Commodities trading

In addition to our vast range of commodity futures, we now offer 27 major commodity markets with no fixed expiries.1

Find a commodity to trade

Use our market finder tool to find charts, data, sentiment and news on the commodities you want to trade. 

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Or browse live prices for popular commodities.

Live commodity prices

Markets Sell Buy Change
Spot Gold
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Spot Silver (5000oz)
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Oil - Brent Crude
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Oil - US Crude
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Natural Gas
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Prices above are subject to our website terms and conditions. Prices are indicative only.

Why trade commodities with IG?

  • Unique range of markets

    Spread bet or trade CFDs on a wide range of popular and niche metals, energies and softs

  • Sophisticated risk management

    Use our risk management tools to manage your positions even in volatile times

  • Trade commodities on margin

    Spread bet or trade CFDs to gain full exposure with just a small initial deposit, but remember with leverage comes increased risk

  • Lower spreads

    Enjoy the best commodity spreads on the market with no insurance costs, including on gold and oil

  • Increased transparency

    Your profit/loss will be clearer over the position's lifetime, with no need to close on expiry and open a new position

  • Continuous charting

    Take advantage of technical analysis, available as long as you want, and backdated price charts for the last three to five years

Commodities spreads

Commodities

Deal on commodities either as a spread bet or a CFD. 

 

Spread betting

CFDs

MT4

Spot Gold 0.3 0.3 0.3
Spot Silver (5000oz) 2 2 2
Oil - US Crude 2.8 2.8 2.8
Oil - Brent Crude 2.8 2.8 2.8
Chicago wheat 0.6 0.6 n/a
London sugar 0.6 0.6 n/a

 

Our spread is based on the underlying market spread. If the underlying market spread increases, our spread may increase. Learn more about the spread.

Commodities futures

Deal on commodities either as a spread bet or a CFD. Download MT4 to get faster execution and greater automated trading (only available for gold and silver).

Spread betting

CFDs

Gold 0.6 0.6
Silver 3 3
Oil - US Crude 6 6
Oil - Brent Crude 6* 6*
Chicago wheat 1.0 1.0
London sugar 0.8 0.8

All commodities costs and details

For full details including spreads, dealing hours and margins for all our commodities, follow the link to our help area, or download a PDF.

The new way to trade commodities

Our new commodity product enables you to take a cost-effective short-term view on 27 key commodity markets.

The offering works in the same way as an index CFD. And just like an index position, you’ll pay a funding charge for holding your commodity position overnight.

As there are no fixed expiries1, we are also able to offer continuous charting on these markets. This means your technical analysis will be available as long as you want it. We have used past data to backdate our charts for the last three to five years, so you can get an accurate historical look.

How do we make our prices?

To price these markets we use two futures contracts on the underlying commodity. For each market we look at the contracts that have sufficient liquidity, then use the two with the nearest expiry dates.

The one that has the closest expiry date is called the front month contract, and is labelled ‘A’ in our diagram. The one with the second-nearest expiry date is called the back month contract and is labelled ‘B’.

As soon as the previous contract expires, the price we offer is equal to the price of ‘A’. When ‘A’ expires, ‘B’ becomes the front month contract, and our price is equal to the price of ‘B’.

In between these two expiry points, our price gradually moves from the price of ‘A’ towards the price of ‘B’. Depending on the commodity, the price of ‘B’ can be higher or lower than the price of ‘A’.

Overnight funding charges for these markets reflect one day’s movement along the forward curve from the price of ‘A’ towards the price of ‘B’.

See a worked example of the basis adjustment and overnight costs for spread betting and CFDs.

Open an account now

It's free to open an account, takes less than five minutes, and there's no obligation to fund or trade.

What is commodities trading?

Commodities trading is the buying and selling of raw physical assets like precious metals, such as gold and silver, oil, wheat or sugar. These commodities are the basic building blocks of the global economy, natural resources traded on exchanges around the world.

There are two types of commodity – soft and hard. Soft commodities are typically agricultural like wheat or sugar, whereas hard commodities are metals or energies like silver and gas.

As a result of all these factors, commodity prices can fluctuate significantly.

Watch Sara explain the basics of
commodities trading in less than two minutes

The production and consumption of commodities depends on many factors, including:

  • Supply and demand 
  • The weather
  • Economic and political events
  • The US dollar (commodities are normally priced in the US currency)

How and where are commodities traded?

Commodities are traded on a number of exchanges that specialise in particular markets, including:

  • LIFFE – agricultural products
  • London Metal Exchange – non-precious metals 
  • Chicago Mercantile Exchange – energy and metals
  • ICE Futures US – agricultural products
  • Chicago Board of Trade – agricultural products 
  • ICE Futures Exchange - energy

Commodities are also generally traded as futures contracts. These are simply agreements to trade an asset at an agreed price and date in the future. This enables you to trade the contracts themselves without ever having to own the underlying asset.

You might be interested in...

  • Execution and pricing

    Our technology is engineered for speed, stability and better prices

  • Low margins

    Our margins are among the lowest in the CFD and spread betting industry

  • MetaTrader 4

    Fully integrated MT4 functionality for fast, reliable trading

1 In the case of all DFBs, there is a fixed expiry at some point in the future.

Spread bet example

Spread bet example

The equation for calculating the overnight adjustment is broken down into two parts; the daily movement along the futures curve (basis), and the IG charge. This is applied to positions open at 10pm UK time.

Overnight adjustment = amount/pt x (basis + IG charge)

Formula for the IG charge = Price x 2.5% / 365

Formula for basis = (P3 – P2) / (T2 – T1) 

T1 = expiry date of the previous front future 
T2 = expiry date of the front future 
P2 = price of front future 
P3 = price of next future 

The basis equates to the daily movement of our undated price along the futures and may be a credit or a debit. This will either be a positive or negative number depending on the direction of your trade and the slope of the forward curve. 

For example, imagine you are long £10/pt on US Oil. If there was a time difference between T1 and T2 of 31 days, and front month future (P2) was 4700 and the next future (P3) was 4770 then the overnight adjustment would be calculated as follows: 

Overnight adjustment    = £10 x ((4770 – 4700 / 31) + (4700 x 2.5% / 365))

                                      = £22.58 + £3.22

In our example the cost to hold the position overnight is £3.22, however you will also see a cash neutral futures curve adjustment as well. The £22.58 basis adjustment will be offset in the running profit or loss on the position.

On the other hand, if you were short US Oil in the above example then you would receive £22.58 and pay £3.22, therefore a net credit of £19.36.

For any position opened before 10pm Friday that is still open after 10pm Friday, the basis adjustment will be made for three days as opposed to one. This three-day adjustment is applied on the Sunday night or Monday morning.

CFD example

CFD example

The equation for calculating the overnight adjustment is broken down into two parts; the daily movement along the futures curve (basis), and the IG charge. This is applied to positions open at 10pm UK time.
Overnight adjustment = number of contracts x contract size x (basis + IG charge)

Formula for the IG charge = price x 2.5% / 365

Formula for basis = (P3 – P2) / (T2 – T1) 

T1 = expiry date of the previous front future 
T2 = expiry date of the front future 
P2 = price of front future 
P3 = price of next future 

The basis equates to the daily movement of our undated price along the futures and may be a credit or a debit. This will either be a positive or negative number depending on the direction of your trade and the slope of the forward curve. 

For example imagine you are long one $10 contract on US Oil. If there was a time difference between T1 and T2 of 31 days, and front month future (P2) was 4700 and the next future (P3) was 4770 then the overnight adjustment would be calculated as follows:
 
Overnight adjustment    = 1 x $10 x ((4770 – 4700 / 31) + (4700 x 2.5% / 365))

                                     = $22.58 + $3.22

In our example the cost to hold the position overnight is $3.22, however you will also see a cash neutral futures curve adjustment as well. The $22.58 basis adjustment will be offset in the running profit or loss on the position.

On the other hand, if you were short US Oil in the above example then you would receive $22.58 and pay $3.22, therefore a net credit of $19.36.

For any position opened before 10pm Friday that is still open after 10pm Friday, the basis adjustment will be made for three days as opposed to one. This three-day adjustment is applied on the Sunday night or Monday morning.

CFD example

CFD example

The equation for calculating the overnight adjustment is broken down into two parts; the daily movement along the futures curve (basis), and the IG charge. This is applied to positions open at 10pm UK time.
Overnight adjustment = number of contracts x contract size x (basis + IG charge)

Formula for the IG charge = price x 2.5% / 365

Formula for basis = (P3 – P2) / (T2 – T1) 

T1 = expiry date of the previous front future 
T2 = expiry date of the front future 
P2 = price of front future 
P3 = price of next future 

The basis equates to the daily movement of our undated price along the futures and may be a credit or a debit. This will either be a positive or negative number depending on the direction of your trade and the slope of the forward curve. 

For example imagine you are long one $10 contract on US Oil. If there was a time difference between T1 and T2 of 31 days, and front month future (P2) was 4700 and the next future (P3) was 4770 then the overnight adjustment would be calculated as follows:
 
Overnight adjustment    = 1 x $10 x ((4770 – 4700 / 31) + (4700 x 2.5% / 365))

                                     = $22.58 + $3.22

In our example the cost to hold the position overnight is $3.22, however you will also see a cash neutral futures curve adjustment as well. The $22.58 basis adjustment will be offset in the running profit or loss on the position.

On the other hand, if you were short US Oil in the above example then you would receive $22.58 and pay $3.22, therefore a net credit of $19.36.

For any position opened before 10pm Friday that is still open after 10pm Friday, the basis adjustment will be made for three days as opposed to one. This three-day adjustment is applied on the Sunday night or Monday morning.

 

Help and support

Get answers about your account or our services.

Get answers

Or ask about opening an account on 0800 195 3100 or newaccounts.uk@ig.com.

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Latest commodities news

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.