If you are trading online, or you are just starting commodity trading for beginners, you probably already know which platforms are the most popular and which are the best CFD trading platforms used by traders worldwide. MetaTrader 4 is one of the most popular and loved CFD platforms and is thought to be the best commodities trading platform out there.
With the introduction of CFDs, commodities and other asset classes have become accessible to everyone whether they are advanced traders at a big institution or retail traders. Additionally, the availability of MetaTrader 4 as the most common online commodities trading platform, has helped to popularise CFD trading on commodities further.
What are commodities?
Raw materials or main agricultural goods that can be purchased and sold are referred to as commodities, which are special assets. One of the largest and oldest markets in the world is the commodity market. With its high trading volume and stable levels of supply and demand, it is a relatively simple market to enter.
Due to the nature of the commodity market, it is dominated by a few large businesses and is subject to government regulation. This indicates that supply is strictly regulated to prevent prices from fluctuating too much.
Compared to other investments, commodities may appreciate in value during periods of high inflation. This is because the commodity still has value but the currency in which it is denominated is losing value, making it necessary to use more of the declining currency to purchase the commodity. Another factor contributing to their popularity with professional and retail traders is that they can be used to hedge against inflation.
A supply and demand system governs the price of commodities; when supply is high but demand is low, prices decline, and when supply is low but demand is strong, prices rise. To explore these opportunities, you can download an online commodities trading platform such as MetaTrader 4 and learn how to trade commodities.
How can you trade commodities?
You can incorporate commodities into your portfolio in a variety of ways. Commodities are an excellent method to diversify, whether through futures, ETFs, or CFDs. Purchasing futures and trading commodity ETFs are the more conventional methods of trading commodities.
- Futures. Using a product called a commodity future, you can make a deal with a broker to purchase or sell an asset like wheat or gold at a specific price in the future. You can close your contract and keep the price difference between when you entered the contract and the current price if the commodity’s price reaches or approaches the price you selected.
- ETFs. With commodity ETFs, you buy a fund that buys the commodities or a collection of commodities, that will be managed by a professional fund manager, allowing you to use a more hands-off approach.
- CFDs. One of the most popular ways to actively trade commodities is through CFDs. Let’s see what CFDs are in more detail.
What are Commodity CFDs?
CFD stands for Contract For Difference. With a CFD you can speculate on the price movements of the underlying instrument without owning it. CFDs allow traders to trade the direction of commodities within a short period and because of this, they can be traded with leverage. Leverage allows you to potentially increase your gains but also incur more losses depending on whether the price has gone the way you have anticipated. When you learn how to trade commodities, learning how CFDs work first is essential. This has now become the most popular method among traders.
Why trade commodities with MetaTrader 4?
The MT4 platform has become the industry standard for CFD trading and is currently utilised by hundreds of brokers globally. It is one of the best online commodities trading platforms out there. This is not by accident. Traders may start and exit positions on the MetaTrader 4 platform without ever having to be concerned about the reliability of their CFD trading platform thanks to its advanced technology and high level of security. This is why the MT4 has become so popular and is one of the best CFD trading platforms in the world.
MT4 Key Features
What makes MT4 one of the top CFD trading platforms in the eyes of traders? First and foremost, this CFD trading platform has a very user-friendly design that makes it easy for both novice and seasoned traders to participate in the commodities market. All major languages are supported, which is the second feature. Users from all around the world can take advantage of the MetaTrader 4 platform and all of its data in their native tongue with no additional work.
Along with these helpful features, the software can provide you with cutting-edge charting capabilities. As a result, traders are now able to execute transactions while also carefully examining the technical aspects of the market.
There is also one very popular and powerful feature of MetaTrader which is the ability to use Expert Advisors. These are automated trading features that can automatically open and close trades based on pre-set rules. They can be bought online from different suppliers.
MT4: Easy to run, flexible and secure
There is a reason that the MT4 is the best commodities trading platform and one that is preferred for commodity trading for beginners. MetaTrader 4 uses less resources and is less disruptive to your PC than a lot of other platforms. This enables the platform to operate considerably more quickly, executing trades and traders’ demands efficiently.
Additionally, the platform allows all users to examine account information. The information available includes account balance, trading history, access information, and password details.
You will want to make sure that your account is secured from potential hackers and attacks when you are dealing with a delicate and private matter like online CFD trading. Additionally, MT4 is very flexible and can be used to trade a range of other markets such as stocks, futures and forex.
The commodities platform that meets your needs
The fact that MetaTrader 4 permits customisation, allowing CFD traders to adapt the trading platform to their own trading needs and habits, places MT4 at the top of the list of the best online commodities trading platforms. This includes having access to MT4’s sophisticated MQL programming language, which you may use to create and construct your own Expert Advisors and technical indicators.
If you are starting out, it is best to download the MT4 or launch it online and discover all the features it offers. To do this, you need to register with an online broker who will give you free access to the platform. If you want to learn more about how to trade in general or learn how to trade commodities in particular, IronFX has a lot of resources online.
Get your education with a CFD commodities broker
You can expand your education by reading IronFX articles and market analysis on commodities. These and more resources are available under the IronFX School or Blog on IronFX’s website. IronFX is one of the leading brokers for commodities and other financial markets with more than 1.5 million clients around the world. You can access free trading resources and in-depth articles delivered daily by experts. IronFX can help you learn how to trade commodities online, using one of the best commodities trading platforms in the market.