In addition to the more popular foreign exchange and stock markets, commodity trading is now an attractive investment option for retail traders for a number of reasons.。First, commodity trading has been a profitable business for thousands of years.。Second, the development of financial technology has led to a further expansion of commodity trading through financial derivatives such as contracts for differences (CFDs).。

Traders can benefit from price volatility through paper trading of financial derivatives, rather than buying energy, metals and agricultural products outright。Traders don't have to go to great lengths about the consequences of owning an actual commodity, but can profit from speculation about future up- and down-trends。

Commodity trading also helps improve portfolio diversification and risk management。Even in times of inflation or economic uncertainty, investing in contract-based tradable commodities is a proven risk reduction strategy。It protects contract buyers and sellers from sharp price changes that could lead to increased losses。

XM and FP Markets are two reputable international brokers that offer commodity trading at reasonable prices through contracts for difference (CFD).。The following table compares the general commodity trading services of the two brokers.。

	XM	FP Markets
Minimum deposit	5美元	100 AUD or equivalent
Leverage	1 : 1000	1 : 500
Tools	Gold, silver, crude oil, natural gas, cocoa, coffee, corn, cotton, copper, soybeans, sugar, wheat	Gold, silver, platinum, palladium, copper, iron, steel, aluminum, crude oil, natural gas, coffee, soybeans, corn, wheat
Spread	Change, 0.From 0 o'clock	Change, 0.From 0 o'clock
Commission	Free	Standard account free, original account $3 per side
Platform	MT4, MT5, XM App	MT4, MT5, IRESS
Social transactions	Not available	MyFXBook, MAM / PAMM, FP Markets Copy Trading
Trading signals	MQL5 Community	Autochartist

To further explore how XM and FP Markets provide commodity trading services to clients, this article will analyze these two brokers for you.。

XM Commodity Trading

XM provides commodity trading services at a very low cost, so it is very suitable for beginners。You can first deposit what you think is enough money, choose a leverage of up to 1: 1000, and the trading volume starts from 1 microhand。Spreads are usually low and no commission is charged。

There are many advantages to trading commodities at XM.。You can get regular intra-day market updates and technical analysis, high execution quality for all accounts, multi-language support, and your own personal account manager for free。All in all, XM is suitable for all traders, especially beginners。

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XM was founded in 2009 as a company called Trading Point of Financial Instruments Ltd..A member of an online brokerage firm。To serve customers worldwide, the company has split into XM Australia and XM Global, as well as XM Cyprus。Each member has a different head office and license, XM Australia is registered under the Australian Securities and Investments Commission (reference number: 443670), XM Worldwide is registered under the International Financial Services Commission (60 / 354 / TS / 19), and XM Cyprus is registered under the Cyprus Securities and Exchange Commission (reference number: 120 / 10).。

XM is one of the more experienced brokers in the online forex trading world today。Since its inception, the broker has undergone many changes, including the addition of an ultra-low account and webinar function, which supports 19 different languages with 35 local instructors in each language。

In terms of trading instruments, XM is known for its diversity of asset providers, ranging from foreign exchange, commodities, CFDs for equity indices, precious metals, energy, to equities。XM prides itself on being an ideal broker for executing trades, providing a statistic that 99.35% of orders executed in less than a second。Trading at XM also offers a strict no-re-quote policy, no virtual trader plug-ins, no rejection of orders, real-time market execution, and the option for traders to place orders online or over the phone.。

In the Ultra-Low account, the spread of all major currency pairs can be as low as 0.6 points, while the spread of other accounts usually starts at 1 point。XM chose to limit their leverage to a scale of 1: 888, rather than offering a maximum leverage of 1: 500 or 1: 1000 (whole numbers), a unique number now widely recognized as a trademark of XM.。

To protect client funds in extremely volatile situations, XM offers negative balance protection for each type of account。Deposits for micro and standard accounts start at $5, while Ultra-Low accounts require a minimum deposit of $50。Traders who open an account at XM can get conditions similar to a penny account environment in a micro-account, where the contract size is only 1,000 units per lot.。If you use the smallest number of lots on the MetaTrader platform, which is 0.01 lots, then a trader can trade only 10 units per trade。

For deposits, XM applies zero-fee deposits in most of its available payment methods。Traders can choose to deposit and withdraw money by wire transfer, credit card, and the most popular electronic payment options such as Skrill, Neteller, and FasaPay。

XM also provides Islamic accounts for Muslim traders who comply with Sharia law that prohibits the use of interest-bearing overnight swaps for each currency pair.。In order to provide their customers with the best trading experience, XM has opened access to MT4 and MT5 platforms, each with more than 6 display formats (PC, Mac, Multiterminal, WebTrader, iPad, iPhone, Android and Android tablets).。

Overall, there is no doubt that XM has gone global, with its deep commitment to providing trading services on a global scale available in more than 15 languages.。In addition to simplifying the trader's experience through mainstream trading platforms and high-quality trade execution, XM is open to all types of traders, from small capital traders to more experienced traders preparing large deposits.。Even a penny trading environment for traders if they choose to register under a micro account。

For their global approach, XM has ensured that traders from various countries can easily access their services.。This results in different domain names for traders in specific jurisdictions。

FP Markets Commodity Trading

FP Markets also offers 0.The low spread from 0 and the minimum volume of 1 micro-hand.。However, the lowest spread applies to the original account, which receives a commission of $3 per side.。Another option is a standard account, offering zero commission trading with relatively high spreads。

FP Markets also requires a relatively high minimum deposit for commodity trading (100 Australian dollars) and a low maximum leverage ratio (1: 500)。However, all of this comes with some additional advantages, including access to Autochartist, free VPS for customers who meet monthly transaction volume requirements, multi-language support, and multiple social trading options。

In summary, opening an account at FP Markets is an excellent choice for both beginners and experienced traders。Beginners are free to choose manual trading or start trading with a professional trader。Experienced traders can earn extra income by offering strategies through social trading facilities。

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Overnight positions do not cause overnight / rollover fees to reduce your earnings, so you don't have to worry about。FP Markets offers the most competitive swap rates in the industry by introducing swap points in the form of real-time swap rate listings on the MT4 and MT5 platforms, as follows.

ACWI: Long Position -5.00, Short Positions -2.50。ADAUSD: Long Position -20..00, Short Positions -20.00。AGG: Long Position -5.00, Short Positions -2.50。

Conclusion

Both XM and FP Markets are suitable for commodity trading (CFDs), but they have different target customer bases。

XM provides services with lower deposit requirements and lower costs, so it is more suitable for beginners。FP Markets, on the other hand, excels at providing additional conveniences, such as social trading, which may be enjoyed by both beginners and experienced traders.。