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5 Best Crude Oil Trading Brokers for 2020 • Benzinga

Crude oil trading brokers are typically online brokers that provide services for contracts for difference (CFDs) or futures contracts. Since CFD trading isn’t legal in the U.S., this article focuses on brokers that support trading in crude oil futures.

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Crude oil trading brokers are typically online brokers that provide services for contracts for difference (CFDs) or futures contracts. Since CFD trading isn’t legal in the U.S., this article focuses on brokers that support trading in crude oil futures.

Take a look at our top crude oil brokers to get started.

Best Crude Oil Brokers:

What You Need to Know About Trading Crude Oil 

Like the stock market, the crude oil market is made up of different participants that include both investors and speculators. But the crude oil market differs because it is more prone to volatile swings due to geopolitical forces. 

The 2 main types of oil that futures contracts are based on are West Texas Intermediate (WTI) and North Sea Brent. WTI is a lighter and sweeter type of oil better for gasoline production with a low sulfur content of around 0.24%. North Sea Brent is heavier and best for diesel fuel production. It has a sulfur content of roughly 0.37%. In the oil industry, crude oil with a sulfur content below 0.5% is considered “sweet”.

The modern history of the crude oil market began in the 1970s. Then crude oil prices spiked to more than $100 per barrel after Saudi Arabia imposed an embargo on the commodity. Oil prices declined in the 1980s as supplies increased. The price of crude oil had fallen below $10 per barrel by 1998, which marked a major low point at the time. 

Prices then exploded higher, and the price of crude oil hit its all-time high of $145.31 per barrel in July 2008 to coincide with the global financial crisis. Since 2008, oil prices have fluctuated between $32 and $112 per barrel. The commodity currently trades at $53.12 per barrel for WTI and $58.82 for Brent crude. The price difference is known as the Brent/WTI spread. 

If you can’t trade CFDs because you live in the U.S. — trade crude oil via the U.S. futures markets and using exchange-traded funds (ETFs). FOREX.com offers crude oil CFD trading outside the U.S. for a 1% margin fee on the MetaTrader 4 or FOREX.com trading platforms.

An important oil futures contract is the WTI crude oil contract that trades on the New York Mercantile Exchange (NYMEX) under the symbol CL. It represents 1,000 barrels of oil.

Another is the NYMEX’s Brent crude oil contract that trades under the symbol BZ — it’s also based on 1,000 barrels of oil. The smaller CME Group’s E-mini crude oil futures contract trades under the symbol QL and represents 500 barrels per contract.

Things to Consider Before You Invest in Crude Oil

  • Research the market. Many influences that can affect the price of crude oil. Geopolitical events in the Middle East, North Sea, Russia, Canada, Nigeria and Angola generally impact the oil market. Factors that influence demand from the European Union, U.S., Japan and other Western economies that import oil also have an effect. 
  • Trade with a plan. Outline your strategy with sound risk and money management. Include the parameters for entering and exiting trades, the amount of risk you plan to take and your objective for exiting the trade. You can source a trading plan from another trader or use a social trading service if needed. 
  • Test your plan. Many online brokers give you the option of opening a demo account to practice trading. You can test your plan in the demo account before you commit any funds to a live account. 
  • Pick a broker. You’ll probably have a feel for the oil market and the best brokerage for you after you trade in some virtual accounts. Make sure to carefully consider your needs before opening an account.
  • Start trading. Open and fund your account, research your plan and get started. Make sure that you carefully assess and manage the risk involved in each trade. Set some safe stop-loss levels to avoid blowing out your account. 

The Best Crude Oil Brokers

Determine your needs to find the best online brokerage for trading in crude oil. You can find our picks for the best crude oil futures brokers for U.S. traders below. 

Commissions

$0
$6.95 for OTC Stocks

Account Minimum

$0

Broker 1: TD Ameritrade

TD Ameritrade gets our top spot for excellent execution that includes oil futures. The broker’s trading software and the thinkorswim platform give serious traders an edge. You’ll get access to advanced research and analysis tools, and automatic features and market scans will help you generate trading ideas. 

TD Ameritrade also provides a web-based platform and a mobile option for Android and iOS devices. The broker can trade the 3 standard CL, QM and BZ crude oil futures. Trading hours for crude oil futures start on Sunday at 5 p.m. EST and run until 4 p.m. EST on Friday (with a 1-hour break from 4 p.m. to 5 p.m. each weekday). 

TD Ameritrade doesn’t require a minimum deposit. But you must deposit at least $2,000 as margin to be considered for a futures and options account. Commissions for oil futures are a standard $2.25 per contract plus exchange and regulatory fees. 

Commissions

$0.005 per share
minimum $1 and maximum 0.5% of trade value; volume discount available

Account Minimum

$0

Broker 2: Interactive Brokers 

Barron’s top online broker for 2019 is Interactive Brokers. This brokerage is aimed at more advanced high-volume traders. It gives you access to trade a myriad of tradeable assets, including U.S. oil futures. Interactive Brokers also offers execution services in more than 125 world markets. 

Its trading platforms include the easy-to-use Client Portal and the web-based IBKR WebTrader. More advanced traders will also appreciate the more sophisticated IBKR Pro Trader Workstation (TWS) desktop and mobile platforms. The broker also has an application programming interface (API) if you want to get your own trading algorithm software written. 

Interactive Brokers has tiered and fixed commission schedules. The tiered schedule lowers commissions as your trade volume increases, while the fixed schedule charges a mere $0.85 per U.S. futures and futures options contracts plus exchange and regulatory fees. 

Interactive Brokers charges inactivity fees on inactive accounts, so keep that in mind if you plan on taking trading breaks. It also requires a minimum deposit of $10,000 to open an account. 

Commissions

$0

Account Minimum

$0

Broker 3: E*TRADE

E*TRADE gets our number 3 position for its impressive research center powered by the CME Group — the world’s largest futures exchange. E*TRADE also offers a comprehensive list of options on oil futures.  

E*TRADE’s trading platform is easy to navigate for traders at all levels. The company also offers a high-tech custody platform for financial advisors, as well as a top-rated stock plan administration platform. 

The 3 standard CL, QM and BZ crude oil futures contracts traded on U.S. exchanges can be traded. E*TRADE charges $1.50 per futures contract plus exchange and regulatory fees. Oil futures can also be traded in an IRA account.

Another selling point is its associated bank and extensive educational resources like daily video market commentary. E*TRADE has a minimum of $10,000 to open a futures trading account. 

Commissions

$0.09 per micro contract

Account Minimum

$400

Broker 4: NinjaTrader

NinjaTrader has an excellent trading platform for novice and advanced traders alike. You can access unlimited simulated forex trading, unlimited support and daily training sessions and a free 24-hour emergency desk. 

NinjaTrader features more than 100 technical indicators, advanced charting features and thousands of 3rd-party applications for automating your trading. The platform also gives you control of your own data feed to test your trading strategies.

You can even trade micro-sized futures contracts for a $50 margin, while E-mini contracts require $500 to margin. You only need $400 to open a futures account with NinjaTrader.

NinjaTrader has a number of educational resources and a news and blog section. You can try the broker’s futures trading platform at no charge for 2 weeks in a demo account powered by live market data.    

Commissions

$0.19 – $0.49

Account Minimum

$2,000

Broker 5: Discount Trading

Discount Trading made our list for its low commissions and the variety of trading platforms for traders at all levels. Discount Trading’s commissions are among the lowest in the industry, so it’s perfect for day traders and high-volume or high-frequency traders. 

If you trade more than 50,000 contracts a month, for example, you pay only $0.19 per contract. For less active traders, futures commissions are $0.49 per side — so buying and selling 1 futures contract would cost you less than $1 after exchange and regulatory fees.

Discount Trading features 20 different trading platforms that include eSignal, barchartTrader, CGQ Trader, CGQ Integrated Client, Trading Technologies, Firetip, TradingView and Sierra Chart.  

You can also get a free mobile app for Android or iOS devices or access the broker’s web-based application. It offers 5 different redundant routing solutions to meet the needs of advanced traders. 

Next Steps 

You’re ready to move on to live trading once you’ve tested your plan in the demo account. Oil futures can be extremely volatile, so they’re the perfect vehicle for day and high volume traders. 

Be aware that the price of oil has traditionally been a function of the big world producers, so any disruptions in the supply lines can directly affect the price quickly and substantially. Moves of 2% to 3% and even as much as 10% to 20% occur often, so trade with stop loss orders at all times to prevent excessive losses. 

Crude oil prices react to many variables, which is why oil traders keep an eye on the news. Make sure you watch world events closely when you trade oil futures.   

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Broker Reviews

Sollari Review – top 75 Broker ?

Sollari review

Sollari Review

Sollari is a global forex and CFD broker with trading platforms that is suitable and fully functional for all devices.

This is a good option for all levels of traders, although the product portfolio is average, and there is an inactivity fee to be aware of.

Initially formulated in 2023 to provide a robust forex trading platform, Sollari offering to include CFDs, indices, shares, commodities, and cryptocurrencies.

Sollari has several trading tools and features designed to make your trading experience as smooth as possible. The trading platform, has been heralded as a simple and convenient platform without losing the functionality you would find at MetaTrader 4. Some education is also available through the trading platform, and highly responsive customer service is available 24 hours a day.

Please read my full Sollari review for further details of this forex broker so you can decide whether Sollari can meet your needs.

Who is Sollari?

Sollari is a global forex, spread betting, and CFD online broker. Sollari is an online Crypto and Forex Broker providing traders across the globe with cutting-edge technology to trade the world’s markets. In a continuous effort to give their traders a more comfortable and safe trading experience, their experts have been improving their service and solutions ensuring traders have the freedom to trade whenever and wherever they like.

 They are headquartered in Kingstown, St Vincent and the Grenadines. with offices in Milan, Nassau, Sofia, and Luxembourg and are authorized and 

Sollari product range overview

The product range at Sollari is average compared to other brokers. They offer a solid selection of currency pairs and CFDs, no futures CFDs, and an average number of commodity and stock index CFDs. additionally they do offer leverage trading on the main cryptocurrencies.

Sollari Range of Market

Sollari Range of Market

Forex trading

More than 50 Forex pairs are available at Sollari with no commission and some of the tightest spreads in the industry.

Indices and Financial Trading

Indices and financial CFDs have flexible margin requirements and low spread , representing some of the industry’s best spreads. There are no overnight or hidden fees of any description to worry about.

Commodities Trading

At Sollari, there are several commodity CFDs, including metals and energies.

Share CFDs Trading

Trade more than 100 company shares without ever owning the underlying security. At Sollari, you can access global stock exchanges with the option to go long and short and benefit from leverage. For non-leverage trading, there is zero commission.

 

Sollari Accounts

There are five trading account options at Sollari. Of note are the Professional Trading Account and the Islamic Trading Account. There is also a free demo account from where to practice your trading.

Free Demo Account
You can select from the free demo account which platform you would like to practice trading on their trading platform. You will immediately receive $100,000 of virtual funds, which can be used to familiarise yourself with the financial markets and forex and CFD trading.

Islamic Account
This is a Shariah-compliant Islamic account which includes many features that are in keeping with Sharia law.

 

See here the overview of all the accounts.

 

BASIC ACCOUNTSTANDARD ACCOUNTGOLD ACCOUNTPRO ACCOUNTVIP ACCOUNT
MINIMUM DEPOSIT$5,000$10,000$25,000$100,000$250,000+
ORDER EXECUTIONInstantInstantInstantInstantInstant
ACCOUNT CURRENCYUSD, EUR, GBPUSD, EUR, GBPUSD, EUR, GBPUSD, EUR, GBPUSD, EUR, GBP
ACCOUNT MANAGERyesyesyesyesyes
SPREAD, PIPSFixedFixedFixed & Floating, VariableFixed & Floating, VariableFixed & Floating, Variable
QUOTATION (NUMBER OF MARKS AFTER POINT)5 marks5 marks5 marks5 marks5 marks
LEVERAGE100100200500500
MAX. TRADE SIZE10 lots20 lots40 lots50 lots100 lots
REQUOTESNoneNoneNoneNoneNone
MARGIN CALL LEVEL40%40%40%40%40%
STOP OUT LEVEL30%30%30%30%30%
TRADING PLATFORMall devicesall devicesall devicesall devicesall devices
CUSTOMER SUPPORT24/5 support24/5 support24/5 support24/5 support24/7 support

Sollari Trading Platform

Sollari provides a web, desktop, and mobile trading platform on their trading platform, which is provided by the High-tech software provider “easytech”.

This trading platform has an excellent reputation among traders. 

Sollari Trading Platform

Sollari Trading Platform

web trading platform

The web platform allows you to place trades directly from your web browser in an easy-to-use interface that is customisable and available in several languages. The web trading platform falls short because of its lack of social trading; however, it is well-designed with several useful features.

There is a two-step login for additional security, and you can search for an asset using its name or by category. Order types include:

I was impressed with both the portfolio and fee reports which were comprehensive and easy to use, with clear information on commission, swap fees, and performance.

There are also the following useful features available on the trading platform:

Trailing stop

Trailing the position of a current price can then trigger a stop order as the price reaches a predetermined distance from a stop order. It works similarly to a stop order but in a more controlled way that aligns with movements in the market.

Market Sentiment

This allows you to closely monitor movements in the market using data from other traders concerning a specific instrument.

Hedging

This allows you to mitigate risks by investing in the same product in a different direction.

Charts

Real-time charts provide up-to-the-moment information, including historical trends, forecasts, and current trends.

Sollari mobile trading platform

The mobile trading platform is in keeping with the web trading platform, with much of the same functionality. 

The actual design is well laid out and easy to use with customizability. I found the mobile app fast with personalised watch lists and the ability to open positions directly from real-time charts.

There are price alerts that include statistical alerts, which can be monthly or yearly for currency pairs, indices, etc. Clicking on the alert will automatically open the app on the instrument.

Sollari desktop trading platform

Use the desktop platform. This platform is designed with professional traders in mind, leaving the webtrader as an alternative for beginners and intermediate traders.

There is excellent customizability, some good search functions, and a choice of several languages.

There are several tools and technical indicators designed to enhance your trading activity.

Sollari customer service review

Customer service is excellent at Sollari, with immediate response times across multiple channels.

There are several channels for contacting customer support, including phone and email. When I tested their service, my query was dealt with immediately without even the intervention of a chatbot. The service provided via email and phone was similar, with fast, relevant responses to my queries. Customer service is provided 24/5, which is above average.

Sollari is opening an account.

The account opening process is straightforward, fully digital and quick. You will need your ID.

To open your account, you should first decide on the account type you wish to open

Then you can follow these quick and easy steps:

  • Select your country of residence
  • Add personal information, including name and email address
  • Choose a password
  • Enter your home address and tax residency
  • Complete some simple questions relating to your trading experience
  • Fill in information pertaining to your personal finances, such as income and savings and employment status
  • Select your base currency
  • Upload your ID documentation and proof of address, such as a utility bill or bank statement.

Sollari Deposit and Withdrawal

Deposits and withdrawals and essentially free, and the minimum deposit is high compared to what you would find at other brokers.

Before making your first deposit, you will need to choose between the following base currencies:

EUR, USD, GBP

Deposit options include:

  1. Bank transfer
  2. Credit and debit card
  3. Cryptocurrency

The minimum deposit is $5000, which is high compared to other brokers. There are no fees should you choose to deposit via bank transfer from your bank account.

Bank transfers take several business days.

Withdrawals can be made using the same methods accepted for deposits, and there are no withdrawal fees for electronic wallets and credit/debit cards. 

Sollari safety

Sollari is not regulated by the Financial Conduct Authority (FCA) but is performing full due diligence to comply with AML regulations.

In addition, all client funds are held in segregated bank accounts to protect those funds should Sollari go bust.

The Sollari negative balance protection protects client funds should their balance go negative.

Sollari fees

Sollari has low CFD and forex fees and average non-trading fees.

Fees can be separated into two main categories for a CFD and forex broker: trading and non-trading fees.

Trading fees

The trading fees will vary depending on the financial instruments you are trading within each asset class. Trading fees can be charged as a spread, a commission, or a financing rate.

Spreads differ between the bid and ask price for a foreign currency price. Here’s how Sollari spreads compare against some other forex brokers:

Non-trading fees

Sollari has low non-trading fees as they do not charge deposit and withdrawal fees, and there is no account fee.

Inactivity fees are charged. There are inactivity fees to be aware of. However, these will only kick in once your account has been inactive for several months and you have a positive balance.

Who is Sollari suitable for?

Sollari is suitable for all levels of traders looking for a solid trading platform and very competitive spreads.

The selection of account types is aimed at both retail and professional investors.

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Demo Trading

The Advantages and Negatives of Forex Demo Trading

trading on the demo account

Intro to Fx Demo Trading

Despite the placement as the planets greatest monetary market, the forex marketplace only became easily available to retail traders in latest years because of the introduction of sites based trading via on-line forex brokers.

Aspiring forex investors can right now make use of digital trading systems – like the extremely well-known MetaTrader software program
(offered as a free of charge download by MetaQuotes Software program Company ) to access the large forex market thou they might trade only in very small amounts themselves

The majority of on the web brokers will support MetaTrader and could also provide their own proprietary platforms or web-centred dealing interfaces.

These types of systems typically enable traders to do a quick overview of the currency marketplace and maybe carry out some specialized evaluation, in addition to permitting them to gain access to trading necessities like purchase access and deal delivery for a wide selection of foreign currency pairs.

free of charge fx practice account

Like a common way of motivating forex investors to use their offer setup solutions and first deposit funds with them to make use of as trading accounts perimeter, many online forex brokers will offer a free of charge fx practice account to potential or existing clients.

Referred to as a forex demonstration accounts, such unsecured debts enable a trader to encounter a hands-on demo of what seems prefer to trade currency pairs in the forex market with this broker without placing any actual money at risk.

Although using a FX trading demo account has several benefits for traders, some tricks are well worth talking about because the technicians of getting into a demonstration operate and the producing emotional responses an investor can possess while controlling it can differ significantly from the encounter of live forex trading utilizing their personal hard-attained money.

Additional common demonstration accounts circumstances which make them vary considerably from an actual cash financed account include broker-imposed period limitations and set debris of virtual foreign currency.

The subsequent areas of this content will talk about starting up an on the web trading demo accounts, in addition to probably the most significant benefits and negatives of using a demonstration forex account in comparison to utilizing a live fx accounts for trading foreign currencies.

Starting Up a Free of charge Forex Demonstration Account
Simply about any trustworthy fx broker will allow potential and current customers to open up up a demo account with them free of charge to enable investors to practice currency trading using digital money.

Demo accounts traders frequently also get access to at least a few of the broker’s customer providers and consumer support personnel to ensure that they can obtain a much better feeling for what coping with the broker will end up being like when they determine to finance a trading account with genuine cash.

Investors desperate to open up a demonstration trading accounts can typically get around to the site of one or even more forex demonstration brokers and adhere to guidelines shown there for opening up a demo or practise account with the brokers they select.

Selecting the greatest fx demo accounts for your requirements might require critiquing those provided by a number of online brokers with different features in order to make an knowledgeable decision which broker is the best partner for your start.

When starting a demonstration account, you may even require to choose a quantity of virtual money to fund the demonstration accounts with and get into some personal data to determine yourself with.

In case you feel worried about offering your true personal data to a broker you are will to try not really you have more freedom as no documentation is required for this in general, the moment you open a real account your KYC documentation will be needed for compliance and this protects the broker as well as the traders from money laundering and fraud. 

You can also open up a new e-mail account to get communications about the demo forex account if you are concerned about getting your personal email address offered to third celebrations like digital email entrepreneurs.The Advantages and Negatives of Forex Demo Trading

 

Pros of Forex Demonstration Trading Demo_trading_advantages

The two beginner and experienced forex investors regularly make use of demo accounts to rehearse trading currencies and check out a fresh broker or trading strategy.

Some of the more common advantages of interesting in forex demo trading consist of the following:

Observe if You Like Trading Foreign currencies

Those fresh to trading foreign currencies or trading generally can use an fx demo accounts to find if they are psychologically and psychologically appropriate to the bustle of trading forex. Everyone is usually different, and some people might actually appreciate trading currencies, as the activity might not match others’ preferences, personas or lifestyles at all.

Operate Forex without Risk Whilst Learning or teaching how to trade

– Beginners who are still learning how to operate foreign currencies frequently experience substantially even more assured putting their real cash in danger in the marketplace if they have an opportunity to try points away from 1st. A demo account allows them to place their training into practice in a near to actual existence environment without placing their genuine money at risk. This enables those to make common beginner’s mistakes while they find out without needing to spend for the effects out with their very own bank.

Practice Great Cash Administration Methods –

One of the secrets to taking pleasure in long-term success when trading forex requires learning to apply well-established cash administration concepts. A demonstration accounts allows a brand-new or skilled trader to practice such methods completely on true exchange rate actions and see on their own how the common benefits accumulate to their demo account in digital money earnings.

Find out to Control Your Feelings When Trading –

Probably the most difficult elements of trading for many people consists of learning how to control their psychological reactions to earning and shedding deals in such a method that it stimulates overall success. Dealing properly with normally regular mental replies to producing and losing cash – such as dread, avarice and wish – can often differentiate the effective fx investor from the loss.

Check a fresh Trading Technique Without Jeopardizing Actual Money –

Smart experienced traders and beginners as well will generally wish to check the achievement of any new trading technique they arrive plan before applying it in a live trading environment. This kind of enables them to accustom themselves to pursuing the program and also to function out any insects in it that may become obvious while using it as real exchange price movements happen.

Try Out a New Broker’s Trading System –

Unless you are utilizing the Mt4 system that a great deal of on-line forex brokers support, you will most likely want to make use of a demonstration accounts to observe whether a fresh fx broker’s private internet or client structured trading platform is usually ideal for your trading requirements.

Examine if a Fresh Broker Offers Useful Features and Solutions –

Fx Brokers keen to possess you open up a live trading account with them will frequently provide demonstration investors gain access to their unique customer features, educational and information services, and customer support departments. This can be a great method to examine your quality of the broker’s general solutions before carrying out any actual trading money to ensure they are the type of trading partner you will need keeping your accounts.

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Broker news

Donald Trump blasts ‘fools’ who oppose good Russian ties

US President-elect Donald Trump has posted a progression of tweets censuring the individuals who contradict great relations with Russia as “‘dumb’ individuals, or nitwits”.

Mr Trump promised to work with Russia “to comprehend a portion of the numerous… squeezing issues and issues of the WORLD!”

His remarks came after an insight report said Russia’s leader had attempted to help a Trump race triumph.

Mr Trump said Democrats were to be faulted for “gross carelessness” in permitting their servers to be hacked.

In a progression of tweets on Saturday, Mr Trump said that having a decent association with Russia was “no terrible thing” and that “lone “idiotic” individuals, or simpletons, would believe that it is awful!”

He included that Russia would regard the US increasingly when he was president

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