities. 

What are the risks of trading copper?

Copy link to section

Trading copper 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 copper, several more specific ones apply. Below, we’ve explained the main risks of copper trading.

• Volatility. The copper market is known for its price volatility. Compared to other markets, the price of copper can widely fluctuate daily. It can be costly if you’re unprepared for the volatile nature of the copper market. 
• Macroeconomic factors. Copper prices are affected by several macroeconomic factors, such as industrial demand, inflation, interest rates, dollar strength, and geopolitics. Before trading copper, you should have a good understanding of these. 
• Regulatory risks. Government policies can play a role in the way copper prices move. Export restrictions or changes in tax regulations could introduce unforeseen risks. 
• Futures trading has margin requirements. Trading copper futures contracts usually involve margin requirements. This means you need to put up a portion of the total contract value upfront which can expose you to losses if copper prices move against your position. 
• Copper ETFs offer limited control. Copper ETFs are one of the best ways to gain exposure to the copper market, but they don’t provide direct ownership. While for most traders this won’t be an issue, it’s important to understand the risks. The performance of your copper ETF trade depends on the performance of the underlying holdings. 

Copper trading strategies

Copy link to section

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

• Trend trading. Trend trading is a basic strategy and involves identifying and following the prevailing price direction of copper. Technical indicators like moving averages can help in identifying trends. You can also look for higher highs or lower lows in copper’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 copper 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 copper. 
• 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 copper. This means rather than focusing on copper’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 copper market. Remembering that each strategy has its own rules and risk management techniques is important. Professional copper traders often combine multiple systems and adapt their approach to market conditions. 

Bottom line

Copy link to section

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

FAQs

Copy link to section

---