The basic need for a trader or an individual is to have the daily necessities; life cannot be complete without these goods that fulfil the daily basic needs of an individual. Commodities are the combined significant goods that are used in commerce and are interchangeable with similar good types. For trading these, there are commodity trading apps that help traders invest.
Some of the daily basic commodities include gold, oil, natural gas, grains, milk etc. There are several other things that are used by individuals for living their life. In commodity trading, traders invest in these to diversify their portfolios. It is a great source to invest in other than the traditional stocks and securities market.
With this article, we’ll understand commodities, how traders can invest in these, and the best commodity trading apps in the U.K. that help traders invest easily.
A primary economic sector market that offers traders products that are natural instead of manufactured products. The commodity market is essential for the general public and the traders, as they trade in products that a person cannot imagine their life without. Some commodities are used naturally in their first form, while some are mined for their use, such as gold and oil are mined to make them usable.
Traders can invest in the commodities market through various ways such as options, forward contracts or the most preferred futures contract. Commodity trading could be of physical form or can use derivatives for investing in the market.
Investors can trade in commodities markets using derivatives or the over-the-counter market. The OTC are the bilateral contracts that are entered by the parties of the trade directly after negotiations.
In addition, the commodities market also offers traders with ETFs and CFDs to trade in the market. The exchange-traded funds and contracts for difference are highly used for trading the commodities. The gold is traded on electronic gold without any physical ownership of the commodity. Moreover, traders have storage, insurance and whatnot on these commodities.
Commodity trading is an old tradition that has been in the market since 4500 BC; traders used to invest in the commodity with a specified date and time for the settlement. With time the market evolved and has expanded; now, traders have everything online.
The market has online brokers such as TradeATF that provide commodity trading apps for investing smoothly with market research and analysis. A trader can now invest in commodity index funds, cash commodities, call options and electronic commodity trading etc.
Commodity Trading: A brief history
Since ancient times commodities have been exchanged, even longer than the trade of stocks and bonds. Many old empires used to create their own commodity trading mechanism to facilitate the exchange of commodities among market investors. With time the systems changed, but commodity trading still remains an important trade globally.
Earlier traders used to physically exchange commodities, and in modern times the investors use traditional manners and the exchange of legal entities in order to trade with standardised rules of commodity trading contracts. In the U.K., traders can invest in the commodity market through various exchanges; one such is the London Metal Exchange (LME), which deals in the exchange of metals only.
Similarly, there are other exchanges that provide their services to help traders have a smooth trade experience. The London Stock Exchange, Intercontinental Exchange etc.
Characteristics of Commodity Market
In the process to understand the use of the best commodity trading apps, it is necessary to know the market properly to be able to make the right use of the services. The commodity market has existed for a long time, and therefore one should know about the characteristics it possesses. So, let’s understand the market better:
Demand and Supply
The driving force behind the market is its demand and supply in the market. A commodity market runs on the demand that it has in the trade and the supply offered for the same. If there’s any change in the demand of the commodity, then supply will be impacted similarly; changes in supply will impact the demand of the commodity.
If the demand for the commodity is high in the market and supply low, then the prices of the commodity increase automatically. In contrast, when the demand is low and supplies high, the prices drop in the market. Thus, the trade of commodity markets depends on the supply and demand in the market.
There could be various factors for the supply being low; for example, when there’s flu in birds, then there’s a shortage of eggs or chicken. In the same way, other commodities are also impacted by natural and artificial changes. Thus, creating a huge impact on the market demand and supply.
Economic Development and Technology
The commodities are derived from various sources, such as if there’s an economic disturbance in the U.K., it won’t be able to procure the goods they require from other countries. So, the economic factors also impact the commodity markets.
In the same sense, technology also plays a vital role in the commodity market. The new technological advancement brings new opportunities for the commodity market. Traders are able to get the goods earlier with new advanced changes. If a country manufactures metals and provides them all over the world, then they use the advanced technology to provide these quickly to their trade parties.
How to invest in the commodity market?
For investing in the commodity market, traders can use the over-the-counter market. There are exchanges and online brokers that facilitate commodities trading. Moreover, the online brokers have online commodity trading apps to make it accessible all the time.
With the use of commodity trading apps, traders can invest in the market from anywhere and anytime. Thus, making the trade convenient and accessible for traders around the world.
Traders can invest in the commodity market through online brokers by following certain steps discussed below:
The initial step for commodity trading is finding a regulated and full-service online broker that offers the commodity a trader wants to invest in. Afterwards, this trader needs to visit the official website of the online broker to open an account.
For example, on TradeATF official website, www.tradeatf.com, a trader can go to the page and click on the open an account to create a trading account.
The second step is to register with the broker by filling in the form asking the trader’s name, contact details, along with country code and email address. In addition, traders also have to set a password for account protection.
The third step is to provide additional information asked with the questionnaire regarding the previous trade experience.
The following step is to upload the documents for the verification of the trader. It requires the documents that the trader has mentioned in the information section.
Traders can now select the account type to begin the trade and at last deposit the funds in the account to start investing in the financial markets. In addition, through online brokers, traders can simplify their trade adventure as they have commodity trading apps which makes it easy to predict the market and make order executions.
Moreover, the trading platforms help traders predict market fluctuations through technical and fundamental analysis, indicators, expert advisors, automated trading etc.
Best Commodity Trading Apps
Investors of the market trade to earn high market profits from the opportunities created through the market volatility. However, these market fluctuations bring with them risks. To manage the risks and maximise profits, traders use commodity trading apps offered by online brokers.
Below mentioned are the online brokers and the commodity trading apps provided by them. Traders can also refer to the features stated along for detailed knowledge.
Capixal is a Cyprus Securities Exchange Commission (CySEC) regulated broker with license number 327/16. The broker offers traders ample market opportunities to trade through the best services. A trader can use various types of accounts, silver, gold and platinum, to invest in the market. It is the best commodity trading app.
Moreover, there are 24 hours customer support, quality education and research material, more than 350+ trading assets, commission-free trading and MetaTrader4 is the trading platform.
MetaTrader4 is the best trading platform that is customisable and is a user-friendly platform. Traders can predict market movements using the most preferred tools.
The leverage offered by Capixal brokers on commodities is 1:125; traders can invest and open at higher market positions to get good market returns.
Capixal has mobile apps to make the trade available in the hands of the investors; the application could be downloaded easily on all devices. It offers the following features:
- Traders can manage their trade
- 3 chart types
- 9 timeframes
- Chatting and live trading
- One click trading
- 24 hours availability
PrimeFin is one of the best online brokers that has been in the market for some time now. The broker is headquartered in London, U.K and is known for its fast trade executions. Traders have great market benefits if they trade with proper risk management. For this, traders require the best commodity trading apps that help them execute the trade properly and easily accessible.
The online broker has a minimum deposit of $250, MetaTrader4 trading platform, 350+ assets to trade, commission-free trading, account types, spreads and leverage etc.
The mobile application provided by PrimeFin broker is the best service that connects the trader with the financial markets. The commodity trading apps are easily downloaded from smart devices; for example, on Android phones, traders can use the play store to download them.
Features of PrimeFin commodity trading apps:
- High-frequency trading
- One-click trade and account switching
- Real-time balance level
- Live chat option
- Multilingual support
- Automatic stop-loss/take-profit orders
- Price alerts
- Educational material
- News and updates
ABInvesting broker has been regulated by FSC authority with license number GB20025728. The best quality of the online broker is that it does not differentiate between the professionals and the beginners of the trade. All the traders can access the facilities of the market through its services.
It offers traders instant market access, enhances the trade, 24/7 customer support, educational hub, and MetaTrader4 is the trading platform.
MetaTrader4 is the most used and user-friendly trading platform. It helps traders predict market movements using the indicators, charts, automated trading, instant execution, webtrader, expert advisors etc.
In addition to all this, the broker has a mobile application that could be installed in the mobiles and accessed from any corner of the world. ABInvesting mobile app could be downloaded from the devices play store or app store easily. It offers the following services:
- One tap trading
- Compatible for Android and Apple devices
- 60 plus analytical tools
- Real time balance check
- Convenient to use
InvestBy is a licensed broker with NBRB regulations; it is licensed with number 40023. The broker provides traders with a top-notch environment to trade and achieve their trade goals. Traders can have CFDs option with the InvestBy broker along with 350+ trading assets.
Traders enjoy professional 24 hours customer support, no commission is charged, high leverage ratio, flexible spreads and encrypted transactions for high-security standards.
The broker has all the required facilities that a trader or investor will need to have a successful trade. It has a MetaTrader4 trading platform with a mobile application to assist traders everywhere. The commodity trading apps have the following features:
- Easy to use with internet connection
- Provides market awareness
- Enhances trade skills
- One click trade
- Stays in a market context
Brokereo is another online broker that has the best commodity trading apps; the broker is regulated by Cyprus Securities Exchange Commission (CySEC) with a 189/13 license. Therefore, traders can get ample services with the online broker.
It has a free demo account to practice trade and set trade strategies, commission-free trading, dedicated customer services, educational hub and research and a number of analysis tools to make the trade smooth. In addition, its MetaTrader4 trading platform makes the market forecast easy.
Brokereo has a mobile application to assist the traders and be accessible every time. Traders can download the Brokereo app from the devices store and begin the trade. It has the following features:
- Full asset catalogue
- Financial reports
- One click trade
- Instant trading
- 300+ CFD assets
- Financial instruments
- Optimum mobility
A trade is incomplete without trading apps; brokers offer a number of trading applications for an easy and smooth trade. The financial markets are full of uncertainties, and in the commodity market, there are factors that keep impacting the prices and the market dynamics.
To have standardised and stable trade, traders use commodity trading apps to have successful commodity trading. However, the market is risky, and traders should be accurate with their decision to enjoy the high profits.