Crude oil is one of hottest commodities on the market, and it is also loved and actively traded by investors all around the world. If you’re interested in trading crude oil, there are 3 most common ways to do that. Let’s take a look at these methods one by one.
The first and foremost method is to open a stock trading accounts, so you can invest in EFTs. The second way of trading crude oil is through the Forex trading platforms. And the last one is to trade crude oil futures.
When you have a stock trading account, you can trade oil ETFs, which is a relatively safer, low-risk way of investing in crude oil. The smallest amount you can trade is 1 share. A lot of for Forex trading platforms also offer WTI and Brent oil CFDs, and some platforms allow you to trade 0.01 lot or even smaller amount, which is quite similar to 1 share of ETFs. The two methods are somewhat similar in terms of giving you better risk control.
Notice that if you trade with a Stock broker, you probably don’t have to pay any fees because a lot of Stock brokers now offer zero commission, which means you don’t have to pay anything for trading stocks and ETFs, so this can be very advantageous to a trader.
On the other hand, if you trade oil on a Forex trading platform. Most likely, you will end up paying for it. The Commission will vary depending on the platforms. So it’s better to investigate the trading commission structure before you start trading on Forex platforms.
There is also a third way that you can trade crude oil, that is, trade oil futures through a stock broker. This method is generally very expensive to trade, because the commission is higher. Besides, the minimum amount involved in futures trading is generally a lot higher than ETFs or CFDs. So it’s quite risky to speculate on crude oil futures. We suggest we you stick to the first two methods when trading oil, especially when you just get started.
So the above are our views in 3 of the best ways to trade crude oil. What are your experiences with crude oil trading. Please share your experience or insights with us in the comment section.