FXCM Logo

Commodity CFD trading at FXCM

Your expert
Gyula L.
Fact checked by
Tamás D.
Updated
Jan 2024
Personally tested Personally tested
Data-driven Data-driven
Independent Independent

Is FXCM a good broker for commodity CFDs?

Are you interested in commodity CFD trading, including even niche products, and wondering if FXCM offers these at competitive fees?

FXCM's decent range of commodity CFDs, coupled with low fees, makes it a compelling choice for traders who seek a diverse offering of popular commodity types.

I recommend FXCM for its low fees, but don't expect too many niche products.
Gyula
Gyula Lencsés, CFA
Master of Broker Brilliance | CFD • Forex • Market Analysis

The years I've spent reviewing CFD brokers armed me with a solid understanding of the complex world of commodity CFDs. Since CFDs are a convenient but potentially risky way to trade commodities, I suggest you heed the following points:

  • Product selection and fees make all the difference when trading commodity CFDs.
  • FXCM has only a limited selection of commodity CFDs.
  • FXCM has competitive fees for trading commodity CFDs.
Commodity CFDs - an AI rendition

Unsure about FXCM or simply interested in CFD trading beyond commodities? Check out our list of the best CFD brokers in 2024 to pick a well-priced and easy-to-use broker platform.

Before you start trading, we invite you to go through the CFD trading tips and strategies we consider most important.

BrokerChooser score
4.4 4.4 /5
Visit broker
73% of retail CFD accounts lose money

Product selection and fees make all the difference when trading commodity CFDs

Similarly to other markets, the key to mitigating risk in commodity trading is diversification; but it's hard to diversify your portfolio unless you have a great selection of commodity CFDs at your disposal.

If you're primarily a stock or forex CFD trader and merely want to dip your toe in the commodity CFD market, you may be content with a handful of mainstream options like crude oil or gold. But if your main focus is commodity CFDs, you should look for a broker that offers CFDs from a wide range of commodity sectors such as rare metals or agricultural products, providing more exotic choices such as palladium or soybeans.

The best commodity CFD brokers often provide several dozen or sometimes more than 100 commodity CFD products. This variety ensures that traders can diversify their portfolio and hedge against market volatility. A broad product choice also often hints at a broker's expertise and commitment to the commodity CFD market.

Just as important as the product selection are a broker's CFD fee structure and fee levels. These directly impact profitability, especially for those who trade frequently or in large volumes. Trading fees such as spreads and financing rates will make up the bulk of your costs, but non-trading fees such as withdrawal and inactivity fees can also sting if you don't use your account wisely.

Unfamiliar with these terms? Read our overview of the most important CFD fees.

In addition to simply low fees, a transparent fee structure without hidden costs is preferable, as it allows you to calculate potential returns more accurately.

FXCM has only a limited selection of commodity CFDs

FXCM offers 14 different commodity CFDs to trade, a selection that falls somewhat short of the market average and is limited mainly to popular mainstream sectors and commodities. This can be a drawback for traders seeking broader market exposure or interested in niche commodities.

FXCM commodity CFD trading at a glance
Commodity CFD
Yes
Commodity CFDs (#)
14
Overall score
4.4 stars

Data updated on January 24, 2024

FXCM has competitive fees for trading commodity CFDs

In general, FXCM charges low fees for CFD trading, making it an ideal choice especially if you trade frequently, or if you also trade other CFD asset classes besides commodities.

What is a good way to calculate a broker's CFD trading fee levels? We do it by looking at a hypothetical trade that involves a $2,000 trading position with 20:0 leverage that is held for one week. This way, we can incorporate spreads, commissions and financing rates under a common benchmark. Once again, read our overview of CFD fees to learn more about these fee types.

Check out this short video for a behind-the-scenes peek into how our experts personally test and evaluate brokers.

Got questions?
Engage with our growing community of traders and investors like you to find your answers.
Join now

Further reading

Author of this article

Gyula Lencsés, CFA
Gyula Lencsés, CFA

Gyula is a former analyst expert and Head of Content at BrokerChooser. With over a decade in finance, he led content creation at BrokerChooser and personally evaluated some of our 100+ listed brokers. He opened real-money accounts, executed transactions, and engaged with customer services, offering firsthand assessments. Prior to BrokerChooser, he managed mutual funds in wealth management, trading stocks, ETFs, bonds, commodities, forex, and derivatives. His goal: simplify the hunt for top brokers in a dynamic investment landscape.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.

Visit FXCM 73% of retail CFD accounts lose money

Follow us

Regional settings

×
I'd like to trade with...