Use Global Prime as Your Commodities Broker
At GP, we spend a great deal of time and effort to ensure our pricing is sharp across all our products. To do this, we use a combination of liquidity providers to derive a super sharp price across our range of Metals and Commodity products and regularly review our pricing against our peers to ensure you're getting the best price all day every day.
Benefits of Trading Commodities
Trade global commodities with tight spreads. Access popular commodities:
Gold (USD), Natural Gas Futures, Corn Futures, Coffee Arabica Futures, +more.
Low cost trading
Commodities provide protection from effects of inflation
Diversified trade portfolio. Negative or low correlation to stocks
Commodities trading is highly transparent
What is Commodities Trading?
Commodities trading is when you buy or sell a Commodity such as gold to make a profit. Our Commodities offering covers 18 of the biggest markets, including metals such as gold and silver, energies such as 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.
Check our Market hours for open/trading hours across all of our products.
What is commodities trading?
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?
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?
Gold, silver, WTI crude, Brent crude, platinum, palladium, copper, natural gas, cotton, corn, coffee, sugar, orange juice, soybean, wheat.
Where is Global Prime's commodity price derived from?
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 such as Cotton, Corn, Coffee, etc., (anything grown instead of mined) represent an average of the listed futures contract, e.g. the spot price for USDX in August would encompass the value of the futures contract which expires in September as well as the contract that expires in December.
Are Global Prime's Commodity CFDs deliverable?
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?
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?
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
Calculation: (price of contract 'a' X days remaining in the contract) + (price of contract 'b' X days remaining in the contract) / total days. Liquidity providers also consider variables like liquidity and volatility of underlying markets and adjust prices accordingly.