Why trade commodity CFDs with CMC Markets?
You wanted tighter commodity CFD spreads and lower margins.
CMC Markets has revolutionised commodity CFD trading with the introduction of cash prices into our CMC Tracker platform, enabling us to cut the cost of trading your favourite commodities, like gold, silver, crude oil, copper and many more.
You can now trade gold, for example, from just 0.4 point spread with an initial margin of 1%, and both Crude Oil West Texas and Crude Oil Brent are now from just 3.5 point spreads with a 1% margin requirement. Coupling this with innovative platform features such as customisable leverage means you can now trade any commodity CFD amount on your terms.
Click here to see a comparison against some of our competitors.
Wide range of commodity CFD products.
Natural resources and agricultural products have been traded for centuries, but our customers have access to a whole host of different commodity types from precious metals such as gold and silver to volatile energy commodities such as crude oil, gasoline and natural gas.
Click here for a complete list of of commodity CFDs.
Cash price – no rollovers, just one smooth continuous price.
CMC Markets has reinvented commodity CFD trading by being one of the first to offer a purely cash price. Traditionally, commodities are traded via futures contracts which have expiry dates, rollover costs and price jumps at expiry. CMC Markets’ cash prices for commodity CFDs strip out the carrying costs that are built into futures prices. When this happens, the price becomes smoother and more continuous, avoiding the price disparities (price jumps) seen when a futures contract expires and is replaced by the next contract. The carrying costs are applied to the position as a financing adjustment at the close of business each day, providing total transparency on the cost of holding the position.
Click here to learn more about our cash prices for commodity CFDs.
Transaction based stop losses and customisable leverage
Traditionally, commodities have shown very little correlation with popular financial products such as shares, and have historically performed with considerable volatility, so we want our customers to have additional tools to help protect them against adverse price movement during these times. This is why we introduced our transaction based stop loss and customisable leverage tools.
Customisable leverage
You now have the option to choose your own margin requirements for each and every trade, which can help you manage risk and financing costs. From a financing perspective, if you decided to fund 50% of the trade and use 50% margin you would only pay financing on your net borrowings (in this case, 50% of the total trade).
Typically, most commodity CFDs have fixed margin requirements, which means you have to pay financing on the total position size regardless of your margin. At CMC Markets we believe customisable leverage (the ability to de-leverage your position) is a cost-effective way for customers to manage their financing costs.
By using customisable leverage, you can control your risk and financing during volatile markets to try and avoid a quick liquidation of your positions if they move against you.
Transaction based stop losses
Whenever you open a trade, the CMC Tracker platform automatically suggests a stop loss based on the margin requirement for your trade (this feature can be disabled in Preferences). This will be done by product, every time you trade.
If you vary your leverage, the stop loss will be aligned to your new margin requirements automatically. There is a simple financing slider in the deal ticket to allow you to move leverage up or down. This enables you to balance your risk profile against your borrowing requirements.
You can also have the CMC Tracker platform automatically suggest a take profit order at a percentage of the market price. So if the stop loss is set at 5%, you could have the take profit level automatically set at 10% to create a 2:1 risk to reward ratio (this feature can be enabled in Preferences).
No minimum trade sizes with our CFD fractional trading
Our CMC Tracker platform allows us to offer you the unique ability to trade commodity CFDs at a fraction of any amount. This effectively means a unit is no longer the minimum trade size when trading commodity CFDs. With CMC Markets you can trade from as little as 1/1,000th of a unit. This feature also allows you to trade in nice round amounts in your local currency. For example, if you trade gold it is quoted in USD. With fractional trading you can enter a trade using an AUD amount and the CMC Tracker platform will automatically calculate the number of units as a fraction so you can transact the trade. Even if that trade size is 0.001 of a unit, we give you the control over your asset allocation.
Click here to learn more about fractional trading.
Automatic currency calculations
When you open a trade in a currency that is not your account-based currency (for example, if you are trading overseas markets), the CMC Tracker platform will automatically value your position, such as gold and crude oil (both quoted in USD), into Australian dollars using the latest market exchange rates (USD/AUD). We do this for all of your overseas trades so your real-time profit and loss is valued in your own currency.
Up to 20 years’ worth of price history on major Commodities
If you trade using technical analysis, you will find up to 20 years of price history built into our charts for commodities. Traditionally when trading futures contracts, you can only view price history for the period of the futures contracts of, say, three months. Due to our cash price for commodity CFDs that has no expiry, we can show a smooth continuous price within our charts for an extended period.
Click here to learn more about our advanced charting functionality.