Commodities Trading

Trade Commodities Using MT4

Commodities trading is a popular way to invest and to participate in one of the most liquid markets in the world – the commodities markets.

At Synergy FX, you can trade a range of commodities and access leverage up to 400 to 1.

You can trade precious metals such as gold, silver and crude oil across two different trading products that will match individual trading styles and experience levels.

Trading on commodities is a good way to diversify your portfolio as commodity prices are generally less influenced by changes in stock markets.

Metals and Commodities you can trade with Synergy FX:


A Look Back at the History of Commodity Markets

Though commodities date back centuries ago when rice farmers traded in futures contracts to lock-in their profits, trading commodities is now as common and accessible as trading shares, contracts for difference (CFDs), FX/currencies and other financial instruments.

And why not? Commodities are all around us.

We use them in our every day living.

Think about these:

All these are part and parcel of the world of commodities.

In this article we will look at the trading opportunities in the commodity markets and how you can evaluate commodities using fundamental analysis and technical analysis.

We will also consider the factors that affect commodity prices and how you can use risk management strategies when trading commodities.

But before we do that, you need to be familiar with the different commodity groups and other basic information that will help your trading in commodities.

Trade Commodities Using MT4

In this age of mobile trading and online trading platforms, you don’t have to be a rice farmer or agricultural producer to trade in commodities.

Today’s commodity traders also have one big advantage – an easy and accessible way to trade the commodities markets.

Using an online trading platform, like Synergy FX’s MT4 trading software, you can access and trade different commodities from oil, to gold and silver along with other instruments such as Index CFDs, major currency pairs, FX crosses and cryptocurrencies.

These online and mobile trading platforms also give you much more trading tools and resources like charting packages, FX market news, Expert Advisors (EAs) that you can use to manage your trades more efficiently.

Four Major Commodities Groups

There is a wide variety of items that comprise the global commodities markets. Here are the four major groups of commodities that you need to be familiar with:

At Synergy FX, you can trade the following three commodity markets:

Open (GMT+3) Closed (GMT+3)
Gold (Spot) XAU Mon 01:00 to Fri 23:57 00:00 to 01:00
Silver (Spot) XAG Mon 01:00 to Fri 23:57 00:00 to 01:00
WTI Crude Oil Mon 01:00 to Fri 23:57 00:00 to 01:00

Why Trade Commodities?

There is no doubt that commodities are important part of our daily lives. And they also present a myriad of trading and investing opportunities that make them attractive to retail traders as well as institutional ones.

In this section we will look at the factors that make commodities trading an attractive proposition to all types of traders.

Whether you trade shares, CFDs, Indices or FX, trading commodities can be a logical addition to your trading strategy.

This is because aside from the inherent benefits of trading commodities on their own, you can also use them as a hedge to your other trading positions.

Here are some of the reasons behind the attraction of commodities trading

What Affects Commodity Prices?

Now you’re equipped with the basics of the commodities markets, it pays to know the different factors affecting the price movement in commodities.

As a commodity trader, it is in your best interest to keep an eye out for these factors that can have an immediate impact on commodity prices.

Here are the key factors to watch out for when trading commodities:

How to Trade Commodities

Like other financial instruments in your trading portfolio, commodities can be evaluated using fundamental analysis and technical analysis.

Major Commodity Exchanges

Globally, there are several commodities exchanges where big institutional commodity traders usually trade. Similar to the major stock exchanges around the world, these key commodities exchanges are where most of the commodity trading are transacted.

Chicago Mercantile Exchange (CME) – The CME is a financial and commodity derivatives exchange based in Chicago, USA. It is known to operate one of the largest options and futures line-up of any exchange in the world.

Chicago Board of Trade (CBOT) – The CBOT ranks as the oldest futures/options trading exchange in the world. It offers more than 50 different futures and option contracts for traders and investors.

New York Mercantile Exchange (NYMEX)NYMEX is the world’s largest physical commodity futures exchange that offers exposure to a wide variety of products. Its other division, the Commodity Exchange Inc. (COMEX) is best known for offering exposure to various metals contracts.

London Metal Exchange (LME) – Based in the UK, the LME is a major exchange that offers exposure to futures and options of a wide variety of base metals and other commodity products. Institutional traders keep an eye on the trading volume and activities at the LME particularly to keep track of movements in the resources and mining industry. Some of the metals traded include aluminum, copper, tin, nickel, zinc, and lead.

Intercontinental Exchange Inc (ICE) – This is a US-based exchange that operates futures and over-the-counter contracts via internet marketplaces. The company was originally focused on energy contracts but has widened its scope by offering exposure to a number of commodities including cocoa, cotton, sugar, iron ore, natural gas and crude products. ICE is the latest exchange to announce that it will be offering cryptocurrencies in late 2018.

Commodity Trading on your MT4 Platform

If you have been trading the markets for any length of time, you know very well that commodity trading for retail and individual traders is now as easy as trading shares, FX, CFDs or Indices. You don’t have to open an account with any of the major commodity exchanges like the LME, CME or CBOT to open a commodity trading account.

At Synergy FX, we give you the ability to trade commodities including gold, silver and oil along with your FX or Index trades.

Using the MT4 trading platform, access to the global commodity markets is now at your fingertips. And with so many trading tools, market research and news, charting packages, EAs and other resources available on the platform, commodity trading has never been easier.

Ready to Trade Commodities on MT4?

As you can see, there are numerous trading opportunities in commodity trading. If you’re ready to trade commodities, you can get started if you have access to an MT4 trading platform.

All you have to do is open a live trading account which will give you access to all the major commodities you want to trade. You can do the same with a demo trading account.

Using the Synergy FX trading platform, you can get started trading commodities by clicking here or on the links below.