Trading Commodities: CFDs, Futures, Oil, Gold, and What It All Means in Practice
Many traders monitor commodity markets as they can be influenced by macroeconomic factors. For instance, oil prices often reflect inflationary pressures, gold can be impacted by geopolitical uncertainty, and agricultural markets frequently respond to harvest and supply chain data.
Consequently, commodities provide a way for traders to connect real-world events to price movements. This article will explain the two main ways retail traders can access commodity markets, CFDs and Futures, what each approach involves, and how Plus500 serves both.
What Are Commodities and Why Do Traders Follow Them?
Commodities are raw materials or primary agricultural products that are standardised across producers. They fall into three broad categories:
- Energy: Crude oil, natural gas, Brent crude
- Metals: Gold, silver, platinum, copper
- Agriculture: Corn, wheat, soybeans, coffee
Because commodities are inputs to the broader economy, their prices affect almost every other asset class. When oil prices rise sharply, transport costs, inflation, and energy company valuations all shift. When gold climbs, it often signals that investors are seeking shelter from uncertainty elsewhere. Traders follow commodities both to speculate on those price moves and, increasingly, to manage risk across broader portfolios.
What Is a Commodity CFD?
A commodity CFD is a Contract for Difference based on the price of an underlying commodity. You do not own or take delivery of the physical commodity. You open a position on its price direction and settle the difference in value when you close.
Most commodity CFDs are priced against futures contract benchmarks from major exchanges — such as the Chicago Board of Trade (CBOT), the New York Mercantile Exchange (NYMEX), or the Intercontinental Exchange (ICE) — but the contract you hold is with the CFD provider, not the exchange directly.
CFD trading is leveraged. You deposit a margin amount to open a position larger than your deposit covers. This amplifies both potential gains and potential losses. Risk management tools — including stop-loss, trailing stop, and Guaranteed Stop orders (the latter carrying a small fee in the form of a spread) — are available on Plus500’s trading platform.
Important for UK readers: UK retail clients can trade commodity CFDs through Plus500 UK Ltd, which is authorised and regulated by the Financial Conduct Authority (FCA). Other fees may apply.
Important for US readers: CFD products are not available to US residents. US traders can access commodity markets through Plus500’s Futures platform — covered in the next section.
What Are Commodity Futures?
A Futures contract is a standardised agreement to buy or sell a set quantity of an asset at a set price on a set future date. Unlike CFDs, Futures contracts are exchange-traded instruments, cleared through a central counterparty.
Plus500’s US platform — operated by Plus500US Financial Services LLC, a registered Futures Commission Merchant and full member of the CME Group and the National Futures Association — gives retail traders access to Futures on:
- Energy: Crude oil, natural gas, Brent crude, Gasoil (from $75)
- Metals: Gold, silver, platinum, copper (from $75)
- Agriculture: Corn, wheat, soybeans (from $75)
The platform charges zero platform fees and zero market data fees, with low per-contract commissions. It is designed to be accessible to retail clients without institutional minimums. (additional fees may apply)
This Futures offering is available to US residents only through us.plus500.com
CFDs vs Futures on Commodities: What Is the Practical Difference?
| Feature | Commodity CFD (Plus500 non-US) | Commodity Futures (Plus500 US) |
| Exchange-cleared | No, bilateral with Plus500 | Yes, CME-cleared |
| Fixed expiry | No (rolling) | Yes, set contract dates |
| Starting capital | Varies by instrument | From $75 (energy) |
| Who it is for | Non-US retail traders | US retail traders |
| Regulator | FCA / ASIC / CySEC ((#250/14)) | CFTC / NFA |
| Risk tools | Stop-loss, Trailing Stop, Guaranteed Stop | Stop orders |
Both approaches provide exposure to commodity price movements without requiring physical delivery of oil, gold, or grain.
Why Do Traders Use Commodities in a Strategy?
Commodity markets serve several functions for active traders:
Macro exposure: Commodities often move in relation to currency values, inflation data, and central bank decisions. Traders following macro conditions use commodity positions to express those views directly.
Event-driven trading: OPEC announcements, weather reports, geopolitical developments, and inventory data releases frequently create sharp commodity price movements. Plus500’s platform includes an Economic Calendar that surfaces these events, particularly for oil and natural gas.
Portfolio context: Traders who hold equity positions sometimes add commodity exposure as part of a broader strategy. The relationship between energy costs and equity valuations, for example, is one reason traders monitor oil and gas alongside share positions.
Trading Commodities with Plus500: What Are the Options?
Non-US traders (CFD platform): Plus500’s CFD platform includes energy instruments (Crude Oil, Natural Gas, Brent Oil), metals (Gold, Silver, Platinum), and agricultural goods. Historical futures price charts are available within the platform to support analysis and strategy building.
US traders (Futures platform): Plus500’s US platform offers Futures across energy, metals, and agriculture — all in a single account with zero platform fees, a free demo account with live quotes, and low per-contract commissions.
Plus500 as a Multi-Asset Platform
What distinguishes Plus500 from single-asset brokers is the breadth available in one account. Alongside commodities, Plus500’s CFD platform includes CFDs on shares, indices, forex, and, outside the UK, cryptocurrencies. The US Futures platform adds indices (S&P 500, NASDAQ 100), currency pairs, and Prediction Markets on global events.
Frequently Asked Questions
Do I need to take physical delivery of the commodity when a Futures contract expires?
Retail traders on Plus500’s US Futures platform typically close positions before the contract expiry date. The platform is designed for financial trading, not physical procurement.
Can UK traders access commodity CFDs on Plus500?
Yes. UK retail clients can trade commodity CFDs through Plus500 UK Ltd, which is FCA-authorised. Other fees may apply.
What is the minimum amount to start trading commodity Futures in the US?
Plus500’s US Futures platform allows you to start with as little as $75 for energy contracts and $75 for metals and agricultural contracts.
What is the difference between Brent Crude and WTI Crude?
Brent Crude is a North Sea benchmark used widely for international oil pricing. WTI (West Texas Intermediate) is a US benchmark. Both are available on Plus500, depending on your region.
Are there fees beyond the spread on commodity CFDs?
An overnight funding charge applies to CFD positions held past the daily cutoff. A small spread fee applies when using a Guaranteed Stop order. Other fees may apply.
UK, AU, CA traders can explore commodity CFDs on oil, gold, and more on Plus500’s regulated trading platform. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
US traders can access commodity Futures on oil, gold, and more at Plus500. US traders can trade Energy Futures, Metals Futures, and Agriculture Futures. Trading in futures involves the risk of loss and is not suitable for every investor.
This is a sponsored article. Opinions expressed are solely those of the sponsor, and readers should conduct their own due diligence before taking any action based on information presented in this article.
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