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4 Best Forex Brokers for Energy Trading: 2024 Edition

Looking for the top energy trading broker? Based on our hands-on analysis, we’ve identified 4 best options tailored to various trading needs. Practical tips from our experts are included.

By:
Jitan Solanki
Reviewed By:
Ola Alder
Updated: May 21, 2024

List of Top Energy Trading Brokers

Low trading spreads and access to ECN pricing. DMA IRESS platform for energy stocks. Trading Central and Autochartist plugins. MAM/PAMM accounts.

Competitive trading fees for energy markets. MT4, MT5, AvaWebTrader, AvaTradeGO platforms. Commission-free trading on 1,250+ tradable instruments. Comprehensive platform video tutorials and education.

Unique energy products, including energy options and carbon. Feature-rich and trading platform. 2,800+ financial CFD instruments including energy stocks. Highly regulated allover the world.*

Extensive materials in the eToro Academy. Easy to use copy trading product. Ready-made investments with Smart Portfolios. User-friendly web platform and mobile app.

*80% of retail CFD accounts lose money.

How did FXEmpire select the Best Forex Brokers for Energy Trading?

FXEmpire's Methodology

  • We’ve exclusively chosen brokers with a high overall score in our proprietary broker rating system.
  • We confirmed each broker’s licensing, ensuring robust regulation and client protection.
  • We explored the broker’s tradable instruments to ensure a diverse range of energy products are available to trade on.
  • We checked the broker offers the ability to trade energy commodities using leverage.
  • We opened live trading accounts to examine the broker’s energy trading fees and their competitiveness against the industry average.
  • We tested each broker’s trading platform to determine its user-friendliness and access to energy markets.
  • We conducted a detailed examination of the account types offered to ensure energy markets are available to trade on each one.

Our team of experts has identified each broker’s strengths and weaknesses using FX Empire’s comprehensive methodology. Here’s how we test.

Now let’s go through the selected brokers.

Best Overall

Contracts for Difference (CFDs) are leveraged over-the-counter derivative products and carry a high level of risk to your capital. You should only risk capital that you can afford to lose. In certain circumstances, due to fluctuations in market value you may not get back your initial investment amount. You may not only lose your initial investment but you may incur a liability to pay a further amount to cover losses. This means you can lose more money than you have invested.
  • Min Deposit
    $100
  • Tradable Instruments
    8977
  • Fees
    Low

Established in 2005, FP Markets is a well-regulated broker, boasting oversight from ASIC, CySEC, and FSCA, along with an additional offshore entity. It offers traders a rich selection of over 850 instruments across a wide range of platforms with competitive prices.

Energy Trading Features:

  • Products: Crude Oil, Brent Oil, Natural Gas
  • Fees for WTI Crude Oil: 0.04 pips, Zero Commission
  • Trading Platforms: MT4, MT5, cTrader, IRESS
  • Max. Leverage: 1:10

FP Markets caters to energy market traders with an array of robust platforms, including the popular MT4, MT5, and cTrader, each packed with comprehensive features and superior charting tools. For those looking to expand into shares, FP Markets steps up with its Direct Market Access (DMA) platform, IRESS, which opens the door to an impressive range of over 10,000 share CFDs, with a strong emphasis on energy stocks.

Enhancing the trading experience, FP Markets integrates additional resources like Trading Central’s market insights and the powerful pattern-recognition capabilities of Autochartist. These tools equip traders on MT4 and MT5 with cutting-edge, real-time analysis and trading suggestions, particularly valuable for navigating the dynamic energy markets.

During our live fee test, I found the spread for WTI crude oil during the London and New York trading sessions averaged 0.04 pips, beating the industry average of 0.05 pips for a commission-free trading account.

Pros
  • Multiple trading platforms
  • Competitive spreads
  • DMA platform for energy stocks
  • Trading Central and Autochartist plugins
Cons
  • IRESS platform is not available in all regions

Best Low Spreads

Trading CFDs and FX Options entail risk and could result in the loss of your capital.
  • Min Deposit
    $100
  • Tradable Instruments
    853
  • Fees
    Medium

Established in 2006, AvaTrade has a presence in over 150 countries and obtains stringent regulation by several global authorities like CySEC, ASIC, and Japan’s FSA. It offers traders an extensive suite of over 1,250+ commission-free instruments, including access to five key energy markets along with a diverse array of energy stocks.

Energy Trading Features:

  • Products: Crude Oil, Brent Oil, Heating Oil, Gasoline, Natural Gas
  • Fees for WTI Crude Oil: 0.03 pips, Zero Commission
  • Trading Platforms: MT4, MT5, AvaWebTrader, AvaTradeGo
  • Max. Leverage: 1:10

Our hands-on evaluation of the Standard Account revealed that WTI crude oil spreads averaged just 0.03 pips during peak trading hours in London and New York. This outperforms the industry benchmark, where the average spread for commission-free accounts sits at 0.05 pips.

AvaTrade stands out for its robust selection of energy products, with CFDs on key commodities like crude oil, Brent oil, heating oil, gasoline, and natural gas. With the use of 1:10 leverage, traders have the flexibility to go long or short, magnifying their trading capacity to tenfold their initial deposit.

Beyond commodities, AvaTrade offers a diverse portfolio of energy stocks, including giants like Shell, BP, Chevron, Exxon Mobil, and more, all tradable without commission. Traders can utilize any of AvaTrade’s platforms, including the intuitive AvaWebTrader and the widely-acclaimed MT4 and MT5 platforms.

Pros
  • Wide range of energy markets to trade
  • Competitive energy trading fees
  • Selection of energy stocks
  • Multiple trading platforms
Cons
  • Investor compensation scheme only available in some regions

Best Trading Platform

CFD Service, 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
  • Min Deposit
    $100
  • Tradable Instruments
    2047
  • Fees
    Medium

Launched in 2008, Plus500 is a well-known broker traded on the London Stock Exchange and overseen by authorities like the CySEC and ASIC. Its robust platform boasts a wide selection of over 2,800 CFDs, including newer options like energy and carbon credits, catering to a variety of trading interests.

Energy Trading Features:

  • Products: Crude Oil, Brent Oil, Heating Oil, Gasoline, Low Sulphur Gasoil, Natural Gas, Carbon
  • Fees for WTI Crude Oil: 0.04 pips, Zero Commission
  • Trading Platforms: Plus500 Web
  • Max. Leverage: 1:10

Plus500 stands out for its exceptional variety of energy trading options. Beyond the usual instruments, traders can delve into niche markets like low sulfur gasoil and take positions on carbon emissions with the EUA futures contract. This suite of offerings is arguably one of the most comprehensive in the energy sector.

All of the energy CFDs, options, and stocks can be easily accessed from the Plus500 WebTrader and mobile app, which provide robust charting tools and customized watchlists. The trading ticket also offers a trader sentiment report, showing how many of Plus500s’ clients are long or short in a market. The mobile app has an inbuilt economic calendar that is useful for tracking energy reports.

When it comes to cost-effectiveness, Plus500 scores high marks. Our hands-on assessment revealed that the spread for WTI crude oil clocks in at just 0.04 pips during peak trading hours in London and New York, edging out the typical industry benchmark.

Pros
  • Intuitive web platform and mobile app
  • Diverse range of energy markets
  • Carbon and energy options available
  • Traders sentiment indicator
Cons
  • No phone support

Best for Beginners

51% of retail CFD accounts lose money.
  • Min Deposit
    $50
  • Tradable Instruments
    3705
  • Fees
    High

Established in 2007, eToro leads the pack with the largest social copy trading network globally, making it a prime choice for newcomers to the trading scene. Backed by regulatory heavyweights including the FCA, CySEC, ASIC, and FINRA, eToro not only ensures a secure trading environment but also enriches traders’ knowledge through its comprehensive eToro Academy.

Energy Trading Features:

  • Products: Crude Oil, Brent Oil, Heating Oil, Gasoline, Natural Gas, Carbon
  • Fees for WTI Crude Oil: 0.05 pips, Zero Commission
  • Trading Platforms: eToro Web
  • Max. Leverage: 1:10

eToro provides an extensive range of educational materials tailored for beginner traders. I found a diverse range of articles and video courses covering topics on investing, trading, cryptocurrency, and platform tutorials.

eToro’s platform is user-friendly, and the detailed tutorials available make it even easier for users to explore its full range of features. These guides are particularly helpful for mastering eToro’s signature copy trading services and for understanding how to invest in its curated Smart Portfolios.

For those just dipping their toes in the trading waters, eToro’s copy trading feature is a standout tool. It enables beginners to observe and replicate the moves of seasoned traders directly in their own accounts. This hands-on learning method not only helps to bolster a new trader’s confidence but also serves as a practical learning curve in developing a personal trading strategy.

Our live fee test showed the spread for WTI crude oil averaged 0.05 pips during the London and New York trading sessions. This aligns with the industry average of 0.05 pips for a commission-free trading account.

Pros
  • Robust eToro Academy
  • Copy trading
  • Commission-free trading
  • Ready-made investment portfolios
Cons
  • $10 fee if no activity after 12 months

How did FXEmpire select the Best Forex Brokers for Energy Trading?

Here is a quick guide on how to choose a forex broker for energy trading.

How is the broker regulated?

When trading the energy market, it is crucial to use a regulated broker authorized and licensed by a government’s financial authority. Regulated brokers must adhere to strict rules in handling your money and executing your trades. A breach of these rules will result in fines and the loss of their license. Therefore, trading with a regulated broker is generally the safest option.

However, not all regulated brokers share the same standards. In our broker rating reviews, we classify regulators into three tiers:

Tier-1 regulators like the UK FCA, IIROC, CySEC, and ASIC must legally separate client funds from their own and offer negative balance protection to keep accounts from falling into deficit. These regulators also require brokers to join a compensation scheme, which protects client investments if the broker goes bankrupt. To confirm a broker’s regulatory adherence, review their legal terms and check with the relevant country’s regulatory register.

Find Best FCA-regulated brokers and Best ASIC-regulated brokers.

Tier-2 regulators like DFSA, FMA, and FSCA common in smaller or emerging markets, offer a fair level of investor protection with some enforcement of operational rules and client fund security. However, their oversight is not as strict as Tier-1 regulators. These regulators mandate brokers to meet certain financial standards and might require client fund segregation, though other protective measures such as negative balance protection may not be as stringent.

Tier-3 regulators like VFSC and Bahamas SCB found in jurisdictions with lax oversight, provide minimal investor protection with looser regulations on financial reporting and client fund handling. Their less rigorous framework can lead to weaker enforcement and a higher risk for traders. It’s essential for traders to thoroughly vet brokers regulated by these authorities.

Unregulated brokers operate without financial oversight, offering services without standard investor protections or adherence to financial regulations. Such brokers are not bound to segregate client funds or provide negative balance protection, exposing traders to the risk of losing more than their initial investments. In case of disputes or broker failure, clients have no regulatory body to turn to, facing greater risks without any compensatory mechanisms. Traders should exercise extreme caution, fully understand the risks, and weigh the benefits against the potential drawbacks of trading without regulatory safety measures.

Read more about Best regulated forex brokers.

What fees to consider when choosing a broker?

Trading fees significantly influence your overall profitability. Here are several fees to consider when selecting a broker:

  • Spread: The difference between the buy and sell prices.
  • Commission: A fee charged for buying or selling.
  • Overnight/swaps: Fees related to holding leveraged or margined positions overnight.
  • Payments: Charges associated with deposits and withdrawals.
  • Inactivity: Fees imposed due to no activity within an account.

A broker’s trading fees must be transparent and clearly outlined on their website. If this information is not readily available, it could indicate the broker is concealing crucial details, and it’s advisable to avoid such entities.

A good quality broker will want you to know how fair their fees are and the protections they provide in protecting your capital.

Read more about Best lowest spread forex brokers and Best zero spread forex brokers.

How to choose the best account type?

From my experience, brokers commonly provide a range of one to seven different trading accounts. These account types can differ in the number of tradable instruments, minimum deposit requirements, and the availability of special products. However, the primary contrast between these accounts typically lies in their trading fees.

Trading accounts can generally be categorized into commission-free and commission-based accounts.

  • A commission-free account charges no fees to buy or sell. Instead, most fees are incorporated within the spread, leading to wider spreads on these accounts.
  • A commission-based account charges a fee to buy or sell. This fee allows access to price quotes directly from the interbank market, resulting in narrower spreads.

The selection of a trading account depends on the individual trader’s style. Novice traders may favor a commission-free account due to the costs being integrated into the spread, simplifying risk management decisions. Conversely, short-term traders might opt for a commission-based account to benefit from reduced spreads, enabling precise trade execution.

Learn more about Best ECN forex brokers and Best STP forex brokers.

What is leverage and how does it work?

Leverage is a powerful tool in forex and CFD trading that lets traders hold a large position with a relatively small capital outlay. For instance, with a leverage ratio of 1:30, you could steer a $3,000 position with just $100.

Regulators like the FCA in the UK, CySEC, ASIC, Japan’s FSA, and IIROC cap leverage for retail energy product trading at 1:10 for safer trading environments. However, some offshore and unregulated brokers might tempt you with leverage as high as 1:3000, which comes with a higher risk profile.

Remember, leverage amplifies both profits and losses based on the full value of the trade, not merely the margin. If your account lacks the necessary funds to sustain your position, a margin call may occur, and your trades could be closed automatically, potentially leading to significant losses. Be wary of brokers that offer extremely high leverage, as this can increase the risk of such events.

Explore Best forex brokers with high leverage.

How to choose a suitable trading platform?

A trading platform is your gateway to the global energy market, enabling you to observe real-time market data and execute trades. When choosing a platform, consider the following aspects:

  • Ensure accessibility across desktop, web, and mobile devices.
  • Check for the availability of free, real-time price data.
  • Look for integrated drawing tools and technical indicators.
  • Seek platforms offering tutorials for user understanding.
  • Ensure easy access to customer support.
  • Confirm whether the broker allows third-party integrations.

Below I’m providing a list of some widely used trading platforms.

MetaTrader 4: The ‘go-to’ forex trading platform which has excellent charting capabilities, technical analysis tools, and automated trading features. Read more about best MT4 brokers.

MetaTrader 5: An updated version of MT4 with more indicators, timeframes, and markets. Read more about best MT5 brokers.

cTrader: A platform specifically designed for high-frequency traders and scalpers. Read more about best cTrader brokers.

TradingView: A browser-based social trading platform with advanced research tools and access to global markets. Read more about best TradingView brokers.

In-House Proprietary Software: Some brokers may invest in having their own proprietary trading software.

Check out our dedicated guide on Best forex trading platforms.

How can I trade energy commodities?

Trading commodities can be an exciting and diverse way to engage with the financial markets. Here are some ways you can trade commodities:

  • Spot Trading: This involves buying or selling a commodity for immediate delivery. It’s common for non-perishable commodities like metals, where traders can take physical delivery.
  • Futures Contracts: These are standardized contracts to buy or sell a specific commodity at a predetermined price at a specified time in the future. Futures are traded on regulated exchanges and can be used for hedging or speculation.
  • Options on Futures: These give you the right, but not the obligation, to buy or sell a futures contract at a specific price before a certain date.
  • Commodity ETFs (Exchange-Traded Funds): ETFs that track commodity prices or commodity indices allow you to invest without directly trading the commodities themselves. They can be bought and sold like stocks.
  • Commodity Stocks: Buying stock in companies involved in the production of commodities, such as mining or energy firms, provides indirect exposure to commodity prices.
  • Commodity CFDs (Contracts for Difference): CFDs allow you to speculate on the price movement of commodities without owning the underlying asset. You agree to exchange the difference in price from when the contract is opened to when it is closed.
  • Commodity Mutual Funds: These funds pool money from multiple investors to invest in a diversified portfolio of commodities or commodity-related companies.
  • Physical Commodities: Direct investment by buying and holding a physical commodity, though this is less common for individual investors due to storage and security concerns.

Explore Best commodities trading brokers.

What to avoid when choosing a forex broker for energy trading?

Here are some things to avoid when selecting a forex broker for energy trading:

  • Unregulated Brokers: If an unregulated broker decides to act fraudulently and steal your capital, there are no protections in place to reclaim your capital.
  • Lack of Transparency: If you cannot easily identify a broker’s regulatory status, trading fees, and conditions, it’s a red flag and you should avoid them.
  • No Physical Presence: If a broker does not have a physical office with employees in a well-established region, it’s another red flag that you should avoid.
  • Unrealistic Profit Promises: Brokers that make extravagant promises of substantial profits often lack honesty and may operate without proper regulation.

How to avoid forex and CFD scams?

Unfortunately, the forex and CFD industry are rife with scams. Here are some guidelines to avoid them:

  • Only trade with brokers regulated by well-established financial authorities and verify their licenses through the official regulator’s website.
  • Ensure the broker maintains a physical office in a region governed by a strong and reputable regulatory framework.
  • Check for live customer support for assistance with any concerns or queries.
  • Conduct a background check by examining online news articles and broker reviews.
  • Use payment methods for deposits and withdrawals that you are already acquainted with.
  • Carefully review the broker’s terms and conditions before committing to any agreements.

Our Methodology

We employ a proprietary rating system to assess brokers, analyzing 250 data points across nine key categories, encompassing:

  • Trustworthiness: We verify the brokers’ authorizations and licenses by the respective country’s regulatory body.
  • Fees: We evaluate trading fees by creating live trading accounts and comparing them against industry standards.
  • Trading platform and tools: We test the trading platforms to gauge the range of features and user-friendliness.
  • Tradable instruments: We identify the number of tradable instruments to ensure there is a diverse range available.
  • Customer support: We interact with the customer support team to test the ease of access, knowledge, and helpfulness.
  • Payment methods: We examine the different deposit and withdrawal methods available and their associated fees.
  • Account types: We explore the features and benefits of each account type including execution method, minimum deposits, and more.
  • Research and education: We assess the quality of the broker’s research and educational materials.

Here you can learn more about our review process.

For this guide, we delved into the variety of tradable instruments offered by the brokers to confirm they include a wide array of energy products for trading. Our evaluation also included an assessment of whether brokers facilitate the trading of energy commodities with the use of leverage.

To get a hands-on perspective, we opened live trading accounts to scrutinize the energy trading fees imposed by each broker, benchmarking them against the industry standard to gauge their competitiveness. Additionally, we conducted an in-depth review of the account types each broker offers, ensuring that trading in energy markets is a consistent feature across all available options.

Meet Our Writers

The team of forex and CFD writers and editors at FX Empire is composed of trading industry professionals and seasoned financial journalists. Our writers have been published on leading financial websites such as Investopedia and Forbes. In addition, they all have extensive trading experience.

Get to Know Our Authors

Dan BlystoneBroker Analyst

Dan Blystone began his career in the trading industry in 1998 on the floor of the Chicago Mercantile Exchange. Later Dan gained insight into the forex industry during his time as a Series 3 licenced futures and forex broker. He also traded at a couple of different prop trading firms in Chicago. Dan is well-equipped to recommend the best forex brokers due to his extensive experience and understanding of the brokerage industry.

Jitan SolankiBroker Analyst

Jitan Solanki is a professional trader, market analyst, and educator. He day trades major currency and index markets and focuses on swing trading US equities and commodities. A qualified Market Technician, Jitan also works with trader education and brokerage companies on various projects. These include market analysis, live trading events, and broker reviews. As an experienced trader and educator, Jitan brings all his qualities in action when reviewing and recommending brokers.

Plamen StoyanovBroker Analyst

Having been a retail trader since 2013, Plamen has gained an in-depth understanding of the challenges that novice traders face today. His expertise is swing trading and day trading with a heavy emphasis on psychological and fundamental analysis. Plamen’s favourite trading instruments include FX majors and gold. He earned a Bachelor's degree in Economics and International Relations. Plamen's broad experience has equipped him with the expertise to recommend the best forex brokers.

Vladimir ZernovBroker Analyst

In more than 15 years of trading in the financial markets, Vladimir dealt with a wide range of brokers and financial instruments. His career as a day-trader at a proprietary trading firm goes back to 2007. Later, Vladimir turned to longer time frames and became an independent trader and analyst managing his own portfolio. Using his experience, he helps traders find the best broker in his reviews.

Energy trading involves buying and selling the underlying physical commodities, such as oil, natural gas, heating oil, gasoline, or their derivative contracts, to profit from fluctuations in their prices.
Trading energy CFDs (Contracts for Difference) means speculating on the price movements of energy commodities without actually owning the physical product. Investors enter into contracts to exchange the difference in price from when the trade is entered to when it is exited, with the ability to go long (buy) if they believe prices will rise, or short (sell) if they expect prices to fall.
Energy commodities encompass a range of products, such as major benchmarks like West Texas Intermediate (WTI) and Brent crude oil, natural gas, gasoline, heating oil, and low sulfur gasoil. Additionally, traders can engage with carbon emissions credits, including those from the European Union Emissions Trading Scheme (EU ETS).
Energy commodities can be traded through various methods including futures contracts on exchanges like the NYMEX or ICE, real-time transactions in spot markets, and speculative Contracts for Difference (CFDs). Traders can also gain exposure by investing in energy Exchange-Traded Funds (ETFs), buying equities in energy sector companies, or utilizing options that offer the right to buy or sell at a set price.
Spot prices reflect the current market value of a commodity for immediate delivery, while futures contract prices include expectations about the commodity's future supply and demand, storage costs, and time value. As a result, futures prices can differ significantly from spot prices, often trading at a premium or discount based on market sentiment and projected changes in the commodity's value over time.
Renewable energy sources like wind and solar come from endless natural supplies and are cleaner for the environment. Traditional energy comes from resources like oil and coal that can run out and are generally more harmful to the planet. While you trade traditional energy by dealing with actual amounts or future contracts, renewable energy trading often involves special credits or certificates that show energy was produced in an eco-friendly way.
Common energy trading platforms include MT4, MT5, cTrader, TradeStation, CQG, and others.
Yes, you can trade energy commodities in the United States. The U.S. market provides various avenues for trading energy commodities, such as crude oil, natural gas, gasoline, and heating oil, among others. These trades can be executed on regulated exchanges like NYMEX and CME, using instruments such as futures contracts, options, and ETFs. For retail traders, CFDs on energy commodities are not available due to regulatory restrictions, but futures and ETFs remain popular alternatives for engaging with the energy markets.
Yes, you can trade energy commodities on MetaTrader 4 (MT4), which is one of the most popular trading platforms used by retail forex and CFD traders. Energy commodities, such as oil and natural gas, are commonly available as CFDs on MT4 through various online brokers.
No. Trading energy commodities typically requires access to financial exchanges where these commodities are listed. Individual traders generally cannot access these exchanges directly and must go through intermediaries like brokers. Brokers provide the necessary infrastructure, including trading platforms and access to leverage and liquidity. They act as the bridge between individual traders and the exchanges.

About the Author

Jitan SolankiBroker Analyst

Jitan Solanki is a professional trader, market analyst, and educator. He day trades major currency and index markets and focuses on swing trading US equities and commodities. A qualified Market Technician, Jitan also works with trader education and brokerage companies on various projects. These include market analysis, live trading events, and broker reviews. As an experienced trader and educator, Jitan brings all his qualities in action when reviewing and recommending brokers.

Why you can trust FX Empire

At FXEmpire, we strive to provide unbiased, thorough and accurate broker reviews by industry experts to help our users make smarter financial decisions.

Why you can trust FX Empire

FXEmpire was founded in 2011, making us one of the first forex broker review sites. You can trust FXEmpire because of our thorough and unbiased review process. With over a decade of experience, we have a team of industry experts who conduct rigorous tests to ensure our reviews are accurate and unbiased. Our reviews are designed to bring clarity and confidence to the process of choosing a broker, and are based on objective criteria and measurable data. Our editorial team is composed of trading industry professionals and seasoned financial journalists, who ensure that our reviews are accurate and unbiased. Additionally, our review system is based on 9 core categories and over 250 distinct variables, which ensures that all aspects of a broker are considered before giving a final rating. So, you can trust FXEmpire to provide you with honest and informative reviews that will help you make an informed decision on which broker will best enable you to reach your financial goals.