Coffee Commodity Forex Brokers know that according to the British Coffee Association and a recent poll on audience insight, coffee is the most popular drink in most, if not all countries across the globe. According to statistics, each day a volume of approximately 2 billion cups of coffee is consumed globally, making it part of a major intercontinental exchange market.
Our 5 Best Coffee Commodity Forex Brokers Revealed:
For investors who wish to find the best Coffee Commodity Forex Brokers the following article should assist you in revealing all the pros and cons as well as the trading benefits of each broker as reviewed by our panel of experts.
CMC Markets
CMC Markets is a multi-asset class spread betting and CFD broker which is regulated by the UK’s Financial Conduct Authority (FCA). Clients have the ability to trade on more than 9,000+ trading instruments covering Indices, Forex, Cryptocurrencies, Commodities, Shares and Treasuries, all on the MetaTrader 4 platform or the broker’s own proprietary, web-based Next Generation platform.
Pros and Cons
| Pros | Cons |
| Extensive range of offerings | Does not accept U.S. clients |
| Regulated by FCA (U.K.) | Differences between Next Generation and MT4 |
| Emphasis on education & customer service | High CFD spreads for certain indices |
| Research amenities are industry leading | No back-testing or automated trading capabilities |
CMC Markets offers a wide range of instruments to trade on covering all major asset classes such as 300+ Forex instruments, 60+ Indices, 15 Cryptocurrencies, 90+ Commodities, 30+ Treasuries and 9,000+ Shares and ETFs.
Trading Benefits
| Trading Features | Accounts Offered | Funding Methods |
| No Deposit Bonus | CMC Markets CFD Account | Wire Transfer |
| Stop Loss | CMC Corporate Account | Credit Card |
| CMC Stockbroking Account | e-Wallets | |
| CMC Spread Betting Account | ||
| CMC Markets Professional Account |
Customer support is available 24/5 via Live Chat, Telephone, and Email.
Saxo Bank
Saxo is a globally regulated, multi-asset class broker which offers traders the option to trade on more than 40,000 instruments covering Forex, CFDs, Stocks, Options, ETFs, Commodities, Futures, Bonds and Mutual Funds from a single account across multiple platforms including their own – SaxoTraderGO and professional-grade SaxoTraderPRO.
Pros and Cons
| Pros | Cons |
| Segregates client funds | Doesn’t allow hedging |
| Established in 2012 | Limited range of instruments |
| Regulated by Financial Conduct Authority | Not ASIC Regulated |
| Min. deposit from $6,500 |
The Saxo Group is regulated in 15 jurisdictions including authorisation from the UK Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), the Financial Services Agency of Japan (FSA) and many more.
Trading Benefits
| Trading Features | Accounts offered | Funding methods |
| Allows scalping | Demo account | Credit cards |
| Offers STP | Mini account | Bank Transfer |
| Low min deposit | Standard account | Payoneer |
| ECN account |
Customer support is available in nearly 30 different languages via phone, email and an FAQ section.
OANDA
OANDA is a globally regulated Forex and CFD broker which also provides corporate Forex solutions and currency conversion. Users have the choice to trade on Forex, Indices, Metals, Commodities and Bond CFDs on the broker’s own proprietary trading platform for desktop, web and mobile, as well as on MetaTrader 4.
Pros and Cons
| Pros | Cons |
| Accepts U.S. clients | No account protection for U.S. clients |
| Regulated by FCA and NFA | No guaranteed stop losses for U.S. or U.K. clients |
| Well-designed platforms | Traders cannot access cryptocurrencies or single-stock CFDs |
| Superior research offerings | A lot of ancillary fees |
OANDA is the most Regulated Forex Broker and operate across six of the most credible authorities.
Trading Benefits
| Trading Features | Account Offered | Funding Methods |
| Mobile Trading | Standard | Wire Transfer |
| Excellent Charting Tools | Premium | Credit/Debit |
| Educational Materials | PayPal |
Customer support is available via a FAQ section, a OANDA Virtual Assistant and phone.
OvalX
OvalX offers investors access to over 5,000 global markets on its TraderPro trading platform, available for both smartphone and desktop. OvalX is regulated by the Financial Conduct Authority (FCA).
Pros and Cons
| Pros | Cons |
| Segregates client funds | Doesn’t allow scalping |
| Min. deposit from $100 | Inactivity Fee |
| Regulated by Financial Conduct Authority | Limited range of instruments |
OvalX offers over 5,137 different instruments to trade, including over 60 currency pairs all on MT4 or custom TraderPro platforms.
Trading Benefits
| Trading Features | Accounts offered | Funding methods |
| Allows scalping | Demo account | Credit cards |
| Allows hedging | Micro account | Bank Transfer |
| Offers STP | Mini account | Neteller |
| Standard account |
Customer Service is available via Phone, Email and Live Chat.
EasyMarkets
EasyMarkets is one of the most popular choices for Beginners and is regulated by CySEC (Cyprus) and ASIC (Australia) and offers beginner forex traders:
- Enhanced risk management tools as standard
- Fixed spreads on all forex pairings
- An easy-to-use forex trading platform
Pros and Cons
| Pros | Cons |
| Segregates client funds | Doesn’t allow scalping |
| Min. deposit from $100 | Inactivity Fee |
| Regulated by Financial Conduct Authority | Limited range of instruments |
The available trading platforms offered are MT4 and the EasyMarkets web platform.
Trading Benefits
| Trading Features | Accounts offered | Funding methods |
| Allows scalping | Demo account | Credit cards |
| Allows hedging | Micro account | Bank Transfer |
| Offers STP | Mini account | Neteller |
| Standard account |
Customer Support is available 24/5 via various chat channels, email, phone and web forms.
Naturally, it is therefore one of the most popular commodities for trading. Coffee is one of the main exports from several developing countries across the globe with more than 90% of the world’s coffee supply coming from developing countries. Brazil however, is without a doubt, the largest coffee producer in the world and about one-third of the world’s coffee comes from Brazil alone. Coffee production is the industrial process of converting the raw fruit of the coffee plant into the finished coffee product. Coffee is a brewed drink prepared from roasted coffee bean(s). There are four primary types of coffee beans we’ll be discussing here: Arabica Beans (Coffee arabica), Robusta (Coffee caniphora), Liberica (Coffee liberica), and Excelsa (Coffee liberica var. dewevrei). Arabica Beans make for the most common type of coffee in North America, whereas Robusta coffee beans are second on the list and the most popular in Europe.
In an advertiser disclosure made available by one of the countries most beloved coffee shop brands * which is situated in large cities in the United States (U.S) such as New York, when they applied the process to measure add performance, coffee related advertisements have resulted in a rise of customer interest in their restaurant, whereas advertisements only offering a food source was not so well accepted amongst their customers. Advertisements feature a free cup of Coffee topped the polls.
* Name of brand undisclosed due to privacy rights.
How is Coffee Traded?
Coffee can be traded through various financial instruments, including Coffee CFDs and on the futures markets as a futures contracts or coffee futures. Multiple Globally Regulated Commodity Brokers make these options available.
Here is an overview of the 5 Best Globally Regulated Commodity Brokers and Trading Platforms for Commodity trading .
Coffee Futures and Coffee CFDs
The most active coffee futures and Coffee options contracts are those cleared through the Intercontinental Exchange or ICE. The Coffee contract is traded on the ICE and is considered a global benchmark for Arabica coffee. The contract is quoted in USD and will reflect the price of physical delivered exchange-grade green beans, which can be delivered from one of 20 countries to a licensed warehouse or to one of several ports in the U. S. and Europe. In regards to CFDs, investors will take a position depending on whether they feel the price of coffee will fall or rise before the expiration of the CFD contract. The CFDs can be based on the price of futures. Futures and CFDs are the most common options available in the Commodity Markets.
Conclusion
Coffee is a steady market, with high global demand and with the increased demand for ethically sourced coffee this is a premium investment market. Coffee may be commodity which is hard to predict but it may also turn out to be a quite lucrative investment. All in all, coffee trading is interesting and with the use of properly planned strategies, traders stand a real chance of increasing their profits. Coffee trading may be an unusual yet interesting commodity that holds and offer great opportunities for both beginners and experienced traders.
FAQs
Which countries dominated coffee supply?
The coffee market is mainly dominated by supply coming from Brazil, Vietnam, Indonesia and Colombia with Brazil leading the market.
What influences the price of coffee commodity trading?
Factors such as fair trade, climate and political instability can play a role in the price of Coffee commodity trading.
What type of Commodity is Coffee?
Coffee is a soft commodity which is derived from a plant.
Top 4 Brokers
