| Updated: January 16, 2025Online brokerages tend to offer a wide range of tradable instruments, covering various markets to please different types of traders. Commodities are often a popular market to explore, with the West Texas Intermediate (WTI) crude oil being a popular tradable instrument at most reputable brokers.
Brokers offering WTI oil trading provide traders with a unique opportunity to diversify their portfolios and capitalize on the fluctuations in the global energy market. WTI oil is a benchmark for crude oil prices and is widely traded among traders. Forex brokers that offer WTI oil trading allow traders to speculate on the price movements of this commodity, providing a range of trading options and tools to help them make informed decisions.
Below we list the best CFD brokers to trade Oil (WTI and Brent Crude) :
Top 8 CFD Brokers for Oil trading
-
Fusion Markets
- Australia regulated broker
- MT4, MT5, TradingView, Ctrader
- Leverage up to 500
-
Global Prime
- Australia regulated broker
- Advanced MT4
- $0 Minimum Account Size
-
FP Markets
- Australia & CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading Instruments- Forex CFDs
- Shares CFDs
- Metals CFDs
- Commodities CFDs
- Indices CFDs
- Crypto CFDs
- ETF CFDs
-
FXTM
- Established brokerage company regulated by UK FCA, Kenya CMA, and Mauritius FSC
- MT4, MT5, Mobile Trading Platform
- $1M Lloyd’s of London account insurance
-
IC Markets
- Offers 2,200+ tradable markets, including 61 currency pairs
- Leverage of up to 1:1000 in select jurisdictions
- EUR/USD spreads from 0.8 pips for standard accounts
Trading Instruments- CFDs on Forex
- Commodities
- Index
- Bond
- Cryptocurrencies
- Stock
- Futures
-
CMC Markets
- Provides a choice of 10,000+ trading instruments
- Supports MT4 and Next Generation (proprietary platform)
- Spreads for EUR/USD from 0.5 pips
Trading Instruments- CFDs on Forex
- Indices
- Shares
- Commodities
- Treasuries
- Cryptocurrencies
- Share Baskets
- Investments on ETFs
- Managed funds
- Options
- and more
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IG
- Offers different account types, including DMA (Direct Market Access) one
- Offers turbo warrants on forex pairs, commodities, indices, and equities
- Supports popular platforms like MT4 and TradingView as well as ProRealTime, L2, and more
Trading Instruments- CFDs on Indices
- Shares
- Crypto
- Futures
- Commodities
- Options
- Interest Rates
- Sectors
- Bonds
- Knock-out trading
-
Axi
- Raw spreads start from 0.0 pips
- Offers order execution faster than standard ECN model
- Axi Select Funded Trader Program offers funding up to $1 million
Trading Instruments- Forex
- Stocks
- IPOs
- Indices
- Commodities
- Cryptocurrencies
Brokers Compared by Spread
| Brand | Commission per lot | |
|---|---|---|
| FP Markets | 1.1 | $0 Standard Account; $6 round turn on Pro Account |
| Fusion Markets | 0.93 avg (Classic) | $0 Classic Account, $4.50 round turn on Zero Account |
| IC Markets | 0.8 | $0 Standard MT; $6 round turn on Raw cTrader; $7 round turn on Raw MT |
| CMC Markets | 0.5 | $0.02 per share with a $10 minimum for US shares; 0.10% for other shares with a €/£9 minimum |
| IG | 0.86 av.spread | $0 |
| Interactive Brokers | 0.1 | From 0.08 to 0.20 bps x trade size |
| XM Group | 0.8 | $0 Ultra Low Micro and Ultra Low Standard Accounts; $3.50 per side XM Zero Account |
| Global Prime | 0.96 avg (Standard) | $0 Standard Accounts; $7 round turn on Raw Accounts |
FX Brokers Deposit Method Comparison
| Brand | Minimum deposit | |
|---|---|---|
| Fusion Markets |  |
$0 |
| Global Prime | |
$0 |
| FP Markets | |
$50 (AU$100) |
| FXTM |  |
$200 |
| IC Markets | |
$200 |
| CMC Markets | |
$0 |
| IG | |
$0 |
| Axi | |
$0 |
Forex Brokers by Regulator
| Brand | Maximum leverage | |
|---|---|---|
| Fusion Markets | |
1:30 (1:500 for forex and metals via VFSC) |
| Global Prime | |
1:500 (1:30 for ASIC entity) |
| FP Markets | |
1:30 |
| FXTM | |
1:2000 |
| IC Markets | |
1:30 |
| CMC Markets | |
1:30 |
| IG | |
1:30 |
| Axi | |
1:30 |
Forex Brokers Platform Availability
| Brand | FX pairs to trade | |
|---|---|---|
| Fusion Markets | |
80+ |
| Global Prime | |
56 |
| FP Markets | |
70+ |
| FXTM | |
|
| IC Markets | |
61 |
| CMC Markets | |
330+ |
| IG | |
80+ |
| Axi | |
80 |
Comprehensive Comparison of the best Oil (WTI and Brent Crude) brokers
| Brand | Min. Deposit | Trading Platforms | Spread | Regulation | Trustpilot |
|---|---|---|---|---|---|
 |
$0 |
|
0.93 avg (Classic) |
|
|
 |
$0 |
|
0.96 avg (Standard) |
|
|
 |
$50 (AU$100) |
|
1.1 |
|
|
 |
$200 |
|
0.1 |
|
|
 |
$200 |
|
0.8 |
|
|
 |
$0 |
|
0.5 |
|
|
 |
$0 |
|
0.86 av.spread |
|
|
 |
$0 |
|
1.2 |
|
With the rise of online trading, it has become easier for traders to access the WTI oil market and trade with ease. Forex brokers offering WTI oil trading typically provide competitive spreads, leverage, and trading platforms, making it an attractive option for both novice and experienced traders. By trading WTI oil with a reputable forex broker, traders can gain exposure to the energy market and potentially profit from price movements.
What is WTI Oil Trading
WTI oil trading refers to the buying and selling of West Texas Intermediate crude oil, a light crude oil that is used as a benchmark for oil prices. WTI oil is extracted from the Permian Basin in Texas and is considered a high-quality oil due to its low sulfur content and high API gravity. The price of WTI oil is influenced by a range of factors, including global demand, supply chain disruptions, and geopolitical events. WTI oil trading is popular among traders due to its liquidity and volatility, making it an attractive option for those looking to speculate on price movements.
The WTI oil market is open 24/5, allowing traders to trade at any time during the week. WTI oil trading can be done through various financial instruments, including spot contracts, futures contracts, options, and CFDs. traders can trade WTI oil to speculate on price movements, hedge against potential losses, or to diversify their portfolios. With the right trading strategy and market analysis, traders can potentially profit from trading WTI oil.
Ways to Trade WTI Oil
There are several ways to trade WTI oil, each with its own unique characteristics and benefits. Here are some of the most common trading variants:
- Oil Spots: Oil spot trading involves buying or selling physical crude oil at the current market price. This type of trading is typically used by oil producers, refiners, and other industry participants who need to hedge against potential losses or speculate on price movements. Oil spot trading is usually done through over-the-counter (OTC) contracts, which are private agreements between two parties.
- Oil Futures: Oil futures trading involves buying or selling a contract that obligates the buyer to purchase a certain amount of crude oil at a predetermined price on a specific date in the future. Oil futures contracts are standardized and traded on exchanges such as the New York Mercantile Exchange (NYMEX). This form of trading allows traders to speculate on price movements or hedge against potential losses.
- Oil Options: Oil options are very similar to Oil futures, involving buying or selling a contract that gives the holder the right, but not the obligation, to buy or sell a certain amount of crude oil at a predetermined price on or before a specific date. Oil options contracts are also standardized and traded on exchanges such as the NYMEX. It is common to resort to this type of WTI Oil trading when you wish to speculate on price movements or hedge against potential losses, while also provide flexibility and risk management.
- ETFs: Exchange-traded funds (ETFs) are investment funds that track the price of WTI oil, allowing traders to gain exposure to the energy market without directly trading oil. Oil ETFs are listed on stock exchanges and can be traded like stocks, providing traders with a convenient and accessible way to invest in the oil market.
- WTI Oil CFDs: WTI oil CFDs (contracts for difference) are a type of derivative instrument that allows traders to speculate on the price movements of WTI oil without actually owning the underlying asset. WTI oil CFDs are traded over-the-counter (OTC) and are often used by retail traders who want to trade on margin and with leverage. This type of trading allows traders to gain exposure to the oil market with a relatively small amount of capital, while also providing flexibility and risk management.
- Spread Betting: Spread betting involves betting on the price movement of WTI oil, with the goal of making a profit from the difference between the buy and sell prices. This type of trading is popular in the UK and is often used by retail traders who want to trade on margin and with leverage.
- Binary Options: Binary options allow traders to bet on whether the price of WTI oil will be higher or lower than a certain level at a specific time. This type of trading is often used by retail traders who want to trade with a fixed risk and potential reward. Each of these trading variants has its own unique characteristics, benefits, and risks. traders should carefully consider their investment goals, risk tolerance, and market analysis before choosing a trading variant. It’s also important to work with a reputable forex broker that offers competitive spreads, leverage, and trading platforms.
Factors Affecting the Price of WTI Oil
It is crucial to be aware of different factors that play a major role in the price of the commodity you intend to trade. That way, you can make informed decision when it comes to your trades and take the most profitable approach when trading WTI Oil. The price of WTI oil is influenced by a range of factors, including:
- Global Demand: The demand for oil is a major driver of price movements, with increasing demand leading to higher prices and decreasing demand leading to lower prices.
- Supply Chain Disruptions: Disruptions to the supply chain, such as pipeline closures or refinery outages, can lead to price increases.
- Geopolitical Events: Geopolitical events, such as wars or sanctions, can impact the supply of oil and lead to price movements.
- Weather Conditions: Weather conditions, such as hurricanes or extreme temperatures, can impact the supply and demand of oil.
- Economic Indicators: Economic indicators, such as GDP growth and inflation, can impact the demand for oil and lead to price movements.
- Inventory Levels: Inventory levels of oil can impact the price, with high inventory levels leading to lower prices and low inventory levels leading to higher prices.
- Speculation: Speculation by traders and traders can also impact the price of WTI oil, with market sentiment and expectations playing a significant role.
- Currency Fluctuations: Currency fluctuations, particularly the value of the US dollar, can impact the price of WTI oil.
- Seasonal Demand: Seasonal demand for oil, such as increased demand during the summer months, can also impact the price.
- OPEC Production: OPEC production levels can impact the supply of oil and lead to price movements. These factors can interact with each other in complex ways, making it challenging to predict price movements. traders should carefully consider these factors and conduct thorough market analysis before making trading decisions. By understanding the factors that affect the price of WTI oil, traders can make more informed decisions and potentially profit from trading this commodity.
WTI Oil Trading Brokers FAQ
What is the difference between trading WTI Oil with a broker and trading it on an exchange?
Trading WTI Oil with a broker allows you to trade on margin and with leverage, which can amplify your potential profits but also increases your risk. In contrast, trading on an exchange typically requires a larger amount of capital and may not offer the same level of leverage. Additionally, online brokers often provide more flexible trading hours and tighter spreads, making it easier to trade WTI Oil.
Can I trade WTI Oil with a CFD Broker if I’m a beginner?
Yes, many Forex Brokers offer WTI Oil trading to beginners, and some even provide educational resources and trading tools to help you get started. However, it’s crucial to understand the risks involved in trading WTI Oil, including the potential for significant losses. As a beginner, it’s recommended to start with a demo account or a small live account to gain experience and build your confidence.
How do I choose the best online broker for trading WTI Oil?
When choosing an online broker for trading WTI Oil, consider factors such as regulation, trading conditions, spreads, leverage, and customer support. Look for a broker that is regulated by a reputable authority, such as the US Commodity Futures Trading Commission (CFTC) or the UK Financial Conduct Authority (FCA). You should also compare the spreads and leverage offered by different brokers, as well as their trading platforms and tools. Additionally, consider the broker’s reputation, customer support, and educational resources to ensure that you receive the best possible trading experience.
Can I trade WTI Oil 24/5 with a CFD broker?
Yes, many CFD brokers offer 24/5 trading for WTI Oil, allowing you to trade during the week, from Sunday evening to Friday evening. This provides you with flexibility and the opportunity to respond to market events and news as they happen. However, it’s essential to note that trading hours may vary depending on the broker and the specific trading instrument. Some brokers may also offer extended trading hours or weekend trading, so it’s crucial to check the broker’s trading schedule before opening an account.
What are the risks involved in trading WTI Oil with an online broker?
Trading WTI Oil with an online broker involves significant risks, including the potential for substantial losses. The price of WTI Oil can be volatile, and market fluctuations can result in losses if you’re not careful. Additionally, trading on margin and with leverage can amplify your potential losses, so it’s essential to use risk management techniques, such as stop-loss orders and position sizing, to limit your exposure.
Why You Should Trust RationalFX
When it comes to making informed decisions about forex brokers, it’s essential to rely on trustworthy sources. RationalFX, a company with over 17 years of experience since its founding in 2005, has established itself as a credible authority in the industry. With an impressive collection of over 2500 reviews on Trustpilot, boasting a score of 4.2, it’s clear that Rational FX has built a reputation for providing reliable and unbiased information.
What sets Rational FX apart is its rigorous evaluation process, which considers over 30 different criteria when selecting forex brokers. This comprehensive approach ensures that every aspect of a broker’s service is taken in consideration, including regulation, forex spreads, trading platforms, deposit methods, and reputation. With its wealth of experience, transparent review process, and outstanding customer feedback, Rational FX is a trusted source for anyone seeking reliable information on forex brokers. You can reach us via e-mail at [email protected] or contact us through our social media accounts here: Facebook, YouTube, or leave a feedback here.