Commodities Trading

Take a position on global Commodity markets including Crude Oil, Natural Gas and Wheat at City Index.

Spread Bet or Trade CFDs on a wide range of Commodity markets with tight spreads and fast execution.

  • Spreads from 0.06 points
  • Trade 25+ Commodities
  • Best Spread Betting Platform 2017 by ADVFN
Trade on global Commodities with spreads from 0.06 points

Trade on 25 global Commodities

Award-winning platform

Voted Best Spread Betting Platform 2017 ADVFN

Tight spreads

Spreads from 0.06 points and 5 points on UK Crude

Futures and options prices

Choose from a range of futures and options contracts
Global Opportunities

25+ global Commodities

Wide range of energy, soft and hard Commodities

Trade wherever you are, on our fast, reliable platforms

Customisable charts

16 chart types with 80+ indicators designed to help you perform technical analysis

Award-winning platform

Our powerful technology is designed to suit you, whatever your level of trading expertise

Actionable trade ideas

Our research portal highlights trade ideas using fundamental and technical analysis

Trade anytime, anywhere

Follow the markets on native apps built specifically for your smartphone and tablet
City Index Trading Platform
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Indices

21 global Indices

Shares

4500+ global Shares

Forex

84 FX pairs

Commodities

25+ global Commodities

Other Markets

Bonds, Options and more

Spread Betting and CFD Trading

City Index offers Spread Betting and CFD trading on Commodities. Whilst similar, typically UK investors choose Spread Betting because any profits are free from UK Capital Gains Tax (CGT)*.

Spread Betting

Best for
Tax-free trading in UK*

Trade type
£ per point

Tax
No UK Capital Gains Tax (CGT)
or Stamp Duty*

Trade on
Global Indices, FX, Shares,
Commodities & more

Commission
Commission free

Platform
Web, mobile and advanced platforms

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CFD Trading

Best for
Hedging

Trade type
Buy/sell CFDs

Tax
No UK Stamp Duty. You do pay UK CGT but losses can be offset against tax*

Trade on
Global Indices, FX, Shares,
Commodities & more

Commission
Share CFDs only

Platform
Web, mobile and advanced platforms

Create Account
Compare our accounts.
Test drive a trading account
Trade Commodities risk-free with a demo account

Why City Index?

With fast, reliable execution and tight spreads here's why our clients choose
City Index
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Over 30 years' experience in Spread Betting, FX and CFD Trading
Authorised and regulated by the Financial Conduct Authority (FCA)
Risk management tools to help protect your positions
Trade on multiple platforms and devices
Actionable buy/sell trade ideas from our research portal
Fast, easy payments and secure withdrawals
Create Account

Why trade Commodities?

Diverse range of markets

Trade a range of instruments including niche markets, metals and energies

Trading opportunities

Volatility presents risk as well as opportunity

Powerful trading tools

View regular buy/sell opportunities from our technical research portal

Zero commission

Trade Commodities commission free and enjoy margins from just 1%

Short the markets

Trade on falling markets (going short) as well as rising markets

Tax-efficient trading

Pay no UK Capital Gains Tax or Stamp Duty when Spread Betting*
Spread Betting with City Index

How to trade Commodities

If you believe that a commodity such as the oil will rise, you can place a buy trade.

If the prices rises, you will make a profit for every point that the index rises. If the market falls, then you will make a loss for every point the index moves against you. Our trading platform tells you in real-time how much profit or loss you are making.

With City Index you can trade commodities as a Spread Bet or CFD.

How to trade commodities

Learn to trade Commodities

What is Spread Betting?

Learn to trade Commodities using our spread betting tutorials

Spread betting

How to analyse markets

How to identify trading opportunities using City Index's research tools

Research tools

Managing risk

Learn techniques to improve your trading and manage risk effectively

Risk management
Join City Index to trade on over 25 global Commodities

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View upcoming trading opportunities for the weeks ahead

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Pay no UK Capital Gains Tax when you Spread Bet Commodities*

What are Commodities?

Commodities are natural products that are generally consumed by people, animals or industry such as oil, sugar and wheat. Commodities have been traded for thousands of years and have always had an important economic impact on people and nations throughout history.

Commodity trading is just as important today, with commodities playing a crucial role in global economics. Commodity markets can be easier to understand than other financial markets because prices are influenced by more obvious contributing factors. They reflect the fortunes of industries like the oil business or farming. Prices are informed by supply and demand issues that are easy to grasp.

The majority of commodities traded today can be split into three main areas:

Energy

Energy commodities are pumped out of the ground. They have a particularly strong influence over the global economy, and are also in turn influenced by demand from the global economy. Examples include:

  • US Crude Oil
  • UK Crude Oil
  • Natural Gas

Agricultural - ‘Soft Commodities’

Soft commodities are generally agricultural commodities that are grown or bred for human consumption, as opposed to commodities that are mined. Soft commodities are important in futures markets where people speculate on price fluctuations as supply and demand changes. They are also used by the farmers who produce these commodities to lock in the future price of their produce, and by commercial consumers and resellers of these goods. Examples of soft commodities include:

  • Coffee
  • Corn
  • Cotton
  • Orange Juice
  • Soy Bean Oil
  • Wheat

Metals - ‘Hard Commodities’ 

Hard commodities are resources that are generally extracted through mining, specifically metals. Metals that are traded can either be precious metals such as gold, silver or platinum, or industrial metals such as aluminium, lead or copper. Examples of hard commodities include:

  • Copper
  • Gold
  • Palladium
  • Platinum
  • Silver

How are Commodities traded?

Commodity trading often takes place on exchanges as futures and options. Exchanges usually become hubs for a few commodities that it specialises in, for example:

  • Chicago Board of Trade (CBOT)
    Commodities that trade on CBOT include gold, corn, silver, wheat and rice
  • Chicago Mercantile Exchange (CME)
    Commodities that trade on the CME include milk, cattle, pork bellies and lean hogs
  • NYMEX 
    known for being the most liquid market place for the trading of West Texas Intermediate Oil futures.

What drives Commodity markets?

Commodity markets exist to provide more efficient prices and security for consumers of those commodities. Airlines, for example, want to be able to protect themselves from sudden and unpredictable changes in the oil price, while farmers will be looking for the best price for their products. A food manufacturer will want to ensure that the price it pays for wheat will be steadily consistent.

The growth of interest in commodity trading represents the growth in interest in global trade and delivering an internationally-recognised price for a product.

Commodity markets can be influenced by a range of factors, including:

  • Interruptions of supply, such as bad harvests, miners’ strikes or stockpiling
  • Seasonal demand, for example from consumers of heating oil and natural gas in the winter, or people buying gold during periods of political uncertainty
  • General economic slowdowns, which can impact demand. Oil, for example, is sensitive to this
  • It is worth doing more research on a market you are interested in, as each has its own characteristics

Did you know? There are two oil commodity markets, Brent Crude and West Texas Intermediate. These reflect the prices of US and non-US oil. To make things simpler, at City Index we call them US Crude Oil and UK Crude Oil. While the prices of both will be similar, they are not exactly the same.

Trading Commodities with City Index 

  • City Index offers spread betting and CFD trading on commodities 
  • You can trade over 25 energy, agricultural and metal commodities, as well as multiple futures for the same market and options for a select number of commodities