Commodities

A commodity is a physical good that can be bought or sold on the commodity market. Commodities can be categorized into either hard or soft varieties. Hard commodities are natural resources like oil, gold and rubber and are often mined or extracted. Soft commodities are agricultural products such as coffee, wheat or corn. More on commodities

The commodity markets are traded on in a similar way to other types of financial instruments, but there are some things to be aware of in order to avoid any shocks or surprises when dipping your toe into commodities trading.

One of the features of CFD trading on commodities is that you only need to deposit a percentage of the full value of your position – the initial margin requirement – to open a trade, known as trading on leverage. Trading on leverage amplifies your profits and losses equally, so it's important to manage your risk.

Commodity CFDs are a type of derivative product, with zero commission fees (other charges may apply). View our commodities page for more information, including our commodity CFD spreads and margin rates.

Commodities are generally sorted into categories, including precious metals (gold, silver), agricultural (wheat, coffee), and energy (crude oil, natural gas). Learn how to trade on commodities.

Rather than buying commodities at the spot price, a commodity forward allows a buyer and seller to agree on a transaction with a future date and price in mind, usually with the buyer’s intention of selling it later for a higher amount.

In order to become a commodity trader with us, you’ll need to open an account. Once your account is open, you’ll be able to trade on our broad range of commodity derivatives, including Gold, Brent and West Texas crude oil, Natural Gas, Sugar, Live Cattle, and many more. With all our commodity instruments, you can take a position on either side of the market, depending on whether you think the price will rise or fall in value.

Our margin rates are established in accordance with the regulations of the Canadian Investment Regulatory Organization (CIRO). However, please note that your profits and losses are magnified, as they are relative to the full trade value. See our guide to leverage in trading for more information.

The commodity sector can be a good introduction to the financial markets for beginner traders, although it’s important to remember that all markets have their own set of risks. Energy-focused commodities for example can be particularly volatile.