How to Choose the Best Commodities Trading Broker
There is lots of competition when it comes to commodities trading online here in the UK, which can lead to confusion when having to decide which broker will be best to use. We have listed some tips and suggestions which can be useful in helping you choose which commodity trade broker to use:
Before you start commodity trading, you want to be sure that the online broker you decide to use has taken the proper measures to be regulated, thus ensuring that your investments and personal information are adequately secure. The Financial Conduct Authority (FCA) is the regulatory body here in the UK. Due to potential safety concerns, you will want to ensure that you open an account with a regulated trading.
When selecting an online Commodities trading broker, many may just focus on one asset. However, it is critical to keep in mind there are many other types of investment alternatives offered, including Cryptocurrencies, Forex (FX), stocks or shares, futures or options, to name a few.
Before choosing a Commodity Broker, you will want to take note how inclusive their customer support department is. Commodity trading happens almost 24 hours a day, so for trading beginners, having a broker who offers 24/7 or even 24/5 customer service department is crucial. Some companies even have a live chat support options and a local number where you can reach their support staff.
With some brokers, there is a long wait period to withdraw your balance, as well as having withdrawal fees. If you know that you will need your funds soon after you have completed your trading, it is probably best if you look for a commodities trading broker who has little or no waiting period.
Interest and Commission
Different online commodity trading brokers charge different fees and interest rates. Keep in mind, some brokers offer no commission, yet they have high maintenance costs. Knowing what each firm offers is important before you choose which broker is best for you.
If you are conducting most of your trading while you are away from your computer, you should look for a commodity trading broker who has an innovative mobile platform. Some brokers only have desktop platforms. Knowing your needs will help to narrow down your options.
For more information on Shares and CFD Trading, please see our tutorial: The Basics of CFDs