Commodities are basic goods that can be traded for other basic goods. Examples are metals, crude oil, coffee, and much more. This is similar to barter, which dates back to the dawn of civilization.
However, trading physical commodities would be a headache for many people in the modern world. If you wanted to buy and sell metals, for example, you’d have to store them somewhere. This involves insurance and storage costs.
There are a big number of commodity exchanges around the world. The largest one in the world is the New York Mercantile Exchange. In Africa, there is the Lagos Commodities and Futures Exchange. In Europe, there is the London Metal Exchange. In Asia and the Middle East, the ICE Futures Abu Dhabi.
Here at FXCentrum, we offer you the opportunity to trade commodities CFDs. Trading such CFDs allows you to take advantage of commodity price changes without having to deal with storage and transport. CFD stands for contract for difference. These are contracts that essentially allow you to “bet” on the future price of the commodity you are interested in at a certain date in the future. You don’t own the actual commodity. What you do when you make a trade on our platform is take either a long or short position on a pair.
Imagine if you bought 1000 barrels of oil, you would somehow need to store them and then sell them. With FXC you would not need to, because you are trading only on the prices of the instrument.
If for example, you hold a long position on a CFD, you are predicting that the price of the underlying commodity will go up in the future. If it does go up, you make money! If you hold a short position, you are earning when the price goes down.
Don’t know what long or short positions are? Click here to see our explanations of basic trading terminology.
Trading commodities with FXCentrum
We offer commodities CFDs, commodities futures CFDs and commodities spot CFDs in the form of metals, energy, and agriculture goods that you can trade on our platform.
We have metals commodities CFDs such as that for copper, energy commodities CFDs such as that for crude oil, and agricultural commodities (softs) CFDs such as that for cocoa or coffee.
The advantage of buying CFDs over the actual commodities is that leverage can be provided, and you can make a lot more profit with a lot less money. At FXC we offer leverages of up to 1:1000. A leverage of 1:1000 means we can lend you $1000 for every $1 you invest. However, leverage can be risky, which is why we allow you to choose smaller leverage or even none at all, depending on the margin requirements of the particular instrument.
We also offer very low spreads from 0.3 pips. Other brokers may offer even lower spreads but can charge commissions on top, which could make it even more expensive in the end.
We have 0% deposit and withdrawal fees (every first withdrawal in a month is free). We are connected to all the payment providers you need, including Visa, Mastercard, OnlineNaira, and Wire Transfer. If you don’t see your favorite provider, please contact us at firstname.lastname@example.org.
For your risk management needs, we recommend contacting our FXC support team to help you book a consultation with our investment specialist manager.
Come trade metals, forex, commodities, indices, stocks and ETFs, and cryptocurrencies with FXC and enjoy 0 commissions, high leverage, low spreads, and more advantages like a 100% first deposit bonus!!!!