When trading Commodity CFDs with FXCM, trading costs are included in the spread and there are no extra commission fees charged when opening or closing positions and unlike many other brokers there are no minimum commission levels, so at FXCM you are able to avoid the extra costs of placing smaller trades. The spread costs can easily be calculated on the Trading Station platform, as you can see the real-time spreads and pip costs (in your account denomination) before you enter any trade.
To calculate the spread cost in the currency of your account: (Pip Cost) x (Number of Contracts) x (Spread) = Total Transaction Cost
Can I hold my positions long term?
Non-Spot Oil and Gas products, as well as Copper, Wheat, Corn, Soy and Natural Gas expire periodically.
- Oil and gas contracts expire monthly, typically a day before First Notice or when the underlying market contracts expire.
- Copper contracts usually expire bimonthly
- Wheat, Corn and Soy contracts usually expire every three months
This means you may want to manage your positions before the contract expires and your positions are automatically closed. See more details in our CFD Expirations Guide. Any positions held past 5pm EST may be subject to a "financing charge" which reflects in an FXCM account as "rollover." Visit our CFD Product guide for more information.
The financing charges are updated daily and can be seen in the Trading Platforms under RollB and RollS.
Do FXCM apply taxes to clients trading Commodity CFDs?
There are no taxes applied by FXCM when you open and close a CFD position. Please consult a tax professional to advise you on your particular situation.
Why Trade Commodities with FXCM?
- Start small. Control and scale your position sizes with small contract sizes. Micro-contract sizes give you the flexibility to risk less per trade.
- Leverage. Trade the most popular Commodities in the world with leverage. See Margin Requirements. However, remember that trading on margin is risky as it can significantly increase your losses as well.
- Short trading. CFD traders can go long or short with a simple click of a button, and speculate on both the rise and fall of Commodities.
- Enhanced execution. FXCM's Enhanced CFD Execution means you trade without minimum stop distances on most products, including Gold, OIL and Silver. Most strategies welcome.
- Lower transaction costs. Trade commission free with no exchange fees—your transaction cost is the spread.
- Platform of choice. Trade on Trading Station, MT4 or via API.
