The 8 Best Trading Platforms for Options in 2023

Commodity trading has been an integral part of the global financial landscape for centuries. It provides investors with opportunities to profit from the price movements of raw materials such as oil, gold, and agricultural products. To navigate this dynamic market, traders rely on commodity trading platforms and brokers.

In this article, we will explore some of the best options available for those looking to engage in commodity trading.

The 8 Best Trading Platforms for Options in 2023

In the following sections, we are going to examine the best commodity brokers available in the market today. Keep in mind that the platforms included on our list support various commodities trading approaches, from spot and ETF commodity instruments to futures and options commodities markets.

1. Interactive Brokers – A Leading International Commodity Broker

Interactive Brokers is a powerhouse in the world of commodity trading. With an extensive array of offerings, including metals, energy commodities, and agricultural futures contracts, it caters to traders looking for diversification in their portfolios. What sets Interactive Brokers apart is its commitment to providing advanced trading tools and technology. These tools empower professional traders to make well-informed decisions and execute trades with precision, making the platform not only one of the best CFD trading platforms but one of the best trading platforms overall.

Key Features:

• Offers a wide range of commodities, including metals, energy, and agricultural products
• Known for advanced trading tools and low fees, making it ideal for professional traders
• Provides access to global markets, allowing for diversification
• Interactive Brokers’ Trader Workstation platform is a bit complex for beginners, but it is highly customizable and offers a wide range of features for experienced traders
• Interactive Brokers offers a mobile app for commodity traders

Founded: 1978
Trading Fees: Starting from $0.25 per contract (depending on monthly volume)
Leverage: Up to 50x
Minimum Deposit: $0

2. TD Ameritrade – Commodity Broker with One of the Longest Track Records

TD Ameritrade is synonymous with reliability and accessibility, serving traders for more than 52 years. The platform excels in providing a user-friendly experience, making it an excellent choice for traders, both new and experienced. What sets TD Ameritrade apart is its commitment to education. It offers a wealth of educational resources, including webinars, articles, and video tutorials, enabling traders to enhance their skills.

Key Features:

• One of the oldest commodity trading platforms in the U.S.
• Solid reputation for reliability and customer service
• Offers educational resources to help traders learn and grow
• User-friendly platform suitable for beginners

Founded: 1971
Trading Fees: $2.25 fee per contract (plus exchange & regulatory fees)
Leverage: Up to 50x
Minimum Deposit: $50

3. IG – One of the Leading Commodity Broker Companies

As a global leader in online trading, IG offers a comprehensive suite of commodities futures trading options. From precious metals to energy commodities, it covers a broad spectrum, allowing traders to diversify their portfolios effectively. What makes IG stand out is its commitment to research and analysis. Traders have access to extensive market research, live data, and analysis tools, empowering them to make informed decisions.

Key Features:

• Offers access to a diverse range of commodities, including spot and futures markets
• Provides a user-friendly platform for traders
• Part of a global leader in online trading
• Traders can attach a guaranteed stop to cap their risk
• A fully regulated FTSE 250 company

Founded: 1971
Trading Fees: Overnight funding
Leverage: Up to 10x
Minimum Deposit: $0

4. Plus500 – A Streamlined Commodity Trading Experience

Plus500 is a leading online trading platform that offers a wide range of financial instruments, including commodities. Commodities are raw materials that are traded on exchanges, such as oil, gold, silver, and agricultural products.

Plus500 allows traders to speculate on the price movements of commodities using contracts for difference (CFDs). CFDs are financial derivatives that allow traders to take long or short positions on an asset without owning it outright. This gives traders the ability to profit from both rising and falling prices.

Key Features:

• A wide range of commodity CFDs, including precious metals, energy, and agricultural instruments
• A number of risk management tools, such as stop-loss and take-profit orders, to help traders manage their risk
• A demo account that allows traders to try out the platform and practice trading without risking any real money
• Leverage of up to 1:30 on commodity CFDs (up to 150x for professional accounts)

Founded: 2008
Trading Fees: 0.02% to 0.40% + 1.0 (markup x volume)
Leverage: Up to 30x (up to 150x for professional accounts)
Minimum Deposit: $100

5. E*TRADE – A Morgan Stanley-Backed Trading Platform

ETRADE has established itself as a trusted name in commodity trading. With a strong presence in the market, it offers a variety of commodities for traders to explore. What sets ETRADE apart is its commitment to providing a range of tools and educational materials. Traders can access market insights, research reports, and educational resources to hone their trading skills.

Key Features:

• Well-established brokerage with a strong presence in commodity trading
• Offers a range of tools and educational materials for traders
• Suitable for both beginners and experienced traders
• Owned by international investment banking giant Morgan Stanley

Founded: 1982
Trading Fees: $1.50 per futures contract, $0.65 per options contract
Leverage: Up to 50% of your eligible equity
Minimum Deposit: $0

6. OANDA – Commodity Brokerage with No Minimum Deposit

OANDA is a go-to option for those interested in forex and commodity trading. Known for its competitive spreads and advanced charting tools, it offers a robust trading experience. OANDA is particularly popular among currency and commodity traders, thanks to its focus on providing access to global markets.

What makes OANDA unique is its emphasis on transparency. Traders can access detailed pricing information and historical data, enabling them to make data-driven decisions. With a user-friendly platform and a reputation for reliability, OANDA is a solid choice for those looking to explore the world of currency and commodity trading.

Key Features:

• Offers CFDs on over 30 different commodities, including gold, silver, oil, natural gas, wheat, corn, and soybeans.
• Competitive spreads on all of its commodity CFDs
• A reliable choice for commodity and forex trading
• Popular among currency and commodity traders

Founded: 1982
Trading Fees: Margins from 5%
Leverage: Up to 20x
Minimum Deposit: $0

7. AvaTrade – A User-Friendly Commodity Trading Platform

AvaTrade caters to traders of all experience levels with its user-friendly platform and commitment to education. It offers a variety of commodities for traders to explore, making it suitable for both beginners and seasoned professionals.

One of AvaTrade’s strengths is its dedication to helping traders develop their skills. Through educational resources, webinars, and market analysis, traders can stay informed and make confident decisions. AvaTrade’s platform is designed for ease of use, making it accessible to those new to the world of commodity trading.

Key Features:

• Known for powerful trading tools and technology
• Offers a wide selection of commodities and is popular among active traders
• Provides robust analysis tools for technical traders
• Application for Android and iOS devices

Founded: 2006
Trading Fees: Overnight fee, inactivity fee ($50), administration fee ($100)
Leverage: Up to 30x
Minimum Deposit: $100

8. TradeStation – A Futures Trading Galore for Commodity Investors

TradeStation is synonymous with powerful trading tools and technology. It offers a wide selection of commodities and is a preferred choice for active traders. What sets TradeStation apart is its focus on providing advanced analysis tools for technical traders.

Traders who rely on technical analysis will find TradeStation’s tools invaluable. The platform offers in-depth charting capabilities, customizable indicators, and automated trading options. For those who thrive on data-driven decision-making, TradeStation is a compelling choice.

Key Features:

• Known for powerful trading tools and technology
• Offers a wide selection of commodities and is popular among active traders
• Provides robust analysis tools for technical traders
• Supports cryptocurrency trading
• A simulated trading account

Founded: 1982
Trading Fees: $1.50 per contract ($0.50 per micro futures contract)
Leverage: Up to 35x
Minimum Deposit: $0

Commodity Trading FAQs

Which broker is best for commodity?

The best broker for commodity trading is Interactive Brokers. The platform offers a wide range of commodities, including metals, energy, and agricultural products. In addition, Interactive Brokers is known for advanced trading tools and low fees.

What is the best commodity trading platform for beginners?

The best commodity trading platform for beginners is TD Ameritrade. It boasts a user-friendly interface and allows new traders to get familiar with futures, stocks, and other trading strategies using interactive courses and in-depth articles.

Is trading commodities profitable?

Whether or not trading commodities is profitable depends on a number of factors, including the trader’s skill and experience, the market conditions, and the specific commodities being traded.

Are commodities better than forex?

Whether commodities are better than forex depends on your individual investment goals and risk tolerance. Commodities can be a good investment for those who are looking to hedge against inflation or diversify their portfolio. They can also be a good way to profit from rising demand for certain commodities. Forex can be a good investment for those who are looking to profit from currency fluctuations. It can also be a good way to hedge against foreign exchange risk.

The Bottom Line: Investing in Commodities Can Be a Great Way to Diversify Your Portfolio

Commodity trading can be a valuable addition to an investment strategy, offering diversification and potential profit opportunities. However, it’s essential to be aware of the risks associated with this market, including regulatory changes.

When choosing a commodity trading platform or broker, consider your level of experience, trading preferences, and the range of commodities you wish to trade. Each platform has its strengths and weaknesses, so take the time to research and select the one that aligns with your goals.

If you prefer trading physical financial instruments over commodities, you can consider investing in stocks. For more investment ideas, explore our selection of the best stocks to invest in in 2023, or invest in the top long-term dividend stocks if you prefer a steady income flow.