Most Traded Commodities in the World

  The word ‘Commodities’ refers to hard, touchable assets which can range from wheat to gold, and even oil.  Major Commodities fall into two broad categories. Hard Commodities are natural resources which are mined or extracted.  This includes oil, natural gas, gold and aluminium – to name but a few. Soft Commodities are agriculture in nature, such as crops and livestock. Choose your quick section of our Most Traded Commodities below.

10 Best Handpicked Most Traded Commodities Revealed:

• ✔️Hard Commodities Vs Soft Commodities
• ✔️eToro
• ✔️CMC Markets
• OANDA

Investors who are interested in Commodities Trading will have to select a Broker with which to do so. Here is an overview of the Top 3 Forex Brokers and Trading Platforms with Commodities on offer.  

🏆10 Best Forex Brokers in South Africa

Hard Commodities Vs Soft Commodities

 

Soft Commodities

Soft commodities are commodities or products which are grown and cared for over a period of time.  Soft Commodities are largely agricultural and includes products such as:

• Orange Juice
• Corn
• Feeder Cattle
• Wheat
• Lean Hogs
• And more!

  Soft Commodities are known to be more volatile as their price will rely on a number of external factors, which is out of an investors control. The production of soft commodities depends largely on environmental conditions and instances of severe drought or in some cases flooding, will have a major impact on the supply and therefore, the overall price.  Bumper crops may also depress prices by creating a surplus in the market.   Here is a quick overview of each in their own respect.  

Orange Juice

Orange juice trading has notable risen in popularity across the globe and trading volumes continue to increase.  Multiple financial instruments, including futures and options, are available for trading this commodity.  

Corn

The United States of America (U.S) is the  largest producer, exporter and consumer of corn grain in the world.  At present, most of the corn grown today is used as animal feed or as biofuel in cars.  

Feeder Cattle

Feeder cattle are cattle which are mainly bred for global meat supply but has other uses such as food by-products, beef hide products, non-food uses and more.  

Wheat

Wheat is the second most widely produced agricultural commodity in the world and the commodity is a main ingredient of many foods such as cookies (biscuits), pizza, pasta and puddings.  

Lean Hogs

Lean Hog is Pork in laments terms.  Pork is a valuable food source in multiple countries across the globe.  

Hard Commodities

  Hard commodities refer to natural resources such as crude oil, natural gas, heating oil, copper and fossil fuel.  Hard Commodities have a notable influence on the economic health of a country, and global demand for these resources can be monitored in order to measure the future stability of an economy. The supply and demand for Hard Commodities are more predictable than that of soft commodities due to its fixed nature.  Other products include gold, silver, steel, copper, iron and aluminium.   Here is a quick overview of each in their own respect.  

Gold

Gold is the most invested precious metal commodity in the world.  Gold is used in jewellery , technology and by central banks.  

Silver

Only second to gold, silver is the most invested precious metal commodity in the world.  Silver is used as currency, for jewellery production, and as a long-term investment option.  

Steel

Steel is a strong, durable metal which As a physical commodity, is traded as crude or raw material.

Iron

Iron ore is an important global commodity. Iron ore is found in rock form, from which metal iron is extracted.  

Aluminium

Aluminium is a silvery-white, lightweight metal which is used in a variety of products such as cans, foils, kitchen utensils, window frames and more.  

Crude Oil

Crude oil is a naturally occurring petroleum product which after production, is refined into many different products including gasoline.  

Natural Gas

Natural gas is the third most important source of energy in the world.  The world’s largest producers of natural gas are currently the United States, Russia, Iran, Qatar, Canada, China and Norway.  

Heating Oil

Heating oil is a low-viscosity refined fuel product which is derived from crude oil.  Heating oil is an important heat source in the winter months across the globe.  

Copper

Copper may not be considered as a precious metal yet it is the third most widely used metal globally. Copper is known as a conductor of heat and electricity.  

Fossil Fuel

Fossil fuel is a generic term for non-renewable energy sources such as coal.    

eToro

  eToro is an online broker which was founded in 2006 and offers CFDs and Social Trading, with a head office based in Cyprus, UK.  eToro is supervised by the Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC) regulatory bodies and has been in operation for over 14 years.  

Pros and Cons

Pros	Cons
Used by 6,000,000+ traders	Doesn’t allow scalping
Established in 2006	Inactivity Fee
Regulated by Financial Conduct Authority, CySEC, ASIC	Limited range of instruments
Min. deposit from $200

  eToro offers traders two ways to trade: CFDs, Social Trading and eToro traders will need to make a minimum deposit of $200 and the platform can accommodate various levels of traders from beginner to expert.  Traders can trade in a wide variety of over 100 instruments and over 50 currency pairs on eToro’s user-friendly custom trading platform which is available as a browser-based web application. eToro also offers traders mobile apps for Android and iOS, making it easier to keep an eye on and execute trades.  

Trading Benefits

Trading Features	Accounts offered	Funding methods
Offers STP	Demo account	Credit cards
Low min deposit	Micro account	Bank Transfer
	Mini account	PayPal
	Standard account	Skrill
	Islamic account	Payoneer
		Neteller

  eToro supports a wide range of languages including English, German, Spanish, French, and Italian.  24/6 customer support is available via telephone and support ticket.    

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 MetaTrader4 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.    

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 MetaTrader4.  

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.  

Conclusion

  The Commodities Market is available to both novice and experienced traders alike. However, commodities are known to be risky investment propositions.  

FAQs

 

What is a commodity?

The word commodity refers to raw material or agricultural product which is actively traded, bought or sold.  

What do commodity traders do?

Commodity traders will buy and sell a large range of physical instruments, for example energy products like oil and gas; precious metals like gold and silver; and soft commodities like wheat, corn and sugar.  

How can I start trading commodities?

Investors can get started by opening a demo or live account.  

What are hard commodities?

Hard commodities are mined or extracted from the earth.  This includes commodities such as gold, oil and copper.  

What are soft Commodities?

Soft Commodities are grown and harvested.  This includes coffee, wheat and lumber.  

How many Commodity Markets are available?

There are over 35 commodity markets available for investors to trade.  

What are the most traded commodities in the world?

The most traded commodities in the world are gold, silver and crude oil.

Recommended brokers