Below are nine of the most important factors that we examine, check and verify for all commodity brokers on the list above:
What ownership structure is there for the company?
Who is behind a certain commodity trading brand? There can be a big difference between ownership structures and founders. We do our best to get in touch with investors in an unobtrusive way and look up in the company register to see more about who owns or are involved in a certain company. A background check is done to ensure that the owners behind all the commodity trading companies shown are serious and worth using.
How is the spread?
An important factor when trading commodities with CFDs such as oil and gold is the spread, ie the difference you have to pay between buying and selling. Firms with a low spread and fast order processing will of course get a better rating and all commodity brokers will be tested on both computer, mobile and tablet. We are of course trying to investigate so that the spread is the same on both MT4, MT5 and the proprietary platforms. The rating given is based on the total spread for all platforms offered.
How fast do you start trading commodities?
While it takes less than 60 seconds to register on the main sites, it can take 5-10 minutes to get started with some less impressive companies. This of course affects the total rating.
What are the open and hidden fees?
It is not uncommon for commodity and currency brokers to have a plethora of hidden fees. Some examples include an inactivity fee after 1-12 months, possible withdrawal fees or costs for spread or commission. Sites with low fees naturally get better ratings than commodity brokers with the majority of hidden fees.
What rules must be followed?
When we talk about laws, it is UK licensing that applies, but a significant proportion of intermediaries, commodity traders, currency brokers and online trading companies are also regulated from EU, Switzerland, Dubai, Hong Kong, Seychelles, Mauritius etc. We give higher rating to sites that follow UK rules for natural reasons, as they suit us who live in Great Britain. The UK also has requirements for segregated accounts between client funds and the trading firm's accounts, as well as many other tough financial requirements for leverage and cryptocurrencies that do not always exist outside the region.
What is used for software?
Has the commodity trading site developed its own platform where you can trade? Many have it, but a large proportion use third-party solutions, which then must be evaluated. Of course, we do a thorough check from several different units, to find faults and problems, and to show screenshots of both positive and negative sides - so that you can decide for yourself what suits you.
Are there any opportunities to flexible leverage?
Most unregulated commodity trading companies today issue leverage options without major "requirements" or controls. From UK licensed firms, you can often get 10x (1000%) leverage when trading crude oil, brent oil and other types of oil or gold. The most sophisticated brokers have options for flexible leverage - allowing you to remove the leverage when trading CFDs if you desire. All of this is rated to make it easy for you to decide what suits your trading style.
Does the company have British support?
Is fast support offered from several different channels, such as email, live chat and phone? We ask a few questions to test the support and see how quickly they return and how advanced answers are given. Everything from language to clarity and speed is evaluated. After all, ForexTrading.uk would prefer if all firms use British customer support rather than Indian call centres.
Which commodities can you buy?
The amount of commodities, but also currencies, shares and other available CFD instruments are discussed to describe but also to assess how suitable a specific commodity broker actually is. The more types of oil that can be traded, or the more variations of gold (eg gold bars or physical gold), the higher the rating will be awarded.
Should you still have any questions, do not hesitate to contact us.
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