Commodity Trading Firms

Commodity Trading Firms
CFDs
Garry Berg
Author:
Garry Berg
Published on: 05.07.2021 15:03 (UTC)
Post reading time: 1.96 min
243

 Commodity Trading Firms

The term “commodity trading firms” refers to those brokers, that besides providing Forex trading opportunities, also do offer commodity futures. Commodity trading firms provide aclients with access to a large number of commodities. Traders have an opportunity to trade using the commodity trading platform, provided by the broker.

How Do Commodity Trading Firms Operate?

Commodity trading firms are brokers that become intermediary between a trader and the market. Each commodity trading firm offers its own trading terms and conditions, which differ between each other. Due to high compatibility, commodity trading firms are constantly improving their services, trying to be the leader in the market. However, there are standard services that almost all brokers are supposed to offer:

  • For providing services some commodity firms charge commissions, but all brokers provide quotations with spreads, i.e. with the difference between bid and ask prices.
  • All commodity trading firms provide a definite number of commodities. Some of them may restrict themselves to a couple of commodities, while others offer dozens of commodities.
  • All brokers give traders an opportunity to magnify profits through leveraged positions.

Commodity Trading Firms: IFC Markets

By deciding to trade with IFC Markets from a great variety of commodity trading firms you can evaluate the best trading conditions. With IFC Markets commodity trading is realized through CFDs (Contract for Difference), a derivative trading instrument. Moreover, the company offers continuous commodity CFDs and CFDs on commodity futures. Continuous Commodity CFDs are traded without an expiration date and are calculated on the basis of the two nearest futures on that very commodity. Using NetTradeX trading – analytical terminal, trading such commodities as Coffee, Cocoa, Wheat, Oil, Gas and a number of others becomes available to any trader.

CFDs on commodity futures are traded till expiration dates. The date of end of trading of each such CFD is set on the basis of the expiration date of the future, its liquidity and the delivery period.

IFC Markets is a leading innovative financial company, offering private and corporate investors wide set of trading and analytical tools. The company provides its clients with Forex and CFD trading through its own-generated trading platform NetTradeX, which is available on PC, iOS, Android and Windows Mobile. The company also offers MetaTrader 4 platform available on PC, Mac OS, iOS and Android. You may compare the advantages of both platforms.

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