Is Interactive Brokers a good broker for commodity CFDs?
Are you interested in commodity CFD trading, including even niche products, and wondering if Interactive Brokers offers these at competitive fees?
Interactive Brokers has a modest assortment of commodity CFDs and a mixed fee structure; so not the best option overall but still worth checking whether it suits your specific trading plans.
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.
- Interactive Brokers has only a limited selection of commodity CFDs.
- Commodity CFD trading fees at Interactive Brokers aren't the best on the market.
Unsure about Interactive Brokers 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.
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.
Interactive Brokers has only a limited selection of commodity CFDs
Interactive Brokers offers 2 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.
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Commodity CFD
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Yes |
|---|---|
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Commodity CFDs (#)
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2 |
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Overall score
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4.9 stars |
Data updated on December 12, 2024
Commodity CFD trading fees at Interactive Brokers aren't the best on the market
Unfortunately, the fees charged by Interactive Brokers for trading CFDs in general are average, meaning you can probably find a more competitive provider if trading costs are your primary focus. Our list of the best CFD brokers in 2024 is a good place to start.
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.
Further reading
- How to buy natural gas at XTB?
- Interactive Brokers CFD trading conditions explained
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- S&P 500 CFD fees at Interactive Brokers explained
- Euro Stoxx 50 CFD fees at Interactive Brokers explained
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- CFD financing rates at Interactive Brokers
- CFD risk warning at Interactive Brokers explained
- Stop loss orders & risk management at Interactive Brokers for CFDs
- Long position for CFDs at Interactive Brokers explained
- Maximum leverage for CFDs at Interactive Brokers explained
- Apple stock CFDs for $1,000 at Interactive Brokers
- Short position for CFDs at Interactive Brokers explained
- Apple CFD leverage at Interactive Brokers explained
- Can you short at Interactive Brokers?
- Is CFD trading tax-free at Interactive Brokers?
- Interactive Brokers stock CFD trading conditions explained
- Negative balance protection for CFDs at Interactive Brokers
- Interactive Brokers crypto CFD trading conditions explained
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.
