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Commodities Trading

Global Prime uses a combination of the world's fastest tier-1 banks, non-bank market makers and ECNs to give super tight spreads across our range of metal and energy commodities products.

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*Rated World’s #1 Forex Peace Army

Why trade Commodities with Global Prime?

If you’re after tight spreads and great execution then you’ll love commodities trading at Global Prime. We use a combination of tier-1 bank liquidity and specialist non-bank market makers to derive a fast and sharp price across our range of Commodity products. We’re especially competitive in oil and frequently have one of the tightest spreads in the world on this market.

You’ll be able to verify our performance with trade receipts that show the bank who filled your trade, execution speed, slippage and more.

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Client Commodities Testimonial
What is commodities trading?

What is Commodities trading?

Commodities trading is when you buy or sell a Commodity such as gold in order to make a profit. Our Commodities offering covers 18 markets including Metals including gold and silver, energies including oil and natural gas, and soft commodities like corn and wheat.

Commodities are popular with traders due to their trending nature and sometimes rapid moves resulting from geopolitical and economic risks and uncertainty, as well as sudden dramatic shifts in supply and demand.

This potential for high volatility and large price moves combined with 24/5 trading, and generous trading conditions, has made the commodities market a place of risk and reward for the advanced trader.

How does COMMODITIES trading work?

Trading commodities with Global Prime is very much like trading FX. Instead of buying or selling an amount of base currency against a counter currency, you are buying or selling a number of units of a commodity against the US dollar.

For example, one contract of XAUUSD is 100 ounces of Gold while one contract of WTIUSD is 1000 barrels of West Texas Intermediate crude oil.

Commodities trade almost 24/5, have overnight financing and do not expire.

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How does commodities trading work?

COMMODITIES Trading Example

The gross profit on your rate is calculated as follows:

Commodities Trading Chart

Opening Price

2,000 barrels UKOIL x 64.614 = 129,228 USD

Required Margin

129,228 USD x 1% = 1,292.28 USD

Closing Price

2,000 barrels UKOIL x 67.543 = 135,086.00 USD

Gross Profit on Trade USD

$5,858.00 USD

Opening the position

The price of Brent crude oil is 64.604 bid /64.614 ask. You would like to buy 2,000 barrels at 64.614 ask price. (1 lot = 1,000 barrels)

You have 6,000 AUD balance and the leverage is 1:100

Closing the position

3 weeks later, Brent crude oil CFD has increased to 67.543.

Since you are in profit, you would like to take your profit by selling your 2,000 barrels at 67.543.

Commodities Trading Conditions

Trading conditions

View our trading conditions across our full range of products to see how trading with Global Prime is your next best move.

Instrument

XAGUSD XAUUSD XPDUSD XPTUSD XTIUSD UKOIL

Minimum Spread

0.0 0.0 0.0 0.0 0.0 0.0

Average Spread

1.1c 12.8c 1290c 95c 1.6c 1.6c
See All Average Spreads

Disclaimer: Spreads from ‘Trade Proofer’ monthly spread data September 2019 report.

Global Prime

ECN Account Features

Pricing & Execution
ECN | STP | NDD
Spreads
From 0.0 Pips
Leverage
Competitive
Minimum Deposit
A$ 200 or equivalent
Zero Fee
Multiple Funding Options
Margin Call/Stop
120% & 100%
Min. Trade Size
0.01 Lots
Max. Trade Size
Up to 1000 Lots
Free VPS*
*Trade over 20 lots / month
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  • 100+ Markets

    FX, Metals, Commodities, Indices, Crypto, Bonds, Shares

  • ECN Account Types

    Individual, Joint, Corporate and Trust accounts

  • Account Currencies

    AUD, USD, EUR, GBP, SGD, CAD

  • Commissions

    7 USD/lot or commission free

Benefits of

World Class Trading

Tight Trading Spreads

Tight Spreads

Our tight ECN spreads rank among the best brokers globally.

Liquidity Providers

Liquidity

Tier-1 banks, non-bank market makers, ECNs & dark pools.

Range of Trading Markets

Range of Markets

48 FX, 20 Commodities, 15 Indices, 5 Digital Ccy. 41 Shares

Transparent Trading

Radical Transparency

We verify that we are ECN & all claims with trade receipts!

No Trading Restrictions

No Restrictions

No brakes on your trading. Scalper, EA, HFT, News & EA friendly.

Low Trading Execution Latency

Low Latency

Fast execution speeds
from as low as 1ms.

Frequently Asked Questions

What does ECN mean? Right Arrow

Electronic Communications Networks or ‘ECNs’ are off-exchange execution venues which allow market participants to trade with a range of counterparties anonymously. They are the main trading venues for OTC markets such as Foreign Exchange and Metals.

This basically means ECNs provide the technology and venue for price makers aka ‘liquidity providers’ to distribute their liquidity. Price takers (traders) can see these prices and execute trades against them. The ECN is therefore responsible for prices/quotes and the execution of orders.

See our ECN page for a detailed overview of the Global Prime ECN offering.

What is commodities trading? Right Arrow

The Commodities markets such as Gold and Oil are popular with traders due to their trending nature and sometimes rapid moves resulting from geopolitical and economic risks and uncertainty, as well as sudden dramatic shifts in supply and demand. This potential for high volatility and large price moves combined with 24/5 trading, and generous trading conditions, has made the commodities market a place of risk and reward for the advanced trader.

How does commodity trading work? Right Arrow

Trading commodities with Global Prime is very much like trading FX. Instead of buying or selling an amount of base currency against a counter currency, you are buying or selling a number of units of a commodity against the US dollar. For example, one contract of XAUUSD is 100 ounces of Gold while one contract of XTIUSD is 100 barrels of West Texas Intermediate crude oil. Commodities trade almost 24/5, have overnight financing and do not expire.

What commodities does Global Prime offer? Right Arrow

Gold, silver, WTI crude, Brent crude, platinum, palladium, copper, natural gas, cotton, corn, coffee, sugar, orange juice, soybean, wheat.

From where is Global Prime’s commodity price derived from? Right Arrow

Pricing of Energies - Our Energy CFDs are continuous pricing, i.e. non-expiring products that aim to deliver a fair value estimation of the spot energy price, based on a weighted average (according to time of expiry) of the front month and back month futures contracts.

Pricing of Copper and Soft Commodities, Copper and Soft Commodities such as Cotton, Corn, Coffee, etc., (anything grown instead of mined) represent an average of the listed futures contract, e.g. DXU0 for September 2020 expiry and the most recently settled/expired contract.

Are Global Primes Commodity CFDs deliverable? Right Arrow

No. All commodity trading is available only as a CFD, that is a non-deliverable, cash settled product.

What is the difference between WTI and UK oil? Right Arrow

WTI is the spot energy product that follows the West Texas Intermediate blend. Colloquially, WTI crude refers to the price of the New York Mercantile Exchange WTI crude oils futures contract.

UK oil or Brent Crude oil generally refers to the price of the ICE Brent Crude Oil futures contract.

Does the commodity pricing follow the price of the futures market exclusively? Right Arrow

No, our Energy CFDs are continuous pricing, i.e. non-expiring products that aim to deliver a fair value estimation of the spot energy price, based on a weighted average (according to time of expiry) of the front month and back month futures contracts.

Calculation of Weighted Average Right Arrow

Front futures contract (first to expire) of WTI (XTIUSD) or Brent (UKOIL) or NG (XNGUSD) = a Next futures contract to expire of WTI (XTIUSD) or Brent (UKOIL) or NG (XNGUSD) = b

Calculation: 1. (price a x days remaining until expiry) + (price b x days remaining until expiry) / total days

Note: • Liquidity providers also consider variables like liquidity and volatility of underlying markets and adjust prices accordingly.