Commodities Trading

Commodities, whether related to energy, food, or metals, play a significant part in everyone’s lives. Any car owner will be affected by the rising prices of crude oil, and higher soybean prices may affect the price of your groceries.

Investing in commodities offers you a rare opportunity to diversify your portfolio beyond the traditional securities, for both the long and short term. Investing in commodities requires no professional knowledge; the basics are relatively easy to understand, and online trading has made commodity trading widely accessible to individual investors.

Trade commodities with South Africa’s largest and top-performing broker!

Why Trade Commodities?

Commodities are the perfect addition to a trader’s portfolio. They hold many benefits for beginner traders as well as experienced ones and if you trade responsibly, you can achieve great results. Below, we made a list of some of the key benefits of trading various commodities.

What is Commodity Trading all about?

When a trader is interested in trading commodities, s/he doesn’t have to clear out his cabin space for hundreds of crude oil barrels or piles of gold bars. S/he simply trades using a futures contract where one profits from the difference in price between the time the position was opened and closed.

CMTrading offers the following commodities:

The Advantages of Trading Commodities

If you’re looking to diversify your portfolio without going overboard with risk factors, then commodity trading is likely the perfect asset for you!

Here are some of its biggest benefits:

  • Major profit potential. If you’re an experienced trader, the commodities market may offer more profitable opportunities than other asset classes.
  • A diverse portfolio is a good portfolio. It’s never a good idea to put all your eggs in one basket, so a good trading portfolio should be highly diverse with various assets in order to keep risks to the minimum. Commodities are considered fairly safe compared to other assets and that’s why they are a safe option to consider when setting up a portfolio.
  • Commodities can protect you against inflation. In an inflationary environment, where currencies depreciate, the price of commodities usually goes up. This makes commodities the perfect way to protect your portfolio during times of uncertainty and inflation.
  • Low commissions. For traders who are making a lot of short-term trades, commodity trading is exactly what they need. The commission on a commodity is lower than most other tradable financial assets, which makes it ideal for short-term traders.

Click here for a list of trading conditions and spreads.