Commodities Forex Brokers

May 27, 2013 6:02 am

commodities_tradingIf you want to deal with commodity forex trading, then you need to know a couple of things about it. Otherwise you just risk losing all your money. Usually the commodity forex broker is individual of firm that executes orders to sell or buy different commodity contracts on behalf of clients and then charges them with a commission.

Therefore, if you are trading on your own with a personal account of yours – you are called trader. Commodity contracts include options, futures and other financial derivatives. Most clients who are dealing with commodity contracts are either speculators or hedgers who are using the derivatives markets.
Individuals and firms who are dealing with commodity brokers include:

Floor Broker/Trader:

This is a person who trades with commodity contracts on the floors of the commodities exchange. In this case, when a certain trade is executed, this person is acting as broker as well.

Futures Commission Merchant (FCM):

This is an individual or a firm that accepts or solicits orders for commodity contracts, and thus those contracts are traded on exchange. The client has its funds hold to margin. It is actually pretty similar to broker-dealer.

Best Commodities Forex Brokers

XM.com
Think Forex
eToro
Markets.com

Introducing Broker (IB):

A company or individual that also accepts or solicits orders for commodity contracts which are traded on exchange. However, IBs don’t actually hold the funds of a customer to margin. Instead of this the client funds to margin are held by FCM.

Commodity Trading Advisor (CTA)

The commodity trading advisor represents a firm or a person that for profit compensation advises other people how to trade successfully of commodity contracts. The Commodity Trading Advisor also offers managed futures accounts as well as advice on commodity pools. Explained in simple words, the CTA is actually the equivalent of mutual fund manager or financial advisor.

Here we will post a list of some of the commodity forex trading brokers. In case you want to deal with this type of trading, then you should take a look at them – all of the are reliable and are on the market for lots of years, so they can be completely trusted;

Daily Forex
XTB
ACFX
BForex
FXEmpire

Where to Trade

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