Best Brokers for Beginners

Best commodity brokers
Aside from real estate, equities, and debt instruments, commodities are a prime asset class for active traders. Whether you’re interested in hedging risk exposure or want to speculate on future pricing fluctuations, commodity futures offer access to some of the most popular markets in the world.
A commodity is an economic good or service while most of them are either raw materials, basic resources or agricultural products. At all times commodities were things of value that were produced in large volumes by various manufacturers and further traded in exchange. Online trading of commodities, in particular, can be very efficient since the division into pools matches the demands, thus markets respond quickly and trader gains passive exposure.
This implies that commodity trading sometimes involves the spontaneous sale or purchase of particular commodities without owning the underlying commodity. As a commodity trading enthusiast, you are trading the difference in price.


Commodity Broker
This is usually a company that behaves as a mid-party between the client and the seller, just as the client will be charged a commission for the executed commodity contract order. The commodity brokers today are found online as opposed to physical brokers that used to be the norm. The fact remains that not all brokers are created equal, the best commodity brokers can give you a much-needed edge in the market.
The best commodity brokers have a few things in common, it is essential that as a commodity trading enthusiast to look out for those qualities before selecting your ideal broker. If you are fairly new to commodity trading, this can be a bit tasking. That is why we have gone the extra mile to pick out a few of the best commodity brokers that can help you attain stability in your commodity trading.
Here are the five attributes that the best commodity brokers have in common:
Licensed: According to the Commodity Exchange Act (CEA) of 1936, the CFTC is commissioned with regulating the commodity futures markets. Under its statutes, brokers are required to be licensed with the NFA. In addition, account executives must pass the Series-3 exam administered by the Financial Industry Regulatory Authority (FINRA). On the global stage, the best commodity brokers are licenced and regulated by CySEC and other such relevant bodies.
Reputable: As in many industries, an individual or firm’s reputation can provide valuable insights into the inner workings of an organization. The best commodity brokers have a history of being in business for a long time with a limited complaint history is a strong sign of a reputable firm. In addition, simple items such as maintaining a physical address and current contact information are signals that a firm is on the up and up.
In good standing: Firms that are subject to ongoing litigation or recent judgments may be in danger of falling out of favour with the CFTC and NFA. Running a Background Affiliation Status Information Center (BASIC) search through the NFA database is a great way to quickly find out a commodity broker’s current standing within the industry.
Competent: It’s essential for a commodities broker to exhibit several core competencies. A strong market-specific knowledge base, industry experience, and attention to detail are crucial to performance. In addition, the willingness and ability to answer any questions that a client may have is a big part of providing top-notch customer service. The best commodity brokers will provide educational materials to establish you in the art of commodity trading.
Technologically savvy: Commodity futures are traded in an almost exclusively digital capacity. The days of the open-outcry auction format are over, having been replaced by servers and remote exchange connectivity. Advanced software trading platform options, order hosting/routing, and robust exchange connectivity are a few items that ensure a broker is able to compete in the modern futures marketplace.
The best commodity brokers
Alpari
Alpari is one of the largest Forex brokers that acquired experience over the years of operation, while was founded in 1998 the broker has emerged to be an all-rounded broker serving as a forex, binary and commodity broker. It has its own platform and allows for commodity trading on MT4 and MT5. The broker is also licenced and it offers competitive pricing and spreads.
FXTM
Founded in 2011, the broker has grown astronomically, defying its age limits. Best cfd Brokers or Forextime offers commodity brokering services as well as forex, stocks and CFDs. The entity has multiple licensing, allowing it to operate in several countries of the world. The deposit and leverage rate of FXTM is industry competitive. The commodity brokering ability of FXTM is competitive and allows for trading on acceptable platforms like the Meta Trader 4 and 5.
XM
The XM broker started its activity in 2009 and so far operating clients from over 196 countries with a support staff speaking in 30 languages and is among the most trusted Regulated Brokers. The main branch located in Cyprus regulated by CySEC, its licence, however, allows it to operate in plenty of countries. XM allows for commodity trading with a lower than average deposit of only $5 or its equivalent. This has made it stamp its place as the broker of choice for those looking to start small.
AVATrade
AvaTrade is one of the leading, globally presented broker with over than 200,000 trusting clients worldwide. A regulated on 5 continents commodity broker that providing customers with sophisticated trading solutions, regardless of user knowledge or experience, by bringing the possibility to enter the market trade through numerous, adaptable platforms, tools and options.
Vantage
Vantage FX was founded back in 2009 with the founders consisting of a highly specialized team with experience in technology, forex, and finance. The goal behind Vantage FX was to assist clients with pursuing financial goals by providing powerful trading platforms, transparent forex market access, award-winning customer service, and exceptional execution speed. The commodity trading platform is no different, allowing traders to take a confident stance in the market.
There are the best commodity brokers that you can take your commodity trading right on.