Commodity trading does not imply ownership of the underlying asset. You are simply speculating on the price difference. This means that when trading oil, you do not need to physically buy it and then sell it (that is, look for a buyer, deliver goods to him). The instruments for such trading are Contracts for Difference (CFDs), futures agreements and options.
Benefits of commodity trading
With the advent of the Internet, the world has expanded its boundaries. Today, in order to trade in raw materials, you do not need to be in a certain location. Access to the network and a gadget is enough. For this reason, trading is gaining in popularity. Other benefits of commodity trading include:
- The ability to earn more. Commodity trading is a profitable way to invest. An understanding of the market and a deep knowledge of finance and economics are great opportunities. There are many examples of traders receiving colossal dividends. However, it should be remembered that this is always risky.
- Time management. Being a trader means working for yourself. You don't have a boss or a strict schedule. You control your time yourself. It all depends only on you, which is both an advantage and a disadvantage. If you are the kind of person looking for independence, this is a great start.
- Continuous development. In order to achieve heights in trading, you must constantly learn. This is the only way you can reach the heights. Despite the fact that this is a difficult mental work, the process is interesting and exciting.
- Time for hobbies and travel. Office workers often complain about the lack of free time. They are forced to follow a strict schedule, so there is not enough time for other interesting activities. Traders have no problem with this. You can create a convenient work schedule yourself.
Criteria for choosing the best commodity trading app
Today, a huge number of proposals have been developed with the help of which you can trade in raw materials. Choosing the best is not easy, especially since each product has its own characteristics. We offer a selection of criteria that will help you decide.
Interface
The application interface should be as simple and informative as possible. It is optimal if the application allows you to use a demo account to test the application.
Assets
An important criterion is the choice of goods. Some brokers offer a limited selection, while others are not limited to the most popular offers, but have an extended list - from precious metals to agricultural products.
Payment Methods
Individual criterion. Before choosing an application, it is necessary to determine how the account will be replenished. Some offer only a transfer through a bank, others allow the use of cards, and still others provide the ability to replenish from an electronic wallet. For financial transactions, a service provider that has mobile banking will be the most convenient. This allows, being anywhere in the world, to carry out banking operations directly from your smartphone.
Adjustment
Applications must be regulated by an appropriate financial institution. Supervisors monitor the integrity and transparency of transactions, which ensures the safety of funds in the brokerage account.
Commissions
Each broker has its own fee system. Most often, they include a commission for each contract, as well as a percentage of the transaction. But some brokers charge interest on the introduction of money, their withdrawal, and even on inaction.
Trading tools
The minimum set of tools is lists that can be configured for monitoring and the ability to create price and demand charts for clarity. For beginners, it will not be superfluous to choose an application with a built-in special network for communication. In it, you can gain experience, follow advice and use strategies that traders share with experience. For professionals, a broker that allows you to conduct your own research is ideal.
Feedback
The responsiveness of the support team is extremely important. Some offer 24/5, others 24/7. You also need to pay attention to the communication channel with the service. This can be chat, email, or phone.
Based on these criteria, a list of the best commodity trading apps has been compiled.
Best commodity trading apps
The commodity market is changing very quickly. This is its attraction and danger. The choice of a broker is of great importance for effective trading. Each has its own pros and cons, we will concentrate on them.
Conclusion
Commodity trading is gaining popularity. This is due to the opportunities that it provides. Among them: free schedule, financial independence, and many others. Today, in order to engage in investments, it is not required to be in one country. It is enough to have a PC, Internet access and specialized software.
In order for the process to be as convenient and efficient as possible, carefully approach the issue of choice. Just use our recommendations and you will find software that will fully solve the assigned tasks.
