Best Commodity Brokers in 2025

Which raw materials can be traded online?

Commodities, or raw materials, are physical goods that serve as building blocks for the global economy. These resources are traded on financial markets worldwide and include energy products (like oil and gas), metals (such as gold and copper), and agricultural products (like wheat and soybeans). Their prices depend on factors such as supply and demand, political events, weather, and global economic health. For investors, commodities offer diversification, inflation hedging, and unique market dynamics compared to traditional stocks or bonds.

Trading commodities online has become accessible via several instruments. The most common are CFDs (Contracts for Difference), which allow speculation on price movements without owning the asset. Futures contracts, typically traded on exchanges, involve agreements to buy or sell a commodity at a later date. ETFs (Exchange-Traded Funds) track baskets of commodities or specific commodity prices, enabling easy portfolio exposure. Investors in Ireland can access these instruments through various international trading platforms.

Investing in Gold

Gold is a traditional safe-haven asset, often sought during periods of market turbulence or inflation. It’s less volatile than most commodities and serves as a store of value. Accessing gold exposure is easy for Irish investors, with ETFs and ETCs being the most practical route. CFDs and futures allow for more active trading, but come with higher risk.

Investing in Brent Crude Oil

Oil is a key driver of the global economy, highly sensitive to geopolitical events and macroeconomic cycles. Its price can be very volatile due to supply shocks, political tensions, or shifts in demand. Investors can trade oil through CFDs for flexibility, or futures and commodity ETFs for strategic exposure.

Investing in Natural Gas

Natural gas is among the most volatile commodities, with prices moving rapidly due to weather patterns, supply changes, and energy trends. Suitable for experienced investors who monitor markets actively, natural gas is best traded via CFDs and futures. Commodity ETFs exist but may not exactly replicate spot prices due to market structures.

Investing in Aluminium

Aluminium is a widely used industrial metal, its price influenced by global manufacturing cycles and energy costs. It offers portfolio diversification, especially as a play on economic growth or infrastructure investment. ETFs and futures are the preferred options for exposure. Volatility is moderate compared to energy commodities.

Investing in Grains (Wheat, Maize, Soybean)

Grains such as wheat, maize (corn), and soybeans are fundamental to the global food supply, with prices influenced by weather, harvests, and global demand. Agricultural commodities can help diversify a portfolio and are tied to unique supply-demand cycles. ETFs provide indirect exposure with lower capital requirements compared to futures, making them suitable for most retail investors.

Investing in commodities demands attention to global events, supply-demand dynamics, and suitable risk management. With accessible online instruments, investors in Ireland can tailor their commodity exposure to suit their strategy and risk appetite.

How to invest in commodities?

Several ways exist for investing in commodities, allowing you to adapt your approach depending on your objectives and risk profile—whether you want active short-term exposure or a more stable long-term investment. Commodities are tangible assets, but they are accessible through various financial instruments that offer different levels of complexity, risk, and exposure.

Invest via CFDs (Contracts for Difference)

CFDs are derivative products that allow you to speculate on the price movements of a commodity, without owning the underlying asset. You enter into a contract with a broker to exchange the difference in value from the time you open a position to when you close it. CFDs are popular for their leverage effect—which amplifies both potential profits and losses—and offer access to a wide range of commodities. They are suited for short-term trading, as positions can be opened or closed rapidly. However, leverage also increases risk, including the possibility of losing more than your initial investment.

Example: CFD on oil

Suppose you believe the price of Brent crude oil will rise from $80 to $84 per barrel. You open a CFD position equivalent to 100 barrels at $80. If the price reaches $84, your gain is ($84 - $80) x 100 = $400. If the price falls to $78, your loss is ($80 - $78) x 100 = $200.

Invest via futures contracts

Futures are standardised contracts traded on regulated exchanges, obliging you to buy or sell a specific quantity of a commodity at a predetermined price and date. Investors use futures both to hedge against price fluctuations (for example, farmers securing prices for their crops), and for speculation (betting on future price movements). Futures contracts require margin deposits and involve high risk due to leverage and the potential for rapid price changes.

Example: Wheat futures contract

You enter a futures contract to buy 50 metric tonnes of wheat at €230 per tonne, delivery in three months. If at expiry the market price is €250, you gain (€250 - €230) x 50 = €1,000. If the price drops to €220, you lose (€230 - €220) x 50 = €500.

Invest via ETFs (Exchange Traded Funds)

Commodity ETFs are funds traded on exchanges that track the price of a specific commodity or a diversified basket (index) of commodities. By buying an ETF, investors gain indirect exposure to commodity price movements without needing to handle physical delivery or manage derivative contracts. ETFs provide diversification, liquidity, and simpler access for long-term investors or those looking for broad sector exposure.

Example: Gold ETF investment

You purchase units of a Gold ETF tracking the LBMA Gold Price at €50 per unit, believing gold will appreciate. If the value of the ETF rises to €55 per unit, your investment gain per unit is €5.

Invest via shares of commodity-related companies

Rather than investing directly in a commodity, you can buy shares in companies whose business is tied to its production, extraction, or distribution. The value of these shares is influenced both by the company's performance and by commodity price movements. This method offers indirect exposure and may include additional benefits, such as dividends, but introduces other risks specific to each company (management, debt, geopolitical factors, etc.).

Example: Buying shares linked to commodities

You buy €1,000 worth of shares in a gold mining company. The share price can be influenced by the price of gold, company profits, and production costs. If the company performs well and the price increases by 10%, your holding is worth €1,100.

Invest in physical commodities

The most traditional approach is the outright purchase of physical commodities—typically precious metals such as gold or silver. Physical ownership is popular for its perception as a “safe haven” and for protection against inflation. However, this strategy involves storage, security, insurance, and sometimes liquidity challenges. It is less common for perishable or bulky commodities.

Example: Buying physical gold

You purchase a 1-ounce gold bar at €1,900. If in one year the spot price climbs to €2,100, the bar is worth €2,100. You must consider storage and insurance costs.

Each commodity investment method has distinct benefits, risks, and practical considerations. Understanding how they work allows you to diversify your portfolio efficiently and in line with your investment goals.

Which raw material is best suited to your investor profile?

Not all commodities behave in the same way: while some offer stable returns and low volatility, others can fluctuate sharply in response to economic, political or environmental changes. Choosing which commodities to invest in should be closely aligned with your experience and risk tolerance. From safe-haven assets to highly speculative markets, understanding your profile is essential to building a consistent and resilient investment strategy.

🟢 Beginner: Stable and Predictable Commodities

For beginners, focusing on stable commodities is key to learning market mechanisms without being exposed to excessive risk. Gold and aluminium are ideal for several reasons:

• Low to moderate volatility: Gold is renowned for its safe-haven status and tends to retain value during economic uncertainty, while aluminium is less exposed to sudden shocks.
• Transparent market uses: Gold’s role as a reserve and industrial demand for aluminium are well known, making their price drivers easy to follow.
• Recommended strategies:
• Investing via ETFs gives broad exposure with low complexity.
• CFDs with low leverage allow beginners to discover price movements without amplifying risk.
• Avoid frequent trading (like day trading) and focus on longer-term positions.

🟡 Intermediate: More Dynamic Assets Linked to Current Events

As you gain experience, you can consider commodities with higher price movements and a greater link to global events, such as oil and grains:

• Higher sensitivity to news: Oil reacts quickly to geopolitics and supply-demand shifts, while grains (wheat, corn, etc.) depend on weather and international trade.
• Opportunities for better returns: Wider price movements allow profitable trades, provided you manage risk.
• Recommended strategies:
• Use swing trading – holding positions from several days to weeks – with ETFs or CFDs.
• Always set stop-loss orders to protect against unexpected swings.
• Regularly follow economic reports, inventories, and major headlines impacting these markets.

🔴 Expert: Highly Volatile and Externally Sensitive Assets

For experts, commodities like natural gas, short-term oil, and grains in rapid trading offer high potential but require advanced skills and strict discipline:

• Extreme volatility: Natural gas is highly sensitive to weather and geopolitical risks; short-term oil and grains can move sharply on news or data releases.
• Complex price factors: These assets reflect a combination of supply chain data, policy changes, and speculative flows.
• Recommended advanced tools:
• Scalping techniques for capturing short-lived price opportunities.
• Use advanced technical indicators to time entries/exits.
• Implement hedging strategies to reduce global risk exposure.
• Ensure strict leverage management and keep risk under permanent control.

Selecting commodities according to your experience level is crucial to building a sustainable and stress-resistant portfolio. Take the time to understand the specific risks of each segment—and always match your choices to your objectives and knowledge.

How to choose a broker to trade commodities?

Selecting the right broker is a crucial step for anyone looking to trade commodities effectively and safely. The broker you choose will impact not only your access to markets and products but also the security of your funds, the costs of trading, and your overall experience. Below are key criteria you should systematically evaluate to ensure your broker is trustworthy, competitive, and well-suited for commodity trading from Ireland.

Why invest in commodities?

Is it strategically relevant to allocate part of a diversified investment portfolio to commodities? While not always straightforward, commodities deserve careful consideration due to their unique properties and the specific roles they play within a balanced asset allocation.

Commodities such as energy products, industrial metals, agricultural goods, and livestock often evolve according to their own supply and demand dynamics. Unlike stocks or bonds, their prices are typically driven by factors distinct from those influencing other traditional financial markets. This means that including commodities in a portfolio may lower overall risk and smooth volatility, because gains in commodities have historically counterbalanced losses elsewhere during periods when equities or fixed income underperformed. By reducing a portfolio’s exposure to the same type of risk across all asset classes, commodities act as a distinctive pillar of diversification.

Periods of rising inflation are typically challenging for most traditional investments. However, many commodities, especially agricultural products and energy, tend to see their prices increase when inflation rises. This characteristic can serve as a partial hedge, helping investors preserve the real value of their capital when inflation erodes purchasing power. By adding selected commodities, investors can potentially offset the negative impact of inflation on more sensitive assets.

Among commodities, precious metals such as gold and, to a lesser extent, silver, have historically been perceived as “safe havens” in times of heightened market turbulence or periods of geopolitical uncertainty. Their intrinsic value and limited supply mean they often attract capital when confidence in fiat currencies or financial systems wanes. As a result, including a moderate allocation to precious metals can provide a cushioning effect, stabilizing a portfolio in the context of broader market shocks.

Commodities also present occasional tactical opportunities. Oil, for instance, can see sharp price movements in response to shifting geopolitics, changes in supply dynamics, or macroeconomic trends. For investors attentive to these contexts, commodities may offer windows for capitalizing on short- to medium-term market swings, supplementing the broader, long-term role they play in portfolio construction.

Key takeaway

Commodities do not guarantee performance, nor are they immune from volatility. However, when approached as part of a strategic asset allocation, they offer unique attributes—diversification, inflation protection, and safe-haven properties—that can reinforce portfolio resilience. Their thoughtful inclusion supports the pursuit of robust, balanced investment outcomes.

How much does trading commodities cost?

Trading commodities can be an attractive way to diversify your investment portfolio, but understanding the costs involved is essential before you get started. Whether you’re looking at trading oil, gold, agricultural products, or other commodities, several types of fees can impact your bottom line. The most common charges are: the spread (the difference between buying and selling prices), transaction commissions, overnight financing fees (also called swaps), inactivity fees, and withdrawal fees. Knowing how each of these works—and how much they can cost—will help you better manage your trading budget and maximise your potential returns.

1. Spread

The spread represents the difference between the price you can buy (ask) and the price you can sell (bid) a commodity at any given moment. Brokers build part of their compensation into this spread. The spread can vary significantly between commodities and is usually tighter (smaller) on highly traded assets like gold or oil, and wider on less liquid markets.

Example of Spread

Suppose the buying price (ask) for 1 ounce of gold is €1,970, while the selling price (bid) is €1,968. If you immediately buy and then sell, you incur a cost of €2 per ounce—the difference between buy and sell prices. If you trade 5 ounces, the total spread cost is €10.

2. Transaction Commission

Some brokers charge a direct commission for each buy or sell transaction on commodities, either as a flat fee or as a percentage of the trade value. This fee is charged in addition to the spread.

Example of Transaction Commission

Imagine your broker charges a fixed commission of €5 per trade. If you open a position in wheat futures and later close it, you pay €5 to enter the market and €5 to exit, for a total of €10. If your profit on the transaction is €50, the commission reduces your net profit to €40.

3. Financing Fee (Swap)

When you use leverage to hold a commodity position overnight, the broker charges a financing fee—also known as a swap. This reflects the cost of borrowing capital to maintain your open positions and is typically calculated daily.

Example of Financing Fee (Swap)

Suppose you open a €10,000 leveraged position on crude oil and the broker’s swap rate is -0.03% per day. Holding the position overnight will cost you €3 (€10,000 × 0.03%) each day you keep the position open.

4. Inactivity Fee

Some brokers charge an inactivity fee if you don’t place any trades or log into your account for a predetermined period (for example, 3 months). This fee is typically deducted monthly until you trade again or your balance reaches zero.

Example of Inactivity Fee

Assume you have not traded on your account for 3 months. Your broker starts charging an inactivity fee of €10 per month. If you remain inactive for 6 months, you’ll be charged a total of €60, gradually reducing your available balance.

5. Withdrawal Fee

When you want to withdraw funds from your trading account, a withdrawal fee may apply. This can be a fixed amount per transaction or a percentage of your withdrawal.

Example of Withdrawal Fee

If you wish to withdraw €200 and your broker’s fee is €1 per withdrawal, you’ll receive €199 in your bank account. Repeated withdrawals can add up and reduce your available capital.

Understanding these fees—how they're applied and how they impact your trades—can help you make smarter decisions and avoid surprises. Always consult your broker’s detailed fee schedule before starting commodity trading.

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What is the taxation on income from commodities in IE?

The taxation of income derived from commodities in Ireland (IE) depends on both the type of investment instrument used—ranging from derivatives to funds, shares, or physical ownership—and the country’s specific tax rules. In most cases, these revenues are subject to the tax regime for investment income; however, particular rules and possible exemptions may apply depending on the underlying product, investor profile, and tax residency. Below is a comparative summary of the main fiscal treatments in Ireland for the principal types of commodity-linked investments.

CFDs (Contracts for Difference) and futures contracts on commodities are generally treated in Ireland either as trading income or as capital gains, depending on the investor’s profile and activity. For individual investors, gains from these instruments are typically subject to Capital Gains Tax (CGT) at a rate of 33%. However, if the Irish Revenue considers the investor a ‘trader’ (for example, due to frequency, organisation, or scale of activity), profits may instead fall under income tax and Universal Social Charge (USC), with marginal rates potentially much higher. Losses on CFDs and futures may, under certain conditions, be set against similar gains.

Commodity-based Exchange-Traded Funds (ETFs) are usually classified in Ireland as ‘investment funds’ rather than directly held securities. Therefore, the returns are generally subject to the exit tax regime, at a flat rate of 41% on gains realised upon redemption or sale. Additionally, the “deemed disposal” rule means that investors are taxed every eight years on unrealised gains, even if they have not sold their holdings. Certain ETF structures may qualify for treaty relief or other treatments, but most commodity ETFs available in Ireland fall under these rules.

For holdings in shares of mining or oil companies, gains arising from disposals are normally subject to Capital Gains Tax (CGT) at the standard rate of 33%. If the company distributes dividends, Dividend Withholding Tax (DWT) at 25% is applied at source, and the investor may also have further income tax obligations depending on their personal circumstances. Dividends may sometimes be partially sheltered by credits, depending on other income.

Physical precious metals (such as gold and silver) are treated as tangible movable property in Ireland. Any gains realised above the annual CGT exemption threshold (€1,270 at time of writing) are taxable at the standard CGT rate of 33% upon disposal. The holding period generally does not alter the tax rate, although records must be kept to substantiate acquisition and disposal values. Certain coins or items that are considered legal tender may not qualify as investment gold and could bear VAT at acquisition, but capital gains rules apply upon eventual sale.

It is important to note that tax is a complex area and individual situations may vary. Irish tax rules are subject to change and may be influenced by EU requirements or international treaties for investors with cross-border elements. Always ensure accurate recordkeeping for all transactions, and seek personalised advice if dealing with large or complex portfolios.

Raw materials: understanding the Contango and Backwardation effects

When investing in commodities like oil, wheat or metals, it’s common to hear about price curves – that is, how the price today (the “spot price”) compares with prices for delivery at a future date (the “futures price”). The shape of this curve gives crucial information about current market balance, expectations for the future, and ultimately what it may cost or earn to hold positions in these markets. Two of the most important shapes are called contango and backwardation. Understanding these concepts can have a real impact on commodity investment decisions and financial product performance.

Contango: a future more expensive than the present

Contango describes a situation where the price set for a commodity for delivery in the future is higher than the price you’d pay if you bought it today. In other words, the market expects prices to increase over time. Why does this occur? The most common reasons are practical: storing a physical commodity like oil or wheat involves costs for storage, insurance, and financing. Producers and holders need compensation for these expenses. For most storable commodities, contango is a typical situation, especially when markets are well supplied or in surplus.

Example: Oil market during surplus

Imagine it’s spring and there’s more oil being pumped than consumed. Storage tanks fill up, and companies must pay to keep the oil until it can be delivered later. As a result, future delivery contracts (for, say, 6 months ahead) are more expensive than immediate delivery, to compensate for the storage costs. This is contango in action.

Backwardation: when urgency dominates

Backwardation is the opposite scenario. Here, the price for immediate delivery (spot price) is higher than future prices. This often happens when there’s a temporary shortage of supply, or sudden strong demand pushing up current prices. In such markets, buyers may need the physical commodity straight away and are willing to pay more to get it now rather than wait. This sends a strong message: there’s urgency or scarcity in the market.

Example: Wheat during the war in Ukraine

During the outbreak of war in Ukraine, an important wheat exporter, logistics disruptions and anticipated shortages led to higher spot prices. Millers and food producers were ready to pay a premium to secure wheat immediately, instead of committing to future contracts. This created a classic backwardation situation.

Why does it matter for investors?

For investors using products that track commodity prices via futures contracts—such as ETFs, ETCs, or funds—the curve shape (contango or backwardation) can significantly affect performance. Here’s why: when these products “roll over” their contracts (selling a maturing contract and buying the next one), in contango, this often means selling cheaper and buying more expensive contracts, which can erode returns. In backwardation, the process might actually add value, as the new contract is less expensive than the spot. Understanding the shape of the curve helps investors anticipate how much “roll yield” may help or drag on returns, beyond just motions in the headline price.

In summary

• The price curve between spot and futures reveals vital signals about commodity market sentiment and balance.
• Contango typically signals abundant supply and involves rollover costs for investors; backwardation indicates scarcity or urgent demand and may offer a “bonus” through roll yield.
• Analysing the curve helps investors interpret market signals, set expectations, and adjust investment strategies accordingly—whether direct or via financial products.

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.